- Prachi Singh |
For the second quarter, net revenue at Lands’ End, Inc. increased 4.6 percent to 312.1 million dollars, while global ecommerce net revenue increased 23.6 percent driven by US ecommerce increasing 26.2 percent and International ecommerce growing 9.4 percent as compared to the prior period. The company said in a statement that Outfitters net revenue declined 42.8 percent due to the negative impact of the Covid-19 pandemic.
Commenting on the company’s performance, Jerome Griffith, Land’s End’s Chief Executive Officer and President, stated: “We are very pleased to have delivered a strong second quarter leveraging the strong momentum in our global ecommerce business. Longer term, we remain confident in our positioning within the new landscape given our dynamic ecommerce foundation, limited bricks and mortar exposure, key item basics business that offers an attractive value proposition and lean operating structure.”
Land’s End reveals outlook for Q3 and full year
Gross margin increased approximately 10 basis points to 43.4 percent compared to 43.3 percent in the second quarter last year, while net income was 4.4 million dollars or 13 cents per diluted share compared to net loss of 3 million dollars or 9 cents loss per diluted share in the second quarter of fiscal 2019. The company added that adjusted EBITDA increased 250.8 percent to 23.9 million dollars compared to 6.8 million dollars in the second quarter of fiscal 2020.
The company further said that based on the stabilization and improved visibility in the business, it is now providing its outlook for the remainder of the year. For the third quarter, the company expects net revenue to decline low single digits to flat as compared to the same period last year assuming low double digit growth year over year in its global ecommerce business, revenue decline in its Outfitters business due to decreased demand from business customer in both its national and small and medium sized accounts as well as a slower recovery of the school uniform business as schools delay reopenings. Gross margin to be flat as compared to the prior year.
For the fourth quarter, the company expects net revenue to decline low single digits as compared to the same period last year assuming low double digit growth year over year in its global ecommerce business, revenue decline in its Outfitters business due to the anniversary of the American Airlines launch from the fourth quarter 2019, as well as decreased demand from business customers in both its national and small and medium sized accounts. Gross margin to be pressured, driven by shipping surcharges implemented by carriers during the holiday period.