Financial Performance & Growth - FY 2019 net revenue was $1450.2 million, a decrease of 0.1% compared to FY 2018[2] - Adjusted net revenue growth rate for FY 2019 was 5.4%[2, 33] - Global eCommerce revenue grew 6.2% in 2019 and was up 11.1% YoY in February 2020[9] - Company operated stores delivered a 14% same store sales comp in February ahead of the COVID-19 related shutdown[18] - Lands' End expects high-single digit revenue growth YoY for Q2 2020 in the Global eCommerce business[10] Segment Performance - U S eCommerce accounted for 64% of FY 2019 net revenue[3] - Outfitters accounted for 20% of FY 2019 net revenue[3] - International eCommerce accounted for 13% of FY 2019 net revenue[3] - Retail accounted for 4% of FY 2019 net revenue[3] - National Accounts represent approximately 60% of the Outfitters business and approximately 5% of Lands' End's consolidated revenue and gross profit[16] Strategic Initiatives & Outlook - Kohl's partnership launching in Fall 2020 will offer full product assortment on kohls com and seasonal assortment at 150 select Kohl's stores[3, 6] - Lands' End is expanding Amazon to the full product assortment and ability to fulfill from Lands' End in Q2 2020[6] - Lands' End has reduced 2020 planned store openings to 6 from 14[18] - Lands' End expects SG&A as a percentage of revenue to return to historical levels for the remainder of the year[26]

Lands' End, Inc. (NASDAQ:LE) Q1 2020 Earnings Conference Call June 2, 2020 8:30 AM ET Company Participants Bernard McCracken - Chief Accounting Officer Jerome Griffith - Chief Executive Officer & President Jim Gooch - Chief Operating Officer & Chief Financial Officer Conference Call Participants Alex Fuhrman - Craig-Hallum Capital Steve Marotta - C.L. King & Associates Operator Ladies and gentlemen, thank you for standing by and welcome to the Lands' End First Quarter 2020 Earnings Call. At this time, all p ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K For the transition period from to to . Commission File Number: 001-09769 ☒ Annual report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended January 31, 2020 -OR- ☐ Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 Lands' End, Inc. (Exact name of registrant as specified in its charter) | Delaware | 36-2512786 | | --- | --- | | (State or Other J ...

Financial Data and Key Metrics Changes - The company reported a revenue increase of 9.4% for Q4 2019, reaching $549.5 million compared to $502.3 million in the previous year [16] - Adjusted EBITDA grew nearly 30% to $49.3 million, which was at the high end of the guidance [25] - Net income for the quarter was $25.5 million, or $0.78 per diluted share, compared to $16.2 million, or $0.50 per diluted share last year [24] - Gross margin increased by approximately 90 basis points to 39.8% due to improved promotional strategies [22] - Selling and administrative expenses decreased to 30.8% of revenue from 31.3% in the previous year [23] Business Line Data and Key Metrics Changes - The eCommerce business saw a growth of 7.2%, contributing significantly to the overall revenue increase [17] - Retail sales decreased by 44% due to the closure of Lands' End shops at Sears, while U.S. company-operated store sales increased by 55% [20] - The Outfitters business experienced a 58% increase in sales, driven by the launch of American Airlines [21] Market Data and Key Metrics Changes - U.S. eCommerce grew by 7.4%, and international business was up 6.1% [18] - The company reported strong double-digit growth in sleepwear and strength in outerwear, sweaters, and knit tops [19] Company Strategy and Development Direction - The company announced a new partnership with Kohl's to expand distribution and brand awareness [10] - The strategic focus includes enhancing the shopping experience through improved website functionality and expanding retail presence [11] - Plans to open 10 to 15 new locations in 2020, targeting convenient, open-air locations [49] - The company aims to leverage data analytics for product offerings and customer acquisition strategies [41][42] Management's Comments on Operating Environment and Future Outlook - Management is closely monitoring the coronavirus situation and does not anticipate near-term inventory or supply chain impacts [30] - The company has decided to close its U.S. stores temporarily, expecting a near-term revenue impact [31] - Due to uncertainty, the company chose not to issue 2020 guidance but hopes to provide updates in the next earnings call [33] Other Important Information - Total cash at the end of the quarter was $77.1 million, down from $193.4 million the previous year, primarily due to a voluntary prepayment of a term loan [26] - Inventory increased to $375.7 million, including approximately $30 million in American Airlines inventory [26] Q&A Session Summary Question: Can you provide more details on the Kohl's partnership and how it compares to the Sears shops? - The Kohl's partnership will feature a full line of products on Kohls.com and smaller in-store displays focused on key items, contrasting with the larger Sears shops that had less demographic overlap with Lands' End customers [61] Question: What steps might the company take to shore up the balance sheet if current conditions persist? - The company is running scenarios and is in a strong position with a solid start to the year, focusing on inventory flow and flexibility due to centralized inventory management [63]

| --- | --- | --- | --- | --- | --- | --- | --- | |-------|-------|-------|-------|-------|-------|-------|----------------------------------------| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | LANDS' END ICR CONFERENCE JANUARY 2020 | | | | | | | | | | FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements that involve risks and uncertainties, including statements regarding execution of the company's strategy, including the referenced plans and actions rela ...

