Financial Data and Key Metrics Changes - The company achieved low single-digit GMV growth on a like-for-like quarterly basis and reported a 3% year-over-year increase in gross profit dollars [10][11] - Adjusted EBITDA for Q4 was $44 million, up 38% year-over-year, with adjusted net income of $18 million and adjusted EPS of $0.57, reflecting a 120% increase year-over-year [11][43] - For the full year, net revenue was $1.36 billion, with gross margin improvement of 550 basis points to 48% compared to 43% in fiscal 2023 [11][46] Business Line Data and Key Metrics Changes - U.S. E-commerce sales decreased by 19% compared to Q4 2023, but excluding the impact of the 53rd week and kids and footwear, sales decreased mid-single digits year-over-year [40] - The licensing and retail business combined grew revenue over 50% year-over-year, driven by the expansion of the licensing model [42] - The B2B outfitters business met revenue and profit objectives for the quarter, with significant progress in the Uniforms business pipeline [33][35] Market Data and Key Metrics Changes - European E-commerce sales decreased 22% year-over-year, but gross margin improved by approximately 310 basis points [42] - The company reported strong performances on Amazon and Nordstrom, with record sales during Black Friday and Cyber Monday [31] Company Strategy and Development Direction - The company is focusing on an asset-light licensing business model to enhance brand reach and customer acquisition [12][23] - There is a strategic emphasis on high-quality sales and improved cash flows, with expectations for continued gross profit and margin expansion [46][50] - The company plans to leverage technology and data to drive strategy, including AI-driven personalization [19][51] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in the European market but expressed confidence in the overall strategy and growth potential [28][30] - The company is exploring strategic alternatives, including a potential sale or merger, to maximize shareholder value [52][53] Other Important Information - The company repurchased $3 million worth of shares under its share repurchase authorization, with $14 million remaining [45] - The guidance for Q1 2025 includes expected net revenue between $260 million and $290 million, with adjusted net loss projected between $7 million and $4 million [47][48] Q&A Session Summary Question: How does the company frame the cadence of the year in terms of sales and the impact of tariffs? - Management noted that February's colder weather positively impacted outerwear sales and emphasized the importance of managing the assortment effectively [58][60] - The company is not heavily reliant on China for sourcing, with less than 8% of purchases from there, and has incorporated the impact of existing tariffs into guidance [68] Question: How will the company convert younger customers attracted by pop-up events into other segments? - Management highlighted the importance of cross-promoting swimwear and outerwear to younger customers and emphasized the role of collaborations in reaching new demographics [79][81] Question: When will licensed products, particularly kids' items, start appearing in the catalog? - Management confirmed that kids' and shoes are already in the market, with additional licensed products expected to launch in the back half of the year [89][90] Question: How is the response to the new lifestyle-focused catalog? - Management indicated that the catalog has pivoted to serve as a marketing device, focusing on personalization and targeting different customer segments effectively [93][95]

