Lands’ End, Inc. (NASDAQ: LE) today announced financial results for
the first quarter ended May 3, 2024.
Andrew McLean, Chief Executive Officer, stated,
“Our performance in the first quarter continued the considerable
momentum we generated in 2023 and resulted in an increase in our
Gross Merchandise Value, an increase in gross profit dollars and
significant gross margin expansion. Our value creation strategy,
centered around Lands’ End being the innovative, asset-light
solutions-based brand that’s ready for life’s every journey, is
yielding the operational and financial results we’re targeting and
positioning us well to further build the brand and grow our loyal
customer base.”
First Quarter Financial
Highlights
- Gross Merchandise Value (“GMV”) is total order value of all
merchandise sold to customers through business-to-consumer and
business-to-business channels, as well as the retail value of the
merchandise sold through third party distribution channels. In the
first quarter of 2024, GMV increased low single digits compared to
the first quarter of 2023.
- For the first quarter, Net revenue decreased 7.8% to $285.5
million compared to $309.6 million in the first quarter of fiscal
2023. Excluding the $26.9 million in revenue from the conclusion of
the Delta Air Lines business in the first quarter of fiscal 2023,
Net revenue increased 1.0%.
- Global eCommerce Net revenue was $195.5 million, a decrease of
3.7% from $203.1 million in the first quarter of fiscal 2023.
- Compared to first quarter of fiscal 2023, U.S. eCommerce Net
revenue decreased 4.0% largely driven by a concerted effort to
reduce promotional activity and improved inventory management
compared to the prior year resulting in increased gross profit from
higher gross margins.
- Compared to first quarter of fiscal 2023, International
eCommerce Net revenue decreased 1.7%, primarily driven by a
concerted effort to reduce promotional activity and improved
inventory management compared to the prior year resulting in
increased gross profit from higher gross margins.
- Outfitters Net revenue was $42.7 million for first quarter of
fiscal 2024, a decrease of $31.3 million or 42.3% from $74.0
million during the first quarter of fiscal 2023. The decrease was
primarily driven by the conclusion of the Delta Air Lines contract
in the first quarter of fiscal 2023. Excluding the $26.9 million
decrease in year-over-year revenue from the Delta Air Lines
business, Net revenue for the Outfitters business decreased
9.3%.
- Third Party Net revenue was $37.5 million, an increase of $14.5
million or 62.9% from $23.0 million in the first quarter of fiscal
2023. The increase was primarily due to revenue generated from
licensing arrangements, including $10.5 million of Lands’ End
produced inventory sold to a licensee in connection with the
transition of the Kids business. Online marketplaces saw increased
gross profit from improved gross margin primarily driven by the
expansion of the Company’s strategy to focus on higher quality
sales.
- Gross profit was $139.0 million, an increase of $1.1 million or
0.8% from $137.9 million during the first quarter of fiscal 2023.
Excluding the $12.7 million from the conclusion of the Delta Air
Lines business in the first quarter of fiscal 2023, Gross profit
increased $13.8 million or 11.0% compared to the prior year. Gross
margin increased approximately 410 basis points to 48.7%, compared
to 44.6% in first quarter of fiscal 2023. The gross margin
improvement was primarily driven by leveraging the strength in
product solutions and newness across the channels, lower
promotional activity, reduction in clearance inventory and
improvements in supply chain costs.
- Selling and administrative expenses increased $8.9 million to
$127.4 million or 44.6% of Net revenue, compared to $118.5 million
or 38.3% of Net revenue in first quarter of fiscal 2023. The
approximately 630 basis points increase was driven by deleveraging
from lower revenues and higher digital marketing spend focused on
new customer acquisition.
- Net loss was $6.4 million, or $0.20 loss per diluted share
compared to Net loss of $1.7 million or $0.05 loss per diluted
share in the first quarter of fiscal 2023.
- Adjusted net loss was $6.2 million, or $0.20 loss per diluted
share compared to Adjusted net loss of $1.6 million or $0.05 loss
per diluted share in the first quarter of fiscal 2023.
- Adjusted EBITDA was $11.6 million in the first quarter of
fiscal 2024 compared to $19.5 million in the first quarter of
fiscal 2023. Excluding the $12.6 million from the conclusion of the
Delta Air Lines business in the first quarter of fiscal 2023,
Adjusted EBITDA increased by 68.1%.
