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• Total Revenue: $442 million, a decrease of 14% compared to last year.

• Gross Margin: 46%, an improvement of approximately 760 basis points from the previous year.

• Adjusted EBITDA: $44 million, a year-over-year increase of 38%.

• Adjusted Net Income: $18 million, with an adjusted EPS of $0.57, up 120% year-over-year.

• Net Revenue for Fiscal Year: $1.36 billion, with mid-single-digit GMV growth.

• Inventory Position: $265 million, a 12% improvement year-over-year.

• SG&A Expenses: Decreased by $15 million compared to the prior year.

• Licensing Business GMV: Over $150 million, with strong gross margin and profit profiles.

• US E-commerce Sales: Decreased 19% compared to the fourth quarter of 2023.

• European E-commerce Sales: Decreased 22% year-over-year, with a gross margin improvement of approximately 310 basis points.

• Debt: Term loan balance of $247 million, with zero borrowings on ABL.

• Share Repurchase: $3 million worth of shares repurchased, with $14 million remaining in authorization.

• Guidance for Q1 2025: Net revenue between $260 million and $290 million, with an adjusted net loss of $7 million to $4 million.

• Full-Year 2025 Guidance: Net revenue between $1.33 billion to $1.45 billion, with adjusted net income of $15 million to $27 million.

• Warning! GuruFocus has detected 5 Warning Signs with LE.

Release Date: March 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Lands' End Inc (NASDAQ:LE) achieved its eighth consecutive quarter of gross margin expansion, with a 760 basis point improvement year-over-year.

• The company reported a 38% year-over-year increase in adjusted EBITDA for the fourth quarter, reaching $44 million.

• Lands' End Inc (NASDAQ:LE) successfully expanded its licensing segment, creating a $150 million GMV business with strong gross margins.

• The company improved its inventory position by 12% year-over-year, allowing for better cost structure and increased product turnover.

• Lands' End Inc (NASDAQ:LE) saw significant growth in its digital marketing efforts, doubling its Instagram following and successfully engaging younger customers through social media and pop-up events.

Negative Points

• Total revenue for the fourth quarter decreased by 14% compared to the previous year.

• The European E-commerce business underperformed, with a 22% year-over-year sales decline.

• The US E-commerce business saw a 19% decrease in sales compared to the fourth quarter of 2023.

• SG&A expenses as a percentage of sales increased by approximately 230 basis points due to revenue deleverage.

• The company's holiday promotional strategy did not resonate with a subset of its customer base, impacting sales.