Financial Data and Key Metrics Changes - Total revenue for Q2 2023 was $323 million, an 8% decrease compared to the previous year [33] - The net loss for the quarter was $8 million, or $0.25 per share, compared to a net loss of $2 million, or $0.07 per share in 2022 [35] - Adjusted EBITDA for the quarter was $16 million, roughly flat year-over-year [58] Business Line Data and Key Metrics Changes - U.S. e-commerce sales decreased by 4% compared to Q2 2022, driven by promotional effectiveness within swim and adjacent product categories [33] - The Outfitters business saw a revenue increase year-on-year, net of the Delta relationship, with a 20-plus point increase in customer satisfaction in the school uniform segment [26][57] - The third-party business revenue was down 11% compared to the prior year, primarily due to weaker performance at Kohl's, offset by strong sales at Macy's, Target, and Amazon [57] Market Data and Key Metrics Changes - The Europe e-commerce business was down 21% year-over-year, reflecting product assortment editing and macroeconomic challenges [43] - Global e-commerce sales decreased by 9% from 2022, or 6% when adjusting for Japan, which accounted for $8 million of revenue in Q2 last year [43] Company Strategy and Development Direction - The company is focused on enhancing gross margins and driving quality sales over simply moving units, with a strategic emphasis on inventory optimization [3][5] - A new licensing agreement for footwear and a partnership with Costco were highlighted as part of the expanded focus on licensing [12][24] - The company aims to leverage its authority in swim and adjacent categories to drive performance and market share [15][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive shareholder returns in the second half of the year, with a focus on vacation solutions and outerwear [48] - The company anticipates net revenue for Q3 to be between $340 million and $355 million, with a net loss expected to be between $6.5 million and $4 million [45] - Management noted that the actions taken to right the business were deliberate, focusing on sustainable value creation rather than chasing short-term demand [54] Other Important Information - The company achieved a 30% improvement in inventory position, bringing it to pre-pandemic levels [59] - The gross margin for Q2 was 43%, an improvement of approximately 220 basis points from the previous year, driven by strength in swim and adjacent categories [44] Q&A Session Summary Question: Consumer sentiment and market share opportunities - Management indicated that there is significant room to capture market share with 7 million existing customers and a potential market of 120 million [54] Question: Sales performance and macroeconomic impact - Management acknowledged that while macroeconomic factors play a role, internal adjustments and a focus on customer behavior have also contributed to sales performance [79] Question: Gross margin sustainability and Kohl's relationship - Management expressed a commitment to improving gross margins and maintaining a strong relationship with Kohl's, despite current challenges [70][74]

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Lands' End's unaudited consolidated financial statements detail revenue decline, increased net loss, inventory reduction, and debt facility amendments [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net revenue decreased for both 13 and 26-week periods, with increased operating income but wider net losses due to higher interest expense Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | 13 Weeks Ended July 28, 2023 | 13 Weeks Ended July 29, 2022 | 26 Weeks Ended July 28, 2023 | 26 Weeks Ended July 29, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Net revenue** | $323,363 | $351,178 | $632,921 | $654,843 | | **Gross profit** | $139,597 | $144,037 | $277,534 | $273,212 | | **Operating income** | $5,798 | $5,542 | $15,718 | $9,439 | | **Net loss** | $(8,018) | $(2,179) | $(9,670) | $(4,550) | | **Diluted loss per share** | $(0.25) | $(0.07) | $(0.30) | $(0.14) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and liabilities decreased due to inventory reduction and lower borrowings, while stockholders' equity also declined Balance Sheet Highlights (in thousands) | Metric | July 28, 2023 | July 29, 2022 | January 27, 2023 | | :--- | :--- | :--- | :--- | | **Cash and cash equivalents** | $26,610 | $23,505 | $39,557 | | **Inventories, net** | $396,087 | $569,174 | $425,513 | | **Total assets** | $1,014,479 | $1,199,155 | $1,082,148 | | **Total liabilities** | $648,711 | $804,210 | $701,396 | | **Total stockholders' equity** | $365,768 | $394,945 | $380,752 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly improved to a positive $54.8 million, driven by efficient inventory management, despite increased investing and financing cash usage Cash Flow Summary (in thousands) | Cash Flow Activity | 26 Weeks Ended July 28, 2023 | 26 Weeks Ended July 29, 2022 | | :--- | :--- | :--- | | **Net cash provided by (used in) operating activities** | $54,827 | $(117,525) | | **Net cash used in investing activities** | $(22,862) | $(14,776) | | **Net cash (used in) provided by financing activities** | $(44,908) | $121,458 | - The major driver for the **improvement** in **operating cash flow** was a positive change in inventories of **$30.4 million**, compared to a negative impact of **$190.9 million** in the prior year period[19](index=19&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail debt facility amendments to SOFR, Lands' End Japan closure, ongoing share repurchases, and disaggregated revenue by channel and geography - In Q2 2023, the company amended its ABL Facility and Term Loan Facility to replace the LIBOR benchmark with the SOFR benchmark for interest rate calculations[29](index=29&type=chunk)[39](index=39&type=chunk)[42](index=42&type=chunk) - The company ceased operations of Lands' End Japan by the end of Fiscal 2022. This closure impacted year-over-year comparisons for the International eCommerce channel and revenue from Asia[67](index=67&type=chunk)[77](index=77&type=chunk)[79](index=79&type=chunk) - Under its 2022 Share Repurchase Program, the company **repurchased** **833,000 shares** for a **total cost** of **$6.8 million** in the 26 weeks ended July 28, 2023. As of this date, **$34.8 million** remained **available for future repurchases**[64](index=64&type=chunk)[65](index=65&type=chunk) Net Revenue by Distribution Channel (26 Weeks Ended, in thousands) | Channel | July 28, 2023 | July 29, 2022 | | :--- | :--- | :--- | | U.S. eCommerce | $373,623 | $378,181 | | International | $48,210 | $80,551 | | Outfitters | $141,953 | $124,631 | | Third Party | $47,384 | $48,932 | | Retail | $21,751 | $22,548 | | **Total Net revenue** | **$632,921** | **$654,843** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=23&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 revenue decline, improved gross margin, flat Adjusted EBITDA, and enhanced operating cash flow from inventory management [Results of Operations](index=25&type=section&id=Results%20of%20Operations) Q2 net revenue declined **7.9%** due to International and Third Party channels, while gross margin improved and **Adjusted EBITDA** remained **flat** Q2 2023 vs Q2 2022 Performance (in millions) | Metric | Q2 2023 | Q2 2022 | Change | | :--- | :--- | :--- | :--- | | Net Revenue | $323.3 | $351.2 | (7.9)% | | Gross Profit | $139.6 | $144.0 | (3.1)% | | Gross Margin | 43.2% | 41.0% | +220 bps | | Net Loss | $(8.0) | $(2.2) | $(5.8) | | Adjusted EBITDA | $15.8 | $15.8 | 0.0% | - International eCommerce revenue **decreased** **37.3%** in Q2, or **20.8%** excluding the **$7.6 million** impact from the closure of Lands' End Japan[101](index=101&type=chunk) - Outfitters revenue **decreased** **3.8%** in Q2; however, excluding the impact of the concluded Delta Air Lines contract, the business grew **3.5%**, driven by high single-digit **growth** in school uniform revenue[102](index=102&type=chunk) - For the year-to-date period, **Adjusted EBITDA** **increased** to **$35.3 million** from **$29.6 million** in the prior year, despite a **3.3%** **decline** in net revenue[115](index=115&type=chunk)[130](index=130&type=chunk) [Liquidity and Capital Resources](index=31&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity is supported by cash and ABL Facility, with improved operating cash flow from inventory management and debt covenant compliance - **Net cash from operating activities** was **$54.8 million** YTD, a **$172.3 million** **improvement** from the prior year, primarily due to efficient inventory management[152](index=152&type=chunk) - The company plans to invest **approximately $35.0 million** in **capital expenditures** for Fiscal 2023, mainly for technology and infrastructure[153](index=153&type=chunk) - As of July 28, 2023, the company had **$70.0 million** in borrowings under the ABL Facility and was in **compliance** with all financial covenants[132](index=132&type=chunk)[150](index=150&type=chunk) - Both the ABL Facility and Term Loan Facility were amended during the quarter to replace the LIBOR interest rate benchmark with a SOFR-based benchmark[134](index=134&type=chunk)[137](index=137&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=36&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Market risks include foreign currency fluctuations, impacting international revenue, and interest rate changes on variable-rate debt - A **10%** change in foreign currency exchange rates would have **increased** or **decreased** year-to-date 2023 net revenue by **approximately $4.8 million**[163](index=163&type=chunk) - The company is subject to interest rate risk on its variable-rate debt. Each **one percentage point** change in interest rates on the Term Loan Facility would result in a **$2.3 million** change in **annual cash interest expense**[165](index=165&type=chunk) [Item 4. Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were effective, with no material changes to internal control over financial reporting - The Chief Executive Officer and Interim Chief Financial Officer concluded that the company's **disclosure controls and procedures** were **effective** as of July 28, 2023[167](index=167&type=chunk) - **No changes** in **internal controls over financial reporting** occurred during the quarter that have **materially affected**, or are reasonably likely to **materially affect**, internal controls[168](index=168&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) Company faces lawsuits over uniforms, with personal injury claims dismissed and property damage claims reaching a settlement in principle - The company is involved in consolidated lawsuits regarding uniforms, where plaintiffs allege health issues and property damage[172](index=172&type=chunk) - The court denied plaintiffs' motion for class certification and granted summary judgment for Lands' End on personal injury claims after excluding plaintiffs' expert opinions[174](index=174&type=chunk)[175](index=175&type=chunk) - As of July 19, 2023, the parties reached a **settlement in principle** for the remaining property damage claims, which total **approximately $110,000**[176](index=176&type=chunk) [Risk Factors](index=38&type=page&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the latest Annual Report on Form 10-K - **No material changes** have been made to the risk factors disclosed in the company's most recent Annual Report on Form 10-K[177](index=177&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=39&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Company **repurchased** **402,641 shares** for **approximately $3.0 million** in Q2 under its 2022 Share Repurchase Program Issuer Purchases of Equity Securities (Q2 2023) | Period | Total Shares Purchased | Average Price Paid per Share | Approximate Dollar Value of Shares that May Yet Be Purchased (in thousands) | | :--- | :--- | :--- | :--- | | April 29 - May 26 | 402,641 | $7.45 | $34,780 | | May 27 - June 30 | — | $— | $34,780 | | July 1 - July 28 | — | $— | $34,780 | | **Total** | **402,641** | **$7.45** | | [Other Information](index=39&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted or terminated Rule 10b5-1 trading plans during the quarter - No directors or executive officers adopted or terminated any Rule 10b5-1 trading plans during the quarter[179](index=179&type=chunk) [Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the 10-Q, including debt amendments, stock plans, and officer certifications - The report includes exhibits such as an amendment to the Term Loan Credit Agreement, an amendment to the 2017 Stock Plan, and various officer certifications[183](index=183&type=chunk)

Table of Contents ☒ Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended April 28, 2023 -OR- ☐ Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to to . UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Commission File Number: 001-09769 Lands' End, Inc. (Exact name of registrant as specified in its charter) (State or Other Jurisdiction of Inc ...

FORM 10-K ☒ Annual report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 For the fiscal year ended January 27, 2023 -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 J ...

