A notable reduction was seen in global e-commerce net revenue, which fell by 7.1 per cent to $1 billion from $1.1 billion in fiscal 2022. In a detailed breakdown, US e-commerce revenues dipped by 2.7 per cent, while European e-commerce saw a more pronounced decrease of 15.7 per cent, the company said in a press release.
Lands’ End saw a 5.3 per cent revenue decline to $1.47 billion in FY23, with e-commerce falling notably.
Outfitters segment grew slightly, while gross profit rose by 5.3 per cent to $625.5 million.
Net loss deepened to $130.7 million.
Q4 mirrored annual trends with revenue dip and a net loss of $8.6 million but improved adjusted net income and EBITDA.
Lands’ End’s Outfitters segment reported a modest revenue increase of 1.5 per cent to $269.9 million, up from $265.9 million. However, the third party segment witnessed a 6 per cent revenue decrease to $111.8 million.
Gross profit surged by 5.3 per cent to $625.5 million, buoyed by a gross margin improvement to 42.5 per cent of total net revenue. Despite this, selling and administrative expenses rose to $550.2 million, or 37.4 per cent of net revenue, leading to a net loss of $130.7 million for the fiscal—a significant deepening from a $12.5 million loss in the previous year. Adjusted EBITDA saw an uplift to $84.3 million from $70.5 million in fiscal 2022.
The fourth quarter of fiscal 2023 (Q4 FY23) mirrored the annual trend with a net revenue decrease of 2.8 per cent to $514.9 million. Outfitters net revenue in this period fell by 11.3 per cent to $53.7 million. In contrast, third party Net revenue improved, recording a 3.3 per cent increase to $40.5 million.
Gross profit for the quarter stood out with a 13.5 per cent increase to $195.4 million, and a gross margin expansion to 38 per cent. Despite these gains, selling and administrative expenses escalated, contributing to an $8.6 million net loss. However, adjusted net income was reported at $8 million, a turnaround from an adjusted net loss in the same quarter of the previous year. Adjusted EBITDA for Q4 FY23 was also positive at $31.7 million.
“I am proud of the Lands’ End team’s focus and execution throughout fiscal 2023 as we pursued our solutions-based strategy to introduce newness across the product assortment, generated higher quality sales, significantly enhanced our inventory position and improved our profitability. As a result of these efforts, in the fourth quarter we increased gross profit by 13.5 per cent, improved gross margin by 550 basis points and reduced inventory 29 per cent compared to last year,” said Andrew McLean, chief executive officer.
Fibre2Fashion News Desk (DP)
