For the first quarter, Lands’ End GMV increased low single digits, while net revenue decreased 7.8 percent to 285.5 million dollars.

The company said in a release that excluding the 26.9 million dollars in revenue from the conclusion of the Delta Air Lines business, net revenue increased 1 percent.

Lands’ End ecommerce net revenue was 195.5 million dollars, a decrease of 3.7 percent.

Commenting on the trading results, Andrew McLean, the company’s CEO stated: “Our performance in the first quarter continued the considerable momentum we generated in 2023 and resulted in an increase in our gross merchandise value, an increase in gross profit dollars and significant gross margin expansion.”

Review of Lands’ End Q1 results

Compared to the first quarter of fiscal 2023, US ecommerce revenue decreased 4 percent and international ecommerce revenue decreased 1.7 percent.

Outfitters net revenue for the quarter was 42.7 million dollars, a decrease of 31.3 million dollars or 42.3 percent. Third party net revenue was 37.5 million dollars, an increase of 14.5 million dollars or 62.9 percent due to revenue generated from licensing arrangements, including 10.5 million dollars of Lands’ End produced inventory sold to a licensee in connection with the transition of the kids business.

Gross profit was 139 million dollars, an increase of 1.1 million dollars or 0.8 percent, while gross margin increased approximately 410 basis points to 48.7 percent. Net loss was 6.4 million dollars or 20 cents loss per diluted share and adjusted net loss was 6.2 million dollars or 20 cents loss per diluted share.

Adjusted EBITDA for the quarter declined to 11.6 million dollars, while adjusted EBITDA increased by 68.1 percent.

Lands’ End reveals outlook for fiscal 2024

For the second quarter of fiscal 2024 the company expects net revenue to be between 290 million dollars and 320 million dollars, gross merchandise value to deliver mid to high-single digits percentage growth.

The company forecasts net loss to be between 8.5 million dollars and 6 million dollars and diluted loss per share to be between 27 cents and 19 cents. Adjusted net loss is expected to be between 4.5 million dollars and 2 million dollars and adjusted diluted loss per share to be between 14 cents and 6 cents.

Adjusted EBITDA is expected in the range of 14 million dollars to 17 million dollars.

For fiscal 2024 the company now expects net revenue to be between 1.36 billion dollars and 1.45 billion dollars, and gross merchandise value expected to deliver low to mid-single digits percentage growth.

Net income is anticipated to be between 2.5 million dollars and 10 million dollars and diluted earnings per share to be between 8 cents and 32 cents. Adjusted net income is forecasted to be between 5.5 million dollars and 13 million dollars and adjusted diluted earnings per share to be between 18 cents and 41 cents.

The company expects adjusted EBITDA in the range of 88 million dollars to 97 million dollars.