Lands' End (NASDAQ:LE) just got a major jolt. Shares jumped 18.6% at 10.53am, after Eddie Lampert, who owns 55% of the company, pushed the board to consider a sale, arguing the stock is severely undervalued. Despite operational improvementsbetter inventory management, stronger marginsthe market isn't giving Lands' End the credit it deserves. Lampert believes a sale to a larger retailer with better distribution and marketing muscle could unlock serious value, driving the share price far beyond where it trades today.

• Warning! GuruFocus has detected 5 Warning Signs with LE.

The numbers back him up. Lands' End pulled in $1.36 billion to $1.40 billion in revenue last year, with a solid 47% gross margin. Yet the stock has been stuck in a rut, down nearly 50% from October highs. Lampert sees a path to $2.1 billion in sales over the next five years, with higher margins and AI-driven efficiencies boosting profitability. His estimate? A potential valuation of $5.6 billion, translating to a fair price of around $90 per sharemiles ahead of today's levels.

Here's where it gets interesting: if the board refuses to act, Lampert plans to find a buyer for his stake on his own, setting up a potential power shift. His bet is simpleLands' End belongs inside a bigger retail ecosystem where synergies can be tapped for massive growth. Investors are taking notice. With shares spiking, speculation is growing that a sale could be on the horizon, positioning Lands' End for a major shake-upor a lucrative buyout.