PART I. FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS (Unaudited)](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS) This section presents Lands' End, Inc.'s unaudited condensed consolidated financial statements, including statements of operations, balance sheets, cash flows, and detailed notes for the specified periods [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section provides the unaudited condensed consolidated statements of operations, detailing net revenue, gross profit, operating income, and net income (loss) for the 13 and 39 weeks ended November 1, 2019, and November 2, 2018 Condensed Consolidated Statements of Operations (13 Weeks Ended) | (in thousands, except per share data) | November 1, 2019 | November 2, 2018 | | :------------------------------------ | :--------------- | :--------------- | | Net revenue | $340,023 | $341,570 | | Gross profit | $154,175 | $150,962 | | Operating income | $10,907 | $8,485 | | Income (loss) before income taxes | $4,952 | $(684) | | NET INCOME (LOSS) | $3,606 | $3,294 | | Basic EPS | $0.11 | $0.10 | | Diluted EPS | $0.11 | $0.10 | Condensed Consolidated Statements of Operations (39 Weeks Ended) | (in thousands, except per share data) | November 1, 2019 | November 2, 2018 | | :------------------------------------ | :--------------- | :--------------- | | Net revenue | $900,723 | $949,340 | | Gross profit | $403,134 | $420,753 | | Operating income | $5,611 | $11,886 | | Income (loss) before income taxes | $(12,939) | $(14,647) | | NET INCOME (LOSS) | $(6,226) | $(4,621) | | Basic EPS | $(0.19) | $(0.14) | | Diluted EPS | $(0.19) | $(0.14) | [Condensed Consolidated Statements of Comprehensive Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Operations) This section presents the unaudited condensed consolidated statements of comprehensive operations, including net income (loss) and foreign currency translation adjustments, for the 13 and 39 weeks ended November 1, 2019, and November 2, 2018 Condensed Consolidated Statements of Comprehensive Operations | (in thousands) | 13 Weeks Ended Nov 1, 2019 | 13 Weeks Ended Nov 2, 2018 | 39 Weeks Ended Nov 1, 2019 | 39 Weeks Ended Nov 2, 2018 | | :------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | NET INCOME (LOSS) | $3,606 | $3,294 | $(6,226) | $(4,621) | | Foreign currency translation adjustments | $2,290 | $(39) | $(178) | $(3,215) | | COMPREHENSIVE INCOME (LOSS) | $5,896 | $3,255 | $(6,404) | $(7,836) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides the unaudited condensed consolidated balance sheets, detailing assets, liabilities, and stockholders' equity as of November 1, 2019, November 2, 2018, and February 1, 2019 Condensed Consolidated Balance Sheets (Key Metrics) | (in thousands) | November 1, 2019 | November 2, 2018 | February 1, 2019 | | :------------- | :--------------- | :--------------- | :--------------- | | Total current assets | $603,207 | $630,449 | $588,381 | | TOTAL ASSETS | $1,161,842 | $1,148,718 | $1,110,911 | | Total current liabilities | $369,202 | $295,403 | $241,251 | | TOTAL LIABILITIES | $841,357 | $844,512 | $788,200 | | Total stockholders' equity | $320,485 | $304,206 | $322,711 | - Cash and cash equivalents decreased significantly from **$193.4 million** at February 1, 2019, to **$15.9 million** at November 1, 2019. Inventories, net increased from **$321.9 million** at February 1, 2019, to **$499.9 million** at November 1, 2019[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section presents the unaudited condensed consolidated statements of cash flows, outlining cash activities from operations, investing, and financing for the 39 weeks ended November 1, 2019, and November 2, 2018 Condensed Consolidated Statements of Cash Flows (39 Weeks Ended) | (in thousands) | November 1, 2019 | November 2, 2018 | | :------------- | :--------------- | :--------------- | | Net cash used in operating activities | $(124,951) | $(52,248) |\ | Net cash used in investing activities | $(28,487) | $(33,033) |\ | Net cash used in financing activities | $(24,576) | $(4,408) |\ | NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | $(177,664) | $(89,935) |\ | CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | $17,689 | $108,002 | - Net cash used in operating activities increased significantly to **$124.95 million** in Year-to-Date 2019 from **$52.25 million** in Year-to-Date 2018, primarily due to an increase in inventory[15](index=15&type=chunk)[141](index=141&type=chunk) [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) This section details the unaudited condensed consolidated statements of changes in stockholders' equity, including net income (loss) and other comprehensive income, for the period ended November 1, 2019 Condensed Consolidated Statements of Changes in Stockholders' Equity (November 1, 2019) | (in thousands except share data) | Shares | Amount | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders' Equity | | :------------------------------- | :--------- | :----- | :------------------------- | :------------------ | :----------------------------------- | :------------------------- | | Balance at February 1, 2019 | 32,220,080 | $320 | $352,733 | $(17,159) | $(13,183) | $322,711 | | Net income (loss) | — | — | — | $3,606 | — | $3,606 | | Balance at November 1, 2019 | 32,372,693 | $324 | $358,648 | $(25,126) | $(13,361) | $320,485 | - Total stockholders' equity decreased slightly from **$322.7 million** at February 1, 2019, to **$320.5 million** at November 1, 2019, primarily due to net losses and cumulative translation adjustments, partially offset by stock-based compensation[17](index=17&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed notes explaining the accounting policies, recent pronouncements, and specific financial line items presented in the condensed consolidated financial statements [NOTE 1. BACKGROUND AND BASIS OF PRESENTATION](index=9&type=section&id=NOTE%201.%20BACKGROUND%20AND%20BASIS%20OF%20PRESENTATION) Lands' End, Inc. operates as a uni-channel retailer, with unaudited interim financial statements prepared in accordance with GAAP, consolidating all subsidiaries - Lands' End operates as a uni-channel retailer, offering products online, on third-party marketplaces, and through retail locations[22](index=22&type=chunk) - The financial statements are unaudited and prepared in accordance with GAAP for interim financial information[27](index=27&type=chunk) [NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS (Leases)](index=11&type=section&id=NOTE%202.%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) The Company adopted ASU 2016-02 (ASC 842) on February 2, 2019, recognizing operating lease right-of-use assets of **$27.49 million** and lease liabilities of **$31.59 million** - Lands' End adopted ASU 2016-02, Leases (ASC 842), on February 2, 2019, electing the practical expedient package[29](index=29&type=chunk) Impact of ASC 842 Adoption on Condensed Consolidated Balance Sheets (February 2, 2019) | (in thousands) | Impact of Adoption | | :------------- | :----------------- | | Operating lease right-of-use asset | $27,494 | | Lease liability - current | $9,892 | | Lease liability - long-term | $21,700 | | Accumulated deficit | $(1,741) | [NOTE 3. EARNINGS/(LOSS) PER SHARE](index=12&type=section&id=NOTE%203.%20EARNINGS%2F%28LOSS%29%20PER%20SHARE) Basic and diluted EPS calculations are presented, showing diluted EPS of **$0.11** for the 13 weeks ended November 1, 2019, and a loss of **$(0.19)** for the 39 weeks ended Earnings (Loss) Per Share Summary | (in thousands, except per share amounts) | 13 Weeks Ended Nov 1, 2019 | 13 Weeks Ended Nov 2, 2018 | 39 Weeks Ended Nov 1, 2019 | 39 Weeks Ended Nov 2, 2018 | | :--------------------------------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | Net income (loss) | $3,606 | $3,294 | $(6,226) | $(4,621) | | Basic earnings (loss) per share | $0.11 | $0.10 | $(0.19) | $(0.14) | | Diluted earnings (loss) per share | $0.11 | $0.10 | $(0.19) | $(0.14) | - Anti-dilutive shares excluded from diluted EPS calculations were **653,235** for Third Quarter 2019 and **763,163** for Year-to-Date 2019[38](index=38&type=chunk) [NOTE 4. OTHER COMPREHENSIVE INCOME (LOSS)](index=13&type=section&id=NOTE%204.%20OTHER%20COMPREHENSIVE%20INCOME%20%28LOSS%29) Other comprehensive income (loss) primarily reflects foreign currency translation adjustments, showing a **$2.29 million** gain for the 13 weeks ended November 1, 2019 Other Comprehensive Income (Loss) - Foreign Currency Translation Adjustments | (in thousands) | 13 Weeks Ended Nov 1, 2019 | 13 Weeks Ended Nov 2, 2018 | 39 Weeks Ended Nov 1, 2019 | 39 Weeks Ended Nov 2, 2018 | | :------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | Foreign currency translation adjustments | $2,290 | $(39) | $(178) | $(3,215) | [NOTE 5. DEBT](index=13&type=section&id=NOTE%205.%20DEBT) The Company's debt includes a Term Loan Facility with **$386.68 million** outstanding and an ABL Facility with **$80.0 million** outstanding as of November 1, 2019, with all financial covenants in compliance Company Debt Summary | (in thousands) | November 1, 2019 Amount | November 1, 2019 Rate | November 2, 2018 Amount | November 2, 2018 Rate | February 1, 2019 Amount | February 1, 2019 Rate | | :------------- | :---------------------- | :-------------------- | :---------------------- | :-------------------- | :---------------------- | :-------------------- | | Term Loan Facility | $386,675 | 5.29% | $491,825 | 5.49% | $490,538 | 5.77% | | ABL Facility | $80,000 | 3.54% | — | —% | — | —% | | Long-term debt, net | $379,606 | | $483,401 | | $482,453 | | - A **$100 million** voluntary prepayment was made on the Term Loan Facility in First Quarter 2019[41](index=41&type=chunk) ABL Facility Borrowing Availability | (in thousands) | November 1, 2019 | November 2, 2018 | February 1, 2019 | | :------------- | :--------------- | :--------------- | :--------------- | | ABL Facility maximum borrowing | $175,000 | $175,000 | $175,000 | | Current borrowings under ABL | $80,000 | — | — | | Borrowing availability under ABL | $82,469 | $152,379 | $153,889 | - The Company was in compliance with all financial covenants related to the Debt Facilities as of November 1, 2019[45](index=45&type=chunk) [NOTE 6. STOCK-BASED COMPENSATION](index=14&type=section&id=NOTE%206.