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LANDS' END ANNOUNCES THIRD QUARTER FISCAL 2018 RESULTS
Company continues sales growth with improved profitability
DODGEVILLE, Wis., December 6, 2018 (GLOBE NEWSWIRE) - Lands' End, Inc. (NASDAQ:LE) today announced financial results for the Third Quarter ended November 2, 2018.
Third Quarter Fiscal 2018 Highlights:
Net revenue for the third quarter increased 4.9% to $341.6 million from $325.5 million in the third quarter last year. Direct segment net revenue increased 8.1% to $313.8 million, as compared to the same period last year. Retail segment net revenue decreased 21.0% to $27.8 million, from $35.2 million in the third quarter last year, due to the reduction in Lands’ End Shops at Sears locations. Same store sales increased by 11.8% overall, with U.S. Company operated stores increasing by 15.1% and same store sales in Lands’ End Shops at Sears increasing by 11.7%. At the end of the third quarter, there were 63 fewer Lands' End Shops at Sears.
Gross margin increased approximately 60 basis points to 44.2% from 43.6% in the third quarter last year.
Net income was $3.3 million, or $0.10 earnings per diluted share, as compared to Net income of $0.2 million, or $0.01 earnings per diluted share, in the third quarter of fiscal 2017.
Adjusted EBITDA(1) grew 22.1% to $15.7 million compared to $12.9 million in the third quarter of fiscal 2017.
Jerome S. Griffith, Chief Executive Officer and President, stated, “Our third quarter results marked the sixth consecutive quarter of sales growth and the fifth consecutive quarter of Adjusted EBITDA increases. We were pleased to see accelerated growth in our Direct segment, which grew approximately 8% as compared to last year, driven by strength in our U.S. eCommerce business, which grew double digits. We have continued the rollout of our own retail stores, and believe we have a viable, profitable and expandable store model which complements our successful online presence. We are extremely pleased to see the momentum across our business continued through the Thanksgiving and Cyber Monday period. Our inventory position is very strong, and we have depth in key items to drive sales over the remainder of the holiday period. As we look forward, we will continue to execute on our strategic plan focusing on product, digitalization, uni-channel distribution and infrastructure to drive consistent performance across the business.”
Balance Sheet and Cash Flow Highlights
Cash and cash equivalents were $105.9 million as of November 2, 2018, compared to $92.9 million on October 27, 2017. Net cash used in operations was $52.2 million for the thirty-nine weeks ended November 2, 2018, compared to net cash used in operations of $87.8 million for the same period last year.
Inventory was $432.0 million as of November 2, 2018, and $423.5 million as of October 27, 2017.
The Company had $152.4 million of availability under its asset-based senior secured credit facility and had $483.4 million of Long-term debt, net as of November 2, 2018.
The Company will host a conference call on Thursday, December 6, 2018, 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 or by dialing (866) 753-5836.
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, international websites, third party
The following information was filed by Lands' End, Inc. (LE) on Thursday, December 6, 2018 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.