Financial Performance - In Q4 2024, net revenue was $441.7 million, a decrease of 14.2% from $514.9 million in Q4 2023, primarily due to the transition of kids and footwear product lines to licensing arrangements[5]. - Gross profit for Q4 2024 was $201.3 million, an increase of 3.0% from $195.4 million in Q4 2023, with gross margin improving by approximately 760 basis points to 45.6%[8]. - For the full year 2024, net revenue was $1.36 billion, a decrease of 7.4% from $1.47 billion in 2023, driven by the same product line transition and a focus on higher quality sales[8]. - Gross profit for the full year 2024 was $653.3 million, an increase of 4.4% from $625.5 million in 2023, with gross margin increasing approximately 550 basis points to 47.9%[7]. - Net revenue for the 13 weeks ended January 31, 2025, was $441.7 million, a decrease of 14.2% compared to $514.9 million for the 14 weeks ended February 2, 2024[26]. - Gross profit for the 13 weeks ended January 31, 2025, was $201.3 million, representing a gross margin of 45.6%, compared to $195.4 million and a gross margin of 38.0% for the same period last year[26]. - The company reported a net income of $18.5 million for the 13 weeks ended January 31, 2025, compared to a net loss of $8.6 million for the same period last year[26]. - The company reported a net loss of $130,684 for the 52 weeks ended February 2, 2024, while the net income for the 52 weeks ended January 31, 2025, was $6,233[34]. Operational Efficiency - Adjusted EBITDA for Q4 2024 was $43.7 million, compared to $31.7 million in Q4 2023, reflecting improved operational efficiency[8]. - Adjusted EBITDA for the 13 weeks ended January 31, 2025, was $43,689, which is 9.9% of net sales, compared to $31,684 or 6.2% of net sales for the 14 weeks ended February 2, 2024[36]. - For the fiscal year 2025 guidance, the adjusted EBITDA is projected to be $95.0 million, compared to $107.0 million for the year ending January 30, 2026[38]. Inventory and Assets - The company achieved an eighth consecutive quarter of inventory reduction, with net inventory decreasing by 12% year-over-year to $265.1 million as of January 31, 2025[10]. - Total current assets decreased to $370.5 million as of January 31, 2025, down from $410.3 million as of February 2, 2024[24]. - Total liabilities decreased to $526.3 million as of January 31, 2025, compared to $569.9 million as of February 2, 2024[24]. - The company’s accumulated deficit improved to $(94.4) million as of January 31, 2025, from $(99.4) million as of February 2, 2024[24]. Future Outlook - The company expects Q1 2025 net revenue to be between $260.0 million and $290.0 million, with a projected net loss between $9.0 million and $6.0 million[17]. - For fiscal 2025, the company anticipates net revenue between $1.33 billion and $1.45 billion, with gross merchandise value expected to deliver mid-to-high single digits percentage growth[17]. - The company expects to generate improved cash flows and gross margin expansion over the long term through its strategic initiatives[20]. - The company expects an adjusted net loss of $7.0 million for the first quarter of fiscal 2025, with an adjusted diluted loss per share of $0.22[38]. Marketing and Customer Acquisition - Global new customer acquisition increased by 5% in fiscal 2024, driven by enhanced digital marketing strategies[14]. - Selling and administrative expenses for fiscal 2024 were $561.8 million, or 41.2% of net revenue, reflecting an increase due to higher digital marketing spend[14]. Risks and Challenges - The company is facing risks related to global supply chain challenges, tariffs, and economic conditions that could impact future performance[21].

Fourth quarter Gross margin increased approximately 760 basis points compared to fiscal 2023All fourth quarter profitability measures improved when compared to fiscal 2023Reduced inventory for the eighth consecutive quarter DODGEVILLE, Wis., March 20, 2025 (GLOBE NEWSWIRE) -- Lands’ End, Inc. (NASDAQ: LE) (“Lands’ End” or the “Company”) today announced financial results for the fourth quarter and full year of fiscal 2024 ended January 31, 2025. Andrew McLean, Chief Executive Officer, stated, “Lands’ End had ...

Core Viewpoint - Lands' End, Inc. has initiated a process to explore strategic alternatives, including a potential sale or merger, to maximize shareholder value [1][2]. Group 1: Strategic Alternatives - The Board of Directors believes the market is undervaluing the company and its potential for future value creation [2]. - The company is committed to conducting a rigorous process to serve the interests of all shareholders [2]. - Perella Weinberg Partners is serving as the financial advisor, while Wachtell, Lipton, Rosen & Katz is the legal advisor for the process [3]. Group 2: Company Overview - Lands' End, Inc. is a leading digital retailer offering a variety of products including apparel, swimwear, outerwear, and home products [4]. - The company operates through multiple channels, including its website, third-party distribution, and company-operated stores [4]. - Lands' End also provides products to businesses and schools through its Outfitters distribution channel [4].

Core Viewpoint - Lands' End, Inc. has initiated a process to explore strategic alternatives, including a potential sale or merger, to maximize shareholder value [1][2]. Company Overview - Lands' End, Inc. is a leading digital retailer offering a variety of products including apparel, swimwear, outerwear, accessories, footwear, home products, and uniforms [4]. - The company operates through multiple channels including its website, third-party distribution, company-operated stores, and licensing agreements [4]. Strategic Process - The Board of Directors believes the market is undervaluing the company and its potential for future value creation [2]. - The company is committed to a rigorous process to serve the interests of all shareholders, with no assurances on the outcome or timing of this process [2]. - Perella Weinberg Partners is serving as the financial advisor, while Wachtell, Lipton, Rosen & Katz is the legal advisor for the company [3].