First Quarter Business
Highlights:
- Delivered a 410 basis point improvement in gross margin, driven
by new products across the brand, strength in product solutions and
newness across the channels, lower promotional activity and
improved inventory management.
- Achieved the fifth consecutive quarter improvement in inventory
with a year-over-year 23% reduction through improved flow and
productivity.
- New customer acquisition increased high-single digits globally
in the first quarter of fiscal 2024.
Balance Sheet and Cash Flow
Highlights
Cash and cash equivalents were $27.4 million as of
May 3, 2024, compared to $7.3 million as of April 28, 2023.
Inventories, net, was $288.6 million as of May 3,
2024, and $376.1 million as of April 28, 2023. The 23% decrease in
inventory was driven by the actions the Company has taken to
improve inventory efficiency by reducing inventory purchases and
capitalizing on speed-to-market initiatives.
Net cash used in operating activities was $25.8
million for the first quarter of fiscal 2024, compared to $10.8
million for the first quarter of fiscal 2023. The $15.0 million
increase in cash used in operating activities was primarily due to
an increase in Net loss and changes in working capital.
As of May 3, 2024, the Company had $40.0 million
of borrowings outstanding and $133.8 million of availability under
its ABL Facility, compared to $100.0 million of borrowings and
$136.1 million of availability as of April 28, 2023. Additionally,
as of May 3, 2024, the Company had $256.8 million of term loan debt
outstanding compared to $240.6 million outstanding as of April 28,
2023.
During the first quarter of fiscal 2024, the
Company repurchased $1.0 million of the Company’s common stock
under its share repurchase program announced on March 15, 2024. As
of May 3, 2024, additional purchases of up to $24.0 million could
be made under the program through March 31, 2026.
Outlook
Bernie McCracken, Chief Financial Officer, stated,
“The Company’s continued focus on expanding profitability,
including by better managing inventories, which were down 23%
year-over-year, is continuing to generate favorable results which
outperformed our guidance and setting a strong foundation for
future growth. When excluding the impact of the conclusion of the
Delta Air Lines contract in Q1 2023, the Company generated
increases at the top and bottom line in the first quarter, with a
60+% improvement in Adjusted EBITDA.”
For the second quarter of fiscal 2024 the Company
expects:
- Net revenue to be between $290.0 million and $320.0
million.
- Gross Merchandise Value expected to deliver mid to high-single
digits percentage growth.
- Net loss to be between $8.5 million and $6.0 million and
diluted loss per share to be between $0.27 and $0.19.
- Adjusted net loss to be between $4.5 million and $2.0 million
and Adjusted diluted loss per share to be between $0.14 and
$0.06.
- Adjusted EBITDA in the range of $14.0 million to $17.0
million.
For fiscal 2024 the Company now expects:
- Net revenue to be between $1.36 billion and $1.45 billion.
- Gross Merchandise Value expected to deliver low to mid-single
digits percentage growth.
- Net income to be between $2.5 million and $10.0 million and
diluted earnings per share to be between $0.08 and $0.32.
- Adjusted net income to be between $5.5 million and $13.0
million and Adjusted diluted earnings per share to be between $0.18
and $0.41.
- Adjusted EBITDA in the range of $88.0 million to $97.0
million.
- Capital expenditures of approximately $30.0 million.
Conference Call
The Company will host a conference call on
Wednesday, June 5, 2024, at 8:30 a.m. ET to review its first
quarter financial results and related matters. The call may be
accessed through the Investor Relations section of the Company’s
website at http://investors.landsend.com.
About Lands’ End, Inc.
Lands’ End, Inc. (NASDAQ:LE) is a leading digital
retailer of solution-based apparel, swimwear, outerwear,
accessories, footwear, home products and uniforms. Lands’ End
offers products online at www.landsend.com, through third-party
distribution channels, our own Company Operated stores and
third-party license agreements. Lands’ End also offers products to
businesses and schools, for their employees and students, through
the Outfitters distribution channel. Lands’ End is a classic
American lifestyle brand that creates solutions for life’s every
journey.
