Lands’ End, Inc. (NASDAQ: LE) today announced financial results for
the third quarter ended October 28, 2022.
Jerome Griffith, Chief Executive Officer, stated, “We
experienced strong conversion rates throughout the quarter
indicating favorable responses to our product offerings. While the
current environment remains volatile, we are optimistic about the
future as we focus on making progress against our strategic
initiatives. Our long-tenured customer base and our
digitally-driven eCommerce model gives me confidence that Lands’
End is in a strong position for long-term success.”
Third Quarter Financial Highlights:
- For the third quarter, net revenue decreased 1.3% to $371.0
million compared to $375.8 million in the third quarter of fiscal
2021.
- Global eCommerce net revenue decreased 4.6% to $249.2 million
for the third quarter. Net revenue in U.S. eCommerce decreased 1.3%
and International eCommerce decreased 19.6%, both primarily driven
by lower consumer demand resulting from macroeconomic challenges
impacting discretionary spending.
- Outfitters net revenue decreased 6.2% to $80.8 million for the
third quarter, primarily driven by the normalization of purchases
in travel-related national accounts compared to last year.
- Third Party net revenue increased 59.9% to $30.9 million for
the third quarter, primarily attributed to growth in the Kohl’s
online marketplace, and growth in other new and existing online
marketplaces.
- Retail net revenue increased 9.7% to $10.1 million with Same
Store Sales increasing 13.0% in the third quarter compared to third
quarter of fiscal 2021.
- Gross profit was $148.4 million, a decrease of $18.4 million or
11.0% from $166.8 million during the third quarter of fiscal 2021.
Gross margin decreased approximately 440 basis points to 40.0%,
compared to 44.4% in third quarter of fiscal 2021. The Gross margin
decline was attributable to an incremental $6.8 million of
transportation costs as a result of global supply chain challenges,
increased industry-wide promotional activity, as well as margin mix
from growth in our Third Party business.
- Selling and administrative expenses decreased $4.6 million to
$132.8 million or 35.8% of net revenue, compared to $137.4 million
or 36.6% of net revenue in third quarter of fiscal 2021. The
approximately 80 basis points decrease was driven by continued
expense controls across the entire business.
- Net loss was $4.7 million, or $0.14 loss per diluted share.
This compares to Net income of $7.4 million or $0.22 earnings per
diluted share in the third quarter of fiscal 2021.
- Adjusted EBITDA decreased to $16.7 million compared to $29.8
million in the third quarter of fiscal 2021.
Third Quarter Business Highlights:
- Successfully launched its Blake Shelton X Lands’ End
collection, which offers mens, womens and kids apparel as well as
items for the home.
- Continued to expand its Third Party business with the launch of
Target.com and Walmart.com.
- U.S. Retail Same Store Sales increased 13.0%, as consumers
returned to in-store shopping.
Balance Sheet and Cash Flow Highlights
Jim Gooch, President and Chief Financial Officer, stated, “We
took a concerted effort to improve our in-stock positions by
increasing our lead times and receipting our Fall/Holiday inventory
earlier. While this largely drove our 18% increase in inventories
at the end of the third quarter, we are well positioned to meet our
customers’ needs as we move through the holiday season. We expect
inventory levels to normalize by the end of Spring/Summer
2023.”
Cash and cash equivalents were $28.8 million as of October 28,
2022, compared to $37.9 million as of October 29, 2021.
Inventories, net, was $564.9 million as of October 28, 2022, and
$479.8 million as of October 29, 2021. Inventory increased $85.1
million primarily due to an increase of earlier receipts of fall
and holiday inventory as well as carried over basics inventory from
prior seasons.
Net cash used in operations was $126.0 million for the 39 weeks
ended October 28, 2022, compared to net cash used in operations of
$6.4 million for the 39 weeks ended October 29, 2021. The $119.6
million increase in cash used in operating activities was primarily
caused by a decrease in net income and the increase in year over
year inventories.
As of October 28, 2022, the Company had $160.0 million of
borrowings outstanding and $103.2 million of availability, compared
to $70.0 million of borrowings and $183.6 million of availability
as of October 29, 2021. Additionally, as of October 28, 2022, the
Company had $247.5 million of term loan debt outstanding compared
to $261.3 million of term loan debt outstanding as of October 29,
2021.
During the third quarter, the Company repurchased $2.9 million
of the Company’s common stock under its previously announced $50
million share repurchase program.
Outlook
Jim Gooch, President and Chief Financial Officer, continued, “We
have revised our full year outlook to account for the uncertain
macro environment. We anticipate that the fourth quarter will be
highly promotional and we plan to remain competitive with our
pricing to drive traffic through the holiday season.”
