8-K
0000799288false00007992882023-03-162023-03-16

 

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): March 16, 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

 

 

(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 March 16, 2023, Lands’ End, Inc. (the “Company”) announced its financial results for its fourth quarter and fiscal year ended January 27, 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 exhibits 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 March 16, 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:

March 16, 2023

By:

/s/ Bernard McCracken

 

 

 

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

 


EX-99

Exhibit 99.1

 

https://cdn.kscope.io/40fb7dcefc27c9350f0c4db980962aac-img48865868_0.jpg 

 

Lands’ End Announces Fourth Quarter and Full Year Fiscal 2022 Results

 

 

DODGEVILLE, Wis., March 16, 2023 (GLOBE NEWSWIRE) – Lands’ End, Inc. (NASDAQ: LE) today announced financial results for the fourth quarter and full year of the fiscal year ended January 27, 2023 compared to the fourth quarter and full year of the fiscal year ended January 28, 2022. The Company also provided the first quarter and full year fiscal 2023 outlook.

 

Andrew McLean, Chief Executive Officer, stated, “We executed well throughout the fourth quarter to deliver sequential sales and margin improvement in each month of the quarter, resulting in revenue and adjusted EBITDA at the higher end of our expectations. We are pleased to see this momentum continue in the first quarter, particularly in our core swim category.”

 

McLean, continued, “Looking ahead in 2023 and beyond, we plan to continue to focus on providing high-quality products in key categories that customers want and that present opportunity to drive outsized value creation, including swim and outerwear. We also plan to foster innovation in our operations, with a focus on driving stronger results and best anticipating and serving evolving customer needs, as well as strengthening our digitally native capabilities through enhanced use of data analytics, which we expect will drive deeper brand affinity and grow our share of our addressable market. Our highly talented team is aligned and energized around our strategic priorities. We are confident that through our sharpened focus on execution and innovation, we are well positioned to build on our strong foundation and drive enhanced growth and profitability, as reflected in our first quarter and fiscal 2023 outlook.”

 

Fourth Quarter Financial Highlights:

 

For the fourth quarter, net revenue decreased 4.6% to $529.6 million, compared to $555.4 million in the fourth quarter of fiscal 2021.

 

o
Global eCommerce net revenue was $414.5 million, a decrease of 6.1% from $441.5 million in the fourth quarter of fiscal 2021 as a result of industry-wide promotional activity and macroeconomic challenges impacting consumer discretionary spending. Compared to the fourth quarter of fiscal 2021, U.S. eCommerce decreased 1.5% and International eCommerce decreased 30.8% which includes the previously announced closure of the Japan eCommerce business.
o
Outfitters net revenue was $60.5 million, a decrease of 2.1% from $61.8 million in the fourth quarter of fiscal 2021 driven by the fulfillment of school uniforms in fiscal 2022 in line with the back to school selling season slightly offset by demand within the Company’s travel-related national accounts.
o
Third Party net revenue, which includes sales on third-party marketplaces and U.S. wholesale revenues, was $39.2 million, an increase of 8.0%, compared to $36.3 million in the fourth quarter of fiscal 2021. The increase was largely driven by sales growth in the Kohl’s marketplace and existing and new online marketplaces.
o
Retail net revenue was $15.4 million in the fourth quarter compared to $15.8 million in the fourth quarter of fiscal 2021. The U.S. Company Operated Stores experienced a decrease of 3.9% in Same Store Sales as compared to the fourth quarter of fiscal 2021.

 

Gross margin decreased approximately 340 basis points to 32.5% as compared to 35.9% in the fourth quarter of fiscal 2021. Gross margin decreased due to increased industry-wide promotional activity and a focused effort to move through less productive units, slightly offset by lower inbound transportation costs.

 


 

Selling and administrative expenses decreased $21.9 million to $150.3 million or 28.4% of net revenue, compared to $172.2 million or 31.0% of net revenue in the fourth quarter of fiscal 2021. The 260 basis point improvement was driven by continued expense controls across the business.

 

Net loss was $3.3 million or $0.10 loss per diluted share, as compared to net income of $7.1 million or $0.21 per diluted share in the fourth quarter of fiscal 2021.

 

Adjusted EBITDA was $24.2 million compared to $27.3 million in the fourth quarter of fiscal 2021.

 

Full Year Financial Highlights:

 

For the fiscal year, net revenue decreased 5.0% to $1.56 billion compared to $1.64 billion in the prior year.

