Lands' End Inc (LE) 2023 Q1 法說會逐字稿

Good day, everyone, and welcome to today's Lands' End First Quarter Earnings Call. (Operator Instructions)

大家好，歡迎來到今天的 Lands' End 第一季度財報電話會議。 （操作員說明）

It is now my pleasure to turn the conference over to Bernie McCracken, Interim Chief Financial Officer.

現在我很高興將會議轉交給臨時首席財務官 Bernie McCracken。

Good morning, and thank you for joining the Lands' End earnings call for a discussion of our first quarter 2023 results, which we released this morning and can be found on our website, landsend.com. I'm Bernie McCracken, Interim Chief Financial Officer, and I'm pleased to join you today with Andrew McLean, our Chief Executive Officer.

早上好，感謝您加入 Lands' End 收益電話會議，討論我們今天早上發布的 2023 年第一季度業績，可以在我們的網站 landsend.com 上找到。我是臨時首席財務官 Bernie McCracken，今天很高興與我們的首席執行官 Andrew McLean 一起與大家一起。

After the prepared remarks, we will conduct a question-and-answer session. Please also note that the information we're about to discuss includes forward-looking statements. Such statements involve risks and uncertainties. The company's actual results could differ materially from those discussed on this call. Factors that could contribute to such differences include, but are not limited to, those items noted and included in the company's SEC filings, including our annual report on Form 10-K and quarterly reports on Form 10-Q.

在準備好的發言之後，我們將進行問答環節。另請注意，我們將要討論的信息包括前瞻性陳述。此類陳述涉及風險和不確定性。公司的實際結果可能與本次電話會議上討論的結果存在重大差異。可能導致此類差異的因素包括但不限於公司向美國證券交易委員會提交的文件中註明和包含的項目，包括我們的 10-K 表格年度報告和 10-Q 表格季度報告。

The forward-looking information that is provided by the company on this call represents the company's outlook as of today, and we do not undertake any obligation to update forward-looking statements made by us. Subsequent events and developments may cause the company's outlook to change.

公司在本次電話會議上提供的前瞻性信息代表了公司截至今天的展望，我們不承擔更新我們所做的前瞻性陳述的任何義務。隨後的事件和發展可能會導致公司的前景發生變化。

During this call, we'll be referring to non-GAAP measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures can be found in our earnings release issued earlier today. A copy of which is posted in the Investor Relations section of our website at landsend.com.

在這次電話會議中，我們將提到非 GAAP 措施。這些非 GAAP 措施不是根據公認的會計原則編制的。在我們今天早些時候發布的收益報告中可以找到非 GAAP 財務指標與最直接可比的 GAAP 指標的對賬。其副本發佈在我們網站 landsend.com 的投資者關係部分。

With that, I will turn the call over to Andrew.

有了這個，我會把電話轉給安德魯。

Thank you, Bernie. Good morning, and thank you for joining us today. I'm pleased with our results for the first quarter, which demonstrates the strength of the Lands' End brand and deep customer affinity, the value of our core offerings and our company-wide focus on stellar execution. We generated revenues of $310 million at the high end of our expectations and adjusted EBITDA of $19.5 million, well exceeding our guidance.

謝謝你，伯尼。早上好，感謝您今天加入我們。我對我們第一季度的業績感到滿意，這證明了 Lands' End 品牌的實力和深厚的客戶親和力、我們核心產品的價值以及我們全公司對卓越執行的關注。我們在預期的高端創造了 3.1 億美元的收入，調整後的 EBITDA 為 1,950 萬美元，遠遠超出了我們的指導。

I'll provide more commentary on our strong first quarter in a moment. But first, I want to focus on the progress we're seeing from our strategic initiatives that I shared with you last quarter, and the work we continue to do to enhance value for our customers, employees and shareholders. As you know, I believe Lands' End has a tremendous opportunity ahead and we are well positioned to generate value for all our stakeholders to achieve that value creation, we are taking a page from our iconic brand's 60-year history, deepening our customer focus and ensuring that we're providing our customers and partners with the high-quality products they are looking for.

