Back to top

Image: Shutterstock

Factors Likely to Influence Land End (LE) Q1 Earnings

Read MoreHide Full Article

Lands' End, Inc. (LE - Free Report) is likely to witness a decline in the top and bottom lines from the year-ago fiscal quarter’s readings when it reports first-quarter fiscal 2023 numbers on Jun 1, before market open. The Zacks Consensus Estimate for revenues is pegged at $302.4 million, suggesting a 0.4% fall from the prior-year fiscal quarter’s reported figure.

The Zacks Consensus Estimate for quarterly loss is currently pegged at 11 cents a share, indicating a 57.1% plunge from the year-ago fiscal period’s tally. The consensus estimate has been stable over the past 30 days.

This clothing, accessories, footwear and home products retailer has a trailing four-quarter negative earnings surprise of 134%, on average.

Lands' End, Inc. Price, Consensus and EPS Surprise

Lands' End, Inc. Price, Consensus and EPS Surprise

Lands' End, Inc. price-consensus-eps-surprise-chart | Lands' End, Inc. Quote

Key Factors to Note

Lands' End’s quarterly results might have been hurt by the impacts of a challenging macro environment. Inflationary pressures on consumer discretionary spending remain deterrents. These along with any deleverage in cost of sales and other expenses might have hurt LE’s profitability in the quarter under review.

On its last earnings call, management had cited that inventory levels will be normalized in the first quarter. The company envisioned revenues of $295-$3100 million and loss per share in the range of 9-15 cents for the fiscal first quarter. It had projected an adjusted EBITDA of $13-$16 million for the to-be-reported quarter.

On the flip side, management highlighted that the global supply-chain issue has been normalized, which is likely to have brought the inventory back to normal levels. Also, the company’s e-commerce business and brand strength appear encouraging. We note that enhanced data analytics capabilities, consumer-centric approach, product initiatives, technological advancements and brand awareness are expected to have positively impacted the to-be-reported quarter.

What the Zacks Model Unveils

Our proven model does not conclusively predict an earnings beat for Lands' End this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Currently, Lands' End carries a Zacks Rank of 3 and has an Earnings ESP of 0.00%.

Stocks With Favorable Combination

Here are three other companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in the upcoming releases:

Abercrombie & Fitch (ANF - Free Report) currently has an Earnings ESP of +58.82% and sports a Zacks Rank of 1. The company is likely to register top- and bottom-line growth when it reports second-quarter fiscal 2023 results on Aug 24. The consensus mark for ANF’s quarterly revenues is pegged at $847.5 million, which suggests growth of 5.3% from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for ANF’s earnings have moved up by 10 pennies to 6 cents per share in the past 30 days. Also, the consensus estimate indicates 120% growth from the figures reported in the year-ago quarter.

The Gap currently has an Earnings ESP of +40.87% and a Zacks Rank of 3. The company is likely to register bottom-line growth when it reports second-quarter fiscal 2023 results on Aug 24. The consensus mark for GPS’ quarterly revenues is pegged at $3.7 billion, which suggests 5.4% decline from the figure reported in the prior-year quarter.

The consensus mark for GPS’ quarterly earnings has declined by a penny in the past 30 days to 19 cents per share. However, the consensus estimate suggests growth of 137.5% from the year-ago quarter.

Wayfair (W - Free Report) currently has an Earnings ESP of +10.27% and a Zacks Rank of 3. The company is likely to register bottom-line growth when it reports second-quarter fiscal 2023 results on Aug 3. The consensus mark for W’s quarterly revenues is pegged at $3.03 billion, which suggests a decline of 7.7% from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for W’s earnings has remained constant at 79 cents per share in the past seven days. The consensus estimate indicates 59.3% growth from the figures reported in the year-ago quarter.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Abercrombie & Fitch Company (ANF) - free report >>

Lands' End, Inc. (LE) - free report >>

Wayfair Inc. (W) - free report >>

Published in