OREANDA-NEWS. Lands' End, Inc.today announced financial results for the second quarter ended July 29, 2016.

Second Quarter Fiscal 2016 Highlights:

  • Net revenue was $292.0 million as compared to $312.4 million in the second quarter last year. Direct segment net revenue decreased 6.9% to $246.4 million. Retail segment net revenue decreased 4.3% to $45.5 million primarily driven by a 2.5% decrease in same store sales and a reduction in the number of Lands' End Shops at Sears.
  • Gross margin expanded to 46.6% as compared to 46.3% in the second quarter last year.
  • Net loss was $2.0 million, or $0.06 per diluted share, as compared to net income of $7.5 million, or $0.23 per diluted share, in the second quarter last year.
  • Adjusted EBITDA was $7.3 million compared to $19.6 million in the second quarter of fiscal 2015.

Federica Marchionni, Lands' End's Chief Executive Officer, stated, "During the second quarter, we delivered sequential improvement in our results in addition to 30 basis points of gross margin improvement year over year.  We continued to evolve our merchandise offering and were pleased with the favorable response to our product in May and June, which were our strongest performing months.  Our sales results were soft in July due to reduced markdown inventory and planned, more targeted promotions that featured less discounting than in the prior year period.”

Ms. Marchionni continued, “As we look ahead, product remains our first priority. For example, our expanded gift offering will set us apart and position us as a destination for holiday shopping.  We will also ensure that customers remain front and center with compelling messaging across all of our marketing channels. In addition, we plan to leverage our multi-branded website to expand brand awareness for Lands’ End and broaden our customer base.  Overall, we are very pleased with the progress we have made across a number of initiatives and will continue to take swift action to drive sequential improvement through the remainder of the year, as well as profitable growth for the long term.”

Balance Sheet and Cash Flow Highlights

Cash and cash equivalents were $210.7 million on July 29, 2016, compared to $208.4 million on July 31, 2015. Net cash provided by operations was $1.7 million for the 26 weeks ended July 29, 2016, compared to net cash provided by operations of $3.4 million for the same period last year.

Inventory decreased 3.6% to $354.7 million on July 29, 2016, from $367.8 million on July 31, 2015.

The Company had $165.6 million of availability under its asset-based senior secured credit facility and had Long-term debt, net of $491.9 million as of July 29, 2016.