For the fourth quarter of fiscal 2022 the Company expects:
- Net revenue to be between $510.0 million and $530.0
million.
- Net income to be between $0.0 million and $3.0 million and
diluted earnings per share to be between $0.00 and $0.09.
- Adjusted EBITDA in the range of $20.0 million to $25.0
million.
This fourth quarter outlook assumes approximately flat
transportation expenses due to the global supply chain
challenges.
For fiscal 2022 the Company now expects:
- Net revenue to be between $1.54 billion and $1.56 billion.
- Net loss to be between $9.0 million and $6.0 million, and
diluted loss per share to be between $0.27 and $0.18.
- Adjusted EBITDA in the range of $66.5 million to $71.5
million.
- Capital expenditures of approximately $42.0 million.
This full year outlook assumes approximately $33.0 million of
incremental transportation expenses due to the global supply chain
challenges.
Conference Call
The Company will host a conference call on Thursday, December 1,
2022, at 8:30 a.m. ET to review its third 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 uni-channel retailer
of casual clothing, 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 optimism about its future as it focuses on making
progress against its strategic initiatives; the Company’s
confidence and view that it is strongly positioned for long-term
success; the Company’s view that it is well positioned to meet its
customers’ needs during the holiday season; the Company’s
expectation regarding the timing of the normalization of its
inventory levels; the Company’s assessment of the macro environment
and its impact on the Company’s outlook; the Company’s expectation
that the fourth quarter will be highly promotional and that the
Company will be able to remain competitive with its pricing, and
such action will drive traffic through the holiday season; and the
Company’s outlook and expectations as to net revenue, net
income/loss, earnings/loss per share and Adjusted EBITDA for the
fourth quarter of fiscal 2022 and for the full year of fiscal 2022,
capital expenditures for fiscal 2022, assumptions regarding
incremental transportation expenses due to the global supply chain
challenges in the fourth quarter of fiscal 2022 and full year of
fiscal 2022. 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
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
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.James GoochPresident and Chief Financial
Officer(608) 935-9341
Investor Relations:ICR, Inc.Bruce Williams(332)
242-4303Bruce.Williams@icrinc.com
-Financial Tables Follow-
LANDS’ END,
INC.Condensed Consolidated Balance
Sheets(Unaudited)
(in
thousands, except per share data) |
|
October 28, 2022 |
|
|
October 29, 2021 |
|
|
January 28, 2022* |
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
28,829 |
|
|
$ |
37,926 |
|
|
$ |
34,301 |
|
Restricted cash |
|
|
1,833 |
|
|
|
1,983 |
|
|
|
1,834 |
|
Accounts receivable, net |
|
|
49,409 |
|
|
|
44,078 |
|
|
|
49,668 |
|
Inventories, net |
|
|
564,856 |
|
|
|
479,793 |
|
|
|
384,241 |
|
Prepaid expenses and other current assets |
|
|
47,205 |
|
|
|
41,418 |
|
|
|
36,905 |
|
Total current assets |
|
|
692,132 |
|
|
|
605,198 |
|
|
|
506,949 |
|
Property and equipment, net |
|
|
121,907 |
|
|
|
133,572 |
|
|
|
129,791 |
|
Operating lease right-of-use
asset |
|
|
31,441 |
|
|
|
32,782 |
|
|
|
31,492 |
|
Goodwill |
|
|
106,700 |
|
|
|
106,700 |
|
|
|
106,700 |
|
Intangible asset |
|
|
257,000 |
|
|
|
257,000 |
|
|
|
257,000 |
|
Other assets |
|
|
3,786 |
|
|
|
4,512 |
|
|
|
4,702 |
|
TOTAL ASSETS |
|
$ |
1,212,966 |
|
|
$ |
1,139,764 |
|
|
$ |
1,036,634 |