我稍後會就我們強勁的第一季度提供更多評論。但首先，我想重點談談我們從上個季度與大家分享的戰略計劃中看到的進展，以及我們為提高客戶、員工和股東的價值而繼續開展的工作。如您所知，我相信 Lands' End 面臨著巨大的機遇，我們有能力為所有利益相關者創造價值以實現價值創造，我們正在從我們標誌性品牌 60 年的歷史中汲取教訓，加深我們對客戶的關注並確保我們為我們的客戶和合作夥伴提供他們正在尋找的高質量產品。

In just a few short months, we're seeing progress as our renewed focus on our customers and prioritization of core products is driving tangible results. To be clear, we shared last quarter that Swim was performing well and that it is a priority for us alongside its natural vacation adjacencies like totes, towels and cover-ups. Year-over-year, our Swim business is up high single digits. And the NPD scores we're seeing in our women's swim business show that we have the leading brand in the swim category and they're a top gainer of market share.

在短短幾個月內，我們看到了進展，因為我們重新關注我們的客戶和核心產品的優先級正在推動切實的成果。需要明確的是，我們在上個季度分享了 Swim 的表現良好，並且它是我們優先考慮的自然假期鄰接物，如手提包、毛巾和罩衫。與去年同期相比，我們的游泳業務實現了高個位數增長。我們在女性游泳業務中看到的 NPD 分數表明，我們在游泳類別中擁有領先品牌，並且她們是市場份額的最大贏家。

What's exciting for us and gives us confidence in the path we are pursuing is that customers are responding well to newness. We've taken steps to rightsized our inventory, which enables us to run more targeted promotions and leverage cost tailwinds that support our gross margin expansion with swim and vacation as our template informed by insights from our bar file and broader consumer trends we believe we can replicate this strategy in other categories and in particular, those categories that our customers are looking for and that drive outsized value creation.

令我們興奮並讓我們對我們所追求的道路充滿信心的是客戶對新事物的反應良好。我們已採取措施調整我們的庫存，這使我們能夠開展更有針對性的促銷活動，並利用成本順風來支持我們的毛利率擴張，游泳和度假作為我們的模板，根據我們的酒吧文件和更廣泛的消費者趨勢的洞察力，我們相信我們可以在其他品類中復制這一戰略，特別是那些我們的客戶正在尋找並推動超額創造價值的品類。

The key attributes of swim fit performance and functionality are also present in other categories like bottoms and outerwear, which each have franchise items and where we have authority in the marketplace. Underpinning this strategy is bringing innovation back to Lands' End, innovation and how we more deeply engage with our customers, innovation and how we look critically at our product strategy and innovation in how we better execute. While innovation is a key value driver for us. We will do so consistent with our 60-year legacy, which is appreciated by customers across the country and around the world.

泳裝性能和功能性的關鍵屬性也存在於其他類別中，例如下裝和外套，它們都有特許經營權，並且我們在市場上擁有權威。支撐這一戰略的是將創新帶回 Lands' End、創新以及我們如何更深入地與客戶互動、創新以及我們如何批判性地看待我們的產品戰略和創新以更好地執行。而創新是我們的關鍵價值驅動力。我們這樣做將與我們 60 年的傳統保持一致，這受到了全國和世界各地客戶的讚賞。

At its core, Lands' End is a solutions company. We are in the business of providing products that solve lives issues by obsessing about our customers' needs we can better plan for, anticipate and prepare for the many avenues where we can serve them. We can and will continue to execute from a position of strength, knowing that we are uniquely positioned to deliver consumers and our partners, high-quality products they're looking for themselves, their families and their businesses and associates. We also believe there's an opportunity to create value by pursuing a licensing strategy that enables Lands' End to do what we do best, or bringing in partners that can leverage their own strengths.