Core Viewpoint - Lands' End, Inc. will host a conference call to discuss its fourth quarter and fiscal 2024 financial results on March 20, 2025 [1]. Group 1: Conference Call Details - The conference call is scheduled for 8:30 a.m. Eastern Time on March 20, 2025 [1]. - A news release with the financial results will be issued before the call [1]. - An online archive of the broadcast will be available around noon on the same day [2]. Group 2: Company Overview - Lands' End, Inc. is a leading digital retailer specializing in solution-based apparel, swimwear, outerwear, accessories, footwear, home products, and uniforms [3]. - The company sells products through its website, third-party distribution channels, company-operated stores, and licensing agreements [3]. - Lands' End also provides products to businesses and schools through the Outfitters distribution channel [3].

Core Viewpoint - Lands' End, Inc. has received a request from Edward S. Lampert to initiate a strategic sale process aimed at maximizing shareholder value [1][2]. Company Overview - Lands' End, Inc. is a prominent digital retailer specializing in solution-based apparel, swimwear, outerwear, accessories, footwear, home products, and uniforms [3]. - The company operates through various channels, including its website, third-party distribution, company-operated stores, and licensing agreements [3]. - Lands' End also serves businesses and schools through its Outfitters distribution channel, positioning itself as a classic American lifestyle brand [3]. Board Response - The Chair of the Board, Josephine Linden, expressed that the Board welcomes shareholder input on maximizing investment value and is reviewing Lampert's letter [2]. - The Board is committed to pursuing a strategy that aligns with the best interests of all shareholders [2]. Advisory Support - Perella Weinberg Partners has been appointed as the financial advisor for Lands' End, while Wachtell, Lipton, Rosen & Katz serves as the legal advisor [2].

Core Viewpoint - Lands' End, Inc. has received a request from Edward S. Lampert to initiate a strategic sale process aimed at maximizing shareholder value [1][2]. Company Overview - Lands' End, Inc. is a prominent digital retailer specializing in solution-based apparel, swimwear, outerwear, accessories, footwear, home products, and uniforms [3]. - The company operates through various channels including its website, third-party distribution, company-operated stores, and licensing agreements [3]. - Lands' End also provides products to businesses and schools through its Outfitters distribution channel, positioning itself as a classic American lifestyle brand [3]. Board Response - The Chair of the Board, Josephine Linden, expressed that the Board welcomes shareholder input on maximizing investment value and is reviewing Lampert's letter [2]. - The Board is committed to pursuing a strategy that aligns with the best interests of all shareholders [2]. - Perella Weinberg Partners is serving as the financial advisor, while Wachtell, Lipton, Rosen & Katz is the legal advisor for Lands' End [2].

Company Participation - Lands' End, Inc. will participate in the 27th Annual ICR Conference on January 14, 2025, with a fireside chat presentation at 1:30 PM Eastern Time [1] - The presentation will feature Andrew McLean, Chief Executive Officer, and Bernie McCracken, Chief Financial Officer [1] Webcast Information - The audio portion of the fireside chat will be webcast live and accessible at the company's investor relations website [2] - An online archive of the presentation will be available for 90 days following the event [2] Company Overview - Lands' End, Inc. is a leading digital retailer specializing in solution-based apparel, swimwear, outerwear, accessories, footwear, home products, and uniforms [3] - The company sells products through its website, third-party distribution channels, company-operated stores, and licensing agreements [3] - Lands' End also provides products to businesses and schools through the Outfitters distribution channel, positioning itself as a classic American lifestyle brand [3]

Company Performance - Lands' End (LE) has seen its full-year earnings estimate increase by 10.8% over the past quarter, indicating improved analyst sentiment and a more positive earnings outlook [1] - Lands' End has returned 42% year-to-date, outperforming the average return of 31.9% for the Retail-Wholesale sector [3] - El Pollo Loco Holdings (LOCO) has experienced a 3.3% increase in its current year EPS estimate over the past three months and holds a Zacks Rank of 1 (Strong Buy) [4] - El Pollo Loco Holdings has returned 33.9% since the beginning of the year, also outperforming its sector [8] Industry Insights - Lands' End belongs to the Retail - Catalog Shopping industry, which currently ranks 1 in the Zacks Industry Rank, with an average gain of 42% this year [9] - The Retail-Wholesale sector includes 212 individual stocks and currently holds a Zacks Sector Rank of 9, reflecting the strength of the sector [2] - The Retail - Restaurants industry, which includes El Pollo Loco Holdings, has 42 stocks and is ranked 125, with a year-to-date increase of 6% [5]