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Land’s End reports Q1 earnings June 1

What's Happening

Catalog retailer Land's End reports its first-quarter results before the market open on June 1. Analysts expect the company to report a loss of three cents per share for the quarter, down from a gain of five cents during the same period last year. The stock has been moving strongly lower, and shares are currently down 25.3% on the year.

Technical Analysis

LE was recently trading at $17.51, down $12.37 from its 12-month high and just $0.83 above its 12-month low. Technical indicators for LE are bearish and the stock is in a strong downward trend. The stock has recent support above $16.70, and has recent resistance below $18.50. Of the two analysts who cover the stock, one rates it a "strong buy", and one rates it a "buy". The stock receives S&P Capital IQ's 2 STARS "Sell" ranking.

Analyst's Thoughts

Land's End has gone through a lot of changes under recently appointed CEO, Federica Marchionni. Marchionni has been at the helm of the struggling catalog retailer for a little over a year, and her stamp on the company's fashion direction has not gone unnoticed, but has yet to really pay dividends. So far, the financial results of the company have not lived up to her bold changes, with the company posting weaker-than-expected results each of the last two quarters. The good news for investors is that expectations are low for the company's first-quarter, and a lot of the bad news has already been priced into the company's stock. Wall Street has already pushed the stock down in anticipation of a quarterly loss, so as long as the actual result is in-line or better than expected the stock should make back some of its recent losses. The retailer sector has had a mixed earnings season, with discount retailers enjoying good results, and traditional retailers showing weakness. This does not bode too well for Land's End, so shareholders should have an exit plan in place just in case the quarterly numbers are weaker than expected.

Stock Only Trade

Bullish Trade

There are no bullish trades we like on the stock at the current time.

Bearish Trade

If you are looking for a bearish hedged option trade on LE, consider a September 22.50/25 bear-call credit spread for a 20-cent credit. That's a potential 8.7% return (28.3% annualized*) and the stock would have to climb 29.6% to cause a problem.

Covered Call Trade

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Originally published on InvestorsObserver.com


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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