Lands’ End announced on Thursday revenue decreased 7.9% to $323.3 million, hindered by hefty declines in the U.S. firm’s international e-commerce sales, following the closure of its business in Japan.
The Dodgeville, Wisconsin-based company said global e-commerce revenue was $218.7 million, a decrease of 8.7%, on the back of a 37.3% decline in its international e-commerce sales, hurt by the closure of Japan operations in fiscal 2022.
U.S. e-commerce revenue decreased 3.6%, primarily driven by continued promotional productivity within swim and adjacent product categories, which were more than offset by lower markdown inventory sales.
Outfitters net revenue was $68 million, a decrease of 3.8%, while Third Party revenue was $24.4 million, a decrease of 10.6%.
As a result of the lacklustre sales performance during the quarter, net losses widen to $8 million, or $0.25 loss per diluted share, from a net loss of $2.2 million or $0.07 loss per diluted share in the second quarter of fiscal 2022.
“Our strong second quarter was characterized by a return to operating disciplines with a solutions focus on the customer. That resulted in a significant 220 basis point year-over-year improvement in gross margin, a 30% year-over-year reduction in our inventory position and adjusted EBITDA in line with the prior year and guidance,” said Andrew McLean, chief executive officer, Lands’ End.
“Significantly, our cash provided by operations turned positive with a favorable $172 million improvement over the prior year. Newness, customer acceptance and results all benefit from our more disciplined inventory management approach which is continuing into the second half of 2023. Going forward, our brand is focused on exceeding customer expectations, prioritizing profitable demand and creating long-term shareholder value.”
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