Billionaire Edward Lampert Adds New Retailer to Equity Portfolio

Let’s now move on to one of Sears’ castaways, Lands’ End Inc. (NASDAQ:LE). ESL Investments has reduced its stake in the multi-channel retailer by 300,797 shares during the second quarter to 7.65 million shares valued $189.99 million as of June 30. The freshly-appointed CEO of Lands’ End, Federica Marchionni, has formulated a clear plan to revitalize the brand after the spin-off. Lands’ End has been dragged down over the last years by Sears’ sales declines and other challenges, but now the company has the opportunity to inject some dynamism in its business. Federica Marchionni has recently asserted that the company is planning to add new clothing lines, expand its current assortment of apparel, and also add accessories like shoes and handbags to its existing lines. In addition to that, Lands’ End is also planning to find new avenues of business due to the fact that Sears’ issues are not likely to end soon. International expansion might represent another source of growth for the company, considering that 84% of its sales come from the United States. Let’s not forget to mention that Lands’ End Inc. (NASDAQ:LE)’s stock has dropped by 57% since the beginning of 2015. Clint Carlson’s Carlson Capital is bullish on Lands’ End Inc. (NASDAQ:LE) and initiated a stake that contains 938,866 shares during the second quarter.

Lastly, ESL Investments added a new position in The Gap Inc. (NYSE:GPS) during the quarter. Edward Lampert’s fund reported ownership of 2.06 million shares, which are valued at $78.53 million. The company’s stock hasn’t performed way better than the other two discussed above, losing over 18% year-to-date. The Gap, which operates as an apparel retail company worldwide, has recently revealed its July and second quarter sales, posting net sales of $1.12 billion for July, compared to $1.17 billion reported a year ago. Meanwhile, the company’s net sales for the second quarter came at $3.90 billion, down from $3.98 billion reported last year. The Gap will release its quarterly earnings results on August 20, and its expects diluted earnings per share in the range of $0.51 to $0.52. From the pool of 737 hedge funds that we track, Larry Robbins’ Glenview Capital is the largest equity holder in The Gap Inc. (NYSE:GPS) with 5.99 million shares worth $228.81 million, according to its latest 13F.

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