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
Current portion of long-term debt |
|
$ |
13,750 |
|
|
$ |
13,750 |
|
|
$ |
13,750 |
|
Accounts payable |
|
|
228,863 |
|
|
|
184,569 |
|
|
|
145,802 |
|
Lease liability – current |
|
|
5,808 |
|
|
|
5,609 |
|
|
|
5,617 |
|
Other current liabilities |
|
|
111,872 |
|
|
|
142,828 |
|
|
|
146,263 |
|
Total current liabilities |
|
|
360,293 |
|
|
|
346,756 |
|
|
|
311,432 |
|
Long-term borrowings under ABL
Facility |
|
|
160,000 |
|
|
|
70,000 |
|
|
|
— |
|
Long-term debt, net |
|
|
226,227 |
|
|
|
237,245 |
|
|
|
234,474 |
|
Lease liability – long-term |
|
|
32,033 |
|
|
|
34,092 |
|
|
|
32,731 |
|
Deferred tax liabilities |
|
|
45,087 |
|
|
|
47,325 |
|
|
|
46,191 |
|
Other liabilities |
|
|
3,758 |
|
|
|
5,834 |
|
|
|
5,110 |
|
TOTAL LIABILITIES |
|
|
827,398 |
|
|
|
741,252 |
|
|
|
629,938 |
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
STOCKHOLDERS’
EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, par value $0.01 authorized: 480,000 shares; issued
and outstanding: 33,001, 32,983 and 32,985, respectively |
|
|
330 |
|
|
|
330 |
|
|
|
330 |
|
Additional paid-in capital |
|
|
369,198 |
|
|
|
372,313 |
|
|
|
374,413 |
|
Retained earnings |
|
|
34,566 |
|
|
|
37,485 |
|
|
|
44,595 |
|
Accumulated other comprehensive (loss) |
|
|
(18,526 |
) |
|
|
(11,616 |
) |
|
|
(12,642 |
) |
TOTAL STOCKHOLDERS’ EQUITY |
|
|
385,568 |
|
|
|
398,512 |
|
|
|
406,696 |
|
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
$ |
1,212,966 |
|
|
$ |
1,139,764 |
|
|
$ |
1,036,634 |
|
*Derived from the audited consolidated financial statements
included in the Company’s Annual Report on Form 10-K for the fiscal
year ended January 28, 2022.
LANDS’ END,
INC.Condensed Consolidated Statements of
Operations(Unaudited)
|
|
13 Weeks Ended |
|
|
39 Weeks Ended |
|
(in
thousands, except per share data) |
|
October 28,2022 |
|
|
October 29,2021 |
|
|
October 28,2022 |
|
|
October 29, 2021 |
|
Net revenue |
|
$ |
370,983 |
|
|
$ |
375,843 |
|
|
$ |
1,025,826 |
|
|
$ |
1,081,249 |
|
Cost of sales (excluding
depreciation and amortization) |
|
|
222,573 |
|
|
|
209,028 |
|
|
|
604,204 |
|
|
|
588,908 |
|
Gross
profit |
|
|
148,410 |
|
|
|
166,815 |
|
|
|
421,622 |
|
|
|
492,341 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and administrative |
|
|
132,807 |
|
|
|
137,408 |
|
|
|
377,074 |
|
|
|
399,579 |
|
Depreciation and
amortization |
|
|
9,761 |
|
|
|
9,788 |
|
|
|
29,228 |
|
|
|
29,483 |
|
Other operating expense, net |
|
|
3,096 |
|
|
|
140 |
|
|
|
3,135 |
|
|
|
583 |
|
Operating income |
|
|
2,746 |
|
|
|
19,479 |
|
|
|
12,185 |
|
|
|
62,696 |
|
Interest expense |
|
|
10,825 |
|
|
|
8,334 |
|
|
|
27,807 |
|
|
|
26,231 |
|
Other expense (income), net |
|
|
230 |
|
|
|
(171 |
) |
|
|
(97 |
) |
|
|
(461 |
) |
(Loss) income before income
taxes |
|
|
(8,309 |
) |
|
|
11,316 |
|
|
|
(15,525 |
) |
|
|
36,926 |
|
Income tax (benefit) expense |
|
|
(3,627 |
) |
|
|
3,917 |
|
|
|
(6,293 |
) |
|
|
10,667 |
|
NET (LOSS)
INCOME |
|
$ |
(4,682 |
) |
|
$ |
7,399 |
|
|
$ |
(9,232 |
) |
|
$ |
26,259 |
|
NET (LOSS) INCOME PER
COMMON SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic: |
|
$ |
(0.14 |
) |
|
$ |
0.22 |
|
|
$ |
(0.28 |
) |
|
$ |
0.80 |
|
Diluted: |
|
$ |
(0.14 |
) |
|
$ |
0.22 |
|
|
$ |
(0.28 |
) |
|
$ |
0.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic weighted average common
shares outstanding |
|
|
33,064 |
|
|
|
32,981 |
|
|
|
33,196 |
|
|
|
32,910 |
|
Diluted weighted average common
shares outstanding |
|
|
33,064 |
|
|
|
33,698 |
|
|
|
33,196 |
|
|
|
33,708 |
|
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.