Lands' End, Inc. (NASDAQ:LE) Q4 2022 Earnings Conference Call March 15, 2023 8:30 AM ET Company Participants Andrew McLean - CEO Bernie McCracken - Interim CFO Conference Call Participants Alex Fuhrman - Craig-Hallum Capital Group Dana Telsey - Telsey Advisory Group Operator Good day, and welcome to Lands' End's Fourth Quarter and Full-Year Fiscal 2022 Results Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there’ll be a question-and-answer session, and inst ...

Household income +209% vs. US population Existing customers spend +100% more in a year than new- to-brand customers. As a digital company, we target behaviors, not specific demographics. We prioritize high-value audiences rather than broad ones. 10 New customers are primarily acquired via search channels. We retain her with relevant contacts such as catalogs and connected digital campaigns. RESPONSIVE We drive highly efficient, targeted print and digital campaigns. We leverage: - Our deep customer purchase ...

Investor Presentation JANUARY 2023 Our Brand #1 Online Retailer in women's swim. 6 Customer 8 We Know How to Meet Her and Keep Her 90% of our marketing campaigns are engineered by machine learning. This presentation contains forward-looking statements that involve risks and uncertainties, including statements regarding the Company's opportunities for growth and value creation, ability to build, positioning for long long-term success, focus on growing and retaining its customer base, ability to capitalize on ...

PART I. FINANCIAL INFORMATION [ITEM 1. FINANCIAL STATEMENTS (Unaudited)](index=3&type=section&id=ITEM%201.%20FINANCIAL%20STATEMENTS%20%28Unaudited%29) This section presents the unaudited condensed consolidated financial statements of Lands' End, Inc., including statements of operations, comprehensive operations, balance sheets, cash flows, and changes in stockholders' equity, along with detailed notes explaining the company's business, accounting policies, debt, equity, and operational segments [Condensed Consolidated Statements of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section presents the company's unaudited consolidated statements of operations for the specified periods 13 Weeks Ended October 28, 2022 vs. October 29, 2021 | Metric | Oct 28, 2022 (in thousands) | Oct 29, 2021 (in thousands) | Change (YoY) | | :-------------------------------- | :-------------------------- | :-------------------------- | :----------- | | Net revenue | $370,983 | $375,843 | -1.3% | | Gross profit | $148,410 | $166,815 | -11.0% | | Operating income | $2,746 | $19,479 | -85.9% | | Net (loss) income | $(4,682) | $7,399 | -163.3% | | Basic EPS | $(0.14) | $0.22 | -163.6% | | Diluted EPS | $(0.14) | $0.22 | -163.6% | 39 Weeks Ended October 28, 2022 vs. October 29, 2021 | Metric | Oct 28, 2022 (in thousands) | Oct 29, 2021 (in thousands) | Change (YoY) | | :-------------------------------- | :-------------------------- | :-------------------------- | :----------- | | Net revenue | $1,025,826 | $1,081,249 | -5.1% | | Gross profit | $421,622 | $492,341 | -14.4% | | Operating income | $12,185 | $62,696 | -80.6% | | Net (loss) income | $(9,232) | $26,259 | -135.2% | | Basic EPS | $(0.28) | $0.80 | -135.0% | | Diluted EPS | $(0.28) | $0.78 | -135.9% | [Condensed Consolidated Statements of Comprehensive Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Operations) This section details the company's comprehensive income and loss, including foreign currency adjustments Comprehensive (Loss) Income (in thousands) | Period | Oct 28, 2022 | Oct 29, 2021 | | :-------------------------------- | :----------- | :----------- | | **13 Weeks Ended** | | | | Net (Loss) Income | $(4,682) | $7,399 | | Foreign currency translation adjustments | $(1,947) | $(670) | | Comprehensive (Loss) Income | $(6,629) | $6,729 | | **39 Weeks Ended** | | | | Net (Loss) Income | $(9,232) | $26,259 | | Foreign currency translation adjustments | $(5,884) | $(395) | | Comprehensive (Loss) Income | $(15,116) | $25,864 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section provides a snapshot of the company's assets, liabilities, and equity at various dates Key Balance Sheet Data (in thousands) | Metric | Oct 28, 2022 | Oct 29, 2021 | Jan 28, 2022 | | :-------------------------------- | :----------- | :----------- | :----------- | | Cash and cash equivalents | $28,829 | $37,926 | $34,301 | | Inventories, net | $564,856 | $479,793 | $384,241 | | Total current assets | $692,132 | $605,198 | $506,949 | | TOTAL ASSETS | $1,212,966 | $1,139,764 | $1,036,634 | | Total current liabilities | $360,293 | $346,756 | $311,432 | | Long-term borrowings under ABL Facility | $160,000 | $70,000 | — | | Long-term debt, net | $226,227 | $237,245 | $234,474 | | TOTAL LIABILITIES | $827,398 | $741,252 | $629,938 | | TOTAL STOCKHOLDERS' EQUITY | $385,568 | $398,512 | $406,696 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section outlines the company's cash inflows and outflows from operating, investing, and financing activities Cash Flow Summary (39 Weeks Ended, in thousands) | Activity | Oct 28, 2022 | Oct 29, 2021 | | :-------------------------------- | :----------- | :----------- | | Net cash used in operating activities | $(125,995) | $(6,354) | | Net cash used in investing activities | $(20,456) | $(18,739) | | Net cash provided by financing activities | $140,138 | $28,428 | | Net (decrease) increase in cash, cash equivalents and restricted cash | $(5,473) | $4,115 | | Cash, cash equivalents and restricted cash, end of period | $30,662 | $39,909 | [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 changes in the company's stockholders' equity over the reporting period Changes in Stockholders' Equity (in thousands) | Metric | Jan 28, 2022 Balance | Oct 28, 2022 Balance | Change | | :-------------------------------- | :------------------- | :------------------- | :----- | | Total Stockholders' Equity | $406,696 | $385,568 | $(21,128) | - Net loss: **$(9,232)** - Cumulative translation adjustment, net of tax: **$(5,884)** - Stock-based compensation expense: **$3,537** - Purchases and retirement of common stock: **$(5,234)** [Notes to Condensed Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed financial statements [NOTE 1. BACKGROUND AND BASIS OF PRESENTATION](index=8&type=section&id=NOTE%201.