%20STOCK-BASED%20COMPENSATION) Lands' End expenses stock awards over vesting periods, with total stock-based compensation expense for the 39 weeks ended November 1, 2019, at **$6.63 million** Stock-Based Compensation Expense | (in thousands) | 13 Weeks Ended Nov 1, 2019 | 13 Weeks Ended Nov 2, 2018 | 39 Weeks Ended Nov 1, 2019 | 39 Weeks Ended Nov 2, 2018 | | :------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | Deferred Awards | $1,531 | $1,237 | $4,429 | $3,177 | | Performance Awards | $611 | $312 | $1,642 | $694 | | Option Awards | $187 | $187 | $561 | $561 | | Total stock-based compensation expense | $2,329 | $1,736 | $6,632 | $4,432 | - Total unrecognized stock-based compensation expense for unvested Deferred Awards was approximately **$8.8 million** as of November 1, 2019, expected to be recognized over **1.8 years**[49](index=49&type=chunk) - Total unrecognized stock-based compensation expense for unvested Performance Awards was approximately **$4.6 million** as of November 1, 2019, expected to be recognized over **2.0 years**[51](index=51&type=chunk) [NOTE 7. FAIR VALUE OF FINANCIAL ASSETS AND LIABILITIES](index=16&type=section&id=NOTE%207.%20FAIR%20VALUE%20OF%20FINANCIAL%20ASSETS%20AND%20LIABILITIES) Restricted cash is valued using Level 1 inputs, while long-term debt, with a carrying amount of **$386.68 million**, is valued using Level 2 techniques as of November 1, 2019 - Restricted cash is valued at fair value using Level 1 inputs, totaling **$1.8 million** as of November 1, 2019[53](index=53&type=chunk) Long-term Debt Carrying vs. Fair Value | (in thousands) | November 1, 2019 Carrying Amount | November 1, 2019 Fair Value | November 2, 2018 Carrying Amount | November 2, 2018 Fair Value | February 1, 2019 Carrying Amount | February 1, 2019 Fair Value | | :------------- | :------------------------------- | :-------------------------- | :------------------------------- | :-------------------------- | :------------------------------- | :-------------------------- | | Long-term debt, including short-term portion | $386,675 | $372,175 | $491,825 | $475,226 | $490,538 | $460,493 | [NOTE 8. INCOME TAXES](index=17&type=section&id=NOTE%208.%20INCOME%20TAXES) Income tax expense for Third Quarter 2019 was **27.2%**, a change from a **581.6%** benefit in the prior year, primarily due to revised Tax Act estimates - Income tax expense for Third Quarter 2019 was **27.2%**, compared to a benefit of **581.6%** in Third Quarter 2018, mainly due to revised Tax Act estimates[55](index=55&type=chunk)[111](index=111&type=chunk) - Year-to-Date 2019 income tax benefit was **51.9%**, reflecting the benefit of treating certain foreign entities as a U.S. branch[55](index=55&type=chunk)[125](index=125&type=chunk) [NOTE 9. COMMITMENTS AND CONTINGENCIES](index=18&type=section&id=NOTE%209.%20COMMITMENTS%20AND%20CONTINGENCIES) The Company is involved in various legal proceedings, with management believing their resolution will not materially affect financial position or results - The Company is party to various claims, legal proceedings, and investigations arising in the ordinary course of business[58](index=58&type=chunk) - Management believes the ultimate resolution of these legal matters should not have a material adverse effect on results of operations, cash flows, or financial position[58](index=58&type=chunk)[160](index=160&type=chunk) [NOTE 10. RELATED PARTY TRANSACTIONS](index=18&type=section&id=NOTE%2010.%20RELATED%20PARTY%20TRANSACTIONS) Related party transactions with Sears Holdings and Transform Holdco show significantly decreased costs for Lands' End Shops at Sears due to store reductions - Sears Holdings Corporation and Transform Holdco are considered related parties due to ESL's significant beneficial ownership[59](index=59&type=chunk)[60](index=60&type=chunk) Related Party Costs - Lands' End Shops at Sears | (in thousands, except for number of stores) | 13 Weeks Ended Nov 1, 2019 | 13 Weeks Ended Nov 2, 2018 | 39 Weeks Ended Nov 1, 2019 | 39 Weeks Ended Nov 2, 2018 | | :---------------------------------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | Rent, CAM and occupancy costs | $907 | $3,483 | $2,990 | $12,004 | | Retail services, store labor | $779 | $3,231 | $2,637 | $11,084 | | Total expenses | $1,797 | $7,190 | $5,969 | $24,641 | | Number of Lands' End Shops at Sears at period end | 36 | 125 | 36 | 125 | Related Party Revenue and Costs - Intellectual Property/Services | (in thousands) | 13 Weeks Ended Nov 1, 2019 | 13 Weeks Ended Nov 2, 2018 | 39 Weeks Ended Nov 1, 2019 | 39 Weeks Ended Nov 2, 2018 | | :------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | Lands' End business outfitters revenue | $1 | $216 | $4 | $834 | | Credit card revenue | $92 | $184 | $248 | $506 | | Royalty income | $30 | $43 | $131 | $156 | | Total income | $120 | $439 | $375 | $1,484 | [NOTE 11. SEGMENT REPORTING](index=20&type=section&id=NOTE%2011.