Lands' End, Inc 8-K, filed Sep 5, 2024
Lands' End, Inc. (LE)
About this 8-K
Lands' End, Inc filed this 8-K on September 5, 2024.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On September 5, 2024, Lands’ End, Inc. (the “Company”) announced its financial results for its second quarter ended August 2, 2024. A copy of the Company’s press release containing this information is being furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference to such filing. The information in this Item 2.02, including Exhibit 99.1 hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number |
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Description |
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Press Release of Lands’ End, Inc. dated September 5, 2024 |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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LANDS’ END, INC. |
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Date: |
September 5, 2024 |
By: |
/s/ Bernard McCracken |
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Name: Bernard McCracken |
Exhibit 99.1
Lands’ End Announces Second Quarter 2024 Results
Gross Margin increased approximately 470 basis points compared to the Second Quarter last year
Improved across all profitability measures compared to Second Quarter last year
Achieved the sixth consecutive quarter improvement in inventory
Raises full year profit guidance
DODGEVILLE, Wis., September 5, 2024 (GLOBE NEWSWIRE) – Lands’ End, Inc. (NASDAQ: LE) today announced financial results for the second quarter ended August 2, 2024.
Andrew McLean, Chief Executive Officer, stated, “Our robust second quarter results continue to prove our solutions-based strategy is working. A focus on innovation across our business is evolving the Lands’ End brand and assortment, attracting new customers and further improving our supply chain and inventory position. These achievements highlight our dedication to driving growth and efficiency while delivering value to our customers and shareholders.”
Second Quarter Financial Highlights
Second Quarter Business Highlights:
Balance Sheet and Cash Flow Highlights
Cash and cash equivalents were $25.6 million as of August 2, 2024, compared to $26.6 million as of July 28, 2023.
Inventories, net, was $312.0 million as of August 2, 2024, and $396.1 million as of July 28, 2023. The 21% decrease in inventory was driven by actions the Company has taken to improve inventory efficiency by reducing inventory purchases and capitalizing on speed-to-market initiatives.
Net cash provided by operating activities was $4.9 million for the 26 weeks ended August 2, 2024, compared to $54.8 million for the 26 weeks ended July 28, 2023. Through our concerted efforts to decrease inventory levels during 2023, we provided cash of $30.4 million through the end of the second quarter 2023. We have maintained our lower inventory level realized at the end of fiscal year 2023 through efficient inventory management and therefore we used cash of $10.3 million through the end of the second quarter 2024.
As of August 2, 2024, the Company had $20.0 million of borrowings outstanding and $117.5 million of availability under its ABL Facility, compared to $70.0 million of borrowings and $128.8 million of availability as of July 28, 2023. Additionally, as of August 2, 2024, the Company had $253.5 million of term loan debt outstanding compared to $237.2 million outstanding as of July 28, 2023.
During the second quarter of fiscal 2024, the Company repurchased $3.7 million of the Company’s common stock under its share repurchase program announced on March 15, 2024. As of August 2, 2024, additional purchases of up to $20.3 million could be made under the program through March 31, 2026.
Outlook
Bernie McCracken, Chief Financial Officer, stated, “We are pleased with our performance during the quarter, which resulted in Net revenue and Adjusted EBITDA at the high end of our guidance range and strong growth in Gross Merchandise Value. Additionally, our deliberate efforts to prioritize profitability and balance sheet efficiency is evidenced by a 9% increase in gross profit, driven by our sixth consecutive quarter of gross margin expansion.”
