LE - Lands' End plummets as supply chain challenges weigh on top and bottom lines
Lands' End, Inc. (LE -11.3%) shares plunge after the company reports a 5% negative revenue surprise and guides FQ4 revenue and EPS below consensus. Net revenue grew 4.4% Y/Y and is up 10.5% on a 2-year basis, while global eCommerce net revenue fell 6.0% (+9.3% from 2019) as a result of inventory constraints driven by supply chain challenges. U.S. eCommerce decreased 3.5% and International eCommerce decreased 15.7% Gross margin declined 100 bps to 44.4% due to increased shipping costs. "We have taken numerous actions to expedite receipts, and despite supply chain delays, which negatively impacted our in-stock position and sales early in the fourth quarter, we recovered our in-stock position to historical levels heading into Cyber Week," said CEO Jim Gooch, adding that he believes inventory is "well-positioned" for the remainder of this year and consumer demand remains "strong." FQ4 Outlook: Net revenue between $560M and $575M vs consensus of $591M and diluted
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Lands' End plummets as supply chain challenges weigh on top and bottom lines