%20SEGMENT%20REPORTING) As of February 1, 2019, Lands' End aggregated its operating segments into one reportable external segment, reflecting a shift in multi-channel strategy and store closures - As of February 1, 2019, Lands' End updated its segment reporting to align with its multi-channel strategy, aggregating operating segments into one reportable external segment[71](index=71&type=chunk) Net Revenue by Product Channel | (in thousands) | 13 Weeks Ended Nov 1, 2019 | 13 Weeks Ended Nov 2, 2018 | 39 Weeks Ended Nov 1, 2019 | 39 Weeks Ended Nov 2, 2018 | | :------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | eCommerce | $242,328 | $231,517 | $669,880 | $634,082 | | Outfitters | $83,342 | $82,261 | $191,877 | $229,671 | | Retail | $14,353 | $27,792 | $38,966 | $85,587 | | Total net revenue | $340,023 | $341,570 | $900,723 | $949,340 | [NOTE 12. REVENUE](index=20&type=section&id=NOTE%2012.%20REVENUE) Revenue is recognized upon product transfer to customers, with total net revenue of **$900.72 million** for the 39 weeks ended November 1, 2019 - Revenue is recognized when control of product passes to customers, net of promotions, returns, discounts, and other incentives[73](index=73&type=chunk) Net Revenue by Geographic Location | (in thousands) | 13 Weeks Ended Nov 1, 2019 | 13 Weeks Ended Nov 2, 2018 | 39 Weeks Ended Nov 1, 2019 | 39 Weeks Ended Nov 2, 2018 | | :------------- | :------------------------- | :------------------------- | :------------------------- | :------------------------- | | United States | $297,166 | $295,070 | $768,609 | $812,746 | | Europe | $28,344 | $31,190 | $87,870 | $89,287 | | Asia | $9,633 | $10,273 | $33,271 | $35,033 | | Other | $4,880 | $5,037 | $10,973 | $12,274 | | Total Net revenue | $340,023 | $341,570 | $900,723 | $949,340 | - Total contract liability related to gift cards issued was **$20.7 million** as of November 1, 2019, up from **$16.0 million** in the prior year[78](index=78&type=chunk) [NOTE 13. LEASES](index=22&type=section&id=NOTE%2013.%20LEASES) Lands' End leases retail operations and equipment as operating leases, with total lease expense of **$8.01 million** for the 39 weeks ended November 1, 2019 Lease Expense Components | (in thousands) | 13 Weeks Ended Nov 1, 2019 | 39 Weeks Ended Nov 1, 2019 | | :------------- | :------------------------- | :------------------------- | | Operating lease expense | $2,380 | $6,780 | | Variable lease expense | $432 | $1,228 | | Lease expense | $2,812 | $8,008 | Operating Lease Balance Sheet Information (November 1, 2019) | (in thousands, except as noted below) | November 1, 2019 | | :------------------------------------ | :--------------- | | Operating lease right-of-use asset | $31,380 | | Lease liability - current | $6,344 | | Lease liability - long-term | $30,971 | | Weighted average remaining lease term in years | 7.72 years | | Weighted average discount rate | 6.47% | - In Year-to-Date 2019, the Company took possession of retail spaces, increasing Operating lease right-of-use asset by **$9.9 million** and Lease liability (current and long-term) by **$12.0 million**[84](index=84&type=chunk) [ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=24&type=section&id=ITEM%202.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section analyzes Lands' End's financial performance, condition, and operational results for the third quarter and year-to-date periods, covering key metrics, revenue trends, profitability, and liquidity [Executive Overview](index=25&type=section&id=Executive%20Overview) This overview describes Lands' End as a uni-channel retailer, its aggregated reporting segments, and the seasonal fluctuations impacting its net revenue and earnings - Lands' End is a leading uni-channel retailer of casual clothing, accessories, footwear, and home products, operating online, on third-party marketplaces, and through retail locations[88](index=88&type=chunk) - The Company's operating segments (U.S. eCommerce, Retail, Outfitters, Europe eCommerce, and Japan eCommerce) are aggregated into one external reportable segment[89](index=89&type=chunk) - Lands' End experiences seasonal fluctuations, with a significant portion of net revenue and earnings historically realized in the fourth fiscal quarter (average **35.1%** of Net revenue over the past three years)[92](index=92&type=chunk) [Results of Operations](index=26&type=section&id=Results%20of%20Operations) This section details the Company's financial performance, including net income (loss), Adjusted EBITDA, and a comparative analysis of revenue and profitability for the third quarter and year-to-date periods [Net Income (Loss) and Adjusted