Thu, Jun 5, 8:16 PM (38 days ago)
**Lands' End, Inc. (LE) Q1 2025 Financial Performance Summary** **Financial Health & Performance:** - **Revenue:** $261.2 million, down 8.5% YoY. - **Gross Profit:** $132.7 million, down 4.5% YoY. - **Operating Loss:** $2.4 million, compared to a $2.2 million profit in Q1 2024. - **Net Loss:** $8.3 million, wider than the $6.4 million loss in Q1 2024. - **Adjusted EBITDA:** $9.5 million, down from $11.6 million in Q1 2024. **Profit Margins:** - **Gross Margin:** 50.8%, up from 48.7% in Q1 2024. - **Operating Margin:** -0.9%, down from 0.8% in Q1 2024. **Cash Flow:** - **Net Cash Used in Operations:** $22.5 million, down from $25.8 million in Q1 2024. - **Net Cash Provided by Financing:** $32.4 million, down from $35.0 million in Q1 2024. **Earnings Changes:** - **EPS (Basic & Diluted):** -$0.27, compared to -$0.20 in Q1 2024. - **Adjusted Diluted EPS:** -$0.18, compared to -$0.20 in Q1 2024. **Quarterly Performance Discussion:** - **Revenue Decline:** Driven by a decrease in Europe eCommerce and Licensing & Retail segments. - **Gross Margin Improvement:** Due to transitioning kids and footwear inventory to licensees. - **Operating Loss:** Resulted from higher restructuring costs and lower revenues. - **Cash Flow:** Improved due to changes in working capital. **Trends & Uncertainties:** - **Macroeconomic Challenges:** Inflation, high interest rates, and trade policy uncertainties impact consumer spending and input costs. - **Restructuring:** Ongoing costs related to strategic alternatives and corporate office reductions. - **Seasonality:** Higher revenue and cash flow expected in Q4 due to peak selling periods. **Future Operations Impact:** - **Liquidity:** Adequate cash on hand and ABL Facility availability to meet operational needs. - **Capital Expenditures:** Planned $25.0 million investment in technology and infrastructure for Fiscal 2025. - **Debt:** Compliance with financial covenants and managing interest rate risks.