Lands’ End
Lands’ End began in 1963 as Lands’ End Yacht Stores, Inc. in Chicago, Illinois. The founder, Gary Comer, was an avid sailor and his store initially sold only yachting supplies and equipment. In 1976, the company began to shift focus to clothing and luggage and from that point on was on the front end of many business, and retail, innovations. In 2002, the company was sold to Sears, Roebuck & Company for 1.9 billion dollars. Earlier in this year Lands’ End spun-off from Sears, Roebuck & Company and became once again a publically traded company.
In reviewing Standard & Poor’s NetAdvantage application the company’s strengths and weaknesses are highlighted. As of 9 November 2014, Lands’ traded at $45.33 after seeing a 52-week high of $50.25. The Price-Earnings Ratio of 17.4 is the lowest compared to its Standard and Poor’s competitors listed competitors, which could either represent undervalued stock or that the represents a weaker value. Lands’ End generated $1.586 billion dollars in revenue for 2013 and is forecasted to generate $1,563 billion dollars in revenue for 2014. As Lands’ End continues to mature, post Sears, Roebuck & Company …show more content…
However, with Sears, Roebuck & Company undergoing massive losses, store reductions and branding challenges Lands’ End faced a degree of failure simply from collateral damage. Completing the spin-off affords Land’s End the ability to strengthen their brand without being jeopardized by the financial turbulence of a parent company. However, Lands’ End must be careful to manage its transitional risk during this time. Mondaq Business Briefing describes this risk as, “Another challenge with any divestiture is managing "transition risk", which is the risk of losing key employees and major customers that are concerned with the potential outcome of the process.” (Corporate Spin-offs, 2013, para.
Lands’ End began in 1963 as Lands’ End Yacht Stores, Inc. in Chicago, Illinois. The founder, Gary Comer, was an avid sailor and his store initially sold only yachting supplies and equipment. In 1976, the company began to shift focus to clothing and luggage and from that point on was on the front end of many business, and retail, innovations. In 2002, the company was sold to Sears, Roebuck & Company for 1.9 billion dollars. Earlier in this year Lands’ End spun-off from Sears, Roebuck & Company and became once again a publically traded company.
In reviewing Standard & Poor’s NetAdvantage application the company’s strengths and weaknesses are highlighted. As of 9 November 2014, Lands’ traded at $45.33 after seeing a 52-week high of $50.25. The Price-Earnings Ratio of 17.4 is the lowest compared to its Standard and Poor’s competitors listed competitors, which could either represent undervalued stock or that the represents a weaker value. Lands’ End generated $1.586 billion dollars in revenue for 2013 and is forecasted to generate $1,563 billion dollars in revenue for 2014. As Lands’ End continues to mature, post Sears, Roebuck & Company …show more content…
However, with Sears, Roebuck & Company undergoing massive losses, store reductions and branding challenges Lands’ End faced a degree of failure simply from collateral damage. Completing the spin-off affords Land’s End the ability to strengthen their brand without being jeopardized by the financial turbulence of a parent company. However, Lands’ End must be careful to manage its transitional risk during this time. Mondaq Business Briefing describes this risk as, “Another challenge with any divestiture is managing "transition risk", which is the risk of losing key employees and major customers that are concerned with the potential outcome of the process.” (Corporate Spin-offs, 2013, para.