LE - Lands' End rips 36% gain after strong demand for swimming and vacation gear boosted results

2023-06-01 14:10:49 ET

Lands' End ( NASDAQ: LE ) soared on Thursday after the retailer's Q1 earnings report topped some beaten-down expectations.

Revenue, EPS, gross margin and adjusted EBIDTA all came in ahead of the consensus estimates. Strong demand in the swim business and its natural vacation adjacencies boosted results during the quarter.

The company reported global e-commerce revenue was down 7.3% year-over-year during the quarter to $203.1M. U.S. e-commerce revenue increased 1.6% and international e-commerce revenue fell back 42.5%. The increase in U.S. e-commerce was primarily driven by the targeted promotions within swim and adjacent product categories. The decrease in international e-commerce was due to lower consumer demand in Europe and the closing of Lands’ End Japan at the end of fiscal year 2022.

Gross margin increased approximately 210 basis points to 44.6% of sales. The margin improvement was primarily driven by leveraging the strength in the swim and vacation related product categories across the channels as well as improvements in supply chain costs in the quarter.

Lands' End ( LE ) ended the quarter with an inventory position of $376.1M vs. $436.9M a year ago. The decrease in inventory was driven by the actions the company has taken to leverage normalized supply chain lead times to receive spring and summer inventory closer to the selling season and late receipts last year due to the supply chain challenges.

Shares of Lands' End ( LE ) were up 35.57% at 2:05 p.m. to retrace some of the downswing from the prior two weeks.

More on Lands' End

• Lands' End earnings call transcript
• Growth metrics on Lands' End
• Valuation metrics on Lands' End
• Seeking Alpha's Quant Rating for Lands' End

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