For the third quarter of fiscal 2024 the Company expects:
For fiscal 2024 the Company now expects:
Conference Call
The Company will host a conference call on Thursday, September 5, 2024, at 8:30 a.m. ET to review its second 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 and expected results of its strategy; the impact of the innovation focus on the Lands’ End brand and assortment, new customer acquisition and improvement on supply chain and inventory position; the Company’s dedication to driving growth and efficiency while delivering value to customers and shareholders; the Company’s efforts and expected results of prioritizing profitability and balance sheet efficiency; the Company’s outlook and expectations as to Net revenue, Gross Merchandise Value, Net (loss) income, (loss) earnings per share, Adjusted net income, Adjusted earnings per share and Adjusted EBITDA for the third 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) |
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August 2, 2024 |
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July 28, 2023 |
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February 2, |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
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$ |
25,648 |
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$ |
26,610 |
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$ |
25,314 |
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Restricted cash |
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2,239 |
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1,833 |
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1,976 |
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Accounts receivable, net |
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27,420 |
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25,095 |
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35,295 |
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Inventories, net |
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312,014 |
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396,087 |
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301,724 |
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Prepaid expenses and other current assets |
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47,443 |
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43,195 |
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45,951 |
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Total current assets |
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414,764 |
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492,820 |
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410,260 |
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Property and equipment, net |
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106,758 |
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125,325 |
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118,033 |
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Operating lease right-of-use asset |
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21,182 |
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29,685 |
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23,438 |
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Goodwill |
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— |
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106,700 |
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— |
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Intangible asset |
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257,000 |
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257,000 |
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257,000 |
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Other assets |
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2,812 |
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2,949 |
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2,748 |
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TOTAL ASSETS |
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$ |
802,516 |
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$ |
1,014,479 |
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$ |
811,479 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities |
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Current portion of long-term debt |
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$ |
13,000 |
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$ |
13,750 |
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$ |
13,000 |
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Accounts payable |
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143,886 |
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156,342 |
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131,922 |
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Lease liability – current |
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5,351 |
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5,643 |
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6,024 |
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Accrued expenses and other current liabilities |
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91,190 |
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100,632 |
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108,972 |
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Total current liabilities |
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253,427 |
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276,367 |
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259,918 |
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Long-term borrowings under ABL Facility |
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20,000 |
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70,000 |
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— |
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Long-term debt, net |
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230,227 |
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218,022 |
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236,170 |
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Lease liability – long-term |
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20,843 |
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29,973 |
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22,952 |
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Deferred tax liabilities |
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48,631 |
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51,066 |
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48,020 |
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Other liabilities |
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2,874 |
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3,283 |
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2,826 |
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TOTAL LIABILITIES |
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576,002 |
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648,711 |
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569,886 |
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Commitments and contingencies |
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STOCKHOLDERS’ EQUITY |
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Common stock, par value $0.01 authorized: 480,000 shares; |
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313 |
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321 |
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315 |
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Additional paid-in capital |
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354,768 |
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360,091 |
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356,764 |
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(Accumulated deficit) Retained earnings |
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(112,284 |
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21,597 |
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(99,417 |
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Accumulated other comprehensive loss |
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(16,283 |
) |
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(16,241 |
) |
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(16,069 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
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226,514 |
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365,768 |
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241,593 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
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$ |
802,516 |
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$ |
1,014,479 |
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$ |
811,479 |
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* 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)
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13 Weeks Ended |
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26 Weeks Ended |
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(in thousands, except per share data) |
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August 2, |
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July 28, |
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August 2, |
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July 28, 2023 |
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Net revenue |
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$ |
317,173 |
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$ |
323,363 |
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$ |
602,644 |
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$ |
632,921 |
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Cost of sales (exclusive of depreciation and amortization) |
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165,288 |
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183,766 |
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311,779 |
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355,387 |
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Gross profit |
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151,885 |
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139,597 |
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290,865 |
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277,534 |
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Selling and administrative |
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135,510 |
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123,866 |
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262,911 |
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242,380 |
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Depreciation and amortization |
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8,692 |
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9,543 |
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17,697 |
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18,844 |
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Other operating expense, net |
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5,197 |
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390 |
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5,538 |
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592 |
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Operating income |
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2,486 |
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5,798 |
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4,719 |
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15,718 |
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Interest expense |
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10,447 |
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12,024 |
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20,783 |
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24,307 |
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Other (income), net |
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(84 |
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(169 |
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(172 |
) |
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(356 |
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Loss before income taxes |
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(7,877 |
) |
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(6,057 |
) |
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(15,892 |
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(8,233 |
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Income tax (benefit) expense |
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(2,626 |
) |
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1,961 |
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(4,199 |
) |
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1,437 |
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NET LOSS |
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$ |
(5,251 |
) |
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$ |
(8,018 |
) |
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$ |
(11,693 |
) |
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$ |
(9,670 |
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NET LOSS PER COMMON SHARE |
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Basic: |
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$ |
(0.17 |
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$ |
(0.25 |
) |
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$ |
(0.37 |
) |
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$ |
(0.30 |
) |
Diluted: |
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$ |
(0.17 |
) |
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$ |
(0.25 |
) |
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$ |
(0.37 |
) |
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$ |
(0.30 |
) |
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Basic weighted average common shares outstanding |
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31,376 |
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32,117 |
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31,407 |
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32,280 |
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Diluted weighted average common shares outstanding |
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31,376 |
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32,117 |
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31,407 |
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32,280 |
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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.
