LE 2014.10.31 Earnings Release



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): December 10, 2014

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))







Item 2.02     Results of Operations and Financial Condition.
Lands’ End, Inc. (the “Company”) is furnishing herewith a press release issued on December 10, 2014 as Exhibit 99.1, which is included herein. This press release was issued to report the Company’s third quarter 2014 results.
Item 9.01    Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number
 
Description
99.1
 
Press Release of Lands’ End, Inc. dated December 10, 2014










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: December 10, 2014
By:
/s/ Michael P. Rosera
 
 
Michael P. Rosera
 
 
Title: Executive Vice President, Chief Operating Officer/Chief Financial Officer and Treasurer (Principal Financial Officer)








EXHIBIT INDEX
Exhibit No.
 
Description
99.1
 
Press Release of Lands’ End, Inc. dated December 10, 2014




LE 2014.10.31 Exhibit 99.1


Lands’ End Announces Third Quarter of Fiscal 2014 Results
-Third Quarter Operating Income Increased 50.8% to $35.1 million
Dodgeville, WI - December 10, 2014 - Lands’ End, Inc. (NASDAQ: LE) today announced financial results for the third quarter ended October 31, 2014.

Third Quarter Highlights:
Merchandise sales and services, net decreased 2.8% to $373.1 million from the third quarter last year. This was comprised of a decrease in the Direct segment of 1.2% to $320.3 million and a decrease in the Retail segment of 11.5% to $52.8 million. Same store sales decreased 3.1% and the number of Lands’ End Shops at Sears locations decreased 12.0%
Gross margin increased 370 basis points to 49.1% from the third quarter last year.
Selling and administrative expenses decreased 1.7% to $143.4 million from the third quarter last year and included approximately $3.2 million of incentive compensation expense and $2.0 million of stand-alone public company related costs compared with no incentive compensation expenses or stand-alone public company costs in the third quarter last year.
Operating income increased 50.8% to $35.1 million from the third quarter last year.
Net income increased 26.0% to $18.0 million from the third quarter last year and included interest expense of $6.2 million compared with no interest expense in the third quarter last year.
Diluted earnings per share were $0.56 compared with $0.45 in last year’s third quarter.
Adjusted EBITDA1 increased 39.9% to $39.9 million from the third quarter last year.

Edgar Huber, Lands’ End’s President and Chief Executive Officer, stated, “We delivered another quarter of strong operating margin increases driven by a better assortment of product, a more targeted promotional strategy and disciplined expense controls. Profitable growth and price integrity are critical components of the Lands’ End’s brand strategy and this represents the sixth consecutive quarter in which we have delivered better than 20% growth in operating income. I want to congratulate and thank the Lands’ End team for their hard work and achievement. The changes we have made to the merchandise architecture, brand positioning and digital shopping experience have resonated in the marketplace. We continue our focus on delivering exceptional quality, value and service to our customers and executing our strategic initiatives to build Lands’ End into a global lifestyle brand.”

Third Quarter Results
Merchandise sales and services, net decreased 2.8% to $373.1 million in the third quarter of 2014 from $383.9 million in the third quarter of 2013. Merchandise sales and services, net in the Direct segment decreased 1.2% to $320.3 million primarily attributable to a decrease in our International business, partially offset by an increase in U.S. business and school uniform sales. Merchandise sales and services, net in the Retail segment decreased 11.5% to $52.8 million driven by a decrease in the number of Lands’ End Shops at Sears, a decrease in Shop Your Way redemption credits resulting from the commercial agreements entered into with Sears Holdings Corporation and its subsidiaries as part of the Company’s separation, and a decrease in same store sales. Same store sales in the Retail segment decreased 3.1%, driven by lower sales in the Company’s Lands’ End Shops at Sears. On October 31, 2014, the Company operated 242 Lands’ End Shops at Sears, 14 global Lands’ End Inlet stores and five newly opened international shop-in-shops compared to 275 Lands’ End Shops at Sears and 16 global Lands’ End Inlets on November 1, 2013.

