Lands’ End(LE)2025-03-20 10:47Financial 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].