%20BACKGROUND%20AND%20BASIS%20OF%20PRESENTATION) This note describes Lands' End's business and the basis for preparing interim financial statements - Lands' End, Inc. is a leading uni-channel retailer of casual clothing, accessories, footwear, and home products, offering products online, through Company Operated stores, and third-party distribution channels[22](index=22&type=chunk) - The unaudited Condensed Consolidated Financial Statements are prepared in accordance with GAAP for interim financial information and Form 10-Q instructions, and do not include all information required for complete annual financial statements[25](index=25&type=chunk) [NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS](index=9&type=section&id=NOTE%202.%20RECENT%20ACCOUNTING%20PRONOUNCEMENTS) This note discusses the impact of recently adopted accounting standards on the financial statements - No new accounting standards adopted during the 39 weeks ended October 28, 2022, had an impact on the Company's financial statements[26](index=26&type=chunk) [NOTE 3. EARNINGS (LOSS) PER SHARE](index=9&type=section&id=NOTE%203.%20EARNINGS%20%28LOSS%29%20PER%20SHARE) This note provides a detailed breakdown of basic and diluted earnings per share calculations EPS Summary (in thousands, except per share amounts) | Metric | 13 Weeks Ended Oct 28, 2022 | 13 Weeks Ended Oct 29, 2021 | 39 Weeks Ended Oct 28, 2022 | 39 Weeks Ended Oct 29, 2021 | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | Net (loss) income | $(4,682) | $7,399 | $(9,232) | $26,259 | | Basic weighted average common shares outstanding | 33,064 | 32,981 | 33,196 | 32,910 | | Diluted weighted average common shares outstanding | 33,064 | 33,698 | 33,196 | 33,708 | | Basic (loss) earnings per share | $(0.14) | $0.22 | $(0.28) | $0.80 | | Diluted (loss) earnings per share | $(0.14) | $0.22 | $(0.28) | $0.78 | - Stock awards were considered anti-dilutive for the 13 and 39 weeks ended October 28, 2022, due to a net loss, excluding **1,098,662** and **1,170,934** anti-dilutive shares, respectively[28](index=28&type=chunk) [NOTE 4. OTHER COMPREHENSIVE (LOSS) INCOME](index=10&type=section&id=NOTE%204.%20OTHER%20COMPREHENSIVE%20%28LOSS%29%20INCOME) This note explains components of other comprehensive income, primarily foreign currency adjustments - Other comprehensive (loss) income is solely comprised of foreign currency translation adjustments[30](index=30&type=chunk) Foreign Currency Translation Adjustments (in thousands) | Period | Oct 28, 2022 | Oct 29, 2021 | | :-------------------------------- | :----------- | :----------- | | **13 Weeks Ended** | $(1,947) | $(670) | | **39 Weeks Ended** | $(5,884) | $(395) | - No amounts were reclassified out of Accumulated other comprehensive (loss) during any presented periods [NOTE 5. DEBT](index=10&type=section&id=NOTE%205.%20DEBT) This note details the company's debt facilities, including ABL and Term Loan, and compliance with covenants ABL Facility Borrowing Availability (in thousands) | Metric | Oct 28, 2022 | Oct 29, 2021 | Jan 28, 2022 | | :-------------------------------- | :----------- | :----------- | :----------- | | ABL Facility limit | $275,000 | $275,000 | $275,000 | | Outstanding borrowings | $160,000 | $70,000 | — | | Outstanding letters of credit | $11,841 | $21,400 | $23,521 | | Maximum borrowing availability | $103,159 | $183,600 | $251,479 | - As of October 28, 2022, the amount available to borrow under the ABL Facility, based on the Borrowing Base calculation, was **$103.2 million**[33](index=33&type=chunk) Long-Term Debt (in thousands) | Metric | Oct 28, 2022 | Oct 29, 2021 | Jan 28, 2022 | | :-------------------------------- | :----------- | :----------- | :----------- | | Term Loan Facility | $247,500 | $261,250 | $257,813 | | Less: Current portion of long-term debt | $13,750 | $13,750 | $13,750 | | Less: Unamortized debt issuance costs | $7,523 | $10,255 | $9,589 | | Long-term debt, net | $226,227 | $237,245 | $234,474 | - The ABL Facility maturity was extended to **July 29, 2026** (or **June 9, 2025**, if the Term Loan Facility is not refinanced)[40](index=40&type=chunk)[41](index=41&type=chunk) - The Term Loan Facility matures on **September 9, 2025**, and amortizes at **1.25% per quarter**[41](index=41&type=chunk) - The Company was in compliance with all financial covenants in its Debt Facilities as of October 28, 2022[46](index=46&type=chunk) [NOTE 6. STOCK-BASED COMPENSATION](index=12&type=section&id=NOTE%206.%20STOCK-BASED%20COMPENSATION) This note outlines the company's stock-based compensation expense and unrecognized amounts Total Stock-Based Compensation Expense (in thousands) | Period | Oct 28, 2022 | Oct 29, 2021 | | :-------------------------------- | :----------- | :----------- | | **13 Weeks Ended** | $134 | $1,974 | | **39 Weeks Ended** | $3,537 | $8,043 | - Net credit expense for Performance Awards in 2022 reflects a reduction in accrual based on actual and projected results[50](index=50&type=chunk) - Unrecognized stock-based compensation expense for unvested Deferred Awards was approximately **$8.7 million** as of October 28, 2022, to be recognized over **2.0 years**[51](index=51&type=chunk) - Unrecognized stock-based compensation expense for unvested Performance Awards was approximately **$1.1 million** as of October 28, 2022, to be recognized over **1.4 years**[53](index=53&type=chunk) [NOTE 7. STOCKHOLDERS' EQUITY](index=14&type=section&id=NOTE%207.