8-K
false000079928800007992882023-08-312023-08-31

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 31, 2023

 

 

Lands’ End, Inc.

(Exact name of registrant as specified in its charter)

 

 

Delaware

001-09769

36-2512786

(State or other jurisdiction
of incorporation)

(Commission File Number)

(IRS Employer
Identification No.)

 

 

 

 

 

1 Lands’ End Lane

 

Dodgeville, Wisconsin

 

53595

(Address of principal executive offices)

 

(Zip Code)

 

Registrant’s telephone number, including area code: (608) 935-9341

 

Not Applicable

(Former name or former address, if changed since last report)

 

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 Instructions A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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:


Title of each class

 

Trading
Symbol(s)

 


Name of each exchange on which registered

Common Stock, par value $0.01 per share

 

LE

 

The Nasdaq Stock Market LLC

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 August 31, 2023, Lands’ End, Inc. (the “Company”) announced its financial results for its second quarter ended July 28, 2023. 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

 

Description

99.1

 

Press Release of Lands’ End, Inc. dated August 31, 2023

104

 

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.

 

 

 

LANDS’ END, INC.

 

 

 

 

Date:

August 31, 2023

By:

/s/ Bernard McCracken

 

 

 

Name: Bernard McCracken
Title: Interim Chief Financial Officer, Vice President, Controller and Chief Accounting Officer

 


EX-99.1

Exhibit 99.1

 

https://cdn.kscope.io/fa3048188ebf66936d86b25b05f50445-img48865868_0.jpg 

 

Lands’ End Announces Second Quarter Fiscal 2023 Results

 

DODGEVILLE, Wis., August 31, 2023 (GLOBE NEWSWIRE) – Lands’ End, Inc. (NASDAQ: LE) today announced financial results for the second quarter ended July 28, 2023.

 

Andrew McLean, Chief Executive Officer, stated, “Our strong second quarter was characterized by a return to operating disciplines with a solutions focus on the customer. That resulted in a significant 220 basis point year-over-year improvement in gross margin, a 30% year-over-year reduction in our inventory position and Adjusted EBITDA in line with the prior year and guidance. Significantly, our cash provided by operations turned positive with a favorable $172 million improvement over the prior year. Newness, customer acceptance and results all benefit from our more disciplined inventory management approach which is continuing into the second half of 2023. Going forward, our brand is focused on exceeding customer expectations, prioritizing profitable demand and creating long-term shareholder value.”

 

Second Quarter Financial Highlights

For the second quarter, net revenue decreased 7.9% to $323.3 million compared to $351.2 million in the second quarter of fiscal 2022.
Global eCommerce net revenue was $218.7 million, a decrease of 8.7% from $239.7 million in the second quarter of fiscal 2022. Second quarter of fiscal 2022 included Lands’ End Japan net revenue of $7.6 million. Lands’ End Japan closed at the end of fiscal 2022. Excluding Lands’ End Japan in the second quarter of fiscal 2022, Global eCommerce net revenue decreased 5.8%.
Compared to second quarter of fiscal 2022, U.S. eCommerce net revenue decreased 3.6% primarily driven by continued promotional productivity within swim and adjacent product categories more than offset by lower markdown inventory sales.
Compared to second quarter of fiscal 2022, which included the results of Lands’ End Japan, International eCommerce net revenue decreased 37.3%.
Compared to second quarter of fiscal 2022, Europe eCommerce net revenue decreased 20.8% primarily driven by assortment editing with a focus on key categories, reduced markdown inventory sales and continued macroeconomic challenges.
Outfitters net revenue was $68.0 million, a decrease of 3.8% from $70.7 million in the second quarter of fiscal 2022, primarily driven by the conclusion of the Delta Air Lines contract in the first quarter 2023 partially offset by school uniform revenue increasing high single-digits year-over-year. Excluding the $4.9 million difference year-over-year from the Delta Air Lines business, revenue for the Outfitters business increased by 3.5%.
Third Party net revenue was $24.4 million, a decrease of 10.6% from $27.3 million in the second quarter of fiscal 2022, primarily attributed to weaker than expected online demand performance at Kohl’s partially offset by continued growth of marketplace sales through Target, Macy’s and Amazon.

 

Gross profit was $139.6 million, a decrease of $4.4 million or 3.1% from $144.0 million during the second quarter of fiscal 2022. Gross margin increased approximately 220 basis points to 43.2%, compared to 41.0% in second quarter of fiscal 2022. The Gross margin improvement was primarily driven by the strength in the swim and adjacent product categories across the channels, reduction in markdown inventory and improvements in supply chain costs in the second quarter of fiscal 2023 compared to the prior year.

