Lands' End Lifts Annual Profit Guidance Despite Revenue Setbacks: Details
Lands’ End, Inc. (NASDAQ:LE) shares are trading higher after the company reported second-quarter earnings results.
Net revenue was $317.2 million, beating the analyst consensus of $307.41 million. Adjusted loss per share of $0.02 exceeded the street view of $0.11 loss.
Global eCommerce Net revenue was $211.3 million, a decrease from $218.7 million a year ago quarter.
Outfitters net revenue was $63.2 million, a decrease of 7.1% Y/Y. Third-party net revenue was $30.1 million, an increase of 23.4% Y/Y in the quarter.
Gross profit increased 8.8% to $151.9 million, with gross margin rising by around 470 basis points Y/Y to 47.9%. The gross margin improved mainly due to strength in product solutions and new offerings across channels, reduced promotional activity, lower clearance inventory, and improved supply chain costs.
In the second quarter of fiscal 2024, the company bought back $3.7 million worth of its common stock under the share repurchase program announced on March 15, 2024.
As of August 2, the program allows for up to $20.3 million in additional stock repurchases through March 31, 2026. As of August 2, 2024, cash and cash equivalents totaled $27.9 million.
Outlook: Lands’ End expects third-quarter revenue of $300 million – $340 million versus the $312.85 million estimate and adjusted EPS of $0.00 – $0.10 (vs. estimate of $0.04).
Lands’ End cuts FY24 revenue outlook to $1.35 billion – $1.43 billion (vs. estimate of $1.399 billion) from $1.36 billion – $1.45 billion.
The company raised its adjusted EPS forecast to $0.29 – $0.48 (vs. estimate $0.33) from $0.18 – $0.41.
Bernie McCracken, Chief Financial Officer, said, “We are pleased with our performance during the quarter, which resulted in Net revenue and Adjusted EBITDA at the high end of our guidance range and strong growth in Gross Merchandise Value.”
“Additionally, our deliberate efforts to prioritize profitability and balance sheet efficiency is evidenced by a 9% increase in gross profit, driven by our sixth consecutive quarter of gross margin expansion.”
Price Action: LE shares are up 1.46% at $15.33 at the last check Thursday.
Photo via Wikimedia Commons
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This article Lands' End Lifts Annual Profit Guidance Despite Revenue Setbacks: Details originally appeared on Benzinga.com
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