Core Viewpoint - Lands' End, Inc. will hold a conference call to discuss its first quarter 2025 financial results on June 5, 2025, at 8:30 a.m. Eastern Time [1] Group 1: Conference Call Details - The conference call will be accessible via the Company's investor relations website [1] - A news release with the financial results will be issued prior to the call [1] - An online archive of the broadcast will be available around noon on June 5, 2025 [2] Group 2: Company Overview - Lands' End, Inc. is a leading digital retailer specializing in solution-based apparel, swimwear, outerwear, accessories, footwear, home products, and uniforms [3] - The Company sells products through its website, third-party distribution channels, Company Operated stores, and third-party license agreements [3] - Lands' End also provides products to businesses and schools through the Outfitters distribution channel [3]

Group 1 - The core investment strategy of Quipus Capital focuses on long-only investment, evaluating companies from an operational and buy-and-hold perspective rather than market-driven dynamics [1] - Quipus Capital emphasizes understanding the long-term earnings power of companies and the competitive dynamics within their industries [1] - The majority of recommendations from Quipus Capital will be holds, indicating a cautious approach to investment opportunities [1] Group 2 - The articles produced by Quipus Capital aim to provide valuable information for future investors while maintaining a healthy skepticism towards a generally bullish market [1] - The company believes that only a small fraction of companies should be considered a buy at any given time [1]

Financial Performance - Net revenue for Fiscal 2024 was $1,362,935, a decrease of 7.4% compared to $1,472,508 in Fiscal 2023[199]. - Gross profit increased to $653,345, representing a gross margin of 47.9%, up from 42.5% in the previous fiscal year[199]. - Operating income for Fiscal 2024 was $50,957, compared to a loss of $77,515 in Fiscal 2023, indicating a significant turnaround[199]. - Adjusted net income for Fiscal 2024 was $12,572, compared to a loss of $4,783 in Fiscal 2023, with adjusted diluted net earnings per share at $0.40[206]. - Total Net revenue for Fiscal 2024 was $1.36 billion, a decrease of $109.6 million or 7.4% from $1.47 billion in Fiscal 2023[213]. - U.S. Digital Segment Net revenue was $1.15 billion in Fiscal 2024, a decrease of $138.6 million or 10.7% from $1.29 billion in Fiscal 2023[214]. - Adjusted EBITDA was $92.6 million in Fiscal 2024, compared to $84.3 million in Fiscal 2023[233]. - Licensing and Retail Net revenue increased by $38.9 million or 58.5% to $105.4 million in Fiscal 2024[219]. - U.S. eCommerce Net revenue decreased by 9.4%, but increased by 2.3% when excluding the impact of licensing transition and the 53rd week[215]. - Variable profit for U.S. Digital Segment was $265.4 million in Fiscal 2024, a decrease of $0.5 million compared to Fiscal 2023, but increased as a percentage of Net revenue to 23.0%[234]. Cost Management - Restructuring charges incurred were $5.6 million in Fiscal 2024, down from $7.3 million in Fiscal 2023, reflecting ongoing cost optimization efforts[193]. - Interest expense decreased to $40,439 in Fiscal 2024 from $48,291 in Fiscal 2023, reflecting improved financial management[199]. - Interest expense decreased by $7.9 million to $40.4 million in Fiscal 2024, primarily due to lower average outstanding balances[226]. Operational Changes - The company closed its Japan eCommerce operations, incurring approximately $0.3 million in costs during Fiscal 2023, with no closing costs in Fiscal 2024[194]. - The company has restructured its operating segments, now including U.S. eCommerce, Europe eCommerce, Outfitters, Third Party, Licensing, and Retail[189]. Cash Flow and Investments - The company generated net cash of $53.1 million from operating activities in Fiscal 2024, a decrease of $77.5 million compared to Fiscal 2023[258]. - Net cash used in investing activities was $35.0 million in Fiscal 2024, primarily for updating digital information technology infrastructure[259]. - The company plans to invest approximately $30.0 million in capital expenditures for strategic investments and infrastructure in Fiscal 2025[259]. Debt and Financial Obligations - The company has a $275.0 million committed revolving ABL Facility, with a $70.0 million sublimit for letters of credit, maturing on July 29, 2026[242]. - As of January 31, 2025, the borrowing availability under the ABL Facility was $129.3 million, with outstanding letters of credit totaling $10.1 million[245]. - The Current Term Loan Facility provides borrowings of $260.0 million, maturing on December 29, 2028, with a quarterly amortization rate of 1.25%[245]. - Total contractual obligations as of January 31, 2025, amounted to $515.5 million, with principal payments on long-term debt at $247.0 million[261]. - The company was in compliance with its financial covenants in the Debt Facilities as of January 31, 2025[256]. Impairments and Valuations - Goodwill impairment of $70.4 million and $36.3 million was recorded for the U.S. eCommerce and Outfitters reporting units[271]. - The fair value of the indefinite-lived intangible asset (Lands' End trade name) exceeded the carrying value by less than 15% in Fiscal 2023 and Fiscal 2022, resulting in no impairment charges[273]. Foreign Currency and Economic Factors - Net revenue from the International distribution channel represented 8% of total net revenue in Fiscal 2024[282]. - A 10% change in foreign currency exchange rates could have resulted in a net revenue change of approximately $10.3 million in Fiscal 2024[282]. - Foreign currency translation losses for Fiscal 2024 totaled approximately $0.4 million related to international subsidiaries[282]. - The company had $8.7 million of cash and cash equivalents denominated in foreign currency as of January 31, 2025[283]. - The company does not utilize financial instruments for trading purposes or hedging to limit foreign currency exchange rate exposures[282]. - Macroeconomic challenges, including inflation and high interest rates, continue to impact consumer discretionary spending and may require increased promotions[192]. Interest Rate Sensitivity - Each one percentage point change in interest rates associated with the Current Term Loan Facility would result in a $2.5 million change in annual cash interest expenses[284]. - Assuming the ABL Facility was fully drawn to $275.0 million, each one percentage point change in interest rates would result in a $2.8 million change in annual cash interest expense[284]. Other Considerations - The excess and obsolete reserve balances were $11.7 million as of January 31, 2025, down from $18.1 million in the previous year[267]. - The company believes that the judgments and estimates regarding deferred tax assets are reasonable, but actual results may differ materially[279].

