Thu, Sep 5, 8:53 PM (131 days ago)
Lands' End, Inc. reported a net revenue of $317.2 million for Q2 2024, a 1.9% decline from $323.4 million in Q2 2023. The decrease was primarily attributed to the transition of kids and footwear products to a licensing model and lower promotional activities. Gross profit improved to $151.9 million, up 8.8% year-over-year, resulting in a gross margin increase to 47.9%. However, selling and administrative expenses rose to $135.5 million, reflecting increased digital marketing and personnel costs. The company incurred a net loss of $5.3 million, an improvement from a loss of $8.0 million in the prior year. Cash flow from operations was $4.9 million, significantly down from $54.8 million in the prior year, mainly due to inventory management changes. The company’s total debt decreased to $230.2 million, and it maintained compliance with its financial covenants. The ABL Facility was utilized at $20 million, with significant liquidity available. Future operations may be impacted by ongoing macroeconomic challenges, including inflation and high-interest rates, affecting consumer discretionary spending.