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Lands' End Q1 revenues increase by 48.1 percent, swings to profit

By Prachi Singh

2 Jun 2021

For the first quarter, net revenue at Lands’ End, Inc. was 321.3 million dollars, an increase of 48.1 percent from the first quarter of fiscal 2020 and an increase of 22.4 percent from the first quarter of fiscal 2019.

Commenting on the first quarter trading, Jerome Griffith, the company’s chief executive officer, stated: “Our global ecommerce business is stronger than ever as we continued to execute our digitally led product and marketing strategies while the recovery in Outfitters is occurring at a faster pace than we expected.”

Highlights of Land’s End’s Q1 performance

The company’s global ecommerce net revenue was 260 million dollars, an increase of 44.4 percent from the first quarter of fiscal 2020 and an increase of 25.5 percent from the first quarter of fiscal 2019. Compared to the first quarter of last year, the company said, U.S. ecommerce increased 46.6 percent and international ecommerce grew 37 percent.

The company added that Outfitters net revenue was 40.7 million dollars, an increase of 27.9 percent from the first quarter of fiscal 2020 and a decrease of 5.6 percent from the first quarter of fiscal 2019. Compared to the first quarter last year, the increase was driven by stronger demand within the company’s travel-related national accounts and school uniform customers.

Third Party net revenue, which includes sales on third-party marketplaces and U.S. wholesale revenues, was 11.8 million dollars in the first quarter compared to 1.5 million dollars in the first quarter last year. The 10.3 million dollars increase was attributed to the launch of Lands’ End product on Kohls.com and at 150 Kohl’s retail locations in third quarter 2020.

Land’s End reports profit in Q1

Gross margin for the quarter was 46 percent, expanding approximately 260 basis points compared to 43.4 percent in the first quarter of fiscal 2020 and approximately 30 basis points compared to 45.7 percent in the first quarter of fiscal 2019.

Net income was 2.6 million dollars or 8 cents per diluted share compared to net loss of 20.6 million dollars or loss of 64 cents per diluted share in the first quarter of fiscal 2020 and net loss of 6.8 million dollars or loss of 21 cents per diluted share in the first quarter of fiscal 2019.

Adjusted EBITDA was 22.5 million dollars, an increase of 34.1 million dollars compared to a loss of 11.6 million dollars in the first quarter of fiscal 2020 and an increase of 19.5 million dollars compared to earnings of 3 million dollars in the first quarter of fiscal 2019.

Land’s End announces outlook for Q2 and FY21

For the second quarter of fiscal 2021, the company now expects net revenue to be between 345 million dollars and 355 million dollars, net income to be between 1.5 million dollars and 4 million dollars and diluted earnings per share to be between 5 cents and 12 cents and adjusted EBITDA in the range of 20 million dollars to 23 million dollars.

For fiscal 2021 the company now expects net revenue to be between 1.61 billion dollars and 1.65 billion dollars, net income to be between 27.5 million dollars and 34 million dollars, diluted earnings per share to be between 84 cents and 1.04 dollars and adjusted EBITDA in the range of 114 million dollars to 122 million dollars.