EBITDA](index=28&type=section&id=Net%20Income%20%28Loss%29%20and%20Adjusted%20EBITDA) This section presents net income (loss) and Adjusted EBITDA for the 13 and 39 weeks ended November 1, 2019, and November 2, 2018, highlighting Adjusted EBITDA as a key non-GAAP performance metric Net Income and Adjusted EBITDA (13 Weeks Ended) | (in thousands) | November 1, 2019 | November 2, 2018 | | :------------- | :--------------- | :--------------- | | Net income | $3,606 | $3,294 | | Adjusted EBITDA | $18,758 | $15,688 | Net Loss and Adjusted EBITDA (39 Weeks Ended) | (in thousands) | November 1, 2019 | November 2, 2018 | | :------------- | :--------------- | :--------------- | | Net loss | $(6,226) | $(4,621) | | Adjusted EBITDA | $28,613 | $32,437 | - Adjusted EBITDA is a non-GAAP measure used by management to evaluate operating performance and as an executive compensation metric, excluding effects of financings, investing activities, tax structure, and certain significant items[95](index=95&type=chunk)[97](index=97&type=chunk) [Discussion and Analysis - Third Quarter 2019 compared with Third Quarter 2018](index=30&type=section&id=Discussion%20and%20Analysis%20-%20Third%20Quarter%202019%20compared%20with%20Third%20Quarter%202018) This section analyzes the Company's financial performance for the third quarter, comparing net revenue by channel, gross profit, operating income, net income, and interest expense between 2019 and 2018 Net Revenue by Channel (Third Quarter) | Channel | Nov 1, 2019 (in millions) | Nov 2, 2018 (in millions) | Change ($) | Change (%) | | :--------- | :------------------------ | :------------------------ | :--------- | :--------- | | Total Net Revenue | $340.0 | $341.6 | $(1.5) | (0.5)% | | eCommerce | $242.3 | $231.5 | $10.8 | 4.7% | | Outfitters | $83.3 | $82.3 | $1.1 | 1.3% | | Retail | $14.4 | $27.8 | $(13.4) | (48.4)% | - Gross profit increased by **$3.2 million** to **$154.2 million**, with gross margin increasing to **45.3%** (up **110 basis points**) due to a more disciplined promotional strategy[103](index=103&type=chunk) - Operating income increased to **$10.9 million** from **$8.5 million** in the prior year, while Net income increased to **$3.6 million** from **$3.3 million**[108](index=108&type=chunk)[112](index=112&type=chunk) - Interest expense decreased to **$6.1 million** from **$7.3 million**, reflecting a **$100 million** voluntary prepayment on the term loan[109](index=109&type=chunk) [Discussion and Analysis - Year-to-Date 2019 compared with Year-to-Date 2018](index=31&type=section&id=Discussion%20and%20Analysis%20-%20Year-to-Date%202019%20compared%20with%20Year-to-Date%202018) This section analyzes the Company's year-to-date financial performance, comparing net revenue by channel, gross profit, operating income, and net loss between 2019 and 2018 Net Revenue by Channel (Year-to-Date) | Channel | Nov 1, 2019 (in millions) | Nov 2, 2018 (in millions) | Change ($) | Change (%) | | :--------- | :------------------------ | :------------------------ | :--------- | :--------- | | Total Net Revenue | $900.7 | $949.3 | $(48.6) | (5.1)% | | eCommerce | $669.9 | $634.1 | $35.8 | 5.6% | | Outfitters | $191.9 | $229.7 | $(37.8) | (16.5)% | | Retail | $39.0 | $85.6 | $(46.6) | (54.5)% | - Gross profit decreased by **$17.6 million** to **$403.1 million**, primarily due to the Delta Air Lines launch in the prior year and fewer Lands' End Shops at Sears, partially offset by eCommerce growth. Gross margin increased by **50 basis points** to **44.8%**[118](index=118&type=chunk) - Operating income decreased to **$5.6 million** from **$11.9 million**, mainly due to the Delta Air Lines launch in the prior year[122](index=122&type=chunk) - Net loss increased to **$6.2 million** from **$4.6 million** in the prior year, with diluted loss per share at **$(0.19)**[126](index=126&type=chunk) [Liquidity and Capital Resources](index=33&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the Company's liquidity needs, sources of capital, including cash on hand, cash flows from operations, and the ABL Facility, and details cash flow activities for the year-to-date period - The Company's primary liquidity needs are for working capital, capital expenditures, debt service, and general corporate purposes, expected to be met by cash on hand, cash flows from operations, and the ABL Facility for at least the next **12 months**[128](index=128&type=chunk) - As of November 1, 2019, the ABL Facility had **$80.0 million** in outstanding borrowings, **$12.5 million** in outstanding letters of credit, and **$82.5 million** in availability[129](index=129&type=chunk)[147](index=147&type=chunk) - Net cash used in operating activities increased to **$125.0 million** in Year-to-Date 2019, primarily due to increased inventory for the Fourth Quarter 2019 American Airlines launch and accelerated shipments before tariffs[141](index=141&type=chunk) - Net cash used in financing activities was **$24.6 million**, primarily due to a **$100 