- Lands’ End, Inc. (NASDAQ:LE) shares are jumping on Thursday after reporting its first-quarter results.
- Sales in Q1 increased 1.9% year-on-year to $309.56 million. EPS loss of $(0.05) narrowed from $(0.07) a year earlier.
- Global eCommerce revenue decreased 7.3% Y/Y. U.S. eCommerce net revenue increased by 1.6%. The increase in U.S. eCommerce was primarily driven by the targeted promotions within swim and adjacent product categories.
- International eCommerce net revenue decreased by 42.5% due to lower consumer demand in Europe.
- Outfitters net revenue was $74 million, an increase of 37.1% Y/Y, primarily driven by inventory sales to Delta Air Lines, Inc. (NYSE:DAL) in connection with the conclusion of their five-year contract.
- The gross margin increased approximately 210 basis points to 44.6%, leveraging the strength in the swim and vacation-related product categories and improvements in supply chain costs.
- The company held $7.3 million in cash and equivalents at quarter-end.
- Net cash used in operations was $(10.8) million versus $(122.4) million a year ago, primarily due to changes in inventories.
- Outlook: For Q2, the company sees net revenue of $320 million-$335 million and EPS loss of $(0.14)-$(0.06).
- For FY23, the company continues to expect net revenue of $1.56 billion-$1.62 billion.
- The company sees FY23 EPS of $(0.13) -$0.08 versus prior view of $(0.18)-$0.03.
- Price Action: LE shares are trading higher by 35.252% at $8.48 on the last check Thursday.
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