- For the 13 and 39 weeks ended
October 28, 2022, we excluded the impacts of the estimated one-time
closing costs of Lands’ End Japan KK, a subsidiary of Lands’ End,
Inc., (“LE Japan”) and the net operating loss resulting from the
liquidation of product during September and October 2022.
- For the 13 and 39 weeks ended
October 28, 2022, we excluded the impacts of long-lived asset
impairment.
- For the 13 weeks ended October 29,
2021 and 39 weeks ended October 28, 2022 and October 29, 2021, we
excluded the impacts of loss on disposal of property and
equipment.
- For the 13 weeks and 39 weeks ended
October 28, 2022 and October 29, 2021, we excluded the impacts of
amortization of transaction related costs associated with Third
Party distribution channel.
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) |
|
October 28, 2022 |
|
|
October 29, 2021 |
|
Net (loss) income |
|
$ |
(4,682 |
) |
|
|
(1.3 |
)% |
|
$ |
7,399 |
|
|
|
2.0 |
% |
Income tax (benefit) expense |
|
|
(3,627 |
) |
|
|
(1.0 |
)% |
|
|
3,917 |
|
|
|
1.0 |
% |
Other expense (income), net |
|
|
230 |
|
|
|
0.1 |
% |
|
|
(171 |
) |
|
|
(0.0 |
)% |
Interest expense |
|
|
10,825 |
|
|
|
2.9 |
% |
|
|
8,334 |
|
|
|
2.2 |
% |
Operating income |
|
|
2,746 |
|
|
|
0.7 |
% |
|
|
19,479 |
|
|
|
5.2 |
% |
Depreciation and
amortization |
|
|
9,761 |
|
|
|
2.6 |
% |
|
|
9,788 |
|
|
|
2.6 |
% |
LE Japan closing costs |
|
|
3,858 |
|
|
|
1.0 |
% |
|
|
— |
|
|
|
— |
% |
Long-lived asset impairment |
|
|
120 |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
— |
% |
Loss on disposal of property and
equipment |
|
|
— |
|
|
|
— |
% |
|
|
140 |
|
|
|
0.0 |
% |
Other |
|
|
178 |
|
|
|
0.0 |
% |
|
|
344 |
|
|
|
0.1 |
% |
Adjusted
EBITDA |
|
$ |
16,663 |
|
|
|
4.5 |
% |
|
$ |
29,751 |
|
|
|
7.9 |
% |
|
|
39 Weeks Ended |
|
(in
thousands) |
|
October 28, 2022 |
|
|
October 29, 2021 |
|
Net (loss) income |
|
$ |
(9,232 |
) |
|
|
(0.9 |
)% |
|
$ |
26,259 |
|
|
|
2.5 |
% |
Income tax (benefit) expense |
|
|
(6,293 |
) |
|
|
(0.6 |
)% |
|
|
10,667 |
|
|
|
0.9 |
% |
Other (income), net |
|
|
(97 |
) |
|
|
(0.0 |
)% |
|
|
(461 |
) |
|
|
(0.0 |
)% |
Interest expense |
|
|
27,807 |
|
|
|
2.7 |
% |
|
|
26,231 |
|
|
|
2.4 |
% |
Operating income |
|
|
12,185 |
|
|
|
1.2 |
% |
|
|
62,696 |
|
|
|
5.8 |
% |
Depreciation and
amortization |
|
|
29,228 |
|
|
|
2.8 |
% |
|
|
29,483 |
|
|
|
2.7 |
% |
LE Japan closing costs |
|
|
3,858 |
|
|
|
0.4 |
% |
|
|
— |
|
|
|
— |
% |
Long-lived asset impairment |
|
|
120 |
|
|
|
0.0 |
% |
|
|
— |
|
|
|
— |
% |
Loss on disposal of property and
equipment |
|
|
39 |
|
|
|
0.0 |
% |
|
|
583 |
|
|
|
0.1 |
% |
Other |
|
|
866 |
|
|
|
0.1 |
% |
|
|
844 |
|
|
|
0.1 |
% |
Adjusted
EBITDA |
|
$ |
46,296 |
|
|
|
4.5 |
% |
|
$ |
93,606 |
|
|
|
8.7 |
% |
Fourth Quarter Fiscal
2022 Guidance |
|
|
|
|
13 Weeks Ended |
|
(in millions) |
|
|
|
|
January 27, 2023 |
|
Net income |
|
|
|
|
$ |
0.0 |
|
— |
$ |
3.0 |
|
Depreciation, interest, other
income, taxes and other adjustments |
|
|
|
|
|
20.0 |
|
— |
|
22.0 |
|
Adjusted EBITDA |
|
|
|
|
$ |
20.0 |
|
— |
$ |
25.0 |
|
Fiscal 2022
Guidance |
|
|
|
|
52 Weeks Ended |
|