million** voluntary prepayment on the Term Loan Facility[144](index=144&type=chunk) - For Fiscal 2019, capital expenditures are expected to be approximately **$40.0 million**, focused on ERP system, digital infrastructure, and U.S. Company Operated store expansion[143](index=143&type=chunk) [Application of Critical Accounting Policies and Estimates](index=35&type=section&id=Application%20of%20Critical%20Accounting%20Policies%20and%20Estimates) This section identifies the Company's critical accounting policies and estimates, including revenue recognition, inventory valuation, goodwill impairment, and income taxes, noting no significant changes since February 1, 2019 - Critical accounting policies and estimates include revenue, inventory valuation, goodwill and intangible asset impairment assessments, and income taxes[148](index=148&type=chunk) - There have been no significant changes in critical accounting policies or their application since February 1, 2019[149](index=149&type=chunk) [Recent Accounting Pronouncements](index=35&type=section&id=Recent%20Accounting%20Pronouncements) This section refers to Note 2 of the Condensed Consolidated Financial Statements for detailed information regarding recent accounting pronouncements - Information regarding recent accounting pronouncements is detailed in Note 2 of the Condensed Consolidated Financial Statements[150](index=150&type=chunk) [CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION](index=35&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD-LOOKING%20INFORMATION) This section provides a cautionary statement regarding forward-looking information, noting that future events are subject to risks and uncertainties, and the Company disclaims any obligation to update these statements - The document contains forward-looking statements regarding future events and performance, which are subject to risks and uncertainties that could cause actual results to differ materially[151](index=151&type=chunk) - The Company disclaims any obligation to update or revise forward-looking statements, except as required by applicable securities laws[152](index=152&type=chunk) [ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=37&type=section&id=ITEM%203.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The Company faces market risk from currency and interest rate fluctuations, holding **$7.3 million** in foreign currencies and having variable rates on its Term Loan and ABL Facilities - The Company's market risk primarily stems from currency rates and variable interest rates on its Term Loan Facility and ABL Facility[153](index=153&type=chunk)[154](index=154&type=chunk) - As of November 1, 2019, Lands' End held **$7.3 million** in cash denominated in foreign currencies (British Pound Sterling, Euros, Yen, Hong Kong Dollars)[153](index=153&type=chunk) - A one percentage point change in interest rates would result in a **$3.9 million** change in annual cash interest expenses for the Term Loan Facility and an estimated **$1.8 million** change for a fully drawn ABL Facility[154](index=154&type=chunk) [ITEM 4. CONTROLS AND PROCEDURES](index=38&type=section&id=ITEM%204.%20CONTROLS%20AND%20PROCEDURES) Management concluded that Lands' End's disclosure controls and procedures were effective as of November 1, 2019, with no material changes in internal control over financial reporting - The Company's Chief Executive Officer and President, and Executive Vice President, Chief Operating Officer, Chief Financial Officer and Treasurer concluded that disclosure controls and procedures were effective as of November 1, 2019[156](index=156&type=chunk) - No material changes in internal control over financial reporting were identified during the Third Fiscal Quarter Ended November 1, 2019[157](index=157&type=chunk) PART II. OTHER INFORMATION [ITEM 1. LEGAL PROCEEDINGS](index=39&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) The Company is involved in various legal proceedings, with management expecting no material adverse effect on financial position or results - The Company is involved in various claims, legal proceedings, and investigations arising in the ordinary course of business[160](index=160&type=chunk) - Management is of the opinion that the ultimate resolution of these matters should not have a material adverse effect on the Company's results of operations, cash flows, or financial position[160](index=160&type=chunk) [ITEM 1A. RISK FACTORS](index=40&type=section&id=ITEM%201A.%20RISK%20FACTORS) No material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K for the fiscal year ended February 1, 2019 - No material changes to the risk factors disclosed in the Annual Report on Form 10-K for the year ended February 1, 2019[162](index=162&type=chunk) [ITEM 6. EXHIBITS](index=41&type=section&id=ITEM%206.%20EXHIBITS) This section lists documents filed as exhibits to the Form 10-Q report, including corporate organizational documents and executive certifications - Exhibits include Amended and Restated Certificate of Incorporation, Bylaws, Certifications of Principal Executive and Financial Officers, and XBRL Instance and Taxonomy Documents[164](index=164&type=chunk) [Signatures](index=42&type=section&id=Signatures) The report is signed by James F. Gooch, Executive Vice President, Chief Operating Officer, Chief Financial Officer and Treasurer, on behalf of Lands' End, Inc. as of December 3, 2019 - The report was signed by James F. Gooch, Executive Vice President, Chief Operating Officer, Chief Financial Officer and Treasurer, on December 3, 2019[166](index=166&type=chunk)

