LANDS' END, INC. [LE] Filings

10-Q 1 le-20241101.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended November 1, 2024

-OR-


☐	Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to .

Commission File Number: 001-09769

Lands’ End, Inc.

(Exact name of registrant as specified in its charter)



Delaware		36-2512786

(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)


1 Lands’ End Lane Dodgeville, Wisconsin		53595

(Address of principal executive offices)		(Zip Code)

(608) 935-9341

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	LE	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large accelerated filer	☐	Accelerated filer	☒

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of December 2, 2024, the registrant had 30,929,639 shares of common stock, $0.01 par value, outstanding.

Table of Contents

LANDS’ END, INC.

QUARTERLY REPORT ON FORM 10-Q

FOR THE PERIOD ENDED NOVEMBER 1, 2024

TABLE OF CONTENTS


		Page

	PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited)	1

	Condensed Consolidated Statements of Operations	1

	Condensed Consolidated Statements of Comprehensive Operations	2

	Condensed Consolidated Balance Sheets	3

	Condensed Consolidated Statements of Cash Flows	4

	Condensed Consolidated Statements of Changes in Stockholders’ Equity	5

	Notes to Condensed Consolidated Financial Statements	7

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	35

Item 4.	Controls and Procedures	36

	PART II. OTHER INFORMATION	37

Item 1.	Legal Proceedings	37

Item 1A.	Risk Factors	38

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39

Item 5.	Other Information	39

Item 6.	Exhibits	40

	Signatures	41

Table of Contents

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

LANDS’ END, INC.

Condensed Consolidated Statements of Operations

(Unaudited)


	13 Weeks Ended						39 Weeks Ended
(in thousands, except per share data)	November 1, 2024			October 27, 2023			November 1, 2024			October 27, 2023
Net revenue	$	318,628		$	324,735		$	921,272		$	957,656
Cost of sales (exclusive of depreciation and amortization)		157,483			172,142			469,262			527,529
Gross profit		161,145			152,593			452,010			430,127

Selling and administrative		140,876			135,282			403,787			377,662
Depreciation and amortization		8,153			9,595			25,850			28,439
Goodwill impairment		—			106,700			—			106,700
Other operating expense, net		2,829			2,324			8,367			2,916
Operating income (loss)		9,287			(101,308	)		14,006			(85,590	)
Interest expense		10,266			11,677			31,049			35,984
Other expense (income), net		352			(132	)		180			(488	)
Loss before income taxes		(1,331	)		(112,853	)		(17,223	)		(121,086	)
Income tax (benefit) expense		(738	)		(459	)		(4,937	)		978
NET LOSS	$	(593	)	$	(112,394	)	$	(12,286	)	$	(122,064	)

Loss per common share
Basic	$	(0.02	)	$	(3.52	)	$	(0.39	)	$	(3.80	)
Diluted	$	(0.02	)	$	(3.52	)	$	(0.39	)	$	(3.80	)

Weighted average common shares outstanding
Basic		31,136			31,887			31,317			32,140
Diluted		31,136			31,887			31,317			32,140

See accompanying Notes to Condensed Consolidated Financial Statements.

Table of Contents

LANDS’ END, INC.

Condensed Consolidated Statements of Comprehensive Operations

(Unaudited)


	13 Weeks Ended						39 Weeks Ended
(in thousands)	November 1, 2024			October 27, 2023			November 1, 2024			October 27, 2023
NET LOSS	$	(593	)	$	(112,394	)	$	(12,286	)	$	(122,064	)
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments		552			(1,185	)		338			(404	)
COMPREHENSIVE LOSS	$	(41	)	$	(113,579	)	$	(11,948	)	$	(122,468	)

See accompanying Notes to Condensed Consolidated Financial Statements.

Table of Contents

LANDS’ END, INC.

