The earnings call presented a mixed outlook with significant improvements in margins, inventory management, and strategic initiatives like licensing. However, these were offset by a decline in revenue and a significant goodwill impairment loss. The company's focus on profitability over revenue is yielding positive results, but challenges remain in certain segments and regions.

Company Guidance

During the Lands' End third-quarter 2023 earnings call, management presented a comprehensive update on their financial performance and future outlook. The company reported total revenue of $325 million, slightly below guidance, but achieved an adjusted EBITDA of $17 million, 4% higher than the previous year and exceeding the high end of their guidance range. Gross margin improved by approximately 700 basis points to 47%, driven by a focused strategy on profitability, reduced promotions, and improved inventory management. Inventory was reduced by 25% year-over-year, enhancing cash flow and operational efficiency, while SG&A expenses increased slightly, representing 42% of sales. Looking ahead, Lands' End provided fourth-quarter revenue guidance between $490 million and $520 million, with an adjusted EBITDA range of $27.5 million to $31.5 million, and updated full-year guidance to reflect net revenue of $1.45 billion to $1.48 billion, with an adjusted EBITDA of $80 million to $84 million. The company emphasized its strategy of prioritizing gross margin expansion and high-quality sales through targeted promotions and product innovation, particularly in high-performing categories like outerwear and women’s apparel.

Inventory and Margin Improvement

Q3 marked the third successive quarter of significant inventory and margin improvement with a 25% reduction in inventory and 700 basis points of margin improvement.

Adjusted EBITDA Exceeds Expectations

Adjusted EBITDA of $17 million was above the high end of guidance, up 4% year-over-year.

Gross Margin Expansion

Gross margin in Q3 was 47%, an improvement of approximately 700 basis points from the previous year.

International Business Margin Growth

International business achieved gross margin growth of approximately 1,000 basis points year-over-year.

Success in Licensing Strategy

Entered into new licensing agreements, including one for all kids categories, with expectations to see income from three licenses in 2024.

Positive Response to Assortment and Marketing Changes

Positive customer response to changes in marketing strategy and product assortment, leading to increased engagement and traffic.

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Lands' End, Inc (DE:LED) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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DE:LED Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Sep 06, 2018	2018 (Q2)	- / -0.16	-0.117	-33.33% (-0.04)	―	―
Dec 06, 2018	2018 (Q3)	- / 0.10	0.01	900.00% (+0.09)	―	―
Mar 21, 2019	2018 (Q4)	- / 0.49	0.379	28.21% (+0.11)	―	―
Jun 04, 2019	2019 (Q1)	- / -0.20	-0.078	-162.50% (-0.13)	―	―
Sep 05, 2019	2019 (Q2)	- / -0.09	-0.155	43.75% (+0.07)	―	―
Dec 03, 2019	2019 (Q3)	- / 0.11	0.097	10.00% (<+0.01)	―	―
Mar 17, 2020	2019 (Q4)	- / 0.76	0.486	56.00% (+0.27)	―	―
Jun 02, 2020	2020 (Q1)	- / -0.62	-0.204	-204.76% (-0.42)	―	―
Sep 02, 2020	2020 (Q2)	- / 0.13	-0.087	244.44% (+0.21)	―	―
Dec 03, 2020	2020 (Q3)	- / 0.21	0.107	100.00% (+0.11)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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DE:LED Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Dec 05, 2024	€15.60	€15.10	-3.21%
Sep 05, 2024	€13.60	€13.50	-0.74%
Jun 05, 2024	€12.90	€12.60	-2.33%
Mar 27, 2024	€8.20	€8.50	+3.66%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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