 

 


Selling and administrative expenses decreased $4.7 million to $123.9 million or 38.3% of net revenue, compared to $128.6 million or 36.6% of net revenue in second quarter of fiscal 2022. The approximately 170 basis points increase was driven by deleveraging from lower revenues, partially offset by lower digital marketing spend and continued cost controls.

 

Net loss was $8.0 million, or $0.25 loss per diluted share. This compares to Net loss of $2.2 million or $0.07 loss per diluted share in the second quarter of fiscal 2022.

 

Adjusted EBITDA was $15.8 million in both the second quarter of fiscal 2023 and the second quarter of fiscal 2022.

 

Balance Sheet and Cash Flow Highlights

 

Cash and cash equivalents were $26.6 million as of July 28, 2023, compared to $23.5 million as of July 29, 2022.

 

Inventories, net, was $396.1 million as of July 28, 2023, and $569.2 million as of July 29, 2022. The 30.4% decrease in inventory was driven by the actions the Company has taken to leverage normalized supply chain lead times to receive spring and summer inventory closer to the selling season.

 

Net cash provided by operations was $54.8 million for the 26 weeks ended July 28, 2023, compared to net cash used in operations of $117.5 million for the 26 weeks ended July 29, 2022. The $172.3 million improvement in cash provided by operating activities was primarily due to the year-over-year improvement in inventory flow and productivity.

 

As of July 28, 2023, the Company had $70.0 million of borrowings outstanding and $128.8 million of availability under its ABL Facility, compared to $135.0 million of borrowings and $126.2 million of availability as of July 29, 2022. Additionally, as of July 28, 2023, the Company had $237.2 million of term loan debt outstanding compared to $250.9 million of term loan debt outstanding as of July 29, 2022.

 

During the second quarter, the Company repurchased $3.0 million of the Company’s common stock under its previously announced share repurchase program. As of July 28, 2023, additional purchases of up to $34.8 million could be made under the program through February 2, 2024.

 

Outlook

 

For the third quarter of fiscal 2023 the Company expects:

Net revenue to be between $340.0 million and $355.0 million.
Net loss to be between $6.5 million and $4.0 million and diluted loss per share to be between $0.20 and $0.13.
Adjusted EBITDA in the range of $13.0 million to $16.0 million.

 

For fiscal 2023 the Company now expects:

Net revenue to be between $1.50 billion and $1.55 billion.
Net (loss) income to be between $(4.5) million and $1.0 million, and diluted (loss) earnings per share to be between $(0.14) and $0.03.
Adjusted EBITDA in the range of $77.0 million to $84.0 million.
Capital expenditures of approximately $35.0 million.

 

 

 


Conference Call

 

The Company will host a conference call on Thursday, August 31, 2023, 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 casual clothing, swimwear, outerwear, accessories, footwear, home products and uniform solutions. We offer products online at www.landsend.com, through our own Company Operated stores and through third-party distribution channels. We are a classic American lifestyle brand with a passion for quality, legendary service and real value. We seek to deliver timeless style for women, men, kids and the home. We also offer products to businesses and schools, for their employees and students, through the Outfitters distribution channel.

 

 


Forward-Looking Statements

 

This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding the expected continuation of the Company’s more disciplined inventory management approach and its impact on newness, customer acceptance and results; the Company’s focus on exceeding customer expectations, prioritizing and realizing profitable demand and creating long-term shareholder value; and the Company’s outlook and expectations as to net revenue, net income/loss, earnings/loss per share and Adjusted EBITDA for the third quarter of fiscal 2023 and for the full year of fiscal 2023, and capital expenditures for fiscal 2023. 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 in the recent past have resulted in a significant increase in 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, as the Company seeks to refinance its term loan; 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 and a failure of information technology systems, including with respect to its eCommerce operations, or an inability to upgrade or adapt its systems; 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 maintain the security of customer, employee or company information; the risk of cybersecurity events and their impact on the Company; 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; the adverse effect on the Company’s reputation if its independent vendors do not use ethical business practices or comply with applicable laws and regulations; assessments for additional state taxes; incurrence of charges due to impairment of goodwill, 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; 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 January 27, 2023. 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

Interim Chief Financial Officer

(608) 935-9341

 

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)

 

July 28, 2023

 

 

July 29, 2022

 

 

January 27, 2023*

 

ASSETS

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

26,610

 