Lands' End 的核心是一家解決方案公司。我們的業務是通過關注客戶的需求來提供解決生活問題的產品，我們可以更好地計劃、預測和準備我們可以為他們提供服務的許多途徑。我們能夠並且將繼續以優勢地位執行，因為我們知道我們具有獨特的優勢，可以為消費者和我們的合作夥伴提供他們自己、他們的家人、他們的企業和同事正在尋找的高質量產品。我們還相信，有機會通過實施許可策略來創造價值，使 Lands' End 能夠做我們最擅長的事情，或者引入可以利用自身優勢的合作夥伴。

Since our last call, we have brought on a new partner to supply Lands' End products to Costco, and we are actively considering category, channel and geographic licenses with others. The potential for us to utilize this asset-light model enables us to free up our resources and better focus on our solution-driven authority in areas that are significant value drivers for Lands' End between asset-light balance sheet gains, royalties, and increased brand visibility from multichannel distribution, we see the potential for a significant source of incremental profitability, coupled with an improvement in operating margins.

自從我們上次通話以來，我們引入了一個新的合作夥伴來向 Costco 供應 Lands' End 產品，我們正在積極考慮與其他合作夥伴的類別、渠道和地理許可。我們利用這種輕資產模型的潛力使我們能夠釋放我們的資源，並更好地專注於我們在輕資產資產負債表收益、特許權使用費和增加的 Lands' End 的重要價值驅動力領域的解決方案驅動權威通過多渠道分銷的品牌知名度，我們看到了增加盈利能力的重要來源的潛力，以及營業利潤率的提高。

On our last quarterly call, we spoke to you about the work we're doing to better leverage our strong buyer file and the proprietary data it provides us that we can use to inform our decision-making. For the quarter, our U.S. buyer file stabilized with flat growth, and we saw strength in the rebuy rates of our active customers. We're continuing to conduct qualitative and quantitative reviews of our data to refine our strategy so that we can better reach and cater to the needs of our existing customers and expand our customer base over time.

在我們上次的季度電話會議上，我們向您介紹了我們正在做的工作，以更好地利用我們強大的買家檔案以及它為我們提供的專有數據，我們可以使用這些數據來為我們的決策提供信息。本季度，我們的美國買家檔案穩定增長，我們看到活躍客戶的再購買率強勁。我們將繼續對我們的數據進行定性和定量審查，以完善我們的戰略，以便我們能夠更好地滿足和滿足現有客戶的需求，並隨著時間的推移擴大我們的客戶群。

We've already started rolling out the learnings of this work and have seen positive results. For example, we're weighing our marketing of the swim and vacation stories more heavily on Instagram, where we can broaden our customer base and reach a younger audience that recognizes Lands' End as an authority in the category. We'll continue to roll out additional updates to our strategy and marketing as that process continues. We're also working to further improve our operations and better leverage our data to enhance efficiency through greater collaboration and faster decision-making. Our goal is to be the nimble problem solvers that our customers demand, and we're doing that by empowering our team with the information, tools and processes to provide differentiated value for our customers, which should lead to improved operating results and enhanced value creation for our shareholders.

我們已經開始推廣這項工作的經驗教訓，並取得了積極成果。例如，我們在 Instagram 上更加重視游泳和度假故事的營銷，這樣我們可以擴大我們的客戶群並吸引將 Lands' End 視為該類別權威的年輕受眾。隨著該過程的繼續，我們將繼續對我們的戰略和營銷進行更多更新。我們還致力於進一步改善我們的運營，更好地利用我們的數據，通過加強協作和加快決策制定來提高效率。我們的目標是成為客戶要求的靈活的問題解決者，我們通過為我們的團隊提供信息、工具和流程來為我們的客戶提供差異化的價值來實現這一目標，這應該會改善運營結果並增加價值創造為我們的股東。

Now turning back to our strong first quarter results. Building on what we saw in the fourth quarter of 2022, consumer activity continued to progress during the quarter, resulting in strong momentum across the business. In the first quarter, our sales came in at the high end of our guidance range with $310 million in revenue, a 2% increase year-over-year.

