Land’s End Q1 revenue decline, reports loss

For the first quarter, net revenue decreased 5.5 percent to 303.7 million dollars at Land’s End compared to the first quarter of fiscal 2021.

Gross margin for the quarter decreased approximately 350 basis points to 42.5 percent compared to 46 percent in the first quarter of fiscal 2021.

Net loss was 2.4 million dollars or 7 cents loss per diluted share compared to net income of 2.6 million dollars or 8 cents earnings per diluted share in the first quarter of fiscal 2021.

Adjusted EBITDA decreased to 13.8 million dollars compared to 22.5 million dollars in the first quarter of fiscal 2021.

“Despite revenue pressure from global supply chain issues and the impact of inflation on the consumer, we achieved our profit expectations. We continued to successfully execute on our strategic initiatives and are encouraged by the performance of our Outfitters business, which increased 33 percent, and by our expanding third party business, which increased 83 percent,” said Jerome Griffith, chief executive officer, Land’s End.

Highlights of Land’s End’s Q1 performance

The company’s global ecommerce net revenue decreased 15.7 percent for the first quarter. Net revenue in U.S. ecommerce decreased 14.1 percent and international ecommerce decreased 21.7 percent driven by delayed receipts of key products due to global supply chain and macroeconomic challenges.

The company said, Outfitters net revenue increased 32.6 percent, driven by stronger demand within the company’s small and medium-sized business customers, national accounts and school uniform households.

Third party net revenue increased 83.3 percent due to expanding the number of Kohl’s stores in the third quarter of 2021 to a total of 300 retail locations, growth in existing online marketplaces, and the on-air launch of select products at QVC.

Land’s End expects to reports Q2 loss

For the second quarter of fiscal 2022 the company expects net revenue to be between 335 million dollars and 350 million dollars, net loss to be between 6 million dollars and 3 million dollars and diluted loss per share to be between 18 cents and 9 cents.

The company expects adjusted EBITDA in the range of 10 million dollars to 14 million dollars.

For fiscal 2022, the company expects net revenue to be between 1.62 billion dollars and 1.68 billion dollars, net income to be between 20 million dollars and 29 million dollars and diluted earnings per share to be between 60 cents and 88 cents.

The company expects adjusted EBITDA for the year in the range of 100 million dollars to 112 million dollars.