 

$

23,505

 

 

$

39,557

 

Restricted cash

 

 

1,833

 

 

 

2,091

 

 

 

1,834

 

Accounts receivable, net

 

 

25,095

 

 

 

40,917

 

 

 

44,928

 

Inventories, net

 

 

396,087

 

 

 

569,174

 

 

 

425,513

 

Prepaid expenses and other current assets

 

 

43,195

 

 

 

39,267

 

 

 

44,894

 

Total current assets

 

 

492,820

 

 

 

674,954

 

 

 

556,726

 

Property and equipment, net

 

 

125,325

 

 

 

124,626

 

 

 

127,638

 

Operating lease right-of-use asset

 

 

29,685

 

 

 

32,115

 

 

 

30,325

 

Goodwill

 

 

106,700

 

 

 

106,700

 

 

 

106,700

 

Intangible asset

 

 

257,000

 

 

 

257,000

 

 

 

257,000

 

Other assets

 

 

2,949

 

 

 

3,760

 

 

 

3,759

 

TOTAL ASSETS

 

$

1,014,479

 

 

$

1,199,155

 

 

$

1,082,148

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

Current portion of long-term debt

 

$

13,750

 

 

$

13,750

 

 

$

13,750

 

Accounts payable

 

 

156,342

 

 

 

236,015

 

 

 

171,557

 

Lease liability – current

 

 

5,643

 

 

 

6,720

 

 

 

5,414

 

Accrued expenses and other current liabilities

 

 

100,632

 

 

 

101,015

 

 

 

106,756

 

Total current liabilities

 

 

276,367

 

 

 

357,500

 

 

 

297,477

 

Long-term borrowings under ABL Facility

 

 

70,000

 

 

 

135,000

 

 

 

100,000

 

Long-term debt, net

 

 

218,022

 

 

 

228,948

 

 

 

223,506

 

Lease liability – long-term

 

 

29,973

 

 

 

32,333

 

 

 

31,095

 

Deferred tax liabilities

 

 

51,066

 

 

 

45,516

 

 

 

45,953

 

Other liabilities

 

 

3,283

 

 

 

4,913

 

 

 

3,365

 

TOTAL LIABILITIES

 

 

648,711

 

 

 

804,210

 

 

 

701,396

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Common stock, par value $0.01 authorized: 480,000 shares;
   issued and outstanding: 32,087, 33,202 and 32,626, respectively

 

 

321

 

 

 

332

 

 

 

326

 

Additional paid-in capital

 

 

360,091

 

 

 

371,245

 

 

 

366,181

 

Retained earnings

 

 

21,597

 

 

 

39,947

 

 

 

31,267

 

Accumulated other comprehensive loss

 

 

(16,241

)

 

 

(16,579

)

 

 

(17,022

)

TOTAL STOCKHOLDERS’ EQUITY

 

 

365,768

 

 

 

394,945

 

 

 

380,752

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

1,014,479

 

 

$

1,199,155

 

 

$

1,082,148

 

 

*Derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 27, 2023.

 


LANDS’ END, INC.

Condensed Consolidated Statements of Operations

(Unaudited)

 

 

 

13 Weeks Ended

 

 

26 Weeks Ended

 

(in thousands, except per share data)

 

July 28,
2023

 

 

July 29,
2022

 

 

July 28,
2023

 

 

July 29, 2022

 

Net revenue

 

$

323,363

 

 

$

351,178

 

 

$

632,921

 

 

$

654,843

 

Cost of sales (excluding depreciation and amortization)

 

 

183,766

 

 

 

207,141

 

 

 

355,387

 

 

 

381,631

 

Gross profit

 

 

139,597

 

 

 

144,037

 

 

 

277,534

 

 

 

273,212

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and administrative

 

 

123,866

 

 

 

128,573

 

 

 

242,380

 

 

 

244,267

 

Depreciation and amortization

 

 

9,543

 

 

 

9,883

 

 

 

18,844

 

 

 

19,467

 

Other operating expense, net

 

 

390

 

 

 

39

 

 

 

592

 

 

 

39

 

Operating income

 

 

5,798

 

 

 

5,542

 

 

 

15,718

 

 

 

9,439

 

Interest expense

 

 

12,024

 

 

 

8,813

 

 

 

24,307

 

 

 

16,982

 

Other income, net

 

 

(169

)

 

 

(166

)

 

 

(356

)

 

 

(328

)

Loss before income taxes

 

 

(6,057

)

 

 

(3,105

)

