Land's End Q4 revenues rise 9.4 percent

Net revenues for the fourth quarter at Lands’ End, Inc. increased 9.4 percent to 549.5 million dollars reflecting revenue from the American Airlines launch and ecommerce growth of 7.2 percent. The company said, this was partially offset by 49 fewer Lands’ End Shops at Sears, which resulted in a net revenue decline from Sears operations of 21.5 million dollars. U.S. ecommerce revenue growth of 7.4 percent, the company added, was driven by increased demand for key items and a growth in new customer acquisition. Gross margin for the quarter increased by approximately 90 basis points to 39.8 percent, while net income was 25.5 million dollars or 78 cents per diluted share compared to 16.2 million dollars or 50 cents per diluted share in the fourth quarter of fiscal 2018. The company’s adjusted EBITDA grew by 29.7 percent to 49.3 million dollars.

Commenting on the update, Jerome Griffith, Chief Executive Officer and President of Land’s End, stated in a statement: “First and foremost, we are closely monitoring the coronavirus situation. We delivered strong revenue and Adjusted EBITDA growth for the fourth quarter and the year, illustrating our continued progress across our core growth strategies. We also successfully completed the American Airlines’ uniform launch to over 50,000 employees in early March. We have also announced a new partnership with Kohl’s to distribute Lands’ End through Kohls.com and to 150 retail doors, starting in Fall 2020.”

The company’s full year net revenues remained flat at 1.45 billion dollars. Excluding the net revenue decline from Sears operations of 75.3 million dollars, Land’s End said, net revenue would have increased by 5.4 percent. U.S. ecommerce revenues grew by 7.4 percent, while same store sales for U.S. company operated stores increased by 6 percent. Gross margin increased approximately 50 basis points to 42.9 percent, net income was 19.3 million dollars or 60 cents per diluted share compared to net income of 11.6 million dollars or 36 cents per diluted share in fiscal 2018. Adjusted EBITDA grew by 10.6 percent to 77.9 million dollars.

Picture:Land's End website