LE - Lands' End dips after downgraded to Hold at Craig-Hallum citing declining trend in consumer spending

Lands' End (NASDAQ:LE) slips after Craig-Hallum downgraded the stock to Hold from Buy with a price target of $15, down from $35. This downgrades comes after Gap (GPS) substantially lowered its Q1 outlook. Analyst Alex Fuhrman believes trends must have deteriorated suddenly and sharply for Gap, and given the size of its portfolio he is inclined to think that such a sudden slowdown is likely driven by consumer spending, not because Old Navy's "spring collection features the wrong shade of pink," said Fuhrman. He thinks Lands' End has executed well over the past few years, but is "certainly not immune to broader economic trends." Gap (GPS) now sees Q1 sales falling at a low- to mid-teens clip vs. prior guidance for mid- to high-single-digit declines due to execution challenges with the Old Navy business. Shares of Gap (GPS) touched a new 52-week low of $11.07 early in the Friday session. LE stocks rated

For further details see:

Lands' End dips after downgraded to Hold at Craig-Hallum citing declining trend in consumer spending