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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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 McCrackenInterim Chief Financial
Officer(608) 935-9341
Investor Relations:ICR, Inc.Tom Filandro(646)
277-1235Tom.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.
- 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.
- For the 13 weeks and 52 weeks ended
January 27, 2023 we excluded the non-cash write-down of certain
long-lived assets.
- 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.
- 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 |
|
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