Lands’ End posts sales and earnings beat, announces management changes
Dodgeville, Wisconsin-based casual clothing retailer Lands’ End, Inc. announced revenue of $538.4 million and income of $19.9 million, or $0.60 per diluted share, for the fourth quarter ended January 29, 2021, on Wednesday, beating analysts’ estimates despite declines in both is top and bottom lines.
Analysts polled by Refinitiv had expected the company to report earnings per share of $0.56, on revenues of $530.9 million.
Compared to Q4 2019, Lands’ End’s quarterly revenue decreased 2.0% from $549.5 million, while earnings fell 21.9% from $25.5 million, or $0.78 per diluted share.
The company’s quarterly global e-commerce revenue increased 7.5% compared to the prior-year period, driven by a 38.0% rise in European e-commerce sales and a 3.7% increase in the United States. Furthermore, third-party revenue, which includes U.S. wholesale revenue and sales on third-party marketplaces, rose 298.2% year over year to $21.3 million.
However, revenue in the retailer’s outfitters business fell 54.2% to $43.0 million, due both to the lapping of the American Airlines launch in Q4 2019 and decreased customer demand due to the Covid-19 pandemic.
For the full fiscal year 2020, Lands’ End reported net revenue of $1.43 billion, down 1.6% from $1.45 billion in the previous year. Annual net income totaled $10.8 million, or $0.33 per diluted share, decreasing from $19.3 million, or $0.60 per diluted share, in fiscal 2019.
“From the onset of the pandemic, we moved swiftly to protect our business while at the same time maintaining our focus on the execution of our strategic pillars,” commented Lands’ End CEO Jerome Griffith in a release. “We were well positioned to capitalize on the accelerated shift to online as a digitally-led company and we benefited from the investments we made to advance our competitive strengths.”
As well as its digital focus, Lands’ End was also able to resist the worst effects of the coronavirus crisis thanks to its offering of laid-back, cozy apparel, a category that has benefited as consumers have adapted to spending more time at home.
On Wednesday, the company also revealed a series of organizational changes designed to better align its management with its previously reported financial targets for 2023.
CFO James Gooch is retaining his current role but has also been promoted to president, a position in which he will oversee all of the group’s e-commerce, international, outfitters, third-party and retail businesses.
Elsewhere, chief customer officer Sarah Rasmusen has also been promoted to executive vice president, and will oversee both the retailer’s information technology and performance marketing functions.
Finally, EVP, chief administrative officer and general counsel Peter Gray will now also oversee the company’s distribution center operations. All three executives will continue to report to Griffith.
Looking forward, Lands’ End expects net revenue to total between $275 million and $285 million in the first quarter of 2021, and between $1.52 billion and $1.57 billion for the full year.
Q1 net loss is expected to be in the range of $10.5 million to $8.0 million, while loss per share is predicted to be between $0.32 and $0.25. Annual net income is expected to range from $11.0 million, or $0.34 per diluted share, to $19.0 million, or $0.58 per diluted share.
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