Edward “Eddie” Lampert wants Lands’ End to find a buyer.
Lands’ End said on Tuesday that it received a letter from Lampert, its majority shareholder, requesting that it initiate a sale process to maximize shareholder value.
Lands’ End investors approved and pushed shares of the company up 13.1 percent to $12.64 on Tuesday, giving the firm a market capitalization of $391 million. Lampert owns 17.1 million shares of the company, giving him a stake of more than 53.3 percent.
Josephine Linden, chair of the Lands’ End board, said in a statement: “The Lands’ End board of directors welcomes shareholder viewpoints on how best to maximize the value of their investment. The board is reviewing the letter and its suggestions and is committed to pursuing a path that it believes is in the best interests of all Lands’ End shareholders.”
Lands’ End showed improved profitability in the third quarter through its continued focus on product innovation, customer acquisition and reducing price promotions.
The brand narrowed its net loss to $600,000 for the third quarter ended Nov. 1, from a net loss of $112.4 million a year earlier, when results were hit by a noncash goodwill impairment charge of $106.7 million resulting from a decline in the company’s stock price.
Adjusted net income last quarter was $1.8 million, an improvement from an adjusted net loss of $3.6 million a year earlier.
Net revenue decreased slightly to $318.6 million last quarter from $324.7 million. Excluding the impact of transitioning kids and footwear products to licensing arrangements, net revenue increased by low-single digits year-over-year.
Perella Weinberg Partners serves as Lands’ End’s financial adviser and Wachtell, Lipton, Rosen & Katz serves as Lands’ End’s legal adviser.
