Lands' End slides as Craig Hallum cuts to 'hold' after Gap's outlook cut

Lands End

22/04/2022 15:40

** Shares of casual clothing retailer  LE.O  down 10.8% to
$14.28, their lowest level since October 2020
    ** Craig Hallum downgrades stock to "hold" from "buy" and
lowers price target by $20 to $15, citing apparel maker Gap
Inc's  GPS.N  quarterly sales outlook cut due to execution
challenges at its Old Navy brand and "macro-economic dynamics"
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    ** Craig Hallum says trends must have deteriorated suddenly
and sharply and likely driven by a slowdown in consumer spending
and not because GPS's Old Navy's spring collection features the
wrong shade of pink
    ** Brokerage says it is already modeling Q1 towards the
lower end of guidance, however believes the sharp and sudden
change in trends for Gap highlights the potential for LE to miss
its Q1 guidance, with risk of further downside if consumer
spending on apparel does not recover quickly
    ** On March 16, LE forecast Q1 loss between 6 cents and 12
cents per share and revenue between $320 mln and $335 mln
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    ** As of last close, stock had fallen 18.5% YTD

 (Reporting by Devik Jain in Bengaluru)
 ((Devik.Jain@thomsonreuters.com; within U.S. +1 646 223 8780;
outside U.S. +91 80 6182 2062; ;))