They say that there is usually an opportunity when it comes to spinoffs, and there has been much talk as to if this is the case with the recent spin-off of Lands' End (NASDAQ:LE) from the Sears Holdings (NASDAQ:SHLD) portfolio. In the case of Lands' End, some compelling arguments have been made:
- The company's new-found freedom will give the company the ability and personal resources necessary to grow its business, thus returning performance to historical levels.
- The company can now focus on improving its depressed operating margins, thus creating the opportunity for outsized earnings growth.
- One of the ways the company can grow margins is by getting out of the retail business, where the company currently