Digital Retailer Lands' End Q3: Gross Margin Expansion, 25% Inventory Reduction & More
Portfolio Pulse from Akanksha Bakshi
Lands' End Inc (NASDAQ:LE) reported a Q3 FY23 sales decline of 12.5% Y/Y to $324.74 million, missing estimates. Global eCommerce revenue fell 13.2% Y/Y. Adjusted EPS loss was $(0.11), beating consensus. Gross margin expanded to 47%, and gross profit rose 2.8% Y/Y. Operating loss was $(101.31) million, compared to income last year. Cash stood at $38.65 million, with a 25.3% inventory reduction. Adjusted EBITDA increased slightly. LE repurchased $3 million in stock, with $31.8 million left in the program. Q4 and FY23 outlooks were provided, with shares trading up 10.98%.
December 05, 2023 | 3:45 pm
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POSITIVE IMPACT
Lands' End reported lower Q3 sales but improved gross margin and EPS beating estimates. Inventory management improved, and the company continues its share repurchase program. Shares rose following the report.
Despite the sales decline, the improvement in gross margin and EPS beating consensus are positive signs. The significant inventory reduction and ongoing share repurchase program demonstrate management's confidence and operational efficiency, which likely contributed to the stock's positive reaction.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100