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Lands' End Q3 revenues up 4.4 percent

By Prachi Singh

2 Dec 2021

Business

Image: Lands' End newsroom

Lands’ End, Inc.,for the third quarter, reported net revenue of 375.8 million dollars, an increase of 4.4 percent from 360 million dollars in the third quarter of fiscal 2020 and an increase of 10.5 percent from 340 million dollars in the third quarter of fiscal 2019.

Commenting on the third quarter trading, Jerome Griffith, chief executive officer of Lands' End, stated: “Our third quarter performance reflects the long-term strength and resiliency of our digitally led business model, as we navigated the dynamic global supply chain challenges while still delivering on our adjusted EBITDA expectations. We achieved 4 percent topline growth in the third quarter, contributing to our 22 percent growth year-to-date.”

Third quarter financial highlights of Lands' End results

The company’s ecommerce net revenue was 261.2 million dollars, a decrease of 6 percent from the third quarter of fiscal 2020 as a result of inventory constraints driven by supply chain challenges and an increase of 9.3 percent from the third quarter of fiscal 2019.

Compared to the third quarter of last year, U.S. ecommerce decreased 3.5 percent and international ecommerce decreased 15.7 percent, while compared to the third quarter of fiscal 2019, U.S. ecommerce increased 6 percent and international ecommerce increased 27.6 percent.

Outfitters net revenue was 86.1 million dollars, an increase of 38.9 percent from the third quarter of fiscal 2020 and an increase of 3.4 percent compared to the third quarter of fiscal 2019. Compared to the third 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 19.3 million dollars in the third quarter compared to 12 million dollars in the third quarter last year. The company said, 7.3 million dollars increase was primarily attributable to growth in our Kohl’s partnership, including an expansion to 300 locations during the quarter, compared to 150 retail locations in third quarter 2020.

Gross margin for the quarter was 44.4 percent, decreasing approximately 100 basis points compared to 45.4 percent in the third quarter of fiscal 2020. Net income was 7.4 million dollars or 22 cents per diluted share, as compared to 7.2 million dollars or 22 cents per diluted share in the third quarter of fiscal 2020.

Adjusted EBITDA was 29.8 million dollars in the third quarter of fiscal 2021, an increase of 1.2 million dollars compared to 28.6 million dollars in the third quarter of fiscal 2020.

Lands' End Q4 revenues to increase by 4 to 7 percent

For the fourth quarter of fiscal 2021 the company now expects net revenue to be between 560 million dollars and 575 million dollars, which is a 4 percent to 7 percent increase compared to the prior year.

Net income to be between 9 million dollars and 12 million dollars and diluted earnings per share to be between 27 cents and 36 cents. Adjusted EBITDA in the range of 31 million dollars to 35 million dollars.

For fiscal 2021, the company now expects net revenue to be between 1.640 billion dollars and 1.655 billion dollars, net income to be between 35 million dollars and 38 million dollars and diluted earnings per share to be between 1.04 dollars and 1.13 dollars. Adjusted EBITDA is expected to be in the range of 124.5 million dollars to 128.5 million dollars.