Financial Data and Key Metrics Changes - Total company revenue decreased slightly to $340 million compared to $341.6 million in the same period last year, reflecting 89 fewer Lands' End Shops at Sears and a slower start to the heavier outerwear business [32] - Adjusted EBITDA grew nearly 20% to $18.8 million, within the guidance range of $17 million to $20 million [10][39] - Gross margin increased approximately 110 basis points to 45.3%, driven by more disciplined promotional strategies and analytics optimization [37] Business Line Data and Key Metrics Changes - U.S. e-commerce sales grew 7.4%, while company-operated retail stores delivered strong comparable sales growth of 8.3% [10][34] - The denim business saw double-digit growth, reflecting a favorable response to a refreshed assortment [14] - The school uniform business experienced profitability improvement with higher gross margins despite reduced promotions [36] Market Data and Key Metrics Changes - The company faced sales headwinds due to unseasonably warm temperatures earlier in the quarter, but saw an uptick in selling trends as colder weather arrived [11] - The company ended the quarter with 36 Shops at Sears, all in liquidation, impacting overall retail sales [35] Company Strategy and Development Direction - The company is focused on a digitally-led strategy, improving business processes, and enhancing customer relationships through product offerings [12][30] - Plans to expand presence in third-party marketplaces and pursue licensing agreements to create new high-margin revenue streams [27] - The company aims to reduce exposure to China to approximately 20% of total shipments, mitigating tariff impacts [45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving long-term financial targets despite challenges, emphasizing the importance of data analytics in decision-making [11][12] - The company anticipates further gross margin expansion in the fourth quarter based on current trends [37] - Management highlighted the successful launch of the American Airlines partnership, expecting significant revenue contribution in the fourth quarter [36] Other Important Information - The company was recognized by Newsweek as one of America's Best Customer Service online apparel retailers [29] - The mobile experience was enhanced with a 75% reduction in load time on product detail pages, significantly increasing mobile conversion rates [19] Q&A Session Summary Question: Performance during Cyber Week - Management noted strong performance in gift-giving categories, with turtlenecks and personalized items selling particularly well [53] Question: Mitigating factors for tariffs next year - Management discussed ongoing efforts to reduce reliance on China and the expectation of continued vendor negotiations to mitigate tariff impacts [55] Question: Leveraging data analytics for inventory management - Management explained the use of AI-based dynamic promotions to maximize gross margins and sales volume, with ongoing improvements expected [56] Question: Confidence in inventory composition - Management expressed confidence in the inventory composition, stating it is seasonally appropriate and expected to normalize by the end of the fourth quarter [62]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended August 2, 2019 -OR- ¨ Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to to . Commission File Number: 001-09769 Lands' End, Inc. (Exact name of registrant as specified in its charter) Delaware 36-2512786 (State or Other Jurisdiction of I ...

Lands' End Inc. (NASDAQ:LE) Q2 2019 Earnings Conference Call September 5, 2019 8:30 AM ET Company Participants Bernie McCracken - Chief Accounting Officer Jerome Griffith - Chief Executive Officer and President Jim Gooch - Chief Operating Officer and Chief Financial Officer Conference Call Participants Alex Fuhrman - Craig-Hallum Capital Operator Good day, ladies and gentlemen. And welcome to the Lands' End Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mod ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q x Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 1 Lands' End Lane Dodgeville, Wisconsin 53595 (Address of Principal Executive Offices) (Zip Code) For the quarterly period ended May 3, 2019 -OR- ¨ Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to to . Commission File Number: 001-09769 Lands' End, Inc. (Exact name o ...