%20STOCKHOLDERS%27%20EQUITY) This note describes changes in stockholders' equity, including share repurchase programs - The Board of Directors authorized a Share Repurchase Program on **June 28, 2022**, to repurchase up to **$50.0 million** of common stock through **February 2, 2024**[55](index=55&type=chunk) Share Repurchases (in thousands, except average per share cost) | Period | Number of Shares Repurchased | Total Cost | Average Per Share Cost | | :-------------------------------- | :--------------------------- | :--------- | :--------------------- | | **13 Weeks Ended Oct 28, 2022** | 204 | $2,873 | $14.06 | | **39 Weeks Ended Oct 28, 2022** | 416 | $5,226 | $12.55 | - As of October 28, 2022, **$44.8 million** remained available under the program[56](index=56&type=chunk) - All repurchased shares have been retired[56](index=56&type=chunk) [NOTE 8. OTHER CURRENT LIABILITIES](index=14&type=section&id=NOTE%208.%20OTHER%20CURRENT%20LIABILITIES) This note provides a breakdown of various other current liabilities Other Current Liabilities (in thousands) | Category | Oct 28, 2022 | Oct 29, 2021 | Jan 28, 2022 | | :-------------------------------- | :----------- | :----------- | :----------- | | Deferred gift card revenue | $31,020 | $30,473 | $33,070 | | Reserve for sales returns and allowances | $23,649 | $24,328 | $23,421 | | Accrued employee compensation and benefits | $19,147 | $48,894 | $58,833 | | Deferred revenue | $13,412 | $14,537 | $8,560 | | Accrued taxes | $10,513 | $12,459 | $11,999 | | Accrued closing costs | $3,999 | — | — | | Other | $10,132 | $12,137 | $10,380 | | **Total other current liabilities** | **$111,872** | **$142,828** | **$146,263** | [NOTE 9. LANDS' END JAPAN CLOSING](index=15&type=section&id=NOTE%209.%20LANDS%27%20END%20JAPAN%20CLOSING) This note details the plan to cease operations of Lands' End Japan and associated costs - In **July 2022**, the Board approved a plan to cease operations of Lands' End Japan KK (LE Japan) by the end of Fiscal 2022, which does not represent a strategic shift with a major effect on consolidated financial condition[58](index=58&type=chunk) Estimated LE Japan Closing Costs (in thousands, recognized in Other operating expense, net) | Cost Category | 13 Weeks Ended Oct 28, 2022 | 39 Weeks Ended Oct 28, 2022 | | :-------------------------------- | :-------------------------- | :-------------------------- | | Employee severance and benefit costs | $1,693 | $1,693 | | Early termination and restoration costs of leased facilities | $867 | $867 | | Contract cancellation and other costs | $416 | $416 | | **Total estimated costs** | **$2,976** | **$2,976** | [NOTE 10. FAIR VALUE MEASUREMENTS OF FINANCIAL ASSETS AND LIABILITIES](index=15&type=section&id=NOTE%2010.%20FAIR%20VALUE%20MEASUREMENTS%20OF%20FINANCIAL%20ASSETS%20AND%20LIABILITIES) This note describes the fair value measurement of financial assets and liabilities, including long-term debt - Restricted cash is valued at fair value using Level 1 inputs, totaling **$1.8 million** as of October 28, 2022[62](index=62&type=chunk) Long-Term Debt Fair Value (in thousands) | Metric | Oct 28, 2022 | Oct 29, 2021 | Jan 28, 2022 | | :-------------------------------- | :----------- | :----------- | :----------- | | Carrying Amount | $247,500 | $261,250 | $257,813 | | Fair Value | $232,017 | $261,396 | $256,439 | - Long-term debt was valued using Level 3 valuation techniques [NOTE 11. INCOME TAXES](index=16&type=section&id=NOTE%2011.%20INCOME%20TAXES) This note explains the effective income tax rates and potential impacts of new tax legislation Effective Income Tax Rates | Period | Oct 28, 2022 | Oct 29, 2021 | | :-------------------------------- | :----------- | :----------- | | **13 Weeks Ended** | 43.7% (benefit) | 34.6% (expense) | | **39 Weeks Ended** | 40.5% (benefit) | 28.9% (expense) | - Higher effective tax rates in 2022 are primarily due to a pretax loss and tax benefits from LE Japan closing costs[65](index=65&type=chunk) - The Company is assessing the impacts of the Inflation Reduction Act (IRA), including the **15% corporate minimum tax** and **1% excise tax** on stock repurchases, on its financial statements[66](index=66&type=chunk) [NOTE 12. COMMITMENTS AND CONTINGENCIES](index=16&type=section&id=NOTE%2012.%20COMMITMENTS%20AND%20CONTINGENCIES) This note outlines the company's legal proceedings and other commitments - The Company is involved in various legal proceedings, including three lawsuits alleging adverse health events and property damage from uniforms, with plaintiffs seeking nationwide class certification[67](index=67&type=chunk)[68](index=68&type=chunk) - In **July 2022**, the Court granted the Company's motion for summary judgment on personal injury claims in the Consolidated Wisconsin Action, as plaintiffs failed to provide sufficient evidence of uniform defects or causation[72](index=72&type=chunk)[73](index=73&type=chunk) - Remaining claims in the Consolidated Wisconsin Action relate to property damage and breach of warranty, which the Company continues to vigorously defend[74](index=74&type=chunk) [NOTE 13. SEGMENT REPORTING](index=17&type=section&id=NOTE%2013.%20SEGMENT%20REPORTING) This note provides net revenue breakdown by distribution channel and geographic location - The Company's operating segments (U.S. eCommerce, Europe eCommerce, Japan eCommerce, Outfitters, Third Party, and Retail) are aggregated into one reportable external segment due to similar economic and qualitative characteristics[75](index=75&type=chunk) Net Revenue by Distribution Channel (in thousands) | Channel | 13 Weeks Ended Oct 28, 2022 | 13 Weeks Ended Oct 29, 2021 | 39 Weeks Ended Oct 28, 2022 | 39 Weeks Ended Oct 29, 2021 | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | U.S. eCommerce | $211,217 | $213,999 | $589,398 | $655,190 | | International | $37,969 | $47,219 | $118,520 | $151,482 | | Outfitters | $80,768 | $86,069 | $205,399 | $192,382 | | Third Party | $30,883 | $19,308 | $79,815 | $50,210 | | Retail | $10,146 | $9,248 | $32,694 | $31,985 | | **Total Net Revenue** | **$370,983** | **$375,843** | **$1,025,826** | **$1,081,249** | [NOTE 14. REVENUE](index=17&type=section&id=NOTE%2014.