 

o
Global eCommerce net revenue decreased 10.1% to $1.1 billion for the fiscal year. Net revenue in U.S. eCommerce decreased 7.0% and International eCommerce decreased 24.6%, both primarily driven by lower consumer demand as a result of delayed receipts of key products caused by the global supply chain challenges in the first half of fiscal 2022, macroeconomic challenges impacting consumer discretionary spending and industry-wide promotional activity.
o
Outfitters net revenue increased 4.6% to $265.9 million, driven by stronger demand within the Company’s travel-related national accounts and school uniform customers returning to historical purchasing patterns.
o
Third Party net revenue increased 37.5% to $119.0 million, primarily attributed to sales growth in the Kohl’s marketplace and existing and new online marketplaces.
o
Retail net revenue increased 0.8% to $48.2 million. The U.S. Company Operated Stores experienced an increase of 1.5% in Same Store Sales as compared to fiscal 2021.

 

Gross margin decreased approximately 410 basis points to 38.2%, compared to 42.3% in fiscal 2021 due to incremental transportation costs due to global supply chain challenges in addition to increased promotional activity.

 

Selling and administrative expenses decreased $44.4 million to $527.4 million or 33.9% of net revenue, compared to $571.8 million or 35.0% of net revenue in fiscal 2021. The 110 basis point improvement was the result of continued expense controls across the business.

 

Net loss was $12.5 million, or $0.38 loss per diluted share. This compares to net income of $33.4 million or $0.99 earnings per diluted share in fiscal 2021.

 

Adjusted EBITDA was $70.5 million compared to $120.9 million in fiscal 2021.

 

Balance Sheet and Cash Flow Highlights

 

Cash and cash equivalents were $39.6 million as of January 27, 2023, compared to $34.3 million as of January 28, 2022.

 

Net cash used in operations was $36.4 million for the 52 weeks ended January 27, 2023, compared to net cash provided by operations of $70.6 million for the 52 weeks ended January 28, 2022.

 

Inventories, net, was $425.5 million as of January 27, 2023, and $384.2 million as of January 28, 2022. The increase in inventory was primarily driven by early receipts of swim product for the spring and summer selling seasons, carry over full price swim product driven by late receipts last year due to the supply chain challenges and excess inventory in our kids category.

 

As of January 27, 2023, the Company had $100.0 million borrowings outstanding and $163.8 million of availability, based upon the loan cap calculated in the borrowing base, under its asset-based senior secured credit facility compared to no borrowings outstanding and $204.4 million of availability at the end of last year. Additionally, as of January 27, 2023,

 


the Company had $244.1 million of term loan debt outstanding compared to $257.8 million of term loan debt outstanding at the end of last year. The Company continues to explore opportunities to refinance the term loan debt, subject to favorable market conditions.

 

Outlook

 

For the first quarter of fiscal 2023 the Company expects:

Net revenue to be between $295.0 million and $310.0 million.
Net loss to be between $5.0 million and $3.0 million and diluted loss per share to be between $0.15 and $0.09.
Adjusted EBITDA in the range of $13.0 million to $16.0 million.

 

For fiscal 2023 the Company expects:

Net revenue to be between $1.56 billion and $1.62 billion.
Net (loss) income to be between $(6.0) million and $1.0 million and diluted (loss) earnings per share to be between $(0.18) and $0.03.
Adjusted EBITDA in the range of $72.0 million to $82.0 million.
Capital expenditures of approximately $35.0 million.

 

Conference Call

 

The Company will host a conference call on Thursday, March 16, 2023, at 8:30 a.m. ET to review its fourth quarter and full year 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 or by dialing (866) 753-5836.

 

About Lands’ End, Inc.

 

Lands’ End, Inc. (NASDAQ:LE) is a leading digital retailer of casual clothing, swimwear, outerwear, accessories, footwear and home products. 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.

 

 

 


Forward-Looking Statements

 

This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding the Company’s assessment of momentum continuing in the first quarter, particularly in swim; the Company’s plan to continue to focus on providing high-quality products in key categories which present opportunity to drive outsized value creation, including swim and outerwear; the Company’s plan to foster innovation in operations, with a focus on driving stronger results and best anticipating and serving evolving customer needs; the Company’s plan to strengthen its digitally native capabilities through enhanced use of data analytics, and its expectation that these capabilities will drive deeper brand affinity and grow its share of its addressable market; the belief that the Company is well positioned to build on its strong foundation and drive enhanced growth and profitability; the Company’s intention to explore opportunities to, and to refinance its term loan debt; and the Company’s outlook and expectations as to net revenue, net (loss)/income, loss/earnings per share and Adjusted EBITDA for the first 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 have resulted in a significant increase in inbound transportation costs and delays in receiving product over the past year; further 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 COVID-19 and other global economic conditions; the impact of global economic conditions, including inflation, on consumer discretionary spending; the impact of COVID-19 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 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 28, 2022. 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.

