LELands' End, Inc.
Is the business good?
The checks split: elite returns on assets, but margins compressing.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 37% = margin × turnover × leverage.
All from derived.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is LE?
Lands' End, Inc. earns 1.1% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 7.9 points below what the capital costs: growth destroys value
- Operating margin
- 0.58%
Operating margin · Apparel Retail median 8.0% · 12 months to Q2 2026
- Share count, year on year
- −2.1%
Share count, year on year · bought back, each share owns more of the company
- Gross margin
- 56%
Gross margin
| Year | Operating margin |
|---|---|
| FY2020 | 2.9% |
| FY2021 | 4.9% |
| FY2022 | 1.9% |
| FY2023 | −6.0% |
| FY2024 | 4.4% |
| FY2025 | 3.8% |
Details›
- Gross margin12 months to Q2 2026
- 56%
- Operating margin12 months to Q2 2026
- 0.58%
- Net margin12 months to Q2 2026
- 30%
- Free cash flow margin
- −6.4%
- Revenue, trailing twelve months
- $1.15B
- Free cash flow, trailing twelve months
- −$73M
- Net income, trailing twelve months
- $352M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 1.1%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.