Condensed Consolidated Balance Sheets

(Unaudited)


(in thousands, except per share data)	November 1, 2024			October 27, 2023			February 2, 2024
ASSETS
Current assets
Cash and cash equivalents	$	30,401		$	36,821		$	25,314
Restricted cash		1,912			1,833			1,976
Accounts receivable, net		35,538			31,422			35,295
Inventories, net		335,855			422,160			301,724
Prepaid expenses and other current assets		49,789			47,952			45,951
Total current assets		453,495			540,188			410,260
Property and equipment, net		109,173			121,400			118,033
Operating lease right-of-use asset		21,484			26,216			23,438
Intangible asset		257,000			257,000			257,000
Other assets		2,419			2,758			2,748
TOTAL ASSETS	$	843,571		$	947,562		$	811,479
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current portion of long-term debt	$	13,000		$	13,750		$	13,000
Accounts payable		132,116			161,426			131,922
Lease liability – current		5,196			5,754			6,024
Accrued expenses and other current liabilities		109,894			109,927			108,972
Total current liabilities		260,206			290,857			259,918
Long-term borrowings under ABL Facility		60,000			110,000			—
Long-term debt, net		227,558			215,306			236,170
Lease liability – long-term		21,116			26,065			22,952
Deferred tax liabilities		48,343			51,176			48,020
Other liabilities		2,705			3,253			2,826
TOTAL LIABILITIES		619,928			696,657			569,886
Commitments and contingencies
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 authorized: 480,000 shares; issued and outstanding: 31,023, 31,719 and 31,433, respectively		311			317			315
Additional paid-in capital		351,940			358,811			356,764
Accumulated deficit		(112,877	)		(90,797	)		(99,417	)
Accumulated other comprehensive loss		(15,731	)		(17,426	)		(16,069	)
TOTAL STOCKHOLDERS’ EQUITY		223,643			250,905			241,593
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	843,571		$	947,562		$	811,479

See accompanying Notes to Condensed Consolidated Financial Statements.

Table of Contents

LANDS’ END, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	39 Weeks Ended
(in thousands)	November 1, 2024			October 27, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(12,286	)	$	(122,064	)
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Depreciation and amortization		25,850			28,439
Amortization of debt issuance costs		2,035			2,456
Loss on disposal of property and equipment		67			100
Stock-based compensation		4,111			3,619
Deferred income taxes		233			5,330
Goodwill and long-lived asset impairment		3,817			106,700
Other		(463	)		(583	)
Change in operating assets and liabilities:
Accounts receivable, net		(241	)		13,258
Inventories, net		(33,899	)		2,796
Accounts payable		1,690			(4,334	)
Other operating assets		(4,038	)		(2,504	)
Other operating liabilities		912			3,454
Net cash (used in) provided by operating activities		(12,212	)		36,667
CASH FLOWS FROM INVESTING ACTIVITIES
Sales of property and equipment		20			—
Purchases of property and equipment		(22,142	)		(28,535	)
Net cash used in investing activities		(22,122	)		(28,535	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings under ABL Facility		93,000			169,000
Payments of borrowings under ABL Facility		(33,000	)		(159,000	)
Payments on term loan		(9,750	)		(10,313	)
Payments of debt issuance costs		(724	)		(67	)
Payments for taxes related to net share settlement of equity awards		(1,275	)		(1,210	)
Purchases and retirement of common stock, including excise tax paid		(8,857	)		(9,788	)
Net cash provided by (used in) financing activities		39,394			(11,378	)
Effects of exchange rate changes on cash, cash equivalents and restricted cash		(37	)		509
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH		5,023			(2,737	)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD		27,290			41,391
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$	32,313		$	38,654
SUPPLEMENTAL CASH FLOW DATA
Unpaid liability to acquire property and equipment	$	2,534		$	3,893
Income taxes paid (refunded)	$	457		$	(200	)
Interest paid	$	27,598		$	33,171
Operating lease right-of-use-assets obtained (reversal) in exchange for lease liabilities	$	302		$	(755	)

See accompanying Notes to Condensed Consolidated Financial Statements.

Table of Contents

LANDS’ END, INC.

Condensed Consolidated Statements of Changes in Stockholders’ Equity

For the 39 weeks ended November 1, 2024

(Unaudited)


