Land’s End FY16 net loss widens to 3.43 dollars per share

Lands' End net revenue for fourth quarter was 458.8 million dollars compared to 473.5 million dollars in the fourth quarter last year. Net loss was 94.8 million dollars or 2.96 dollars per share, compared to 39.5 million dollars or 1.23 dollars per share in the fourth quarter of fiscal 2015. Net revenue for fiscal 2016 was 1.34 billion dollars as compared to 1.42 billion dollars in fiscal 2015, while net loss was 109.8 million dollars or 3.43 dollars per share compared to 19.5 million dollars or 0.61 dollars per share, for the same period last year.

Commenting on the company’s results, Jerome Griffith, Chief Executive Officer, said in a statement, "We saw sequential improvement in our fourth quarter results, attributable to recent initiatives across merchandising, marketing and e-commerce. Overall, we will be focused on enhancing the business in ways that will drive growth, profitability and shareholder value over the long-term."

Fourth quarter financial highlights

Direct segment net revenue decreased 2.6 percent to 398.5 million dollars and retail segment net revenue decreased 6.3 percent to 60.3 million dollars, which the company said were primarily due to fewer Lands' End Shops at Sears and a 1.7 percent decrease in same store sales.

Gross margin was 38.6 percent compared to 42 percent in the fourth quarter last year. Adjusted net income, excluding a 173 million dollars or 107.8 million dollars after-tax non-cash impairment charge related to the write-down of the Lands' End trade name, was 13 million dollars or 0.41 dollar per share. Adjusted EBITDA was 30.7 million dollars compared to 48.1 million dollars for fourth quarter fiscal 2015.

Full year results review

Direct segment net revenue for the full year decreased 5.4 percent to 1.15 billion dollars, while retail segment net revenue decreased 8.9 percent to 186.4 million dollars due to a 6 percent decrease in same store sales and a reduction in the number of Lands' End Shops at Sears.

Gross margin was 43.2 percent this year compared to 46 percent last year. The company said, net loss for fiscal 2016 also included 1.2 million dollars in non-recurring personnel costs, net of reversals, primarily related to the departure of the company's former Chief Executive Officer. Adjusted net loss, excluding a 173 million dollats or 107.8 million dollars after-tax non-cash impairment charge related to the Lands' End trade name and the final reversal of the product recall accrual, was 2.1 million dollars or 0.06 dollar per share.

Adjusted net income, excluding a 98.3 million dollars or 62 million dollars after-tax non-cash impairment charge related to the write-down of the Lands' End trade name and the 3.4 million dollars benefit from the reversal of a product recall accrual, was 40.4 million dollars or 1.26 dollars per share for fiscal 2015. Adjusted EBITDA was 39.8 million dollars compared to 107.3 million dollars in fiscal 2015.

Picture:Land's End website