Lands' End swings to loss in 2022, e-commerce hurts revenue count
Lands’ End, Inc. announced on Thursday said net revenues for the fiscal year 2022 decreased 5% to $1.56 billion, on the back of double-digit declines in the apparel company's global e-commerce sales.
The Dodgeville, Wisconsin-based company said e-commerce net revenue decreased 10.1% to $1.1 billion for the fiscal year. Net revenue in U.S. e-commerce decreased 7% and international online sales decreased 24.6%, both primarily driven by lower consumer demand caused by the global supply chain challenges in the first half of fiscal 2022, as well as macroeconomic challenges impacting consumer discretionary spending and industry-wide promotional activity.
Retail net revenue increased 0.8% to $48.2 million for the 12 months, while U.S. company operated stores experienced an increase of 1.5% in same-store sales as compared to fiscal 2021.
Likewise, fourth-quarter net revenue decreased 4.6% to $529.6 million. Global e-commerce net revenue was $414.5 million, a decrease of 6.1% from $441.5 million. U.S. e-commerce decreased 1.5% and international e-commerce decreased 30.8% which includes the previously announced closure of the Japan e-commerce business.
For the full-year, the company swung to a net loss of $12.5 million, or $0.38 loss per diluted share, compared to a net income of $33.4 million or $0.99 earnings per diluted share in fiscal 2021.
“We executed well throughout the fourth quarter to deliver sequential sales and margin improvement in each month of the quarter, resulting in revenue and adjusted EBITDA at the higher end of our expectations," said Andrew McLean, chief executive officer. "We are pleased to see this momentum continue in the first quarter, particularly in our core swim category."
Looking ahead in 2023, Lands' End said it plans to continue to focus on "providing high-quality products in key categories that customers want and that present opportunity to drive outsized value creation, including swim and outerwear."
"We also plan to foster innovation in our operations, with a focus on driving stronger results and best anticipating and serving evolving customer needs, as well as strengthening our digitally native capabilities through enhanced use of data analytics, which we expect will drive deeper brand affinity and grow our share of our addressable market," added McLean.
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