現在回到我們強勁的第一季度業績。基於我們在 2022 年第四季度所看到的情況，本季度消費者活動繼續取得進展，導致整個業務發展勢頭強勁。第一季度，我們的銷售額達到了我們指導範圍的高端，收入為 3.1 億美元，同比增長 2%。

Importantly, we capitalized on supply chain cost improvements and utilize more targeted promotions, which resulted in strong year-over-year margin performance. Regarding inventory, we continue to make progress and are pleased to report that as of the end of Q1, we have returned to normalized inventory levels consistent with what we said last quarter. As a result of our work to better match anticipated demand with supply, which is largely informed by our proprietary data, we expect that inventory levels will continue to come down and that by the end of Q2 we will be at or below pre-pandemic levels, supporting our ability to lean into gross margin opportunities.

重要的是，我們利用供應鏈成本的改善並利用更有針對性的促銷活動，從而實現了強勁的同比利潤率表現。關於庫存，我們繼續取得進展，並很高興地報告，截至第一季度末，我們已恢復到與我們上季度所說的一致的正常庫存水平。由於我們努力更好地將預期需求與供應相匹配，這主要由我們的專有數據提供，我們預計庫存水平將繼續下降，到第二季度末我們將達到或低於大流行前水平，支持我們抓住毛利率機會的能力。

Critical to our improved inventory levels is a focus on driving terms, increasing our freshness factor and leveraging our vendor relationships. We did not and will not accept that a return to normalized supply chains is enough. Our go-forward stance is to reduce the time to market. Already for fall holiday inventories, we have removed as much as 9 weeks from the calendar and implemented vendor-managed inventories on a handful of core net programs with a view to expanding that strategy.

我們提高庫存水平的關鍵是關注推動條款、增加我們的新鮮度和利用我們的供應商關係。我們過去沒有也不會接受恢復正常供應鏈就足夠了。我們的前進立場是縮短上市時間。對於秋季假期庫存，我們已經從日曆中刪除了多達 9 週，並在少數核心網絡計劃中實施了供應商管理的庫存，以擴大該戰略。

Now taking a look at our products and what our customers are responding to, the underlying theme is that the trends towards casualization and hybrid life appear to be sustaining. We, of course, reference swim as a leading category we've surrounded that with other vacation essentials that our customers are responding exceptionally well too. We've also seen good momentum in linen and core knit tops as well as seasonally appropriate attire like long sleeve T-shirts and woven tops for both men and women.

現在看看我們的產品和我們的客戶的反應，潛在的主題是休閒化和混合生活的趨勢似乎正在持續。當然，我們將游泳作為一個主要類別，我們將其與其他度假必需品相結合，我們的客戶也對此反應非常好。我們還看到了亞麻和核心針織上衣的良好勢頭，以及適合季節性的服裝，如男女長袖 T 恤和梭織上衣。

Bottoms for both men and women performed well. And in our experience, that bodes well for sales of tops. Lastly, and this is a critical point, as I mentioned earlier, customers are responding well to the overall newness in our assortment. As we move forward, we are committed to regularly injecting newness into our offerings throughout seasons and across categories.

男士和女士的下裝都表現出色。根據我們的經驗，這對上衣的銷售來說是個好兆頭。最後，這是一個關鍵點，正如我之前提到的，客戶對我們產品系列的整體新穎性反應良好。隨著我們的前進，我們致力於在整個季節和跨類別中定期為我們的產品注入新鮮感。

Turning to the Outfitters business. As I've said before, this is a successful business with plenty of opportunity ahead. Both on its own and as a potential customer acquisition engine for our consumer business. Recently, we signed a 5-year extension with American Airlines, which takes that agreement to 2028. As we expected and reflected in the guidance we provided on our last quarterly call, we wrapped up our work with Delta during the quarter, resulting in some nonrecurring revenue, which Bernie will detail shortly.

