We are reiterating our Buy rating, $20 price target and projections for Lands’ End after reviewing the August catalog. August represents the “In Between” period between Summer and Fall for Lands’ End, allowing the company to offer a last hurrah to swimwear, and begin to flow in Fall goods, with an emphasis on shirting (“Beyond Buttondown”), new denim bottoms, the first hints of outerwear and dresses and a focus on lifestyle fabrics (such as chinos and knit bottoms). Further, the product looks have continued to expand to bolder, two page spreads and a deeper focus on lifestyle driven combinations. We believe the August catalog is a key hint for an increased focus on lifestyle looks for Fall, which we expect to fully debut with the September catalog.
