Board of Directors
Lands’ End, Inc.
1 Lands’ End Lane
Dodgeville, Wisconsin
Dear Lands’ End Board of Directors:
I believe that the time has come for Lands’ End, Inc. (“Lands’ End” or the “company”) to
unlock meaningful value for its stockholders by pursuing a sale to a buyer capable of paying a substantial premium over the current stock price. As the owner of approximately 55% of the
company’s outstanding common stock—held for over a decade—I am deeply invested in the
success of Lands’ End and firmly believe that a sale represents the best path forward to maximize shareholder value.
First, I would like to convey my admiration of Andrew McLean and the leadership team for
driving significant operational improvements over the past two years. In particular, the
company’s improved gross margins reflect its significant brand value and heritage, while
enhanced inventory management and sourcing strategies have meaningfully increased the
company’s return on investment and accelerated products timelines. These operational successes underscore the company’s resilience and its potential for sustained growth and value creation.
Despite these successes, the company’s stock price has remained stagnant, as the market does not seem to recognize or reward the company’s intrinsic value or future potential. As outlined in Exhibit A, I believe the company has tremendous value that is not reflected in its current market price. In fact, despite strong financial performance and clear operational improvements, the company’s stock is currently trading at around $11 per share, down nearly 50% from $20 per share in October 2024. This decline is not due to a fundamental weakness, but rather a lack of market recognition of the company’s true value. Given this continuing disconnect, I urge the Board to initiate a strategic sale process to maximize value for all shareholders.
A sale to a strategic buyer—one with established distribution and marketing advantages—could significantly accelerate growth and reduce operating costs. For example, a well-capitalized buyer with an extensive retail footprint and online presence could seamlessly integrate the company, leveraging synergies to unlock substantial additional value. I firmly believe that a sales process would yield a price well above the current market value and provide an attractive outcome for all shareholders.
To facilitate a successful process, I am prepared to fully support the company’s efforts in
identifying and engaging with potential buyers, leveraging my experience, industry relationships, and knowledge of the company’s strengths to ensure the best possible outcome. I am committed to working collaboratively with the Board and management to present the company’s value proposition effectively and maximize interest from qualified buyers.
While my strong preference is for a full-company sale that benefits all shareholders, if the Board chooses not to pursue such a process, I intend to independently seek a buyer for my controlling interest at a fair and appropriate price.
I appreciate your time and consideration and look forward to your response.
Sincerely,
Edward S. Lampert
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