(in millions) |
|
|
|
|
January 27, 2023 |
|
Net loss |
|
|
|
|
$ |
(9.0 |
) |
— |
$ |
(6.0 |
) |
Depreciation, interest, other
income, taxes and other adjustments |
|
|
|
|
|
75.5 |
|
— |
|
77.5 |
|
Adjusted EBITDA |
|
|
|
|
$ |
66.5 |
|
— |
$ |
71.5 |
|
LANDS’ END,
INC.Condensed Consolidated Statements of Cash
Flows(Unaudited)
|
|
39 Weeks Ended |
|
(in
thousands) |
|
October 28, 2022 |
|
|
October 29, 2021 |
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
Net (loss) income |
|
$ |
(9,232 |
) |
|
$ |
26,259 |
|
Adjustments to reconcile net
(loss) income to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
29,228 |
|
|
|
29,483 |
|
Amortization of debt issuance costs |
|
|
2,361 |
|
|
|
2,358 |
|
Loss on disposal of property and equipment |
|
|
39 |
|
|
|
583 |
|
Stock-based compensation |
|
|
3,537 |
|
|
|
8,043 |
|
Deferred income taxes |
|
|
460 |
|
|
|
80 |
|
Long-lived asset impairment |
|
|
120 |
|
|
|
— |
|
Other |
|
|
(744 |
) |
|
|
(1,097 |
) |
Change in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
|
(1,246 |
) |
|
|
(7,219 |
) |
Inventories, net |
|
|
(188,899 |
) |
|
|
(98,391 |
) |
Accounts payable |
|
|
82,057 |
|
|
|
51,152 |
|
Other operating assets |
|
|
(10,604 |
) |
|
|
95 |
|
Other operating liabilities |
|
|
(33,072 |
) |
|
|
(17,700 |
) |
Net cash used in operating activities |
|
|
(125,995 |
) |
|
|
(6,354 |
) |
CASH FLOWS FROM INVESTING
ACTIVITIES |
|
|
|
|
|
|
|
|
Sales of property and equipment |
|
|
88 |
|
|
|
— |
|
Purchases of property and equipment |
|
|
(20,544 |
) |
|
|
(18,739 |
) |
Net cash used in investing activities |
|
|
(20,456 |
) |
|
|
(18,739 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES |
|
|
|
|
|
|
|
|
Proceeds from borrowings under ABL Facility |
|
|
222,000 |
|
|
|
140,000 |
|
Payments of borrowings under ABL Facility |
|
|
(62,000 |
) |
|
|
(95,000 |
) |
Payments on term loan |
|
|
(10,313 |
) |
|
|
(10,313 |
) |
Payments for taxes related to net share settlement of equity
awards |
|
|
(4,315 |
) |
|
|
(5,098 |
) |
Purchases and retirement of common stock |
|
|
(5,234 |
) |
|
|
— |
|
Payment of debt-issuance costs |
|
|
— |
|
|
|
(1,161 |
) |
Net cash provided by financing activities |
|
|
140,138 |
|
|
|
28,428 |
|
Effects of exchange rate changes
on cash, cash equivalents and restricted cash |
|
|
840 |
|
|
|
780 |
|
NET (DECREASE) INCREASE
IN CASH, CASH EQUIVALENTS AND RESTRICTED
CASH |
|
|
(5,473 |
) |
|
|
4,115 |
|
CASH, CASH EQUIVALENTS
AND RESTRICTED CASH, BEGINNING OF
PERIOD |
|
|
36,135 |
|
|
|
35,794 |
|
CASH, CASH EQUIVALENTS
AND RESTRICTED CASH, END OF PERIOD |
|
$ |
30,662 |
|
|
$ |
39,909 |
|
SUPPLEMENTAL CASH FLOW
DATA |
|
|
|
|
|
|
|
|
Unpaid liability to acquire property and equipment |
|
$ |
4,922 |
|
|
$ |
2,836 |
|
Income taxes paid, net of refunds |
|
$ |
4,146 |
|
|
$ |
23,570 |
|
Interest paid |
|
$ |
26,170 |
|
|
$ |
23,972 |
|
Lease liabilities arising from obtaining operating lease
right-of-use assets |
|
$ |
4,223 |
|
|
$ |
1,161 |
|
Lands End (NASDAQ:LE)
Historical Stock Chart
From Mar 2024 to Apr 2024
Lands End (NASDAQ:LE)
Historical Stock Chart
From Apr 2023 to Apr 2024