Lands’ End, the classic all-American fashion brand, fell into the red in the fourth quarter but saw “sequential” improvement each month of the period.
The net loss for the fourth quarter ended Jan. 28 was $3.3 million, or $0.10 loss a diluted share, compared to net income of $7.1 million, or $0.21 a diluted share, in the fourth quarter of fiscal 2021.
Adjusted earnings before interest, taxes, depreciation and amortization were $24.2 million compared to $27.3 million in the fourth quarter of fiscal 2021. Net revenue decreased 4.6 percent to $529.6 million, compared to $555.4 million in the year-ago quarter.
Andrew McLean, chief executive officer, stated, “We executed well throughout the fourth quarter to deliver sequential sales and margin improvement in each month of the quarter, resulting in revenue and adjusted EBITDA at the higher end of our expectations. We are pleased to see this momentum continue in the first quarter, particularly in our core swim category.
“Looking ahead in 2023 and beyond, we plan to continue to focus on providing high-quality products in key categories that customers want and that present opportunity to drive outsized value creation, including swim and outerwear,” McLean added.
“We also plan to foster innovation in our operations, with a focus on driving stronger results and best anticipating and serving evolving customer needs, as well as strengthening our digitally native capabilities through enhanced use of data analytics, which we expect will drive deeper brand affinity and grow our share of our addressable market…We are confident that through our sharpened focus on execution and innovation, we are well positioned to build on our strong foundation and drive enhanced growth and profitability, as reflected in our first quarter and fiscal 2023 outlook.”
Global e-commerce net revenue was $414.5 million, a decrease of 6.1 percent from $441.5 million in the fourth quarter of fiscal 2021 as a result of industry-wide promotional activity and macroeconomic challenges impacting consumer discretionary spending. Compared to the fourth quarter of fiscal 2021, U.S. e-commerce decreased 1.5 percent and International e-commerce decreased 30.8 percent, which includes the previously announced closure of the Japan e-commerce business.
Outfitters net revenue was $60.5 million, a decrease of 2.1 percent from $61.8 million in the fourth quarter of fiscal 2021 driven by the fulfillment of school uniforms in fiscal 2022 in line with the back to school selling season, slightly offset by demand within the company’s travel-related national accounts.
Third party net revenue, which includes sales on third-party marketplaces and U.S. wholesale revenues, was $39.2 million, an increase of 8 percent compared to $36.3 million in the fourth quarter of fiscal 2021. The increase was largely driven by sales growth in the Kohl’s marketplace and existing and new online marketplaces.
U.S. company-operated stores experienced a 3.9 percent decline in same-store sales.
For the fiscal year, net revenue decreased 5 percent to $1.56 billion compared to $1.64 billion in the prior year. The net loss was $12.5 million, or $0.38 loss per diluted share, compared to net income of $33.4 million or $0.99 earnings per diluted share in fiscal 2021.
For the first quarter of fiscal 2023 the company expects:
- Net revenue between $295 million and $310 million.
- Net loss to be between $5 million and $3 million and diluted loss per share to be between $0.15 and $0.09.
- Adjusted EBITDA in the range of $13 million to $16 million.
For fiscal 2023 the company expects:
- Net revenue to be between $1.56 billion and $1.62 billion.
- Net loss to be between $6 million and $1 million and diluted loss earnings per share to lose between $0.18 and $0.03.
- Adjusted EBITDA in the range of $72 million to $82 million.
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