	Common Stock Issued						Additional Paid-in			Accumulated			Accumulated Other Comprehensive			Total Stockholders’
(in thousands)	Shares			Amount			Capital			Deficit			Loss			Equity
Balance at February 2, 2024		31,433		$	315		$	356,764		$	(99,417	)	$	(16,069	)	$	241,593
Net loss		—			—			—			(6,442	)		—			(6,442	)
Cumulative translation adjustment, net of tax		—			—			—			—			(513	)		(513	)
Stock-based compensation expense		—			—			1,226			—			—			1,226
Vesting of restricted shares		90			—			—			—			—			—
Common stock withheld related to net share settlement of equity awards		(31	)		—			(249	)		—			—			(249	)
Purchases and retirement of common stock		(85	)		(1	)		(870	)		(143	)		—			(1,014	)
Balance at May 3, 2024		31,407		$	314		$	356,871		$	(106,002	)	$	(16,582	)	$	234,601
Net loss		—			—			—			(5,251	)		—			(5,251	)
Cumulative translation adjustment, net of tax		—			—			—			—			299			299
Stock-based compensation expense		—			—			1,432			—			—			1,432
Vesting of restricted shares		160			1			(1	)		—			—			—
Common stock withheld related to net share settlement of equity awards		(57	)		—			(792	)		—			—			(792	)
Purchases and retirement of common stock, including excise taxes		(254	)		(2	)		(2,742	)		(1,031	)		—			(3,775	)
Balance at August 2, 2024		31,256		$	313		$	354,768		$	(112,284	)	$	(16,283	)	$	226,514
Net loss		—			—			—			(593	)		—			(593	)
Cumulative translation adjustment, net of tax		—			—			—			—			552			552
Stock-based compensation expense		—			—			1,453			—			—			1,453
Vesting of restricted shares		34			—			—			—			—			—
Common stock withheld related to net share settlement of equity awards		(15	)		—			(234	)		—			—			(234	)
Purchases and retirement of common stock, including excise taxes		(252	)		(2	)		(4,047	)		—			—			(4,049	)
Balance at November 1, 2024		31,023		$	311		$	351,940		$	(112,877	)	$	(15,731	)	$	223,643

Table of Contents

LANDS’ END, INC.

Condensed Consolidated Statements of Changes in Stockholders’ Equity

For the 39 weeks ended October 27, 2023

(Unaudited)


	Common Stock Issued						Additional Paid-in			(Accumulated Deficit) Retained			Accumulated Other Comprehensive			Total Stockholders’
(in thousands)	Shares			Amount			Capital			Earnings			Loss			Equity
Balance at January 27, 2023		32,626		$	326		$	366,181		$	31,267		$	(17,022	)	$	380,752
Net loss		—			—			—			(1,652	)		—			(1,652	)
Cumulative translation adjustment, net of tax		—			—			—			—			81			81
Stock-based compensation expense		—			—			1,083			—			—			1,083
Vesting of restricted shares		408			3			(3	)		—			—			—
Common stock withheld related to net share settlement of equity awards		(144	)		—			(1,199	)		—			—			(1,199	)
Purchases and retirement of common stock		(430	)		(4	)		(3,777	)		—						(3,781	)
Balance at April 28, 2023		32,460		$	325		$	362,285		$	29,615		$	(16,941	)	$	375,284
Net loss		—			—			—			(8,018	)		—			(8,018	)
Cumulative translation adjustment, net of tax		—			—			—			—			700			700
Stock-based compensation expense		—			—			810			—			—			810
Vesting of restricted shares		2			—			—			—			—			—
Purchases and retirement of common stock		(375	)		(4	)		(3,004	)		—			—			(3,008	)
Balance at July 28, 2023		32,087		$	321		$	360,091		$	21,597		$	(16,241	)	$	365,768
Net loss		—			—			—			(112,394	)		—			(112,394	)
Cumulative translation adjustment, net of tax		—			—			—			—			(1,185	)		(1,185	)
Stock-based compensation expense		—			—			1,726			—			—			1,726
Vesting of restricted shares		7			—			(11	)		—			—			(11	)
Common stock withheld related to net share settlement of equity awards		(2	)		—			—			—			—			—
Purchases and retirement of common stock		(373	)		(4	)		(2,995	)		—						(2,999	)
Balance at October 27, 2023		31,719		$	317		$	358,811		$	(90,797	)	$	(17,426

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10-Q	[2022-12-01]
10-Q	[2022-09-01]
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10-K	[2022-03-24]
10-Q	[2021-12-02]
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10-Q	[2019-09-05]
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10-Q	[2018-09-06]
10-Q	[2018-06-12]
10-K	[2018-03-29]
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10-Q	[2017-09-01]
10-Q	[2017-06-06]
10-K	[2017-03-31]
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10-Q	[2016-09-01]
10-Q	[2016-06-02]
10-K	[2016-04-01]
10-Q	[2015-12-03]
10-Q	[2015-09-03]
10-Q	[2015-06-09]
10-K	[2015-04-17]
10-Q	[2014-12-10]
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10-K	[2014-03-25]