Lands’ End attracts bids from Authentic Brands, WHP Global, sources say
02/07/2025 18:19
Lands' End exploring strategic alternatives, including sale Trump's tariffs impact Lands' End, complicate M&A environment Lands' End shares down 12% YTD, market value around $385 million Updates with background on the company and M&A market throughout By Abigail Summerville July 2 (Reuters) - All-American clothing retailer Lands’ End LE.O, which signaled interest in a sale in March, has attracted bids from Reebok owner Authentic Brands Group and Toys"R"Us owner WHP Global, according to two people familiar with the matter. Known more for its durable, high-functioning clothing than for high-end fashion, the company was struggling before U.S. President Donald Trump's trade war exacerbated troubles for retailers like Lands' End that manufacture a lot of their products in Asia. The company announced in March that it was exploring different strategic alternatives, including a potential sale, to maximize value for shareholders. Lands’ End, WHP and Authentic declined to comment. Trump's tariffs and geopolitical tensions have roiled markets and hindered mergers and acquisitions so far this year, but dealmakers are optimistic about signing more transactions in the second half of the year. Some apparel and footwear companies already clinched deals, despite the tricky M&A environment, with investment firm 3G Capital agreeing to take Skechers private, Dick's Sporting Goods announcing an acquisition of Foot Locker, and Authentic agreeing to buy Dockers from Levi Strauss & Co earlier this year. Last year, Lands' End laid off 10% of its corporate workforce to be more agile as it sought to improve inventory, sell more products at full price and reduce promotional activity. Founded in 1963 as a mail-order yacht supply company, Lands' End has become a major U.S. lifestyle and clothing brand. Department store chain Sears owned Lands’ End from 2002 to 2014 when it spun it off as a publicly traded company. Lands' End, which sells most of its goods online, has faced a slowdown in demand for its classic lifestyle outfits that include swimwear, outerwear, accessories and footwear. Brand management firms like Authentic and WHP typically buy a brand's IP and then license it to operating partners that have the manufacturing, design and sales responsibilities. Lands' End shares have declined around 12% year-to-date and were trading at around $12 in intraday trading Wednesday, giving it a market value of roughly $385 million. (Reporting by Abigail Summerville in New York; Editing by Dawn Kopecki, Chizu Nomiyama and Lisa Shumaker) ((abigail.summerville@thomsonreuters.com))