Consolidated Balance Sheets

(Unaudited)

 

(in thousands except per share data)

 

January 27, 2023

 

 

January 28, 2022

 

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

39,557

 

 

$

34,301

 

Restricted cash

 

 

1,834

 

 

 

1,834

 

Accounts receivable, net

 

 

44,928

 

 

 

49,668

 

Inventories, net

 

 

425,513

 

 

 

384,241

 

Prepaid expenses and other current assets

 

 

44,894

 

 

 

36,905

 

Total current assets

 

 

556,726

 

 

 

506,949

 

Property and equipment, net

 

 

127,638

 

 

 

129,791

 

Operating lease right-of-use asset

 

 

30,325

 

 

 

31,492

 

Goodwill

 

 

106,700

 

 

 

106,700

 

Intangible asset, net

 

 

257,000

 

 

 

257,000

 

Other assets

 

 

3,759

 

 

 

4,702

 

TOTAL ASSETS

 

$

1,082,148

 

 

$

1,036,634

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Current portion of long-term debt

 

$

13,750

 

 

$

13,750

 

Accounts payable

 

 

171,557

 

 

 

145,802

 

Lease liability – current

 

 

5,414

 

 

 

5,617

 

Accrued expenses and other current liabilities

 

 

106,756

 

 

 

146,263

 

Total current liabilities

 

 

297,477

 

 

 

311,432

 

Long-term borrowings on ABL Facility

 

 

100,000

 

 

 

 

Long-term debt, net

 

 

223,506

 

 

 

234,474

 

Lease liability – long-term

 

 

31,095

 

 

 

32,731

 

Deferred tax liabilities

 

 

45,953

 

 

 

46,191

 

Other liabilities

 

 

3,365

 

 

 

5,110

 

TOTAL LIABILITIES

 

 

701,396

 

 

 

629,938

 

Commitments and contingencies

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

Common stock, par value $0.01 - authorized: 480,000 shares; issued
   and outstanding: 32,626 and 32,985, respectively

 

 

326

 

 

 

330

 

Additional paid-in capital

 

 

366,181

 

 

 

374,413

 

Retained earnings

 

 

31,267

 

 

 

44,595

 

Accumulated other comprehensive loss

 

 

(17,022

)

 

 

(12,642

)

TOTAL STOCKHOLDERS’ EQUITY

 

 

380,752

 

 

 

406,696

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

 

$

1,082,148

 

 

$

1,036,634

 

 

 


LANDS’ END, INC.

Consolidated Statements of Operations

(Unaudited)

 

 

13 Weeks Ended

 

 

13 Weeks Ended

 

 

52 Weeks Ended

 

 

52 Weeks Ended

 

(in thousands except per share data)

January 27, 2023

 

 

January 28, 2022

 

 

January 27, 2023

 

 

January 28, 2022

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

Net revenue

$

529,603

 

 

$

555,375

 

 

$

1,555,429

 

 

$

1,636,624

 

Cost of sales (excluding depreciation and amortization)

 

357,459

 

 

 

356,256

 

 

 

961,663

 

 

 

945,164

 

Gross profit

 

172,144

 

 

 

199,119

 

 

 

593,766

 

 

 

691,460

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and administrative

 

150,300

 

 

 

172,188

 

 

 

527,374

 

 

 

571,767

 

Depreciation and amortization

 

9,513

 

 

 

9,683

 

 

 

38,741

 

 

 

39,166

 

Other operating (income) expense, net

 

(209

)

 

 

158

 

 

 

2,926

 

 

 

741

 

Total costs and expenses

 

159,604

 

 

 

182,029

 

 

 

569,041

 

 

 

611,674

 

Operating income

 

12,540

 

 

 

17,090

 

 

 

24,725

 

 

 

79,786

 

Interest expense

 

11,961

 

 

 

8,214

 

 

 

39,768

 

 

 

34,445

 

Other (income), net

 

(267

)

 

 

(167

)

 

 

(364

)

 

 

(628

)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

846

 

 

 

9,043

 

 

 

(14,679

)

 

 

45,969

 