Gross profit increased 5.1% to $183.3 million and gross margin increased 370 basis points to 49.1% in the third quarter of 2014 compared with $174.5 million and 45.4%, respectively, in the third quarter of 2013. The increase in gross margin was driven by increases in both the Direct and Retail segments. Gross Margin in the Direct segment increased 260 basis points to 49.8% and gross margin in the Retail segment increased 910 basis points to 45.1%. The Gross margin increase in both the Direct and Retail segments was primarily attributable to improved merchandise assortment architecture and a more targeted promotional strategy.





The Retail segment Gross margin improvement was also due to an unfavorable inventory adjustment in the third quarter of last year.

Selling and administrative expenses decreased 1.7% to $143.4 million in the third quarter of 2014 from $145.9 million in the third quarter of 2013. The third quarter of 2014 included approximately $3.2 million of incentive compensation expenses and $2.0 million of stand-alone public company related expenses. There were no incentive compensation expenses or stand-alone public company costs in the third quarter of 2013. As a percentage of Merchandise sales and services, net, Selling and administrative expenses increased approximately 40 basis points to 38.4% during the third quarter of 2014 from 38.0% during the third quarter last year. The deleveraging of Selling and administrative expenses was primarily attributable to increased incentive compensation expenses and stand alone costs, partially offset by expense management.

Depreciation and amortization expense decreased 8.6% to $4.8 million in the third quarter of 2014 from $5.3 million in the third quarter of 2013 primarily attributable to an increase in fully depreciated assets.

Operating income increased 50.8% to $35.1 million in the third quarter of 2014 from $23.3 million in the third quarter of 2013.

Interest expense was $6.2 million in the third quarter of 2014 and was attributable to higher debt levels and costs related to the issuance of the term loan used to pay a $500 million dividend to a subsidiary of Sears Holdings Corporation immediately prior to the separation.

Income tax expense was $11.4 million for the third quarter of 2014 compared with $9.0 million in the third quarter of 2013. The effective tax rate was 38.8% in the third quarter of 2014 compared with 38.7% in the third quarter of 2013.
 
Net income increased 26.0% to $18.0 million and diluted earnings per share increased 24.4% to $0.56 in the third quarter of 2014 compared with Net income of $14.3 million and diluted earnings per share of $0.45 per diluted share, in the third quarter of 2013.

Adjusted EBITDA1 increased 39.9% to $39.9 million in the third quarter of 2014 from $28.5 million in the third quarter of 2013.


Balance Sheet and Cash Flow Highlights

Cash was $105.6 million on October 31, 2014 compared to $16.3 million on November 1, 2013. Net cash provided by operations for the 39 weeks ended October 31, 2014 was $96.5 million more than the same period last year primarily due to:

Improved inventory management
Increased operating income
The net effect of changes in settlement methods with our former parent company and certain suppliers resulting from the separation
Partially offset by interest payments on debt

Inventory decreased 12.9% to $403.9 million on October 31, 2014 from $464.0 million on November 1, 2013.

The net effect of changes in settlement methods with our former parent company and certain suppliers included approximately $24 million in Accounts payable less $6 million in Accounts receivable as of October 31, 2014. These items would have been included in equity as part of Net parent company investment prior to our separation on April 4, 2014 from Sears Holdings Corporation.






The Company had $161.5 million of availability under its asset-based senior secured credit facility and had long-term debt of $507.3 million as of October 31, 2014.

About Lands’ End, Inc.

Lands' End, Inc. (NASDAQ: LE) is a leading multi-channel retailer of casual clothing, accessories, footwear and home products. We offer products through catalogs, online at www.landsend.com and affiliated specialty and international websites, and through retail locations, primarily at Lands’ End Shops at Sears® and standalone Lands’ End Inlet® Stores. We are a classic American lifestyle brand with a passion for quality, legendary service and real value, and seek to deliver timeless style for men, women, kids and the home.

Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements are subject to risks and uncertainties that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Forward-looking statements include, without limitation, information concerning our future financial performance, business strategy, plans, goals and objectives. Statements preceded or followed by, or that otherwise include, the words “believes,” “expects,” “anticipates,” “intends,” “project,” “estimates,” “plans,” “forecast,” “is likely to” and similar expressions or future or conditional verbs such as “will,” “may,” “would,” “should” and “could” are generally forward-looking in nature and not historical facts. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: our ability to offer merchandise and services that customers want to purchase; changes in customer preference for our branded merchandise; customers’ use of our digital platform; the success of our overall marketing strategies; our dependence on information technology and a failure of information technology systems, including with respect to our e-commerce operations, or an inability to upgrade or adapt our systems; fluctuations and increases in the costs of raw materials; impairment of our relationships with our vendors; our failure to maintain the security of customer, employee or company information; our failure to compete effectively in the apparel industry; the performance of our “store within a store” business model; if Sears, Roebuck and Co. sells or disposes of its retail stores or if its retail business does not attract customers or does not adequately promote the Lands’ End Shops at Sears; legal, regulatory, economic and political risks associated with international trade and those markets in which we conduct business and source our merchandise; our failure to protect or preserve the image of our brands and our intellectual property rights; increases in postage, paper and printing costs; failure by third parties who provide us with services in connection with certain aspects of our business to perform their obligations; our failure to timely and effectively obtain shipments of products from our vendors and deliver merchandise to our customers; reliance on promotions and markdowns to encourage consumer purchases; our failure to efficiently manage inventory levels; unseasonal or severe weather conditions; the seasonal nature of our business; the adverse effect on our reputation if our independent vendors do not use ethical business practices or comply with applicable laws and regulations; assessments for additional state taxes; our exposure to periodic litigation and other regulatory proceedings, including with respect to product liability claims; incurrence of charges due to impairment of goodwill, other intangible assets and long-lived assets; our failure to retain our executive management team and to attract qualified new





personnel; the impact on our business of adverse worldwide economic and market conditions, including economic factors that negatively impact consumer spending on discretionary items; the inability of our past performance generally, as reflected on our historical financial statements, to be indicative of our future performance; the impact of increased costs due to a decrease in our purchasing power following the separation from Sears Holdings and other losses of benefits associated with being a subsidiary of Sears Holdings; the failure of Sears Holdings or its subsidiaries to perform under various transaction agreements that have been executed in connection with the separation or our failure to have necessary systems and services in place when certain of the transaction agreements expire; potential indemnification liabilities to Sears Holdings pursuant to the separation and distribution agreement; our inability to engage in certain corporate transactions after the separation; our difficulty in operating as a separate entity following the separation; our failure to achieve some or all of the expected benefits of the separation, and adverse effects of the separation on our business; potential liabilities under fraudulent conveyance and transfer laws and legal capital requirements; increases in our expenses and administrative burden in relation to becoming a public company, in particular to bring us into compliance with certain provisions of the Sarbanes-Oxley Act of 2002; and other risks, uncertainties and factors discussed in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended January 31, 2014. We intend the forward-looking statements to speak only as of the time made and do not undertake to update or revise them as more information becomes available, except as required by law.


Contacts

ICR
John Rouleau / Rachel Schacter
203-682-8200
John.Rouleau@icrinc.com
Rachel.Schacter@icrinc.com

Lands’ End, Inc.
Michele Casper
Director of Public Relations
(608) 935-4633
Michele.Casper@landsend.com

Lands’ End, Inc.
Mike Rosera
Chief Operating Officer and Chief Financial Officer
(608) 935-9341






-Financial Tables Follow-







LANDS’ END, INC.
Condensed Consolidated and Combined Balance Sheets
(Unaudited)
(in thousands, except share data)
 
October 31,
2014
 
November 1,
2013
 
January 31, 2014
ASSETS
 
 
 
 
 
 
Current assets
 
 
 
 
 