The following tables set forth, for the periods indicated, a reconciliation of Net loss to Adjusted net loss and Adjusted diluted net loss per share:
Unaudited |
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13 Weeks Ended |
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(in thousands, except per share amounts) |
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August 2, 2024 |
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July 28, 2023 |
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Net loss |
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$ |
(5,251 |
) |
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$ |
(8,018 |
) |
Long-lived asset impairment |
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2,805 |
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— |
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Exit costs |
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687 |
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— |
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Restructuring |
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2,338 |
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390 |
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Lands’ End Japan closure |
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— |
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23 |
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Tax effects on adjustments (1) |
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(1,297 |
) |
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(22 |
) |
ADJUSTED NET LOSS |
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$ |
(718 |
) |
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$ |
(7,627 |
) |
ADJUSTED DILUTED NET LOSS PER SHARE |
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$ |
(0.02 |
) |
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$ |
(0.24 |
) |
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Diluted weighted average common shares outstanding |
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31,376 |
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32,117 |
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(1) The tax impact of adjustments is calculated at the applicable U.S. and non-U.S. Federal and State statutory rates.
Unaudited |
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26 Weeks Ended |
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(in thousands, except per share amounts) |
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August 2, 2024 |
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July 28, 2023 |
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Net loss |
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$ |
(11,693 |
) |
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$ |
(9,670 |
) |
Long-lived asset impairment |
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2,805 |
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— |
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Exit costs |
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687 |
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— |
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Restructuring |
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2,680 |
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|
390 |
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Lands’ End Japan closure |
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— |
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99 |
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Tax effects on adjustments (1) |
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(1,384 |
) |