Financial Data and Key Metrics Changes - The company achieved low single-digit GMV growth on a like-for-like quarterly basis and reported a 3% year-over-year increase in gross profit dollars [6][25] - Adjusted EBITDA for the fourth quarter was $44 million, up 38% year-over-year, while adjusted net income was $18 million, resulting in adjusted EPS of $0.57, a 120% increase year-over-year [6][30] - For the full year, net revenue was $1.36 billion, with gross margin improving by 550 basis points to 48% compared to 43% in fiscal 2023 [7][32] Business Line Data and Key Metrics Changes - The U.S. e-commerce business saw a sales decrease of 19% compared to the fourth quarter of fiscal 2023, but adjusted for the fifty-third week and kids and footwear, sales decreased mid-single digits year-over-year [27][28] - The licensing and retail business combined grew revenue over 50% year-over-year, driven by the expansion of the licensing model [25][29] - The B2B outfitters business met revenue and profit objectives for the quarter, with significant progress in developing the sales pipeline for the Uniforms business [21][23] Market Data and Key Metrics Changes - The European e-commerce business experienced a 22% year-over-year sales decrease, although gross margin improved by approximately 310 basis points [29] - Sales from third-party revenue decreased 2% compared to last year, with declines in existing marketplaces partially offset by new relationships [28] Company Strategy and Development Direction - The company is focusing on high-quality sales and improved cash flows, expecting continued gross profit and margin expansion during the spring and summer selling season [33] - There is a strategic emphasis on increasing the asset-light licensing business to enhance brand reach and customer acquisition [35] - The company is exploring strategic alternatives, including a sale or merger, to maximize shareholder value [36] Management's Comments on Operating Environment and Future Outlook - Management noted that the fourth quarter performance was key in closing out the fiscal year, with a focus on optimizing inventory and enhancing customer engagement through digital marketing [9][10] - The management expressed confidence in the brand's evolution and the potential for growth through licensing and new product offerings [8][16] Other Important Information - The company reported a 12% year-over-year improvement in inventory position, allowing for increased inventory turns and better cost structure [9][30] - SG&A expenses decreased by $15 million compared to the prior year, driven by digital marketing investments and strong cost controls [29] Q&A Session Summary Question: How does the company frame the cadence of the year in terms of sales and the impact of tariffs? - Management highlighted the importance of weatherproofing the assortment and managing product offerings effectively to drive sales, noting that tariffs have a limited impact as less than 8% of purchases are from China [39][48][49] Question: How does the company plan to convert younger customers attracted by pop-up events into other segments? - Management emphasized the strategy of cross-promoting products, particularly in swimwear and outerwear, to engage younger customers and drive brand loyalty [52][58][61] Question: When will licensed products, particularly kids' items, start to appear in the catalog? - Management confirmed that kids' and shoes are already in the market, with additional licensed products expected to launch in the back half of the year [66] Question: How is the response to the evolution of the catalog as a lifestyle resource? - Management indicated that the catalog is being used as a marketing device, focusing on personalization to cater to different customer segments [70][71]