Forward-Looking Statements
This press release contains forward-looking
statements that involve risks and uncertainties, including
statements regarding the Company’s execution of its value creation
strategy and the intended results of that strategy; the Company’s
achievement of financial results that it is targeting; the
Company’s belief that it is positioned well to further build the
brand and grow its customer base; the Company’s focus on expanding
profitability, including through better inventory management, and
the expected impact of such focus on the Company’s results and
serving to set a strong foundation for future growth; the Company’s
outlook and expectations as to Net revenue, Gross Merchandise
Value, Net income/loss, earnings/loss per share, Adjusted net
income/loss, Adjusted earnings/loss per share and Adjusted EBITDA
for the second quarter of fiscal 2024 and for the full year of
fiscal 2024, and capital expenditures for fiscal 2024; and the
potential for additional purchases under the Company’s share
repurchase program. The following important factors and
uncertainties, among others, could cause actual results to differ
materially from those described in these forward-looking
statements: global supply chain challenges and their impact on
inbound transportation costs and delays in receiving product;
disruption in the Company’s supply chain, including with respect to
its distribution centers, third-party manufacturing partners and
logistics partners, caused by limits in freight capacity, increases
in transportation costs, port congestion, other logistics
constraints, and closure of certain manufacturing facilities and
production lines due to public health crises and other global
economic conditions; the impact of global economic conditions,
including inflation, on consumer discretionary spending; the impact
of public health crises on operations, customer demand and the
Company’s supply chain, as well as its consolidated results of
operation, financial position and cash flows; the Company may be
unsuccessful in implementing its strategic initiatives, or its
initiatives may not have their desired impact on its business; the
Company’s ability to obtain additional financing on commercially
acceptable terms or at all, including, the condition of the lending
and debt markets; the Company’s ability to offer merchandise and
services that customers want to purchase; changes in customer
preference from the Company’s branded merchandise; the Company’s
results may be materially impacted if tariffs on imports to the
United States increase and it is unable to offset the increased
costs from current or future tariffs through pricing negotiations
with its vendor base, moving production out of countries impacted
by the tariffs, passing through a portion of the cost increases to
the customer, or other savings opportunities; customers’ use of the
Company’s digital platform, including customer acceptance of its
efforts to enhance its eCommerce websites, including the Outfitters
website; customer response to the Company’s marketing efforts
across all types of media; the Company’s maintenance of a robust
customer list; the Company’s retail store strategy may be
unsuccessful; the Company’s Third Party channel may not develop as
planned or have its desired impact; the Company’s dependence on
information technology; failure of information technology systems,
including with respect to its eCommerce operations, or an inability
to upgrade or adapt its systems; failure to adequately protect
against cybersecurity threats or maintain the security and privacy
of customer, employee or company information and the impact of
cybersecurity events on the Company; fluctuations and increases in
costs of raw materials as well as fluctuations in other production
and distribution-related costs; impairment of the Company’s
relationships with its vendors; the Company’s failure to compete
effectively in the apparel industry; legal, regulatory, economic
and political risks associated with international trade and those
markets in which the Company conducts business and sources its
merchandise; the Company’s failure to protect or preserve the image
of its brands and its intellectual property rights; increases in
postage, paper and printing costs; failure by third parties who
provide the Company with services in connection with certain
aspects of its business to perform their obligations; the Company’s
failure to timely and effectively obtain shipments of products from
its vendors and deliver merchandise to its customers; reliance on
promotions and markdowns to encourage customer purchases; the
Company’s failure to efficiently manage inventory levels;
unseasonal or severe weather conditions; natural disasters,
political crises or other catastrophic events; the adverse effect
on the Company’s reputation if its independent vendors or licensees
do not use ethical business practices or comply with contractual
obligations, applicable laws and regulations; assessments for
additional state taxes; incurrence of charges due to impairment of
other intangible assets and long-lived assets; the impact on the
Company’s business of adverse worldwide economic and market
conditions, including inflation and other economic factors that
negatively impact consumer spending on discretionary items; the
stock repurchase program may not be executed to the full extent
within its duration, due to business or market conditions or
Company credit facility limitations; the ability of the Company’s
principal stockholders to exert substantial influence over the
Company; and other risks, uncertainties and factors discussed in
the “Risk Factors” section of the Company’s Annual Report on Form
10-K for the fiscal year ended February 2, 2024. The Company
intends the forward-looking statements to speak only as of the time
made and does not undertake to update or revise them as more
information becomes available, except as required by law.