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(41 |
) |
ADJUSTED NET LOSS |
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$ |
(6,905 |
) |
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$ |
(9,222 |
) |
ADJUSTED DILUTED NET LOSS PER SHARE |
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$ |
(0.22 |
) |
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$ |
(0.29 |
) |
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Diluted weighted average common shares outstanding |
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31,407 |
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32,280 |
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(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.
The following tables set 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 |
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13 Weeks Ended |
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(in thousands) |
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August 2, 2024 |
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July 28, 2023 |
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Net loss |
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$ |
(5,251 |
) |
|
|
(1.7 |
)% |
|
$ |
(8,018 |
) |
|
|
(2.5 |
)% |
Income tax benefit |
|
|
(2,626 |
) |
|
|
(0.8 |
)% |
|
|
1,961 |
|
|
|
0.6 |
% |
Interest expense |
|
|
10,447 |
|
|
|
3.3 |
% |
|
|
12,024 |
|
|
|
3.7 |
% |
Other (income), net |
|
|
(84 |
) |
|
|
(0.0 |
)% |
|
|
(169 |
) |
|
|
(0.1 |
)% |
Operating income |
|
|
2,486 |
|
|
|
0.8 |
% |
|
|
5,798 |
|
|
|
1.8 |
% |
Depreciation and amortization |
|
|
8,692 |
|
|
|
2.7 |
% |
|
|
9,543 |
|
|
|
3.0 |
% |
Long-lived asset impairment |
|
|
2,805 |
|
|
|
0.9 |
% |
|
|
— |
|
|
|
— |
% |
Exit costs |
|
|
687 |
|
|
|
0.2 |
% |
|
|
— |
|
|
|
— |
% |
Restructuring |
|
|
2,338 |
|
|
|
0.7 |
% |
|
|
390 |
|
|
|
0.1 |
% |
Lands’ End Japan closure |
|
|
— |
|
|
|
— |
% |
|
|
23 |
|
|
|
0.0 |
% |
Loss (gain) on disposal of property and equipment |
|
|
53 |
|
|
|
0.0 |
% |
|
|
(23 |
) |
|
|
(0.0 |
)% |
Other |
|
|
— |
|
|
|
— |
% |
|
|
94 |
|
|
|
0.0 |
% |
Adjusted EBITDA |
|
$ |
17,061 |
|
|
|
5.4 |
% |
|
$ |
15,825 |
|
|
|
4.9 |
% |
Unaudited |
|
26 Weeks Ended |
|
|||||||||||||
(in thousands) |
|
August 2, 2024 |
|
|
July 28, 2023 |
|
||||||||||
Net loss |
|
$ |
(11,693 |
) |
|
|
(1.9 |
)% |
|
$ |
(9,670 |
) |
|
|
(1.5 |
)% |
Income tax benefit |
|
|
(4,199 |
) |
|
|
(0.7 |
)% |
|
|
1,437 |
|
|
|
0.2 |
% |
Interest expense |
|
|
20,783 |
|
|
|
3.4 |
% |
|
|
24,307 |
|
|
|
3.8 |
% |
Other (income), net |
|
|
(172 |
) |
|
|
(0.0 |
)% |
|
|
(356 |
) |
|
|
(0.1 |
)% |
Operating income |
|
|
4,719 |
|
|
|
0.8 |
% |
|
|
15,718 |
|
|
|
2.5 |
% |
Depreciation and amortization |
|
|
17,697 |
|
|
|
2.9 |
% |
|
|
18,844 |
|
|
|
3.0 |
% |
Long-lived asset impairment |
|
|
2,805 |
|
|
|
0.5 |
% |
|
|
— |
|
|
|
— |
% |
Exit costs |
|
|
687 |
|
|
|
0.1 |
% |
|
|
— |
|
|
|
— |
% |
Restructuring |
|
|
2,680 |
|
|
|
0.4 |
% |
|
|
390 |
|
|
|
0.1 |
% |
Lands’ End Japan closure |
|
|
— |
|
|
|
— |
% |
|
|
99 |
|
|
|
0.0 |
% |
Loss on disposal of property and equipment |
|
|
52 |
|
|
|
0.0 |
% |
|
|
100 |
|
|
|
0.0 |
% |
Other |
|
|
— |
|
|
|
— |
% |
|
|
189 |
|
|
|
0.0 |
% |
Adjusted EBITDA |
|
$ |
28,640 |
|
|
|
4.8 |
% |
|
$ |
35,340 |
|
|
|
5.6 |
% |
Third Quarter Fiscal 2024 Guidance Adjusted EBITDA |
|
13 Weeks Ended |
|
|||||
(in millions) |
|
November 1, 2024 |
|
|||||
Net (loss) income |
|
$ |
(1.5 |
) |
— |
$ |
1.5 |
|
Depreciation, interest, other income, taxes and other significant items |
|
|
20.5 |
|
— |
|
21.5 |
|
Adjusted EBITDA |
|
$ |
19.0 |
|
— |
$ |
23.0 |
|
Third Quarter Fiscal 2024 Guidance Adjusted Net (Loss) Income and Adjusted Diluted (Loss) Earnings per Share |
