Lands’ End (NASDAQ:LE) earnings fell during the year, contributing to a 63% loss for shareholders
This month we saw the Lands’End, Inc. (NASDAQ:LE) up an impressive 36%. But that’s a small comfort given the lackluster price performance over the past year. Meanwhile, the stock price sank like a stone, falling 63%. The rally in the stock price is not so impressive considering the fall. Of course, it could be that the fall was exaggerated.
On a more encouraging note, the company has added US$62 million to its market capitalization in the last 7 days alone, so let’s see if we can work out what caused shareholders to lose a year.
See our latest review for Lands’ End
To paraphrase Benjamin Graham: in the short term, the market is a voting machine, but in the long term, it is a weighing machine. An imperfect but simple way to examine how a company’s market perception has changed is to compare the evolution of earnings per share (EPS) with the movement of the share price.
Unfortunately, Lands’ End reported a 17% decline in EPS for the past year. This reduction in EPS is not as severe as the 63% drop in the share price. So it seems the market was overconfident about the company a year ago.
You can see below how the EPS has evolved over time (find out the exact values by clicking on the image).
We know Lands’ End has improved its results over the past three years, but what does the future hold? Take a closer look at the financial health of Lands’ End with this free report on its balance sheet.
A different perspective
While the wider market lost around 12% in the twelve months, Lands’ End shareholders fared even worse, losing 63%. However, it could simply be that the stock price was impacted by greater market jitters. It might be worth keeping an eye on the fundamentals, in case there is a good opportunity. On the positive side, long-term shareholders made money, gaining 2% per year over half a decade. If fundamentals continue to point to sustainable long-term growth, the current sell-off could be an opportunity to consider. It is always interesting to follow the evolution of the share price over the long term. But to better understand Lands’ End, we need to consider many other factors. Take risks, for example – Lands’ End a 1 warning sign we think you should know.
For those who like to find winning investments this free list of growing companies with recent insider buying, might be just the ticket.
Please note that the market returns quoted in this article reflect the average market-weighted returns of stocks currently trading on US exchanges.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.