 
Cash and cash equivalents
 
$
105,574

 
$
16,331

 
$
22,411

Restricted cash
 
3,300

 
3,300

 
3,300

Accounts receivable, net
 
39,459

 
38,648

 
33,617

Inventories, net
 
403,938

 
463,957

 
369,928

Prepaid expenses and other current assets
 
40,361

 
37,602

 
21,993

Total current assets
 
592,632

 
559,838

 
451,249

Property and equipment, net
 
99,070

 
99,162

 
101,096

Goodwill
 
110,000

 
110,000

 
110,000

Intangible assets, net
 
529,369

 
531,999

 
531,342

Other assets
 
22,942

 
617

 
588

TOTAL ASSETS
 
$
1,354,013

 
$
1,301,616

 
$
1,194,275

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
 
 
 
Current liabilities
 
 
 
 
 
 
Accounts payable
 
$
157,674

 
$
139,393

 
$
115,387

Deferred tax liabilities
 
2,850

 
7,954

 
4,019

Other current liabilities
 
121,924

 
97,086

 
83,955

Total current liabilities
 
282,448

 
244,433

 
203,361

Long-term debt
 
507,275

 

 

Long-term deferred tax liabilities
 
172,930

 
194,966

 
195,534

Other liabilities
 
17,439

 
3,233

 
3,066

TOTAL LIABILITIES
 
980,092

 
442,632

 
401,961

Commitments and contingencies
 

 

 

STOCKHOLDERS' EQUITY
 
 
 
 
 
 
Common stock, par value $0.01- authorized: 480,000,000 shares; issued and outstanding: 31,956,521
 
320

 

 

Additional paid-in capital
 
342,130

 

 

Retained earnings
 
35,782

 

 

Net parent company investment
 

 
862,041

 
794,309

Accumulated other comprehensive loss
 
(4,311
)
 
(3,057
)
 
(1,995
)
Total stockholders’ equity
 
373,921

 
858,984

 
792,314

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
 
$
1,354,013

 
$
1,301,616

 
$
1,194,275







LANDS’ END, INC.
Condensed Consolidated and Combined Statements of Comprehensive Operations
(Unaudited)
 
 
13 Weeks Ended
 
39 Weeks Ended
(in thousands except per share data)
 
October 31, 2014
 
November 1, 2013
 
October 31, 2014
 
November 1, 2013
REVENUES
 
 
 
 
 
 
 
 
Merchandise sales and services, net
 
$
373,082

 
$
383,851

 
$
1,050,787

 
$
1,032,447

COSTS AND EXPENSES
 
 
 
 
 
 
 
 
Cost of sales (excluding depreciation and amortization)
 
189,787

 
209,401

 
537,064

 
553,735

Selling and administrative
 
143,370

 
145,917

 
419,859

 
408,782

Depreciation and amortization
 
4,802

 
5,255

 
14,629

 
16,253

Other operating expense, net
 
25

 
7

 
45

 
59

Total costs and expenses
 
337,984

 
360,580

 
971,597

 
978,829

Operating income
 
35,098

 
23,271

 
79,190

 
53,618

Interest expense
 
6,194

 

 
14,324

 

Other income, net
 
507

 
10

 
847

 
33

Income before income taxes
 
29,411

 
23,281

 
65,713

 
53,651

Income tax expense
 
11,420

 
9,002

 
25,009

 
20,747

NET INCOME
 
$
17,991

 
$
14,279

 
$
40,704

 
$
32,904

Other comprehensive income (loss), net of tax
 
 
 
 
 
 
 
Foreign currency translation adjustments
 
(2,698
)
 
1,273

 
(2,316
)
 
104

COMPREHENSIVE INCOME
 
$
15,293

 
$
15,552

 
$
38,388

 
$
33,008

NET INCOME PER COMMON SHARE ATTRIBUTABLE TO STOCKHOLDERS
 
 
 
 
 
 
Basic:
 
$
0.56

 
$
0.45

 
$
1.27

 
$
1.03

Diluted:
 
