Lands’ End, Inc. reported a wider third-quarter loss on Thursday, as sales fell across all its segments, including its core namesake brand, pushing down its overall net revenue by 12.6%..
For the three months ended October 29, 2022, net loss widened to $24.9 million or $0.36 per diluted share from $10.9 million or $0.16 a year earlier..
Adjusted EBITDA also dropped by 82.2% to $11.3 million from $64.4 million a year ago..
The company’s net revenue fell to $311.8 million from $356.6 million in the prior-year period. All segments underperformed during the quarter. The namesake brand Lands’ End reported a 10% drop in net revenue to $212.6 million, driven by weaknesses in product assortments and challenges in home delivery fulfillment..
Meanwhile, the company’s active lifestyle brand, Lands’ End Active, witnessed a 27.1% decline in net revenue to $32.4 million, while the Outfitters division posted a 29.2% decrease in net revenue to $66.8 million..
Lands’ End experienced a challenging third quarter, facing headwinds such as softer consumer spending due to macro-economic factors and lower marketing spend. The company also made product assortment decisions that did not resonate as well with customers as it had expected..
As a result of these challenges, Lands’ End adjusted its full-year outlook. The company now anticipates a net revenue decline in the high single-digit percentage range for fiscal 2023, compared to its previous outlook of a high-single-digit percentage increase..
Lands’ End CEO Jim Gooch said, “While we are disappointed with our third quarter results, we are taking decisive steps to address the challenges we face and position Lands’ End for long-term success. We are committed to enhancing our product assortments, improving our marketing effectiveness, and optimizing our cost structure..
