Land’s End records improved sales and profitability

For the third quarter, net revenue at Land’s End Inc. increased 5.9 percent to 360 million dollars, global ecommerce net revenue increased 19.6 percent, driven by US ecommerce increasing 13.9 percent and International ecommerce grew 50.7 percent as compared to the prior period. The company said, Outfitters net revenue declined 25.6 percent as Outfitters continues to be negatively impacted by the Covid-19 pandemic.

Commenting on the results, Jerome Griffith, the company’s Chief Executive Officer and President, stated in a statement: “The investments we put toward leveraging data analytics to inform our strategies around product, ecommerce and marketing continued to pay dividends in driving growth in new customers and strong retention rates. We have also made great strides in driving improved profitability. To that end, in addition to once again generating double-digit growth in our global ecommerce business, we delivered 52 percent adjusted EBITDA growth in the third quarter.”

Land’s End posts improvement in profitability

Gross margin increased approximately 10 basis points to 45.4 percent as compared to 45.3 percent in the prior period, while net income was 7.2 million dollars or 22 cents per diluted share compared to net income of 3.6 million dollars or 11 cents per diluted share in the third quarter of fiscal 2019. Adjusted EBITDA for the quarter increased 52.3 percent to 28.6 million dollars in the third quarter of fiscal 2020 compared to 18.8 million dollars in the third quarter of fiscal 2019.

During the quarter, Land’s End launched products on Kohls.com and in 150 Kohl’s stores on September 30, 2020. Based on strong early results, the company plans to expand the Lands’ End assortment and increase the number of points of distribution to 300 Kohl’s stores in 2021. The company also completed the refinancing of the its term loan on September 9, 2020, with the closing of a 275 million dollars term loan facility and an increase in its asset-based senior secured credit facility to a maximum of 275 million dollars in borrowings.

For the fourth quarter, the company expects net revenue to be between 500 million dollars and 520 million dollars, net income to be between 13.5 million dollars and 17.5 million dollars, and diluted earnings per share to be between 41 cents and 53 cents and adjusted EBITDA in the range of 38 million dollars to 43 million dollars.

Picture:Land's End newsroom