$
0.56

 
$
0.45

 
$
1.27

 
$
1.03

 
 
 
 
 
 
 
 
 
Basic weighted average common shares outstanding
 
31,957

 
31,957

 
31,957

 
31,957

Diluted weighted average common shares outstanding
 
31,971

 
31,957

 
31,965

 
31,957







Use and Definition of Non-GAAP Financial Measures
1Adjusted EBITDA-In addition to our Net income determined in accordance with accounting principles
generally accepted in the United States (“GAAP”), for purposes of evaluating operating performance, we use an Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”), which is adjusted to exclude certain significant items as set forth below. Our management uses Adjusted EBITDA to evaluate the operating performance of our business, as well as for executive compensation metrics, for comparable periods. 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 certain on-going financing and investing activities from earnings by eliminating the effects of interest and depreciation costs.
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. For the 13 and 39 weeks ended October 31, 2014 and November 1, 2013, we excluded the loss on disposal of property and equipment as management considers the gains or losses on disposal of assets to result from investing decisions rather than ongoing operations.
 
13 Weeks Ended
 
October 31, 2014
 
November 1, 2013
(in thousands)
$’s
 
% of
Net Sales
 
$’s
 
% of
Net Sales
Net income
$
17,991

 
4.8
 %
 
$
14,279

 
3.7
 %
Income tax expense
11,420

 
3.1
 %
 
9,002

 
2.3
 %
Other income, net
(507
)
 
(0.1
)%
 
(10
)
 
 %
Interest expense
6,194

 
1.7
 %
 

 
 %
Operating income
35,098

 
9.4
 %
 
23,271

 
6.1
 %
Depreciation and amortization
4,802

 
1.3
 %
 
5,255

 
1.4
 %
Loss on disposal of property and equipment
25

 
 %
 
7

 
 %
Adjusted EBITDA
$
39,925

 
10.7
 %
 
$
28,533

 
7.4
 %
 
39 Weeks Ended
 
October 31, 2014
 
November 1, 2013
(in thousands)
$’s
 
% of
Net Sales
 
$’s
 
% of
Net Sales
Net income
$
40,704

 
3.9
 %
 
$
32,904

 
3.2
 %
Income tax expense
25,009

 
2.4
 %
 
20,747

 
2.0
 %
Other income, net
(847
)
 
(0.1
)%
 
(33
)
 
 %
Interest expense
14,324

 
1.4
 %
 

 
 %
Operating income
79,190

 
7.5
 %
 
53,618

 
5.2
 %
Depreciation and amortization
14,629

 
1.4
 %
 
16,253

 
1.6
 %
Loss on disposal of property and equipment
45

 
 %
 
59

 
 %
Adjusted EBITDA
$
93,864

 
8.9
 %
 
$
69,930

 
6.8
 %






LANDS’ END, INC.
Condensed Consolidated and Combined Statements of Cash Flows
(Unaudited)

 
 
39 Weeks Ended
(in thousands)
 
October 31, 2014
 
November 1, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
Net income
 
$
40,704

 
$
32,904

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
Depreciation and amortization
 
14,629

 
16,253

Amortization of debt issuance costs
 
1,092

 

Loss on disposal of property and equipment
 
45

 
59

Stock-based compensation
 
1,954

 

Deferred income taxes
 
7,730

 
3,407

Change in operating assets and liabilities:
 
 
 
 
Inventories
 
(36,306
)
 
(84,982
)
Accounts payable
 
44,989

 
30,010

Other operating assets
 
(23,402
)
 
(22,991
)
Other operating liabilities
 
34,123

 
14,394

Net cash provided by (used in) operating activities
 
85,558

 
(10,946
)
CASH FLOWS FROM INVESTING ACTIVITIES
 
 
 
 
Proceeds from sale of property and equipment
 

 
9

Purchases of property and equipment
 
(11,141
)
 
(3,629
)
Net cash used in investing activities
 
(11,141
)
 