Income tax expense (benefit)

 

4,144

 

 

 

1,933

 

 

 

(2,149

)

 

 

12,600

 

NET (LOSS) INCOME

$

(3,298

)

 

$

7,110

 

 

$

(12,530

)

 

$

33,369

 

 

 

 

 

 

 

 

 

 

 

 

 

NET (LOSS) INCOME PER COMMON SHARE
   ATTRIBUTABLE TO STOCKHOLDERS

 

 

 

 

 

 

 

 

 

 

 

Basic:

$

(0.10

)

 

$

0.22

 

 

$

(0.38

)

 

$

1.01

 

Diluted:

$

(0.10

)

 

$

0.21

 

 

$

(0.38

)

 

$

0.99

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic weighted average common shares outstanding

 

32,844

 

 

 

32,984

 

 

 

33,108

 

 

 

32,929

 

Diluted weighted average common shares outstanding

 

32,844

 

 

 

33,584

 

 

 

33,108

 

 

 

33,681

 

 

 

 


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 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
We excluded the closure costs of Lands’ End Japan KK, a subsidiary of Lands’ End, Inc., (“LE Japan”). For the 13 weeks and 52 weeks ended January 27, 2023 we excluded the net operating loss of $2.3 million and $3.1 million, respectively, from the liquidation of product commencing September 2022 through the end of fiscal 2022. For the 52 weeks ended January 27, 2023 we also excluded the one-time closing costs of $3.0 million for a combined total of $6.1 million.
o
For the 13 weeks and 52 weeks ended January 27, 2023 we excluded the non-cash write-down of certain long-lived assets.
o
For the 13 weeks and 52 weeks ended January 27, 2023 and January 28, 2022 we excluded the (gain)/loss on disposal of property and equipment.
o
For the 13 weeks and 52 weeks ended January 27, 2023 and January 28, 2022 we excluded the amortization of transaction related costs associated with Third Party distribution channel.

 

Reconciliation of Non-GAAP Financial Information to GAAP

(Unaudited)

 

 

 

13 Weeks Ended

 

 

13 Weeks Ended

 

 

 

January 27, 2023

 

 

January 28, 2022

 

(in thousands)

 

$ʼs

 

 

% of Net Sales

 

 

$ʼs

 

 

% of Net Sales

 

Net (loss) income

 

$

(3,298

)

 

 

(0.6

)%

 

$

7,110

 

 

 

1.3

%

Income tax expense

 

 

4,144

 

 

 

0.8

%

 

 

1,933

 

 

 

0.3

%

Other (income), net

 

 

(267

)

 

 

(0.1

)%

 

 

(167

)

 

 

(0.0

)%

Interest expense

 

 

11,961

 

 

 

2.3

%

 

 

8,214

 

 

 

1.5

%

Operating income

 

 

12,540

 

 

 

2.4

%

 

 

17,090

 

 

 

3.1

%

Depreciation and amortization

 

 

9,513

 

 

 

1.8

%

 

 

9,683

 

 

 

1.7

%

LE-Japan closure

 

 

2,275

 

 

 

0.4

%

 

 

 

 

 

%

Long-lived asset impairment

 

 

348

 

 

 

0.1

%

 

 

 

 

 

%

(Gain) loss on disposal of property and equipment

 

 

(569

)

 

 

(0.1

)%

 

 

158

 

 

 

0.0

%

Other

 

 

94

 

 

 

0.0

%

 

 

345

 

 

 

0.1

%

Adjusted EBITDA

 

$

24,201

 

 

 

4.6

%

 

$

27,276

 

 

 

4.9

%

 

 


 

 

52 Weeks Ended

 

 

52 Weeks Ended

 

 

 

January 27, 2023

 

 

January 28, 2022

 

(in thousands)

 

$ʼs

 

 

% of Net Sales

 

 

$ʼs

 

 

% of Net Sales

 

Net (loss) income

 

$

(12,530

)

 

 

(0.8

)%

 

$

33,369

 

 

 

2.0

%

Income tax (benefit) expense

 

 

(2,149

)

 

 

(0.1

)%

 

 

12,600

 

 

 

0.8

%

Other (income), net

 

 

(364

)

 

 

(0.0

)%

 

 

(628

)

 

 

(0.0

)%

Interest expense

 

 

39,768

 

 

 

2.6

%

 

 

34,445

 

 

 

2.1

%

Operating income

 

 

24,725

 

 

 

1.6

%

 

 

79,786

 

 

 