Financial Data and Key Metrics Changes - The company achieved low single-digit GMV growth on a like-for-like quarterly basis and reported a 3% year-over-year increase in gross profit dollars [10][11] - Adjusted EBITDA for Q4 was $44 million, up 38% year-over-year, with adjusted net income of $18 million and adjusted EPS of $0.57, reflecting a 120% increase year-over-year [11][43] - For the full year, net revenue was $1.36 billion, with gross margin improvement of 550 basis points to 48% compared to 43% in fiscal 2023 [11][46] Business Line Data and Key Metrics Changes - U.S. E-commerce sales decreased by 19% compared to Q4 2023, but excluding the impact of the 53rd week and kids and footwear, sales decreased mid-single digits year-over-year [40] - The licensing and retail business combined grew revenue over 50% year-over-year, driven by the expansion of the licensing model [42] - The B2B outfitters business met revenue and profit objectives for the quarter, with significant progress in the Uniforms business pipeline [33][35] Market Data and Key Metrics Changes - European E-commerce sales decreased 22% year-over-year, but gross margin improved by approximately 310 basis points [42] - The company reported strong performances on Amazon and Nordstrom, with record sales during Black Friday and Cyber Monday [31] Company Strategy and Development Direction - The company is focusing on an asset-light licensing business model to enhance brand reach and customer acquisition [12][23] - There is a strategic emphasis on high-quality sales and improved cash flows, with expectations for continued gross profit and margin expansion [46][50] - The company plans to leverage technology and data to drive strategy, including AI-driven personalization [19][51] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the European market but expressed confidence in the overall strategy and growth potential [28][30] - The company is exploring strategic alternatives, including a potential sale or merger, to maximize shareholder value [52][53] Other Important Information - The company repurchased $3 million worth of shares under its share repurchase authorization, with $14 million remaining [45] - The guidance for Q1 2025 includes expected net revenue between $260 million and $290 million, with adjusted net loss projected between $7 million and $4 million [47][48] Q&A Session Summary Question: How does the company frame the cadence of the year in terms of sales and the impact of tariffs? - Management noted that February's colder weather positively impacted outerwear sales and emphasized the importance of managing the assortment effectively [58][60] - The company is not heavily reliant on China for sourcing, with less than 8% of purchases from there, and has incorporated the impact of existing tariffs into guidance [68] Question: How will the company convert younger customers attracted by pop-up events into other segments? - Management highlighted the importance of cross-promoting swimwear and outerwear to younger customers and emphasized the role of collaborations in reaching new demographics [79][81] Question: When will licensed products, particularly kids' items, start appearing in the catalog? - Management confirmed that kids' and shoes are already in the market, with additional licensed products expected to launch in the back half of the year [89][90] Question: How is the response to the new lifestyle-focused catalog? - Management indicated that the catalog has pivoted to serve as a marketing device, focusing on personalization and targeting different customer segments effectively [93][95]