(3,620
)
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
Contributions from / (distributions to) Sears Holdings, net
 
8,784

 
2,739

Proceeds from issuance of long-term debt
 
515,000

 

Payments on term loan facility
 
(2,575
)
 

Debt issuance costs
 
(11,433
)
 

Dividend paid to a subsidiary of Sears Holdings Corporation
 
(500,000
)
 

Net cash provided by financing activities
 
9,776

 
2,739

Effects of exchange rate changes on cash
 
(1,030
)
 
(99
)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
 
83,163

 
(11,926
)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
 
22,411

 
28,257

CASH AND CASH EQUIVALENTS, END OF PERIOD
 
$
105,574

 
$
16,331

SUPPLEMENTAL INFORMATION:
 
 
 
 
Supplemental Cash Flow Data:
 
 
 
 
Unpaid liability to acquire property and equipment
 
$
2,030

 
$
1,584

Income taxes paid
 
$
13,013

 
$
4,659

Interest paid
 
$
13,020

 
$








Financial information by segment is presented in the following tables for the 13 and 39 weeks ended October 31, 2014 and November 1, 2013, respectively.
LANDS' END, INC.
Segment Financial Information
(Unaudited)
(in thousands)
 
Direct
 
Retail
 
Corporate/ Other
 
Total
13 Weeks Ended October 31, 2014
 
 
 
 
 
 
 
 
Merchandise sales and services, net
 
$
320,286

 
$
52,776

 
$
20

 
$
373,082

Costs and expenses:
 
 
 
 
 
 
 
 
Cost of sales (excluding depreciation and amortization)
 
160,807

 
28,980

 

 
189,787

Selling and administrative
 
111,712

 
22,980

 
8,678

 
143,370

Depreciation and amortization
 
3,822

 
643

 
337

 
4,802

Other operating expense, net
 

 

 
25

 
25

Total costs and expenses
 
276,341

 
52,603

 
9,040

 
337,984

Operating income (loss)
 
43,945

 
173

 
(9,020
)
 
35,098

Interest expense
 

 

 
6,194

 
6,194

Other income, net
 

 

 
507

 
507

Income (loss) before income taxes
 
43,945

 
173

 
(14,707
)
 
29,411

Interest expense
 

 

 
6,194

 
6,194

Other income, net
 

 

 
507

 
507

Depreciation and amortization
 
3,822

 
643

 
337

 
4,802

Loss on disposal of property and equipment
 

 

 
25

 
25

Adjusted EBITDA
 
$
47,767

 
$
816

 
$
(8,658
)
 
$
39,925

 
 
 
 
 
 
 
 
 
Total assets
 
$
1,127,221

 
$
80,406

 
$
146,386

 
$
1,354,013

 
 
 
 
 
 
 
 
 
Capital expenditures
 
$
4,962

 
$
310

 
$
153

 
$
5,425







LANDS' END, INC.
Segment Financial Information
(Unaudited)
(in thousands)
 
Direct
 
Retail
 
Corporate/ Other
 
Total
13 Weeks Ended November 1, 2013
 
 
 
 
 
 
 
 
Merchandise sales and services, net
 
$
324,179

 
$
59,639

 
$
33

 
$
383,851

Costs and expenses:
 
 
 
 
 
 
 
 
Cost of sales (excluding depreciation and amortization)
 
171,226

 
38,175

 

 
209,401

Selling and administrative
 
114,111

 
25,636

 
6,170

 
145,917

Depreciation and amortization
 
4,035

 
882

 
338

 
5,255

Other operating expense, net
 

 

 
7

 
7

Total costs and expenses
 
289,372

 
64,693

 
6,515

 
360,580

Operating income (loss)
 
34,807

 
(5,054
)
 
(6,482
)
 
23,271

Other income, net
 

 

 
10

 
10

Income (loss) before income taxes
 
34,807

 
(5,054
)
 
(6,472
)
 
23,281

Other income, net
 

 