轉向 Outfitters 業務。正如我之前所說，這是一個成功的企業，未來有很多機會。既可以單獨使用，也可以作為我們消費者業務的潛在客戶獲取引擎。最近，我們與美國航空公司簽署了一份為期 5 年的延期協議，該協議將延期至 2028 年。正如我們在上一次季度電話會議上提供的預期和指導中所反映的那樣，我們在本季度結束了與達美航空的合作，從而產生了一些非經常性收入，伯尼將在稍後詳細說明。

In addition, we have hired a new leader for the Outfitters business, Jim O'Connor. He will be joining Lands' End in June. Jim brings over 20 years of general management and sales leadership expertise in B2B and B2C businesses, including at Shoes For Crews and Timberland. I'm confident Jim will be a great addition to our leadership team as we continue our focus on driving and expanding the Outfitters business. We are a digitally native business, serving our customers across a variety of online venues from landsend.com to Amazon to department store marketplaces.

此外，我們還聘請了 Outfitters 業務的新領導 Jim O'Connor。他將於 6 月加入 Lands' End。 Jim 在 B2B 和 B2C 業務（包括 Shoes For Crews 和 Timberland）中擁有超過 20 年的綜合管理和銷售領導專業知識。隨著我們繼續專注於推動和擴展 Outfitters 業務，我相信吉姆將成為我們領導團隊的重要補充。我們是一家數字原生企業，在從 landsend.com 到亞馬遜再到百貨商店市場的各種在線場所為我們的客戶提供服務。

As over 90% of Lands' End purchases happen with a click, we're pleased with our online performance and in particular, landsend.com. Our Lands' End fulfill business which enables us to sell through our partners', online marketplaces and deliver direct from our warehouse provides a valuable opportunity to reach additional customers not engaging directly with our brand. This business continues to demonstrate growth and provide strong margins. We see significant opportunity in our newer partners, including Target and our most recent addition, Macy's, which we launched this quarter.

由於超過 90% 的 Lands' End 購買都是通過點擊進行的，我們對我們的在線表現感到滿意，尤其是 landsend.com。我們的 Lands' End 配送業務使我們能夠通過合作夥伴的在線市場進行銷售，並直接從我們的倉庫發貨，這為我們提供了一個寶貴的機會，可以接觸到不直接與我們品牌互動的其他客戶。該業務繼續保持增長並提供可觀的利潤率。我們在我們的新合作夥伴中看到了巨大的機會，包括 Target 和我們最近在本季度推出的梅西百貨。

Increasingly, we view this business as an integral part of our domestic B2C digital journey, which combines produced mid-single-digit growth for the quarter. We'll continue to explore opportunities to leverage this program platform with new and existing partners and speak increasingly about the growth of the consumer digital journey.

我們越來越多地將這項業務視為我們國內 B2C 數字旅程不可或缺的一部分，該旅程結合了本季度產生的中個位數增長。我們將繼續探索與新老合作夥伴一起利用該計劃平台的機會，並越來越多地談論消費者數字旅程的增長。

Lastly, from my vantage point, our international business is an opportunity for us to grow demand and earnings faster than our core U.S. business, tapping a customer that is excited about the lifestyle we offer and the value we bring. We're exploring various opportunities to expose our products in new geographies, including through online expansion, distribution partners, and as I mentioned earlier, license fees. In our existing Europe business, we are reacting to ongoing lower levels of consumer demand in the region by applying much of the approach that has been critical to our success in the U.S. This includes a focus on key categories where we have authority in Europe, particularly linen and dresses and incorporating newness in the assortment to which customers are responding positively. This approach combines with a deep focus on cost control and more disciplined promotional activity resulted in flat profitability year-on-year and gives us a platform for future growth and development.