4.9

%

Depreciation and amortization

 

 

38,741

 

 

 

2.5

%

 

 

39,166

 

 

 

2.4

%

LE-Japan closure

 

 

6,133

 

 

 

0.4

%

 

 

 

 

 

%

Long-lived asset impairment

 

 

468

 

 

 

0.0

%

 

 

 

 

 

%

(Gain) loss on disposal of property and equipment

 

 

(530

)

 

 

(0.0

)%

 

 

741

 

 

 

0.1

%

Other

 

 

960

 

 

 

0.1

%

 

 

1,189

 

 

 

0.0

%

Adjusted EBITDA

 

$

70,497

 

 

 

4.5

%

 

$

120,882

 

 

 

7.4

%

 

 

First Quarter Fiscal 2023 Guidance

13 Weeks Ended

 

(in millions)

April 28, 2023

 

Net loss

$

 

5.0

 

-

$

 

3.0

 

Depreciation, interest, other income, taxes and other adjustments

 

 

18.0

 

-

 

 

19.0

 

Adjusted EBITDA

$

 

13.0

 

-

$

 

16.0

 

 

Fiscal 2023 Guidance

53 Weeks Ended

 

(in millions)

February 2, 2024

 

Net (loss) income

$

 

(6.0

)

-

$

 

1.0

 

Depreciation, interest, other income, taxes and other adjustments

 

 

78.0

 

-

 

 

81.0

 

Adjusted EBITDA

$

 

72.0

 

-

$

 

82.0

 

 

 


LANDS’ END, INC.

Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

52 weeks ended

 

(in thousands)

 

2022

 

 

2021

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net (loss) income

 

$

(12,530

)

 

$

33,369

 

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

 

 

 

 

 

 

Depreciation and amortization

 

 

38,741

 

 

 

39,166

 

Amortization of debt issuance costs

 

 

3,176

 

 

 

3,194

 

(Gain) loss on disposal of property and equipment

 

 

(530

)

 

 

741

 

Stock-based compensation

 

 

3,753

 

 

 

10,156

 

Deferred income taxes

 

 

927

 

 

 

(782

)

Long-lived asset impairment

 

 

468

 

 

 

 

Other

 

 

(775

)

 

 

(661

)

Change in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable, net

 

 

4,503

 

 

 

(13,170

)

Inventories, net

 

 

(45,873

)

 

 

(4,213

)

Accounts payable

 

 

19,938

 

 

 

13,089

 

Other operating assets

 

 

(8,105

)

 

 

4,080

 

Other operating liabilities

 

 

(40,060

)

 

 

(14,400

)

Net cash (used in) provided by operating activities

 

 

(36,367

)

 

 

70,569

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

Sales of property and equipment

 

 

1,967

 

 

 

 

Purchases of property and equipment

 

 

(31,806

)

 

 

(25,238

)

Net cash used in investing activities

 

 

(29,839

)

 

 

(25,238

)

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

Proceeds from borrowings under ABL Facility

 

 

264,000

 

 

 

143,000

 

Payments of borrowings under ABL Facility

 

 

(164,000

)

 

 

(168,000

)

Proceeds from issuance on long-term debt, net

 

 

 

 

 

 

Payments on term loan

 

 

(13,750

)

 

 

(13,750

)

Payments for taxes related to net share settlement of equity awards

 

 

(4,324

)

 

 

(5,111

)

Purchases and retirement of common stock

 

 

(8,463

)

 

 

 

Payment of debt issuance costs

 

 

 

 

 

(1,232

)

Net cash provided by (used in) financing activities

 

 

73,463

 

 

 

(45,093

)

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

 

 

(2,001

)

 

 

103

 

NET INCREASE (DECREASE) IN CASH, CASH
   EQUIVALENTS AND RESTRICTED CASH

 

 

5,256

 

 

 

341

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH,
   BEGINNING OF YEAR

 

 

36,135

 

 

 

35,794

 

CASH, CASH EQUIVALENTS AND RESTRICTED CASH,
   END OF YEAR

 

$

41,391

 

 

$

36,135

 

SUPPLEMENTAL CASH FLOW DATA

 

 

 

 

 

 

Unpaid liability to acquire property and equipment

 

$

9,998

 

 

$

2,627

 

Income taxes paid, net of refunds

 

$

4,763

 

 

$

24,868

 

Interest paid

 

$

34,485

 

 

$

31,421

 

Lease liabilities arising from obtaining operating lease right-of-use assets

 

$

4,440

 

 

$

1,409