 

 

(8,233

)

 

 

(7,215

)

Income tax expense (benefit)

 

 

1,961

 

 

 

(926

)

 

 

1,437

 

 

 

(2,665

)

NET LOSS

 

$

(8,018

)

 

$

(2,179

)

 

$

(9,670

)

 

$

(4,550

)

NET LOSS PER COMMON SHARE

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

$

(0.25

)

 

$

(0.07

)

 

$

(0.30

)

 

$

(0.14

)

Diluted:

 

$

(0.25

)

 

$

(0.07

)

 

$

(0.30

)

 

$

(0.14

)

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares outstanding

 

 

32,117

 

 

 

33,361

 

 

 

32,280

 

 

 

33,262

 

Diluted weighted average common shares outstanding

 

 

32,117

 

 

 

33,361

 

 

 

32,280

 

 

 

33,262

 

 

 

 


Use and Definition of Non-GAAP Financial Measures

Adjusted EBITDA - In addition to our Net income (loss) determined in accordance with GAAP, for purposes of evaluating operating performance, the Company uses an Adjusted EBITDA measurement. Adjusted EBITDA is computed as Net income (loss) appearing on the Condensed Consolidated Statements of Operations net of Income tax expense/(benefit), Interest expense, Depreciation and amortization and certain significant items as set forth below. Our management uses Adjusted EBITDA to evaluate the operating performance of our business for comparable periods and as a basis for an executive compensation metric. The methods used by the Company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies 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 EBITDA should not be used by investors or other third parties as the sole basis for formulating investment decisions as it excludes a number of important cash and non-cash recurring items.

 

While Adjusted EBITDA is a non-GAAP measurement, management believes that it is an important indicator of operating performance, and 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. We have adjusted our results for these items to make our statements more comparable and therefore more useful to investors as the items are not representative of our ongoing operations.

 

o
For the 13 weeks and 26 weeks ended July 28, 2023, we excluded the one-time closing costs of Lands’ End Japan KK, a subsidiary of Lands’ End, Inc., (“Lands’ End Japan”).

 

o
For the 13 weeks and 26 weeks ended July 28, 2023 and July 29, 2022, we excluded the respective net gain or loss on disposal of property and equipment.

 

o
For the 13 weeks and 26 weeks ended July 28, 2023 and July 29, 2022, we excluded the amortization of transaction related costs associated with the Third Party distribution channel and other miscellaneous expenses.

 

 

 

 


Reconciliation of Non-GAAP Financial Information to GAAP

(Unaudited)

 

The following table sets forth, for the periods indicated, selected income statement data, both in dollars and as a percentage of Net revenue:

 

 

13 Weeks Ended

 

(in thousands)

 

July 28, 2023

 

 

July 29, 2022

 

Net loss

 

$

(8,018

)

 

 

(2.5

)%

 

$

(2,179

)

 

 

(0.6

)%

Income tax expense (benefit)

 

 

1,961

 

 

 

0.6

%

 

 

(926

)

 

 

(0.3

)%

Other income, net

 

 

(169

)

 

 

(0.1

)%

 

 

(166

)

 

 

(0.0

)%

Interest expense

 

 

12,024

 

 

 

3.7

%

 

 

8,813

 

 

 

2.5

%

Operating income

 

 

5,798

 

 

 

1.8

%

 

 

5,542

 

 

 

1.6

%

Depreciation and amortization

 

 

9,543

 

 

 

3.0

%

 

 

9,883

 

 

 

2.8

%

Lands' End Japan closure

 

 

23

 

 

 

0.0

%

 

 

 

 

 

%

(Gain) loss on disposal of property and equipment

 

 

(23

)

 

 

(0.0

)%

 

 

39

 

 

 

0.0

%

Other

 

 

484

 

 

 

0.1

%

 

 

344

 

 

 

0.1

%

Adjusted EBITDA

 

$

15,825

 

 

 

4.9

%

 

$

15,808

 

 

 

4.5

%

 

 

 

26 Weeks Ended

 

(in thousands)

 

July 28, 2023

 

 

July 29, 2022

 

Net loss

 

$

(9,670

)

 

 

(1.5

)%

 

$

(4,550

)

 

 

(0.7

)%

Income tax expense (benefit)

 

 

1,437

 

 

 

0.2

%

 

 

(2,665

)

 

 

(0.4

)%

Other income, net

 

 

(356

)

 

 

(0.1

)%

 

 

(328

)

 

 

(0.1

)%

Interest expense

 

 