CONTACTS
Lands’ End, Inc. Bernard McCracken Chief Financial
Officer (608) 935-4100
Investor Relations: ICR, Inc. Tom Filandro (646)
277-1235 Tom.Filandro@icrinc.com
-Financial Tables Follow-
LANDS’ END, INC. Condensed Consolidated
Balance Sheets (Unaudited) |
|
|
|
|
|
|
|
|
|
|
(in thousands, except per share data) |
|
May 3, 2024 |
|
|
April 28, 2023 |
|
|
February 2, 2024* |
|
ASSETS |
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
27,350 |
|
|
$ |
7,332 |
|
|
$ |
25,314 |
|
Restricted cash |
|
|
2,489 |
|
|
|
2,149 |
|
|
|
1,976 |
|
Accounts receivable, net |
|
|
34,664 |
|
|
|
38,759 |
|
|
|
35,295 |
|
Inventories, net |
|
|
288,629 |
|
|
|
376,062 |
|
|
|
301,724 |
|
Prepaid expenses and other current assets |
|
|
51,889 |
|
|
|
45,743 |
|
|
|
45,951 |
|
Total current assets |
|
|
405,021 |
|
|
|
470,045 |
|
|
|
410,260 |
|
Property and equipment, net |
|
|
113,286 |
|
|
|
126,397 |
|
|
|
118,033 |
|
Operating lease right-of-use asset |
|
|
22,286 |
|
|
|
31,878 |
|
|
|
23,438 |
|
Goodwill |
|
|
— |
|
|
|
106,700 |
|
|
|
— |
|
Intangible asset |
|
|
257,000 |
|
|
|
257,000 |
|
|
|
257,000 |
|
Other assets |
|
|
2,514 |
|
|
|
3,174 |
|
|
|
2,748 |
|
TOTAL ASSETS |
|
$ |
800,107 |
|
|
$ |
995,194 |
|
|
$ |
811,479 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
13,000 |
|
|
$ |
13,750 |
|
|
$ |
13,000 |
|
Accounts payable |
|
|
108,287 |
|
|
|
110,097 |
|
|
|
131,922 |
|
Lease liability – current |
|
|
5,628 |
|
|
|
5,533 |
|
|
|
6,024 |
|
Accrued expenses and other current liabilities |
|
|
92,181 |
|
|
|
88,216 |
|
|
|
108,972 |
|
Total current liabilities |
|
|
219,096 |
|
|
|
217,596 |
|
|
|
259,918 |
|
Long-term borrowings under ABL Facility |
|
|
40,000 |
|
|
|
100,000 |
|
|
|
— |
|
Long-term debt, net |
|
|
233,087 |
|
|
|
220,786 |
|
|
|
236,170 |
|
Lease liability – long-term |
|
|
21,873 |
|
|
|
32,335 |
|
|
|
22,952 |
|
Deferred tax liabilities |
|
|
48,620 |
|
|
|
45,863 |
|
|
|
48,020 |
|
Other liabilities |
|
|
2,830 |
|
|
|
3,330 |
|
|
|
2,826 |
|
TOTAL LIABILITIES |
|
|
565,506 |
|
|
|
619,910 |
|
|
|
569,886 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
Common stock, par value $0.01 authorized: 480,000 shares; issued
and outstanding: 31,407, 32,460 and 31,433, respectively |
|
|
314 |
|
|
|
325 |
|
|
|
315 |
|
Additional paid-in capital |
|
|
356,871 |
|
|
|
362,285 |
|
|
|
356,764 |
|
(Accumulated deficit) Retained earnings |
|
|
(106,002 |
) |
|
|
29,615 |
|
|
|
(99,417 |
) |
Accumulated other comprehensive loss |
|
|
(16,582 |
) |
|
|
(16,941 |
) |
|
|
(16,069 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
|
|
234,601 |
|
|
|
375,284 |
|
|
|
241,593 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
800,107 |
|
|
$ |
995,194 |
|
|
$ |
811,479 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Derived from the audited consolidated financial
statements included in the Company’s Annual Report on Form 10-K for
the fiscal year ended February 2, 2024.
