Interviews
DODGEVILLE, Wis., June 01, 2023 (GLOBE NEWSWIRE) Lands’ End, Inc. (NASDAQ: LE) today announced financial results for the first quarter ended April 28, 2023.
Andrew McLean, Chief Executive Officer, stated, “Our team continued to successfully execute during the quarter and made strong progress against our strategic initiatives. As a result, we delivered year-over-year revenue and earnings growth, led primarily by our leading swim business and its natural vacation adjacencies, which collectively contributed to our strong margin performance and our 41% increase in Adjusted EBITDA. We continue to roll out our strategic initiatives and expect that the learnings from each successive quarter will enable further refinements and long-term value for our shareholders and other stakeholders.”
McLean continued, “We also continue to make key hires to further round out our leadership team. In April, we welcomed Stuart Hogue as Senior Vice President, US eCommerce and starting in June, Jim O’Connor will join as the Senior Vice President and General Manager of Lands’ End Outfitters. Both Stuart and Jim are highly accomplished executives with skills and expertise that will be important as we continue our focus on executing against our business objectives. We look forward to their future contributions to Lands’ End.”
First Quarter Financial Highlights
Balance Sheet and Cash Flow Highlights
Cash and cash equivalents were $7.3 million as of April 28, 2023, compared to $22.0 million as of April 29, 2022.
Inventories, net, was $376.1 million as of April 28, 2023, and $436.9 million as of April 29, 2022. The decrease in inventory was driven by the actions the Company has taken to leverage normalized supply chain lead times to receive spring and summer inventory closer to the selling season and late receipts last year due to the supply chain challenges.
Net cash used in operations was $10.8 million for the 13 weeks ended April 28, 2023, compared to net cash used in operations of $122.4 million for the 13 weeks ended April 29, 2022. The $111.6 million decrease in cash used in operating activities was primarily due to the year over year changes in inventories.
As of April 28, 2023, the Company had $100.0 million of borrowings outstanding and $136.1 million of availability under its ABL Facility, compared to $125.0 million of borrowings and $98.5 million of availability as of April 29, 2022. Additionally, as of April 28, 2023, the Company had $240.6 million of term loan debt outstanding compared to $254.4 million of term loan debt outstanding as of April 29, 2022.
During the first quarter, the Company repurchased $3.8 million of the Company’s common stock under its previously announced share repurchase program. As of April 28, 2023, additional purchases of up to $37.8 million could be made under the program through February 2, 2024.
Outlook
For the second quarter of fiscal 2023 the Company expects:
For fiscal 2023 the Company now expects:
About Lands’ End, Inc.
Lands’ End, Inc. (NASDAQ:LE) is a leading digital retailer of casual clothing, swimwear, outerwear, accessories, footwear, home products and uniform solutions. 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. We also offer products to businesses and schools, for their employees and students, through the Outfitters distribution channel.
-Financial Tables Follow-
LANDS’ END, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
| (in thousands, except per share data) | April 28, 2023 | April 29, 2022 | January 27, 2023* | |||||||||
| ASSETS | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | $ | 7,332 | $ | 22,027 | $ | 39,557 | ||||||
| Restricted cash | 2,149 | 2,145 | 1,834 | |||||||||
| Accounts receivable, net | 38,759 | 52,134 | 44,928 | |||||||||
| Inventories, net | 376,062 | 436,859 | 425,513 | |||||||||
| Prepaid expenses and other current assets | 45,743 | 39,197 | 44,894 | |||||||||
| Total current assets | 470,045 | 552,362 | 556,726 | |||||||||
| Property and equipment, net | 126,397 | 127,430 | 127,638 | |||||||||
| Operating lease right-of-use asset | 31,878 | 33,332 | 30,325 | |||||||||
| Goodwill | 106,700 | 106,700 | 106,700 | |||||||||
| Intangible asset | 257,000 | 257,000 | 257,000 | |||||||||
| Other assets | 3,174 | 4,740 | 3,759 | |||||||||
| TOTAL ASSETS | $ | 995,194 | $ | 1,081,564 | $ | 1,082,148 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
| Current liabilities | ||||||||||||
| Current portion of long-term debt | $ | 13,750 | $ | 13,750 | $ | 13,750 | ||||||
| Accounts payable | 110,097 | 130,955 | 171,557 | |||||||||
| Lease liability – current | 5,533 | 5,557 | 5,414 | |||||||||
| Accrued expenses and other current liabilities | 88,216 | 90,777 | 106,756 | |||||||||
| Total current liabilities | 217,596 | 241,039 | 297,477 | |||||||||
| Long-term borrowings under ABL Facility | 100,000 | 125,000 | 100,000 | |||||||||
| Long-term debt, net | 220,786 | 231,703 | 223,506 | |||||||||
| Lease liability – long-term | 32,335 | 34,855 | 31,095 | |||||||||
| Deferred tax liabilities | 45,863 | 45,612 | 45,953 | |||||||||
| Other liabilities | 3,330 | 4,950 | 3,365 | |||||||||
| TOTAL LIABILITIES | 619,910 | 683,159 | 701,396 | |||||||||
| Commitments and contingencies | ||||||||||||
| STOCKHOLDERS’ EQUITY | ||||||||||||
|
Common stock, par value $0.01 authorized: 480,000 shares; issued and outstanding: 32,460, 33,413 and 32,626, respectively |
325 | 334 | 326 | |||||||||
| Additional paid-in capital | 362,285 | 371,583 | 366,181 | |||||||||
| Retained earnings | 29,615 | 42,224 | 31,267 | |||||||||
| Accumulated other comprehensive loss | (16,941 | ) | (15,736 | ) | (17,022 | ) | ||||||
| TOTAL STOCKHOLDERS’ EQUITY | 375,284 | 398,405 | 380,752 | |||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 995,194 | $ | 1,081,564 | $ | 1,082,148 | ||||||
*Derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 27, 2023.
