Shaun Currie, CFA
Long/short equity, hedge fund analyst, momentum

Lands' End: An Overvalued Retailer With More Downside Ahead

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:

  1. 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.
  2. The company can now focus on improving its depressed operating margins, thus creating the opportunity for outsized earnings growth.
  3. One of the ways the company can grow margins is by getting out of the retail business, where the company currently
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