最後，從我的角度來看，我們的國際業務為我們提供了一個機會，可以比我們的核心美國業務更快地增長需求和收入，從而吸引對我們提供的生活方式和我們帶來的價值感到興奮的客戶。我們正在探索各種機會，在新的地區展示我們的產品，包括通過在線擴張、分銷合作夥伴，以及我之前提到的許可費。在我們現有的歐洲業務中，我們正在通過應用對我們在美國取得成功至關重要的許多方法來應對該地區持續較低的消費者需求水平。這包括關注我們在歐洲擁有權威的關鍵類別，特別是亞麻和連衣裙，並在客戶積極響應的品種中加入新意。這種方法與對成本控制的深入關注和更有紀律的促銷活動相結合，導致盈利能力同比持平，並為我們提供了未來增長和發展的平台。

I'm proud of the way we executed throughout the quarter and the progress we've made on our strategic plans. There's more work ahead, and I look forward to sharing additional updates on our efforts in the coming quarters.

我為我們在整個季度的執行方式以及我們在戰略計劃方面取得的進展感到自豪。未來還有更多工作要做，我期待著在未來幾個季度分享我們工作的更多最新進展。

With that, I will turn it over to Bernie.

有了這個，我會把它交給伯尼。

Thank you, Andrew. For the first quarter, as Andrew mentioned, total revenue performance was at the high end of our guidance range at $310 million, an increase of 2% compared to last year. Our U.S. e-commerce, which represents our largest go-to-market segment saw a sales increase of 2% from the first quarter of 2022, driven by targeted promotions within swim and adjacent product categories. Our Europe e-commerce business in the quarter was down 29%, reflecting the continued lower levels of consumer demand in Europe, as Andrew noted.

謝謝你，安德魯。正如安德魯所提到的，第一季度的總收入表現處於我們指導範圍的高端，為 3.1 億美元，比去年增長 2%。我們的美國電子商務是我們最大的進入市場的細分市場，在游泳和鄰近產品類別的有針對性的促銷活動的推動下，銷售額比 2022 年第一季度增長了 2%。正如安德魯指出的那樣，本季度我們的歐洲電子商務業務下降了 29%，反映出歐洲消費者需求水平持續走低。

Globally, e-commerce sales decreased 7% from 2022 or 4% when adjusting for Japan, which closed last year and accounted for $8.5 million of revenue in the first quarter of 2022. Results from our Lands' End Outfitters were strong year-over-year, with revenue up 37% over the first quarter of 2023, which was lifted by the inventory sales to Delta at the anticipated conclusion of their 5-year contract in April. Excluding the $18 million difference in year-over-year revenue from Delta, the Lands' End Outfitters business was up 4%.

在全球範圍內，電子商務銷售額比 2022 年下降了 7%，按日本調整後下降了 4%，日本去年關閉，2022 年第一季度的收入為 850 萬美元。我們 Lands' End Outfitters 的業績同比強勁今年，收入比 2023 年第一季度增長了 37%，這是由於 Delta 在 4 月份預期結束的 5 年合同時向 Delta 出售了庫存。不包括 Delta 的 1800 萬美元同比收入差異，Lands 的 End Outfitters 業務增長了 4%。

We continue to be pleased with revenue for our third-party business, which increased 6% as compared to the first quarter of 2022, driven by growth in our partners' online marketplaces, as noted, swim was a winning category for us, and that included selling swim inventory through these important partners. We launched our Macy's partnership in the quarter and expect it to contribute to the future strength of our third-party business.