LANDS’ END, INC. Condensed Consolidated
Statements of Operations (Unaudited) |
|
|
|
|
|
|
|
13 Weeks Ended |
|
(in thousands, except per share data) |
|
May 3, 2024 |
|
|
April 28, 2023 |
|
Net revenue |
|
$ |
285,471 |
|
|
$ |
309,558 |
|
Cost of sales (exclusive of depreciation and amortization) |
|
|
146,491 |
|
|
|
171,621 |
|
Gross profit |
|
|
138,980 |
|
|
|
137,937 |
|
|
|
|
|
|
|
|
Selling and administrative |
|
|
127,401 |
|
|
|
118,514 |
|
Depreciation and amortization |
|
|
9,005 |
|
|
|
9,301 |
|
Other operating expense, net |
|
|
341 |
|
|
|
202 |
|
Operating income |
|
|
2,233 |
|
|
|
9,920 |
|
Interest expense |
|
|
10,336 |
|
|
|
12,283 |
|
Other (income), net |
|
|
(88 |
) |
|
|
(187 |
) |
Loss before income taxes |
|
|
(8,015 |
) |
|
|
(2,176 |
) |
Income tax benefit |
|
|
(1,573 |
) |
|
|
(524 |
) |
NET LOSS |
|
$ |
(6,442 |
) |
|
$ |
(1,652 |
) |
NET LOSS PER COMMON SHARE |
|
|
|
|
|
|
Basic: |
|
$ |
(0.20 |
) |
|
$ |
(0.05 |
) |
Diluted: |
|
$ |
(0.20 |
) |
|
$ |
(0.05 |
) |
|
|
|
|
|
|
|
Basic weighted average common shares outstanding |
|
|
31,439 |
|
|
|
32,443 |
|
Diluted weighted average common shares outstanding |
|
|
31,439 |
|
|
|
32,443 |
|
|
|
|
|
|
|
|
|
|
Definitions, Reconciliations and Uses of
Non-GAAP Financial Measures
In addition to our Net income (loss) determined
in accordance with GAAP, for purposes of evaluating operating
performance, we report the following non-GAAP measures: Adjusted
net income (loss) and Adjusted EBITDA. Adjusted net income (loss)
is also expressed on a diluted per share basis.
We believe presenting non-GAAP financial
measures provides useful information to investors, allowing them to
assess how the business performed excluding the effects of
significant non-recurring or non-operational amounts. We believe
the use of the non-GAAP financial measures facilitates comparing
the results being reported against past and future results by
eliminating amounts that we believe are not comparable between
periods and assists investors in evaluating the effectiveness of
our operations and underlying business trends in a manner that is
consistent with management’s own methods for evaluating business
performance.
Our management uses Adjusted net income (loss)
and Adjusted EBITDA to evaluate the operating performance of our
business for comparable periods and to discuss our business with
our Board of Directors, institutional investors and other market
participants. Adjusted EBITDA is also used as the basis for a
performance measure used in executive incentive compensation.
The methods we use to calculate our non-GAAP
financial measures may differ significantly from methods other
companies use to compute similar measures. As a result, any
non-GAAP financial measures presented herein may not be comparable
to similar measures provided by other companies. Adjusted net
income (loss) and Adjusted EBITDA should not be used by investors
or other third parties as the sole basis for formulating investment
decisions as these measures may exclude a number of important cash
and non-cash recurring items.
Adjusted net income (loss) is defined as net
income (loss) excluding significant non-recurring or
non-operational items as set forth below. Adjusted net income
(loss) is also presented on a diluted per share basis. While
Adjusted net income (loss) is a non-GAAP measurement, management
believes that it is an important indicator of operating performance
and useful to investors.
- Other significant non-recurring or non-operational items, while
periodically affecting our results, may vary significantly from
period to period and have a disproportionate effect in a given
period, which affects comparability of results and are described
below:
- For the 13 weeks ended May 3, 2024, we excluded the severance
and benefit costs associated with reduction in corporate
positions.
- For the 13 weeks ended April 28, 2023, we excluded the closing
costs, net of other operating income, recorded for the Lands’ End
Japan closure.
The following table sets forth, for the periods
indicated, a reconciliation of Net loss to Adjusted net loss and
Adjusted diluted net loss per share:
|
|
|
|
Unaudited |
|
13 Weeks Ended |
|
(in thousands, except per share amounts) |
|
May 3, 2024 |
|
|
April 28, 2023 |
|
Net loss |
|
$ |
(6,442 |
) |
|
$ |
(1,652 |
) |
Corporate restructuring |
|
|
342 |
|
|
|
— |
|
Lands’ End Japan closure |
|
|
— |
|
|
|
76 |
|
Tax effects on adjustments (1) |
|
|
(87 |
) |
|
|
(19 |
) |
ADJUSTED NET LOSS |
|
$ |
(6,187 |
) |
|
$ |
(1,595 |
) |
ADJUSTED DILUTED NET LOSS PER SHARE |
|
$ |
(0.20 |
) |
|
$ |
(0.05 |
) |
|
|
|
|
|
|
|
Diluted weighted average common shares outstanding |
|
|
31,439 |
|
|
|
32,443 |
|
|
|
|
|
|
|
|
|
|
(1) The tax impact of
adjustments is calculated at the applicable U.S. and non-U.S.
