Lands' End, Inc. (LE) saw its loss widen to $94.82 million, or $2.96 a share for the quarter ended Jan. 27, 2017. In the previous year period, the company reported a loss of $39.46 million, or $1.23 a share. On the other hand, adjusted net income for the quarter stood at $13.01 million, or $0.41 a share compared with $22.56 million or $0.71 a share, a year ago.
Revenue during the quarter dropped 3.10 percent to $458.84 million from $473.54 million in the previous year period. Gross margin for the quarter contracted 349 basis points over the previous year period to 38.56 percent. Operating margin for the quarter stood at negative 32.35 percent as compared to a negative 11.57 percent for the previous year period.
Operating loss for the quarter was $148.43 million, compared with an operating loss of $54.79 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $30.65 million compared with $48.07 million in the prior year period. At the same time, adjusted EBITDA margin contracted 347 basis points in the quarter to 6.68 percent from 10.15 percent in the last year period.
Jerome Griffith, chief executive officer, stated, "We saw sequential improvement in our fourth quarter results, attributable to recent initiatives across merchandising, marketing and e-commerce. In order to drive long-term success, we need to strengthen our competitive position and develop and execute a strategic plan that leverages our iconic brand heritage, as well as our well-established e-commerce platform."
Operating cash flow drops significantly
Lands' End, Inc. has generated cash of $23.69 million from operating activities during the year, down 33.99 percent or $12.20 million, when compared with the last year. The company has spent $33.27 million cash to meet investing activities during the year as against cash outgo of $22.22 million in the last year.
Cash flow from financing activities was unchanged at negative $5.15 million for the year, when compared with the last year.
Cash and cash equivalents stood at $213.11 million as on Jan. 27, 2017, down 6.68 percent or $15.26 million from $228.37 million on Jan. 29, 2016.
Working capital declines
Lands' End, Inc. has witnessed a decline in the working capital over the last year. It stood at $358.55 million as at Jan. 27, 2017, down 7.55 percent or $29.27 million from $387.82 million on Jan. 29, 2016. Current ratio was at 2.44 as on Jan. 27, 2017, down from 2.69 on Jan. 29, 2016.
Debt remains almost stable
Lands' End, Inc. has recorded a decline in total debt over the last one year. It stood at $490.04 million as on Jan. 27, 2017, down 0.77 percent or $3.80 million from $493.84 million on Jan. 29, 2016. Lands End has recorded a decline in long-term debt over the last one year. It stood at $490.04 million as on Jan. 27, 2017, down 0.77 percent or $3.80 million from $493.84 million on Jan. 29, 2016. Total debt was 43.97 percent of total assets as on Jan. 27, 2017, compared with 38.33 percent on Jan. 29, 2016. Debt to equity ratio was at 1.81 as on Jan. 27, 2017, up from 1.28 as on Jan. 29, 2016.
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