• Home
  • News
  • Business
  • Q4 revenues drop by 1.6 percent at Land's End

Q4 revenues drop by 1.6 percent at Land's End

By Prachi Singh

loading...

Scroll down to read more

Business

Lands' End, Inc. reported 1.6 percent decrease in net revenue for the fourth quarter to 502.3 million dollars. Excluding the sales from the 53rd week and 21.4 million dollars from closed Sears stores, the company said in a statement that revenue would have increased 8.4 percent. At the end of the fourth quarter, there were 125 fewer Lands' End Shops at Sears and four more company operated stores compared to the same period last year. Same store sales for the retail business increased by 9.1 percent overall, with company operated stores increasing by 15.1 percent.

The company’s CEO and President, Jerome S. Griffith said in a statement: “Throughout fiscal 2018, we remained focused on delivering high quality product with compelling value, and executing our strategic initiatives, which include focusing on offering key items, operating as a digitally led company, leveraging our unichannel distribution, and continuously improving business processes.”

Full year net revenues increase 3.2 percent at Land’s End

Net revenue for fiscal 2018 increased 3.2 percent at Land’s End to 1.45 billion dollars. Excluding the sales from the 53rd week and 48.7 million dollars from closed Sears stores, the company said, revenue would have increased 9 percent. Same store sales for the retail business decreased 3 percent, with company operated stores increasing by 3.9 percent.

Gross margin for the year was approximately flat at 42.4 percent as compared to fiscal 2017. Operating income was 42.6 million dollars compared to 29.1 million dollars in fiscal 2017. Annual net income and adjusted net income was 11.6 million dollars or 36 cents per diluted share compared to 28.2 million dollars or 88 cents per diluted share, in fiscal 2017 which included a tax benefit of 27.7 million dollars due to Tax Reform. Adjusted net income in fiscal 2017 was 2.3 million dollars or 7 cents per share. Adjusted EBITDA grew by 20.9 percent to 70.5 million dollars compared to fiscal 2017.

Gross margin for the quarter was approximately flat at 38.9 percent as compared to fourth quarter last year, while operating income was 30.7 million dollars compared to 29.7 million dollars in the fourth quarter of fiscal 2017. Net income and adjusted net income was 16.2 million dollars or 50 cents per diluted share compared to net income of 39.8 million dollars or 1.24 dollars per diluted share in the fourth quarter of fiscal 2017 which included a tax benefit of 21.9 million dollars due to the U.S. Tax Cuts and Jobs Act. Adjusted net income was 12.3 million dollars or 38 cents per share. Adjusted EBITDA grew by 1.9 percent to 38 million dollars in the fourth quarter.

Land’s End reveals Q1 and FY19 outlook

For the first quarter of fiscal 2019 the company expects net revenue to be between 255 million dollars and 265 million dollars, net loss to be between 8.5 million dollars and 11 million dollars, and diluted loss per share to be between 26 cents and 34 cents and adjusted EBITDA in the range of zero to 3 million dollars.

For fiscal 2019 the company expects net revenue to be between 1.45 billion dollars and 1.50 billion dollars, net income to be between 8 million dollars and 14 million dollars, diluted earnings per share to be between 25 cents and 45 cents and adjusted EBITDA in the range of 70 million dollars to 80 million dollars.

Picture:Facebook/Land's End

Lands End