%20REVENUE) This note details revenue recognition policies and contract liabilities - Revenue is recognized when control of product passes to customers, net of promotions, returns, discounts, and other incentives[77](index=77&type=chunk) Net Revenue by Geographic Location (in thousands) | Region | 13 Weeks Ended Oct 28, 2022 | 13 Weeks Ended Oct 29, 2021 | 39 Weeks Ended Oct 28, 2022 | 39 Weeks Ended Oct 29, 2021 | | :-------------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | :-------------------------- | | United States | $327,780 | $322,773 | $893,205 | $914,069 | | Europe | $28,946 | $39,277 | $94,386 | $124,183 | | Asia | $9,620 | $8,663 | $26,059 | $29,212 | | Other | $4,637 | $5,130 | $12,176 | $13,785 | | **Total Net Revenue** | **$370,983** | **$375,843** | **$1,025,826** | **$1,081,249** | - Contract liabilities (deferred revenue) were **$13.4 million** as of October 28, 2022, with the majority expected to be recognized in the fiscal quarter ending **January 27, 2023**[80](index=80&type=chunk) - Refund liabilities, primarily for product sales returns, were **$23.6 million** as of October 28, 2022, recorded as a reduction to Net revenue based on historical experience[81](index=81&type=chunk) [ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=ITEM%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides a detailed discussion and analysis of Lands' End's financial condition and results of operations for the third quarter and year-to-date periods ended October 28, 2022, compared to the prior year. It covers macroeconomic challenges, seasonality, revenue performance by distribution channel, gross profit, operating expenses, and liquidity, highlighting the impact of inflation, supply chain issues, and the closure of LE Japan [Executive Overview](index=19&type=section&id=Executive%20Overview) This section provides an overview of Lands' End's business model and macroeconomic challenges - Lands' End is a uni-channel retailer of casual clothing, accessories, footwear, and home products, operating online, through Company Operated stores, and third-party channels[83](index=83&type=chunk)[84](index=84&type=chunk) - Macroeconomic challenges, including inflationary pressures, have led to increased costs of raw materials, packaging, labor, energy, and fuel, negatively impacting gross margin and potentially consumer demand[87](index=87&type=chunk) - The business experiences seasonal fluctuations, with a significant portion of net revenue and earnings historically realized in the **fourth fiscal quarter**[89](index=89&type=chunk) [Results of Operations](index=21&type=section&id=Results%20of%20Operations) This section presents key income statement data and adjusted EBITDA reconciliation Selected Income Statement Data (13 Weeks Ended, in thousands) | Metric | Oct 28, 2022 | % of Net Revenue | Oct 29, 2021 | % of Net Revenue | | :-------------------------------- | :----------- | :--------------- | :----------- | :--------------- | | Net revenue | $370,983 | 100.0% | $375,843 | 100.0% | | Gross profit | $148,410 | 40.0% | $166,815 | 44.4% | | Operating income | $2,746 | 0.7% | $19,479 | 5.2% | | NET (LOSS) INCOME | $(4,682) | (1.3)% | $7,399 | 2.0% | Selected Income Statement Data (39 Weeks Ended, in thousands) | Metric | Oct 28, 2022 | % of Net Revenue | Oct 29, 2021 | % of Net Revenue | | :-------------------------------- | :----------- | :--------------- | :----------- | :--------------- | | Net revenue | $1,025,826 | 100.0% | $1,081,249 | 100.0% | | Gross profit | $421,622 | 41.1% | $492,341 | 45.5% | | Operating income | $12,185 | 1.2% | $62,696 | 5.8% | | NET (LOSS) INCOME | $(9,232) | (0.9)% | $26,259 | 2.4% | Adjusted EBITDA Reconciliation (13 Weeks Ended, in thousands) | Metric | Oct 28, 2022 | % of Net Revenue | Oct 29, 2021 | % of Net Revenue | | :-------------------------------- | :----------- | :--------------- | :----------- | :--------------- | | Net (loss) income | $(4,682) | (1.3)% | $7,399 | 2.0% | | Income tax (benefit) expense | $(3,627) | (1.0)% | $3,917 | 1.0% | | Interest expense | $10,825 | 2.9% | $8,334 | 2.2% | | Depreciation and amortization | $9,761 | 2.6% | $9,788 | 2.6% | | LE Japan closing costs | $3,858 | 1.0% | — | —% | | Adjusted EBITDA | $16,663 | 4.5% | $29,751 | 7.9% | Adjusted EBITDA Reconciliation (39 Weeks Ended, in thousands) | Metric | Oct 28, 2022 | % of Net Revenue | Oct 29, 2021 | % of Net Revenue | | :-------------------------------- | :----------- | :--------------- | :----------- | :--------------- | | Net (loss) income | $(9,232) | (0.9)% | $26,259 | 2.5% | | Income tax (benefit) expense | $(6,293) | (0.6)% | $10,667 | 0.9% | | Interest expense | $27,807 | 2.7% | $26,231 | 2.4% | | Depreciation and amortization | $29,228 | 2.8% | $29,483 | 2.7% | | LE Japan closing costs | $3,858 | 0.4% | — | —% | | Adjusted EBITDA | $46,296 | 4.5% | $93,606 | 8.7% | [Discussion and Analysis](index=23&type=section&id=Discussion%20and%20Analysis) This section analyzes the company's net revenue, gross profit, and operating income performance - Third Quarter 2022 Net revenue decreased by **1.3%** to **$371.0 million**, primarily due to lower consumer demand in U.S. and International eCommerce, and normalization of travel-related national accounts in Outfitters, partially offset by growth in Third Party and Retail[96](index=96&type=chunk)[97](index=97&type=chunk)[98](index=98&type=chunk)[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) - Third Quarter 2022 Gross profit decreased by **11.0%** to **$148.4 million**, with gross margin declining **440 basis points** to **40.0%**, driven by **$6.8 million** in increased transportation costs, higher promotional activity, and margin mix from Third Party business growth[102](index=102&type=chunk) - Third Quarter 2022 Operating income decreased by **$16.8 million** to **$2.7 million**, mainly due to the decrease in Gross profit and **$3.0 million** in one-time LE Japan closing costs, partially offset by lower selling and administrative expenses[106](index=106&type=chunk) - Year-to-Date 2022 Net revenue decreased by **5.1%** to **$1.0 billion**, impacted