|
13 Weeks Ended |
|
|||||
(in millions) |
|
November 1, 2024 |
|
|||||
Net (loss) income |
|
$ |
(1.5 |
) |
— |
$ |
1.5 |
|
Restructuring and other significant items |
|
|
1.5 |
|
— |
|
1.5 |
|
Adjusted net income |
|
$ |
0.0 |
|
— |
$ |
3.0 |
|
|
|
|
|
|
|
|
||
Adjusted diluted earnings per share |
|
$ |
0.00 |
|
— |
$ |
0.10 |
|
Fiscal 2024 Guidance Adjusted EBITDA |
|
52 Weeks Ended |
|
|||||
(in millions) |
|
January 31, 2025 |
|
|||||
Net income |
|
$ |
5.0 |
|
— |
$ |
11.0 |
|
Depreciation, interest, other income, taxes and other significant items |
|
|
85.0 |
|
— |
|
87.0 |
|
Adjusted EBITDA |
|
$ |
90.0 |
|
— |
$ |
98.0 |
|
Fiscal 2024 Guidance Adjusted Net Income and Adjusted Diluted Earnings per Share |
|
52 Weeks Ended |
|
|||||
(in millions) |
|
January 31, 2025 |
|
|||||
Net income |
|
$ |
5.0 |
|
— |
$ |
11.0 |
|
Restructuring and other significant items |
|
|
4.0 |
|
— |
|
4.0 |
|
Adjusted net income |
|
$ |
9.0 |
|
— |
$ |
15.0 |
|
|
|
|
|
|
|
|
||
Adjusted diluted earnings per share |
|
$ |
0.29 |
|
— |
$ |
0.48 |
|
LANDS’ END, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
|
26 Weeks Ended |
|
|||||
(in thousands) |
|
August 2, 2024 |
|
|
July 28, 2023 |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
||
Net loss |
|
$ |
(11,693 |
) |
|
$ |
(9,670 |
) |
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
17,697 |
|
|
|
18,844 |
|
Amortization of debt issuance costs |
|
|
1,354 |
|
|
|
1,634 |
|
Loss on disposal of property and equipment |
|
|
52 |
|
|
|
100 |
|
Stock-based compensation |
|
|
2,658 |
|
|
|
1,893 |
|
Deferred income taxes |
|
|
329 |
|
|
|
4,905 |
|
Long-lived asset impairment |
|
|
2,805 |
|
|
|
— |
|
Other |
|
|
(276 |
) |
|
|
(255 |
) |
Change in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
7,834 |
|
|
|
19,861 |
|
Inventories, net |
|
|
(10,346 |
) |
|
|
30,427 |
|
Accounts payable |
|
|
14,023 |
|
|
|
(8,988 |
) |
Other operating assets |
|
|
(2,031 |
) |
|
|
2,354 |
|
Other operating liabilities |
|
|
(17,497 |
) |
|
|
(6,278 |
) |
Net cash provided by operating activities |
|
|
4,909 |
|
|
|
54,827 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
||
Sales of property and equipment |
|
|
20 |
|
|
|
— |
|
Purchases of property and equipment |
|
|
(11,470 |
) |
|
|
(22,862 |
) |
Net cash used in investing activities |
|
|
(11,450 |
) |
|
|
(22,862 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
||
Proceeds from borrowings under ABL Facility |
|
|
49,000 |
|
|
|
118,000 |
|
Payments of borrowings under ABL Facility |
|
|
(29,000 |
) |
|
|
(148,000 |
) |
Payments on term loan |
|
|
(6,500 |
) |
|
|
(6,875 |
) |
Payments of debt issuance costs |
|
|
(724 |
) |
|
|
(45 |
) |
Payments for taxes related to net share settlement of equity awards |
|
|
(1,041 |
) |
|
|
(1,199 |
) |
Purchases and retirement of common stock, including excise tax paid |
|
|
(4,845 |
) |
|
|
(6,789 |
) |
Net cash provided by (used in) financing activities |
|
|
6,890 |
|
|
|
(44,908 |
) |
Effects of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
248 |
|
|
|
(5 |
) |
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND |
|
|
597 |
|
|
|
(12,948 |
) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, |
|
|
27,290 |
|
|
|
41,391 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD |
|
$ |
27,887 |
|
|
$ |
28,443 |
|
SUPPLEMENTAL CASH FLOW DATA |
|
|
|
|
|
|
||
Unpaid liability to acquire property and equipment |
|
$ |
1,698 |
|
|
$ |
3,551 |
|
Income taxes paid (refunded) |
|
$ |
67 |
|
|
$ |
(298 |
) |
Interest paid |
|
$ |
20,636 |
|
|
$ |
22,138 |
|
Operating lease right-of-use-assets obtained in exchange for lease liabilities |
|
$ |
— |
|
|
$ |
1,542 |
|