Federal and State statutory rates.
While Adjusted EBITDA is a non-GAAP measurement,
management believes that it is an important indicator of operating
performance, and is useful to investors, because EBITDA excludes
the effects of financings, investing activities and tax structure
by eliminating the effects of interest, depreciation and income
tax.
- Other significant items, while periodically affecting our
results, may vary significantly from period to period and have a
disproportionate effect in a given period, which affects
comparability of results and are described below:
- For the 13 weeks ended May 3, 2024, we excluded the severance
and benefit costs associated with reduction in corporate
positions.
- For the 13 weeks ended April 28, 2023, we excluded the closing
costs, net of other operating income, for the Lands’ End Japan
closure.
- For the 13 weeks ended May 3, 2024 and April 28, 2023, we
excluded the respective net gain or loss on disposal of property
and equipment.
- For the 13 weeks ended April 28, 2023, we excluded the
amortization of transaction related costs associated with the Third
Party distribution channel.
The following table sets forth, for the periods
indicated, selected income statement data, both in dollars and as a
percentage of Net revenue and a reconciliation of Net loss to
Adjusted EBITDA:
|
Unaudited |
|
13 Weeks Ended |
|
(in thousands) |
|
May 3, 2024 |
|
|
April 28, 2023 |
|
Net loss |
|
$ |
(6,442 |
) |
|
|
(2.3 |
)% |
|
$ |
(1,652 |
) |
|
|
(0.5 |
)% |
Income tax
benefit |
|
|
(1,573 |
) |
|
|
(0.6 |
)% |
|
|
(524 |
) |
|
|
(0.2 |
)% |
Other
(income), net |
|
|
(88 |
) |
|
|
(0.0 |
)% |
|
|
(187 |
) |
|
|
(0.1 |
)% |
Interest
expense |
|
|
10,336 |
|
|
|
3.6 |
% |
|
|
12,283 |
|
|
|
4.0 |
% |
Operating
income |
|
|
2,233 |
|
|
|
0.8 |
% |
|
|
9,920 |
|
|
|
3.2 |
% |
Depreciation
and amortization |
|
|
9,005 |
|
|
|
3.2 |
% |
|
|
9,301 |
|
|
|
3.0 |
% |
Corporate
restructuring |
|
|
342 |
|
|
|
0.1 |
% |
|
|
— |
|
|
|
— |
% |
Lands’ End
Japan closure |
|
|
— |
|
|
|
— |
% |
|
|
76 |
|
|
|
0.0 |
% |
(Gain) loss
on disposal of property and equipment |
|
|
(1 |
) |
|
|
(0.0 |
)% |
|
|
123 |
|
|
|
0.0 |
% |
Other |
|
|
— |
|
|
|
— |
% |
|
|
94 |
|
|
|
0.0 |
% |
Adjusted EBITDA |
|
$ |
11,579 |
|
|
|
4.1 |
% |
|
$ |
19,514 |
|
|
|
6.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter Fiscal 2024 Guidance Adjusted
EBITDA |
13 Weeks Ended |
|
(in
millions) |
August 2, 2024 |
|
Net loss |
$ |
(8.5 |
) |
— |
$ |
(6.0 |
) |
Depreciation, interest, other income, taxes and other significant
items |
|
22.5 |
|
— |
|
23.0 |
|
Adjusted
EBITDA |
$ |
14.0 |
|
— |
$ |
17.0 |
|
Second Quarter Fiscal 2024 Guidance Adjusted Net Loss and
Adjusted Diluted Loss per Share |
13 Weeks Ended |
|
(in
millions) |
August 2, 2024 |
|
Net loss |
$ |
(8.5 |
) |
— |
$ |
(6.0 |
) |
Restructuring and other significant items |
|
4.0 |
|
— |
|
4.0 |
|
Adjusted net
loss |
$ |
(4.5 |
) |
— |
$ |
(2.0 |
) |
|
|
|
|
|
|
Adjusted
diluted loss per share |
$ |
(0.14 |
) |
— |
$ |
(0.06 |
) |
Fiscal 2024 Guidance Adjusted EBITDA |
52 Weeks Ended |
|
(in
millions) |
January 31, 2025 |
|
Net income |
$ |
2.5 |
|
— |
$ |
10.0 |
|
Depreciation, interest, other income, taxes and other significant