我們繼續對我們的第三方業務的收入感到滿意，與 2022 年第一季度相比增長了 6%，這得益於我們合作夥伴在線市場的增長，如前所述，游泳對我們來說是一個成功的類別，而且包括通過這些重要合作夥伴銷售游泳庫存。我們在本季度啟動了梅西百貨的合作夥伴關係，並希望它能為我們第三方業務的未來實力做出貢獻。

Moving to our retail stores, we delivered revenue of $10 million, with U.S. same-store sales increasing approximately 9.5% from the first quarter of 2022. Gross margin in the first quarter increased to 45%, approximately a 210-basis point improvement from 2022. The margin improvement was driven by leveraging our strength in owning the vacation and travel across our channels as well as improvements in supply chain costs. As a percentage of sales, SG&A was 38%, approximately flat to 2022, driven by lower digital marketing spend, offset by higher employee-related costs. Our performance led to a net loss for the quarter of $1.7 million or $0.05 per share compared to a net loss of $2.4 million or $0.07 per share in 2022.

轉到我們的零售店，我們實現了 1000 萬美元的收入，美國同店銷售額比 2022 年第一季度增長了約 9.5%。第一季度的毛利率增至 45%，比 2022 年提高了約 210 個基點. 利潤率的提高得益於我們在跨渠道度假和旅行方面的優勢以及供應鏈成本的改善。作為銷售額的百分比，SG&A 為 38%，與 2022 年基本持平，這是由於數字營銷支出減少，但被員工相關成本增加所抵消。我們的業績導致本季度淨虧損 170 萬美元或每股 0.05 美元，而 2022 年淨虧損為 240 萬美元或每股 0.07 美元。

In addition to these GAAP measures, adjusted EBITDA is an important profitability measure that we use to manage our business internally. For the quarter, adjusted EBITDA increased by 41% to $19.5 million, which exceeded the higher end of our expectations. Looking at the balance sheet. Inventories at the end of the quarter were $376 million compared to $437 million a year ago. The 14% decrease in inventory was a result of the actions we took to leverage normalized supply chain in transit times to receive spring and summer inventory closer to the selling season and late receipts last year due to the supply chain challenge.

除了這些 GAAP 指標外，調整後的 EBITDA 是我們用於內部管理業務的重要盈利指標。本季度，調整後的 EBITDA 增長了 41% 至 1,950 萬美元，超出了我們預期的上限。看著資產負債表。本季度末的庫存為 3.76 億美元，而一年前為 4.37 億美元。庫存減少 14% 是由於我們採取行動，在運輸時間利用標準化供應鏈，在接近銷售季節的時候接收春季和夏季庫存，以及去年由於供應鏈挑戰而延遲收貨。

Accordingly, net cash used in operations was $100 million less than last year due to the improved inventory flow. Regarding our debt. At the end of the first quarter, our term loan balance was $241 million and our $275 million ABL had $100 million of borrowings outstanding, which was $25 million lower than last year. As part of our efforts to enhance shareholder value creation, we are continuing to explore opportunities to refinance our debt and are committed to doing so subject to market conditions. During the first quarter, we repurchased $3.8 million worth of shares under the company's previously announced $50 million share repurchase authorization, bringing the balance of the remaining authorization to $38 million as of the end of the quarter.

因此，由於庫存流量改善，運營中使用的現金淨額比去年減少了 1 億美元。關於我們的債務。第一季度末，我們的定期貸款餘額為 2.41 億美元，我們的 2.75 億美元 ABL 有 1 億美元的未償還借款，比去年減少了 2500 萬美元。作為我們提高股東價值創造的努力的一部分，我們正在繼續探索為我們的債務再融資的機會，並致力於根據市場條件這樣做。第一季度，我們根據公司先前宣布的 5000 萬美元股票回購授權回購了價值 380 萬美元的股票，使截至本季度末剩餘授權餘額達到 3800 萬美元。

Turning to the second quarter. We expect net revenue to be between $320 million and $335 million. We expect a net loss of $4.5 million to $2 million and diluted loss per share to be between $0.14 and $0.06. We expect adjusted EBITDA to be in the range of $15 million to $18 million. Based on our strong first quarter results, we are updating our full year guidance and now expect net revenue of $1.56 billion to $1.62 billion. We expect net income to be in the range of a net loss of $4.5 million to net income of $2.5 million and diluted loss per share of $0.13 to earnings per share of $0.08. We expect adjusted EBITDA to be in a range of $75 million to $84 million. Our guidance for the full year incorporates approximately $35 million in capital expenditures.

