Lands' End (LE) Tops Q4 EPS by 1c, Revenues Beat

Lands' End (NASDAQ: LE) reported Q4 EPS of $0.78, $0.01 better than the analyst estimate of $0.77. Revenue for the quarter came in at $549.5 million versus the consensus estimate of $547.93 million.

Fourth Quarter Fiscal 2019 Highlights:

Net revenue for the fourth quarter increased 9.4% to $549.5 million, compared to $502.3 million in the fourth quarter last year, largely reflecting revenue from the American Airlines launch and eCommerce growth of 7.2%. This was partially offset by 49 fewer Lands’ End Shops at Sears, which resulted in a net revenue decline from Sears operations of $21.5 million. Excluding the impact from Sears operations, net revenue would have increased by 14.3%.
U.S. eCommerce revenue growth of 7.4% was driven by increased demand for key items and a growth in new customer acquisition.
Gross margin increased by approximately 90 basis points to 39.8% as compared to 38.9% in the fourth quarter last year primarily due to a more disciplined promotional strategy.
Selling and administrative expenses decreased to 30.8% of total net revenue compared to 31.3% in the fourth quarter last year.
Net income was $25.5 million or $0.78 earnings per diluted share, as compared to $16.2 million or $0.50 earnings per diluted share in the fourth quarter of fiscal 2018.
Adjusted EBITDA(1) grew by 29.7% to $49.3 million compared to $38.0 million in the fourth quarter of fiscal 2018.
The American Airlines shipments totaled approximately $40.0 million in the fourth quarter with the remainder of the launch expected to be delivered in the first quarter of fiscal 2020. The full launch is now anticipated to total between $45.0 million to $47.0 million.
Subsequent to the fourth quarter, announced new partnership with Kohl’s to distribute the entire product assortment through Kohls.com and a seasonally focused product assortment to 150 stores starting in Fall 2020.

Jerome Griffith, Chief Executive Officer and President, stated, “First and foremost, we are closely monitoring the Coronavirus situation and our thoughts are with all of those affected. In regard to Fiscal 2019, it was an incredible year both in terms of financial performance and strategic accomplishments. We delivered strong revenue and Adjusted EBITDA growth for the fourth quarter and the year, illustrating our continued progress across our core growth strategies. We also successfully completed the American Airlines’ uniform launch to over 50,000 employees in early March. We are pleased to share that we have announced a new partnership with Kohl’s to distribute Lands’ End through Kohls.com and to 150 retail doors, starting in Fall 2020, providing a meaningful opportunity to expand brand awareness and drive incremental sales. Looking ahead, as we navigate through this challenging environment, we remain focused on continuing the execution of our key strategies.”

For earnings history and earnings-related data on Lands' End (LE) click here.

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