Lands’ End on Thursday reported a 14.2% slump in revenue to $441.7 million in the fourth quarter, hurt by the changing of its kids’ and footwear product lines to licensing arrangements and promotional activity.
Lands’ End
The Dodgeville, Wisconsin-based firm said gross merchandise value (GMV) for the quarter ending January 31 decreased low-single digits. Despite the sales downturn, the firm returned to the black during the quarter, with a net income of $18.5 million, or $0.59 earnings per diluted share, compared to a net loss of $8.6 million, or $0.27 loss per diluted share in the prior-year quarter.
“Lands’ End had a strong finish to a year defined by continued positive momentum across the business. We increased gross profit dollars, expanded gross margins and grew GMV each quarter of fiscal 2024, excluding the 53rd week, resulting in a return to profitability for the full year,” said Andrew McLean, chief executive officer, Lands’ End.
“Through our amazing products, robust product franchises and our evolved marketing approach, it’s clear that our strategic evolution, including considerable growth from licensing, is driving strong progress and expanding the reach of our brand.”
For the fiscal 2024 year, Lands’ End reported a 7.4% decline in sales to $1.36 billion.
Looking ahead, the company said it expects fiscal 205 revenue to be between $1.33 billion and $1.45 billion.
“Looking at 2025 and beyond, we are continuing to focus on generating improved cash flows, particularly from the prioritization of our licensing strategy and ongoing emphasis on more high-quality sales, which we expect will drive additional gross profit dollars and gross margin expansion over the long term,” said Bernie McCracken, chief financial officer, Lands’ End.