items |
|
85.5 |
|
— |
|
87.0 |
|
Adjusted
EBITDA |
$ |
88.0 |
|
— |
$ |
97.0 |
|
Fiscal 2024 Guidance Adjusted Net Income and Adjusted
Diluted Earnings per Share |
52 Weeks Ended |
|
(in
millions) |
January 31, 2025 |
|
Net income |
$ |
2.5 |
|
— |
$ |
10.0 |
|
Restructuring and other significant items |
|
3.0 |
|
— |
|
3.0 |
|
Adjusted net
income |
$ |
5.5 |
|
— |
$ |
13.0 |
|
|
|
|
|
|
|
Adjusted
diluted earnings per share |
$ |
0.18 |
|
— |
$ |
0.41 |
|
|
|
|
|
|
|
|
|
LANDS’ END,
INC. Condensed Consolidated
Statements of Cash Flows
(Unaudited) |
|
|
|
|
|
|
13 Weeks Ended |
|
(in thousands) |
|
May 3, 2024 |
|
|
April 28, 2023 |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
Net
loss |
|
$ |
(6,442 |
) |
|
$ |
(1,652 |
) |
Adjustments
to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
Depreciation and amortization |
|
|
9,005 |
|
|
|
9,301 |
|
Amortization of debt issuance costs |
|
|
667 |
|
|
|
815 |
|
(Gain)/loss on disposal of property and equipment |
|
|
(1 |
) |
|
|
123 |
|
Stock-based compensation |
|
|
1,226 |
|
|
|
1,083 |
|
Deferred income taxes |
|
|
398 |
|
|
|
(112 |
) |
Other |
|
|
(199 |
) |
|
|
(193 |
) |
Change in operating assets and liabilities: |
|
|
|
|
|
|
Accounts receivable, net |
|
|
553 |
|
|
|
6,244 |
|
Inventories, net |
|
|
12,762 |
|
|
|
49,604 |
|
Accounts payable |
|
|
(21,257 |
) |
|
|
(57,050 |
) |
Other operating assets |
|
|
(5,989 |
) |
|
|
(335 |
) |
Other operating liabilities |
|
|
(16,538 |
) |
|
|
(18,583 |
) |
Net cash used in operating activities |
|
|
(25,815 |
) |
|
|
(10,755 |
) |
CASH
FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
Sales of property and equipment |
|
|
5 |
|
|
|
— |
|
Purchases of property and equipment |
|
|
(6,736 |
) |
|
|
(12,384 |
) |
Net cash used in investing activities |
|
|
(6,731 |
) |
|
|
(12,384 |
) |
CASH
FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
Proceeds from borrowings under ABL Facility |
|
|
49,000 |
|
|
|
83,000 |
|
Payments of borrowings under ABL Facility |
|
|
(9,000 |
) |
|
|
(83,000 |
) |
Payments on term loan |
|
|
(3,250 |
) |
|
|
(3,438 |
) |
Payments of debt issuance costs |
|
|
(528 |
) |
|
|
— |
|
Payments for taxes related to net share settlement of equity
awards |
|
|
(249 |
) |
|
|
(1,199 |
) |
Purchases and retirement of common stock |
|
|
(1,014 |
) |
|
|
(3,781 |
) |
Net cash provided by (used in) financing activities |
|
|
34,959 |
|
|
|
(8,418 |
) |
Effects of
exchange rate changes on cash, cash equivalents and restricted
cash |
|
|
136 |
|
|
|
(353 |
) |
NET
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND
RESTRICTED CASH |
|
|
2,549 |
|
|
|
(31,910 |
) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH,
BEGINNING OF PERIOD |
|
|
27,290 |
|
|
|
41,391 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF
PERIOD |
|
$ |
29,839 |
|
|
$ |
9,481 |
|
SUPPLEMENTAL CASH FLOW DATA |
|
|
|
|
|
|
Unpaid liability to acquire property and equipment |
|
$ |
1,480 |
|
|
$ |
5,738 |
|
Income taxes paid |
|
$ |
340 |
|
|
$ |
1,315 |
|
Interest paid |
|
$ |
10,983 |
|
|
$ |
13,164 |
|
Operating lease right-of-use-assets obtained in exchange for lease
liabilities |
|
$ |
— |
|
|
$ |
2,539 |
|
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