Financial Performance - In Q4 2024, net revenue was $441.7 million, a decrease of 14.2% from $514.9 million in Q4 2023, primarily due to the transition of kids and footwear product lines to licensing arrangements[5]. - Gross profit for Q4 2024 was $201.3 million, an increase of 3.0% from $195.4 million in Q4 2023, with gross margin improving by approximately 760 basis points to 45.6%[8]. - For the full year 2024, net revenue was $1.36 billion, a decrease of 7.4% from $1.47 billion in 2023, driven by the same product line transition and a focus on higher quality sales[8]. - Gross profit for the full year 2024 was $653.3 million, an increase of 4.4% from $625.5 million in 2023, with gross margin increasing approximately 550 basis points to 47.9%[7]. - Net revenue for the 13 weeks ended January 31, 2025, was $441.7 million, a decrease of 14.2% compared to $514.9 million for the 14 weeks ended February 2, 2024[26]. - Gross profit for the 13 weeks ended January 31, 2025, was $201.3 million, representing a gross margin of 45.6%, compared to $195.4 million and a gross margin of 38.0% for the same period last year[26]. - The company reported a net income of $18.5 million for the 13 weeks ended January 31, 2025, compared to a net loss of $8.6 million for the same period last year[26]. - The company reported a net loss of $130,684 for the 52 weeks ended February 2, 2024, while the net income for the 52 weeks ended January 31, 2025, was $6,233[34]. Operational Efficiency - Adjusted EBITDA for Q4 2024 was $43.7 million, compared to $31.7 million in Q4 2023, reflecting improved operational efficiency[8]. - Adjusted EBITDA for the 13 weeks ended January 31, 2025, was $43,689, which is 9.9% of net sales, compared to $31,684 or 6.2% of net sales for the 14 weeks ended February 2, 2024[36]. - For the fiscal year 2025 guidance, the adjusted EBITDA is projected to be $95.0 million, compared to $107.0 million for the year ending January 30, 2026[38]. Inventory and Assets - The company achieved an eighth consecutive quarter of inventory reduction, with net inventory decreasing by 12% year-over-year to $265.1 million as of January 31, 2025[10]. - Total current assets decreased to $370.5 million as of January 31, 2025, down from $410.3 million as of February 2, 2024[24]. - Total liabilities decreased to $526.3 million as of January 31, 2025, compared to $569.9 million as of February 2, 2024[24]. - The company’s accumulated deficit improved to $(94.4) million as of January 31, 2025, from $(99.4) million as of February 2, 2024[24]. Future Outlook - The company expects Q1 2025 net revenue to be between $260.0 million and $290.0 million, with a projected net loss between $9.0 million and $6.0 million[17]. - For fiscal 2025, the company anticipates net revenue between $1.33 billion and $1.45 billion, with gross merchandise value expected to deliver mid-to-high single digits percentage growth[17]. - The company expects to generate improved cash flows and gross margin expansion over the long term through its strategic initiatives[20]. - The company expects an adjusted net loss of $7.0 million for the first quarter of fiscal 2025, with an adjusted diluted loss per share of $0.22[38]. Marketing and Customer Acquisition - Global new customer acquisition increased by 5% in fiscal 2024, driven by enhanced digital marketing strategies[14]. - Selling and administrative expenses for fiscal 2024 were $561.8 million, or 41.2% of net revenue, reflecting an increase due to higher digital marketing spend[14]. Risks and Challenges - The company is facing risks related to global supply chain challenges, tariffs, and economic conditions that could impact future performance[21].

Fourth quarter Gross margin increased approximately 760 basis points compared to fiscal 2023All fourth quarter profitability measures improved when compared to fiscal 2023Reduced inventory for the eighth consecutive quarter DODGEVILLE, Wis., March 20, 2025 (GLOBE NEWSWIRE) -- Lands’ End, Inc. (NASDAQ: LE) (“Lands’ End” or the “Company”) today announced financial results for the fourth quarter and full year of fiscal 2024 ended January 31, 2025. Andrew McLean, Chief Executive Officer, stated, “Lands’ End had ...

Core Viewpoint - Lands' End, Inc. has initiated a process to explore strategic alternatives, including a potential sale or merger, to maximize shareholder value [1][2]. Group 1: Strategic Alternatives - The Board of Directors believes the market is undervaluing the company and its potential for future value creation [2]. - The company is committed to conducting a rigorous process to serve the interests of all shareholders [2]. - Perella Weinberg Partners is serving as the financial advisor, while Wachtell, Lipton, Rosen & Katz is the legal advisor for the process [3]. Group 2: Company Overview - Lands' End, Inc. is a leading digital retailer offering a variety of products including apparel, swimwear, outerwear, and home products [4]. - The company operates through multiple channels, including its website, third-party distribution, and company-operated stores [4]. - Lands' End also provides products to businesses and schools through its Outfitters distribution channel [4].

Core Viewpoint - Lands' End, Inc. has initiated a process to explore strategic alternatives, including a potential sale or merger, to maximize shareholder value [1][2]. Company Overview - Lands' End, Inc. is a leading digital retailer offering a variety of products including apparel, swimwear, outerwear, accessories, footwear, home products, and uniforms [4]. - The company operates through multiple channels including its website, third-party distribution, company-operated stores, and licensing agreements [4]. Strategic Process - The Board of Directors believes the market is undervaluing the company and its potential for future value creation [2]. - The company is committed to a rigorous process to serve the interests of all shareholders, with no assurances on the outcome or timing of this process [2]. - Perella Weinberg Partners is serving as the financial advisor, while Wachtell, Lipton, Rosen & Katz is the legal advisor for the company [3].

Core Viewpoint - Lands' End, Inc. will host a conference call to discuss its fourth quarter and fiscal 2024 financial results on March 20, 2025 [1]. Group 1: Conference Call Details - The conference call is scheduled for 8:30 a.m. Eastern Time on March 20, 2025 [1]. - A news release with the financial results will be issued before the call [1]. - An online archive of the broadcast will be available around noon on the same day [2]. Group 2: Company Overview - Lands' End, Inc. is a leading digital retailer specializing in solution-based apparel, swimwear, outerwear, accessories, footwear, home products, and uniforms [3]. - The company sells products through its website, third-party distribution channels, company-operated stores, and licensing agreements [3]. - Lands' End also provides products to businesses and schools through the Outfitters distribution channel [3].