We are reiterating our Buy rating, projections and $20 price target for Lands’ End after reviewing the June catalog. Swimwear remains the key driver, representing 50% of the June catalog, with the swimwear category retaining its page levels from last month despite a 20% reduction in total catalog pages. Lands’ End has also continued to take the next key steps in their journey to a true lifestyle brand in June, with an expanded focus on dresses, multiple new bottoms in an increasing array of fabrics, and the ability to create the custom tote of their dreams. Further, we are seeing a deepening emphasis on embroidery and personalization, key assets Lands’ End leverages throughout their offerings to create a truly customized look. As such, we believe Lands’ End remains a key Summer winner and reiterate our Buy rating and $20 price target on LE.