by lower consumer demand and delayed product receipts in U.S. and International eCommerce, while Outfitters and Third Party channels saw growth[112](index=112&type=chunk)[113](index=113&type=chunk)[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) - Year-to-Date 2022 Gross profit decreased by **14.4%** to **$421.6 million**, with gross margin falling to **41.1%**, primarily due to **$32.9 million** in incremental transportation costs, increased promotional activity, and margin mix[118](index=118&type=chunk) - Year-to-Date 2022 Operating income decreased by **$50.5 million** to **$12.2 million**, driven by the decline in Gross profit and **$3.0 million** in one-time LE Japan closing costs, partially offset by reduced selling and administrative expenses[122](index=122&type=chunk) [Liquidity and Capital Resources](index=26&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's cash flows, debt facilities, and future liquidity outlook - Net cash used in operating activities increased by **$119.6 million** to **$126.0 million** for Year-to-Date 2022, primarily due to a decrease in net income and an **$85.1 million** increase in inventories from earlier receipts of fall/holiday and carried-over basics[144](index=144&type=chunk) - Net cash provided by financing activities increased to **$140.1 million** for Year-to-Date 2022, mainly due to increased borrowings under the ABL Facility to cover higher inventory levels[146](index=146&type=chunk) - The Company expects cash on hand, cash flows from operations, and the ABL Facility to be adequate for capital requirements and operational needs for at least the next **12 months**[128](index=128&type=chunk) - The ABL Facility had **$160.0 million** outstanding and **$11.8 million** in outstanding letters of credit as of October 28, 2022[129](index=129&type=chunk)[148](index=148&type=chunk) [Application of Critical Accounting Policies and Estimates](index=28&type=section&id=Application%20of%20Critical%20Accounting%20Policies%20and%20Estimates) This section highlights key accounting policies and estimates used in financial reporting - Critical accounting policies and estimates include revenue, inventory valuation, goodwill and intangible asset impairment assessments, and income taxes[149](index=149&type=chunk) - No significant changes in critical accounting policies or their application since **January 28, 2022**, except for the implementation of the accounting policy for common stock repurchases during **Second Quarter 2022**[150](index=150&type=chunk) [Recent Accounting Pronouncements](index=28&type=section&id=Recent%20Accounting%20Pronouncements) This section addresses the impact of new accounting standards on the financial statements - No recent accounting pronouncements are expected to have a material impact on the Condensed Consolidated Financial Statements and disclosures[152](index=152&type=chunk) [CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION](index=29&type=section&id=CAUTIONARY%20STATEMENT%20REGARDING%20FORWARD-LOOKING%20INFORMATION) This section warns about forward-looking statements and associated risks and uncertainties - The document contains forward-looking statements subject to risks and uncertainties, and actual results may differ materially from those contemplated[154](index=154&type=chunk) - The Company disclaims any obligation to update or revise these statements, except as required by law[154](index=154&type=chunk) [ITEM 3. Quantitative and Qualitative Disclosures about Market Risk](index=30&type=section&id=ITEM%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section discusses the Company's exposure to market risks, primarily related to foreign currency exchange rates and interest rates on its variable-rate debt facilities - The Company is exposed to market risk from adverse changes in currency rates, with **$5.5 million** of cash denominated in foreign currencies as of October 28, 2022[156](index=156&type=chunk) - Interest rate risk exists due to variable rates on the Term Loan Facility and ABL Facility; a **one percentage point change** in interest rates would result in a **$3.5 million** change in annual cash interest expenses for the Term Loan Facility and a **$2.8 million** change if the ABL Facility was fully drawn[157](index=157&type=chunk) [ITEM 4. Controls and Procedures](index=31&type=section&id=ITEM%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of the Company's disclosure controls and procedures and reports no material changes in internal control over financial reporting - Management, including the CEO and President/CFO, concluded that the Company's disclosure controls and procedures were effective as of October 28, 2022[159](index=159&type=chunk) - There have been no material changes in the Company's internal controls over financial reporting during the most recently completed fiscal quarter[160](index=160&type=chunk) PART II. OTHER INFORMATION [ITEM 1. LEGAL PROCEEDINGS](index=32&type=section&id=ITEM%201.%20LEGAL%20PROCEEDINGS) This section reiterates that the Company is party to various legal claims and investigations, and management believes their ultimate resolution will not have a material adverse effect on operations, cash flows, or financial position - The Company is involved in various legal proceedings, the outcome of which management believes will not have a material adverse effect on its financial position[163](index=163&type=chunk) - A detailed description of legal proceedings is incorporated by reference from Note 12, Commitments and Contingencies[164](index=164&type=chunk) [ITEM 1A. RISK FACTORS](index=32&type=section&id=ITEM%201A.%20RISK%20FACTORS) This section states that there have been no material changes to the risk factors previously disclosed in the Company's Annual Report on Form 10-K - No material changes to the risk factors disclosed in the Company's Annual Report on Form 10-K for the year ended **January 28, 2022**[165](index=165&type=chunk) [ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=32&type=section&id=ITEM%202.