Lands’ End(LE)2025-06-05 10:48Financial Performance - Net revenue for the first quarter was $261.2 million, a decrease of $24.3 million or 8.5% year-over-year[3] - U.S. Digital Segment Net revenue was $227.7 million, a decrease of $1.0 million or 0.4% from the previous year[3] - Europe eCommerce Net revenue decreased by $7.1 million or 28.4% to $17.9 million, with a focus on relaunching as a premium brand[6] - Licensing revenue decreased by $16.2 million or 50.9% to $15.6 million, but licensing revenue from existing partners grew over 60%[6] - Net revenue for the 13 weeks ended May 2, 2025, was $261.2 million, a decrease of 8.5% compared to $285.5 million for the same period in 2024[20] Profitability Metrics - Gross profit decreased by $6.3 million or 4.5% to $132.7 million, while gross margin improved by approximately 210 basis points to 50.8%[6] - Gross profit for the same period was $132.7 million, down from $139.0 million, resulting in a gross margin of 50.7%[20] - Adjusted EBITDA for the first quarter was $9.5 million, down from $11.6 million in the same quarter last year[6] - Adjusted EBITDA for the 13 weeks ended May 2, 2025, was $9.5 million, representing 3.6% of net revenue, compared to $11.6 million or 4.1% in the prior year[30] Net Loss and Adjusted Loss - Net loss was $8.3 million, or $0.27 loss per diluted share, compared to a net loss of $6.4 million or $0.20 loss per diluted share in the prior year[6] - The company reported a net loss of $8.3 million for the 13 weeks ended May 2, 2025, compared to a net loss of $6.4 million in the prior year[20] - Adjusted net loss for the same period was $5.4 million, with an adjusted diluted loss per share of $0.18[27] - Net loss for the 13 weeks ended May 2, 2025, was $8,262,000, compared to a net loss of $6,442,000 for the same period in 2024, representing an increase in loss of approximately 28.3%[34] Cash Flow and Assets - Net cash used in operating activities was $22,463,000, a decrease from $25,815,000 in the prior year, indicating improved cash flow management[34] - Cash provided by financing activities totaled $32,420,000, slightly down from $34,959,000 in the previous year, reflecting ongoing financing efforts[34] - The company reported a net increase in cash, cash equivalents, and restricted cash of $1,505,000, compared to an increase of $2,549,000 in the prior year[34] - Total current assets decreased to $365.1 million from $405.0 million year-over-year[18] - Total liabilities decreased to $530.4 million from $565.5 million year-over-year[18] Strategic Initiatives - A strategic alternatives process is ongoing to explore options including a sale or merger to maximize shareholder value[8] - The company plans to focus on corporate restructuring, which incurred costs of $3.3 million in the latest quarter[28] - The company expects full-year net revenue to be between $1.33 billion and $1.45 billion, with adjusted EBITDA projected in the range of $95.0 million to $107.0 million[11] - The company provided fiscal 2025 guidance for adjusted EBITDA of $95 million, down from $107 million in the previous guidance[32] Inventory and Receivables - Accounts receivable increased significantly to $12,283,000 from $553,000, indicating a potential rise in sales or credit terms[34] - Inventories decreased to $4,114,000 from $12,762,000, suggesting improved inventory turnover or reduced production[34] Financing and Liabilities - Proceeds from borrowings under the ABL Facility were $60,000,000, up from $49,000,000, indicating increased reliance on financing[34] - Interest paid decreased to $8,670,000 from $10,983,000, reflecting lower borrowing costs or reduced debt levels[34] - The company had an unpaid liability to acquire property and equipment of $1,691,000, up from $1,480,000, indicating ongoing capital expenditure commitments[34] - Operating lease right-of-use assets obtained in exchange for lease liabilities amounted to $95,000, showing continued investment in operational infrastructure[34]