 
10

 
10

Depreciation and amortization
 
4,035

 
882

 
338

 
5,255

Loss on disposal of property and equipment
 

 

 
7

 
7

Adjusted EBITDA
 
$
38,842

 
$
(4,172
)
 
$
(6,137
)
 
$
28,533

 
 
 
 
 
 
 
 
 
Total assets
 
$
1,176,621

 
$
90,149

 
$
34,846

 
$
1,301,616

 
 
 
 
 
 
 
 
 
Capital expenditures
 
$
1,618

 
$

 
$
249

 
$
1,867






LANDS' END, INC.
Segment Financial Information
(Unaudited)
(in thousands)
 
Direct
 
Retail
 
Corporate/ Other
 
Total
39 Weeks Ended October 31, 2014
 
 
 
 
 
 
 
 
Merchandise sales and services, net
 
$
888,889

 
$
161,831

 
$
67

 
$
1,050,787

Costs and expenses:
 
 
 
 
 
 
 
 
Cost of sales (excluding depreciation and amortization)
 
448,519

 
88,545

 

 
537,064

Selling and administrative
 
324,820

 
69,184

 
25,855

 
419,859

Depreciation and amortization
 
11,682

 
1,938

 
1,009

 
14,629

Other operating expense, net
 

 

 
45

 
45

Total costs and expenses
 
785,021

 
159,667

 
26,909

 
971,597

Operating income (loss)
 
103,868

 
2,164

 
(26,842
)
 
79,190

Interest expense
 

 

 
14,324

 
14,324

Other income, net
 

 

 
847

 
847

Income (loss) before income taxes
 
103,868

 
2,164

 
(40,319
)
 
65,713

Interest expense
 

 

 
14,324

 
14,324

Other income, net
 

 

 
847

 
847

Depreciation and amortization
 
11,682

 
1,938

 
1,009

 
14,629

Loss on disposal of property and equipment
 

 

 
45

 
45

Adjusted EBITDA
 
$
115,550

 
$
4,102

 
$
(25,788
)
 
$
93,864

 
 
 
 
 
 
 
 
 
Total assets
 
$
1,127,221

 
$
80,406

 
$
146,386

 
$
1,354,013

 
 
 
 
 
 
 
 
 
Capital expenditures
 
$
10,393

 
$
452

 
$
296

 
$
11,141






LANDS' END, INC.
Segment Financial Information
(Unaudited)
(in thousands)
 
Direct
 
Retail
 
Corporate/ Other
 
Total
39 Weeks Ended November 1, 2013
 
 
 
 
 
 
 
 
Merchandise sales and services, net
 
$
860,774

 
$
171,596

 
$
77

 
$
1,032,447

Costs and expenses:
 
 
 
 
 
 
 
 
Cost of sales (excluding depreciation and amortization)
 
455,794

 
97,941

 

 
553,735

Selling and administrative
 
316,882

 
75,476

 
16,424

 
408,782

Depreciation and amortization
 
12,590

 
2,655

 
1,008

 
16,253

Other operating expense, net
 

 

 
59

 
59

Total costs and expenses
 
785,266

 
176,072

 
17,491

 
978,829

Operating income (loss)
 
75,508

 
(4,476
)
 
(17,414
)
 
53,618

Other income, net
 

 

 
33

 
33

Income (loss) before income taxes
 
75,508

 
(4,476
)
 
(17,381
)
 
53,651

Other income, net
 

 

 
33

 
33

Depreciation and amortization
 
12,590

 
2,655

 
1,008

 
16,253

Loss on disposal of property and equipment
 

 

 
59

 
59

Adjusted EBITDA
 
$
88,098

 
$
(1,821
)
 
$
(16,347
)
 
$
69,930

 
 
 
 
 
 
 
 
 
Total assets
 
$
1,176,621

 
$
90,149

 
$
34,846

 
$
1,301,616

 
 
 
 
 
 
 
 
 
Capital expenditures
 
$
3,355

 
$
1

 
$
273

 
$
3,629