%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section details the Company's common stock repurchases made during the third quarter of 2022 under its Share Repurchase Program Issuer Purchases of Equity Securities (Third Quarter 2022, in thousands, except average per share cost) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs | | :-------------------------------- | :------------------------------- | :--------------------------- | :------------------------------------------------------------------------------- | :--------------------------------------------------------------------------------------- | | July 30 - August 26 | 98,495 | $15.93 | 98,495 | $46,078 | | August 27 - September 30 | 105,775 | $12.33 | 105,775 | $44,774 | | October 1 - October 28 | — | — | — | $44,774 | | **Total** | **204,270** | **$14.06** | **204,270** | **$44,774** | - All repurchased shares were retired following purchase[166](index=166&type=chunk) - The Share Repurchase Program, authorized on **June 28, 2022**, allows for repurchases of up to **$50.0 million** of common stock through **February 2, 2024**[167](index=167&type=chunk) [ITEM 6. EXHIBITS](index=33&type=section&id=ITEM%206.%20EXHIBITS) This section lists all documents filed as exhibits to the report, including organizational documents, employment agreements, certifications, and XBRL taxonomy files - Exhibits include Amended and Restated Certificate of Incorporation, Bylaws, employment-related letters and agreements for Andrew J. McLean and Jerome S. Griffith, certifications (**31.1, 31.2, 32.1**), and Inline XBRL Taxonomy Extension documents[170](index=170&type=chunk) [SIGNATURES](index=34&type=section&id=SIGNATURES) This section contains the signature of the authorized officer, James Gooch, President and Chief Financial Officer, confirming the due filing of the report - The report was duly signed on behalf of Lands' End, Inc. by James Gooch, President and Chief Financial Officer, on **December 1, 2022**[173](index=173&type=chunk)

Financial Data and Key Metrics Changes - Total revenue for Q3 2022 decreased by 1% to $371 million compared to the previous year, missing guidance due to a slowdown in consumer demand [26] - Adjusted EBITDA was $16.7 million, below expectations of $20 million to $24 million, and down from $29.8 million in 2021, primarily due to gross margin pressure [32] - The company reported a net loss of $4.7 million or $0.14 per share, compared to a net income of $7.4 million or $0.22 per share in 2021 [31] Business Line Data and Key Metrics Changes - Global e-commerce sales decreased by 5% year-over-year, with U.S. e-commerce sales fairly flat, down 1%, while international sales dropped by 20% due to inflation and geopolitical issues [27] - Revenue from the third-party business increased by 60% compared to Q3 2021, driven by strong performance at Kohl's and other marketplaces [28] - The outfitters business saw a 6% decrease in sales, attributed to the normalization of travel-related purchases after last year's accelerated demand [28] Market Data and Key Metrics Changes - Inventory at the end of the quarter was $565 million, an 18% increase from $480 million a year ago, primarily due to early receipts for the holiday season [33] - The company expects inventory levels to normalize by the end of spring/summer 2023 [33] Company Strategy and Development Direction - The company is focusing on strategic growth pillars including product, digital, unit channel distribution, and infrastructure [14] - There is an emphasis on enhancing customer engagement through improved search capabilities and social media presence [18] - The company plans to leverage data-driven strategies to optimize margins and remain competitive in a highly promotional environment [20] Management's Comments on Operating Environment and Future Outlook - Management noted that consumer behavior is shifting towards seeking promotions due to inflationary pressures, impacting discretionary spending [7][48] - The company anticipates a highly promotional environment in the fourth quarter, with margin pressures from increased freight and supply chain costs [34] - Management expressed confidence in the brand's long-term resilience, supported by a loyal customer base with an average tenure of 18 years [38] Other Important Information - The company announced the appointment of Andrew McLean as CEO-Designate, who will succeed Jerome Griffith at the end of the fiscal year [39] - The company is also focusing on improving supply chain capabilities with new appointments in key positions [41][42] Q&A Session Summary Question: Can you expand on the customer environment, both digitally and in your third-party business? - Management noted continued growth in third-party business, particularly with Amazon and Kohl's, and highlighted that customers are looking for promotions due to rising costs [47][48] Question: Can you expand on inventory levels and supply chain costs for 2023? - Management indicated that while inventory is up 18%, the quality is satisfactory, and they expect normalization by spring/summer 2023 [53] Question: What is the expectation for the promotional environment in the fourth quarter? - Management expects a highly promotional environment, particularly post-Christmas, with potential clearance sales in January due to inventory gluts [59][60] Question: When will the benefits of reduced container costs be seen in gross margins? - Management stated that benefits from reduced shipping costs will start to be realized towards the end of spring and summer 2023 [63] Question: Was the sales increase during Thanksgiving and Cyber Week a pleasant surprise? - Management noted that while Cyber Week is important, the current week is also significant, with traffic patterns resembling pre-pandemic trends [65]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended July 29, 2022 -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) (State or Other Jurisdiction of Incorporation of Organ ...