Lands' End, Inc. (LE) 10-K Annual Report April 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.

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.

The following information was filed by Lands' End, Inc. (LE) on Thursday, March 16, 2023 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-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Lands' End, Inc.'s 10-K Annual Report:

Financial - Earnings Highlight
The $118.6 million increase in net cash provided by financing activities is attributed to the reduction in earnings and increased borrowings under the ABL Facility to cover the higher than normal inventory levels throughout the year due to the receipt timing of seasonal inventory compared to prior years as well as carried over basics inventory from prior seasons.

Financial - Cash Flow Highlight
The discounted cash flow model uses projections based on managements best estimates of economic and market conditions over the projected period using the best information available, including growth rates in revenues, costs and estimates of future expected changes in operating margins and cash expenditures.
Financial - Debt Highlight
Events of Default The Debt Facilities include customary events of default including non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations or warranties, cross defaults related to certain other material indebtedness, bankruptcy and insolvency events, invalidity or impairment of guarantees or security interests and material judgments and change of control.
Financial - Cash Flow Highlight
If actual results fall short of our estimates and assumptions used in estimating future cash flows and asset fair values, we may be exposed to future impairment losses that could be material.
Financial - Earnings Highlight
Gross margin decreased 410 basis points to 38.2% of total Net revenue in Fiscal 2022 from 42.3% of total Net revenue in Fiscal 2021.
Financial - Income
Our income tax expense includes...Read more
Financial - Expense
The approximately 110 basis points...Read more
Other - Other
Depreciation and Amortization Depreciation and...Read more
Financial - Expense
These macroeconomic challenges have led...Read more
Other - Other
The increase in inventory was...Read more
Other - Other
The interest rates per annum...Read more
Other - Other
Cash provided by operating activities...Read more
Other - Other
The methods we use to...Read more
Other - Other
As a result, any non-GAAP...Read more
Financial - Income
Income Tax (Benefit) Expense Income...Read more
Other - Other
Our management uses Adjusted EBITDA...Read more
Financial - Earnings
Interest; Fees The Third Amendment...Read more
Financial - Income
While Adjusted EBITDA is a...Read more
Other - Other
On July 29, 2021, we...Read more
Financial - Income
This compared to Income tax...Read more
Revenue - Product
Outfitters Net revenue was $265.9...Read more
Revenue - Product
Third Party Net revenue was...Read more
Revenue - Product
Retail Net revenue was $48.2...Read more
Financial - Earnings
For all loans, the borrowing...Read more
Other - Other
The ABL Facility fees include...Read more
Revenue - Product
For sales shipped from our...Read more
Other - Other
This method is based on...Read more
Other - Other
Should actual results be different...Read more
Financial - Expense
Other significant estimates and assumptions...Read more
Financial - Cash Flow
Frequently our impairment loss calculations...Read more
Revenue - Product
Net revenue is presented by...Read more
Other - Other
However, if actual results fall...Read more
Other - Other
Indefinite-lived intangible asset impairment assessments...Read more
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Cash generated from our net...Read more
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We record an allowance for...Read more
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Our U.S. Company Operated Stores...Read more

Financial Statements, Disclosures and Schedules

Inside this 10-K Annual Report

Material Contracts, Statements, Certifications & more

Lands' End, Inc. provided additional information to their SEC Filing as exhibits

Exhibit 4: Instruments Defining The Rights Of Security Holders, Including Indentures

Exhibit 10: Material Contract

Exhibit 21: Subsidaries Of The Registrant

Exhibit 23: Consents Of Experts And Counsel

Exhibit 31: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32: Section 1350 Certification

Ticker: LE
CIK: 799288
Form Type: 10-K Annual Report
Accession Number: 0000950170-23-012307
Submitted to the SEC: Mon Apr 10 2023 5:01:17 PM EST
Accepted by the SEC: Mon Apr 10 2023
Period: Friday, January 27, 2023
Industry: Retail Family Clothing Stores