24,307

 

 

 

3.8

%

 

 

16,982

 

 

 

2.6

%

Operating income

 

 

15,718

 

 

 

2.5

%

 

 

9,439

 

 

 

1.4

%

Depreciation and amortization

 

 

18,844

 

 

 

3.0

%

 

 

19,467

 

 

 

3.0

%

Landsʼ End Japan closure

 

 

99

 

 

 

0.0

%

 

 

 

 

 

%

Loss on disposal of property and equipment

 

 

100

 

 

 

0.0

%

 

 

39

 

 

 

0.0

%

Other

 

 

579

 

 

 

0.1

%

 

 

688

 

 

 

0.1

%

Adjusted EBITDA

 

$

35,340

 

 

 

5.6

%

 

$

29,633

 

 

 

4.5

%

 

 


 

Third Quarter Fiscal 2023 Guidance

 

 

 

 

13 Weeks Ended

 

(in millions)

 

 

 

 

October 27, 2023

 

Net loss

 

 

 

 

$

6.5

 

$

4.0

 

Depreciation, interest, other income, taxes and other adjustments

 

 

 

 

 

19.5

 

 

20.0

 

Adjusted EBITDA

 

 

 

 

$

13.0

 

$

16.0

 

 

Fiscal 2023 Guidance

 

 

 

 

53 Weeks Ended

 

(in millions)

 

 

 

 

February 2, 2024

 

Net (loss) income

 

 

 

 

$

(4.5

)

$

1.0

 

Depreciation, interest, other income, taxes and other adjustments

 

 

 

 

 

81.5

 

 

83.0

 

Adjusted EBITDA

 

 

 

 

$

77.0

 

$

84.0

 

 

 


LANDS’ END, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

26 Weeks Ended

 

(in thousands)

 

July 28, 2023

 

 

July 29, 2022

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net loss

 

$

(9,670

)

 

$

(4,550

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

18,844

 

 

 

19,467

 

Amortization of debt issuance costs

 

 

1,634

 

 

 

1,546

 

Loss on disposal of property and equipment

 

 

100

 

 

 

39

 

Stock-based compensation

 

 

1,893

 

 

 

3,403

 

Deferred income taxes

 

 

4,905

 

 

 

372

 

Other

 

 

(255

)

 

 

(374

)

Change in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

19,861

 

 

 

8,292

 

Inventories, net

 

 

30,427

 

 

 

(190,885

)

Accounts payable

 

 

(8,988

)

 

 

91,370

 

Other operating assets

 

 

2,354

 

 

 

(2,105

)

Other operating liabilities

 

 

(6,278

)

 

 

(44,100

)

Net cash provided by (used in) operating activities

 

 

54,827

 

 

 

(117,525

)

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

Sales of property and equipment

 

 

 

 

 

87

 

Purchases of property and equipment

 

 

(22,862

)

 

 

(14,863

)

Net cash used in investing activities

 

 

(22,862

)

 

 

(14,776

)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

Proceeds from borrowings under ABL Facility

 

 

118,000

 

 

 

141,000

 

Payments of borrowings under ABL Facility

 

 

(148,000

)

 

 

(6,000

)

Payments on term loan

 

 

(6,875

)

 

 

(6,875

)

Payments of debt issuance costs

 

 

(45

)

 

 

 

Payments for taxes related to net share settlement of equity awards

 

 

(1,199

)

 

 

(4,310

)

Purchases and retirement of common stock

 

 

(6,789

)

 

 

(2,357

)

Net cash (used in) provided by financing activities

 

 

(44,908

)

 

 

121,458

 

Effects of exchange rate changes on cash, cash equivalents and restricted cash

 

 

(5

)

 

 

304

 

NET DECREASE IN CASH, CASH EQUIVALENTS AND
      RESTRICTED CASH

 

 

(12,948

)

 

 

(10,539

)

CASH, CASH EQUIVALENTS AND RESTRICTED CASH,
      BEGINNING OF PERIOD

 

 

41,391

 

 

 

36,135

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD

 

$

28,443

 

 

$

25,596

 

SUPPLEMENTAL CASH FLOW DATA

 

 

 

 

 

 

Unpaid liability to acquire property and equipment

 

$

3,551

 

 

$

2,914

 

Income taxes paid (refunded)

 

$

(298

)

 

$

4,013

 

Interest paid

 

$

22,138

 

 

$

16,661

 

Operating lease right-of-use-assets obtained in exchange for lease liabilities

 

$

1,542

 

 

$

3,902