轉向第二季度。我們預計淨收入將在 3.2 億美元至 3.35 億美元之間。我們預計淨虧損為 450 萬美元至 200 萬美元，每股攤薄虧損在 0.14 美元至 0.06 美元之間。我們預計調整後的 EBITDA 將在 1500 萬至 1800 萬美元之間。基於我們強勁的第一季度業績，我們正在更新全年指引，現在預計淨收入為 15.6 億美元至 16.2 億美元。我們預計淨收入將在淨虧損 450 萬美元至淨收入 250 萬美元之間，每股攤薄虧損 0.13 美元至每股收益 0.08 美元之間。我們預計調整後的 EBITDA 將在 7500 萬至 8400 萬美元之間。我們對全年的指導包括大約 3500 萬美元的資本支出。

With that, I will turn the call back over to Andrew.

有了這個，我會把電話轉回給安德魯。

Thank you, Bernie. As you've heard me say before, we are taking aggressive achievable actions to improve the business today to drive growth and profitability over time, and our strong first quarter results give us confidence in the strategy we're pursuing. With swim and vacation is our template, we'll continue innovating our product strategy, customer engagement and internal approach to ensure we're building on and staying true to Land's End's history and brand.

謝謝你，伯尼。正如你之前聽我說過的那樣，我們正在採取積極可行的行動來改善今天的業務，以隨著時間的推移推動增長和盈利，我們強勁的第一季度業績讓我們對我們正在推行的戰略充滿信心。以游泳和度假為模板，我們將繼續創新我們的產品戰略、客戶參與和內部方法，以確保我們在 Land's End 的歷史和品牌的基礎上繼續發展並保持真實。

We also continue to make key hires that are further rounding out our leadership team. In addition to Jim O'Connor, joining us as Senior Vice President and General Manager of Lands' End Outfitters, Stuart Hogue joined Lands' End as SVP U.S. e-commerce in April. Stuart is a digitally savvy leader with more than 20 years of industry experience. He enjoyed a successful career at Nike and joined us from McKinsey, where he advised clients on digital, omnichannel retail and marketing transformation initiatives. With the strength and growth potential for our profitable U.S. direct business, we're pleased to have such a strong leader as Stuart as part of our team. As we execute our strategy and bring innovation across the business, we'll continue to provide updates about how our work is delivering for our customers, employees and shareholders.

我們還繼續招聘重要人員，進一步完善我們的領導團隊。除了 Jim O'Connor 加入我們擔任高級副總裁兼 Lands' End Outfitters 總經理之外，Stuart Hogue 於 4 月加入 Lands' End，擔任美國電子商務高級副總裁。 Stuart 是一位精通數字技術的領導者，擁有 20 多年的行業經驗。他在耐克享有成功的職業生涯，加入我們之前曾在麥肯錫工作，在那裡他為客戶提供數字、全渠道零售和營銷轉型計劃方面的建議。憑藉我們有利可圖的美國直接業務的實力和增長潛力，我們很高興有像斯圖爾特這樣強大的領導者加入我們的團隊。當我們執行我們的戰略並在整個業務中帶來創新時，我們將繼續提供有關我們的工作如何為我們的客戶、員工和股東提供的最新信息。

With that, we look forward to your questions.

有了這個，我們期待您的提問。

(Operator Instructions) We'll take our first question from Dana Telsey with Telsey Advisory Group.

（操作員說明）我們將與 Telsey Advisory Group 一起接受 Dana Telsey 的第一個問題。

And once again, Dana Telsey if you would like to ask your question, please speak now.

再一次，Dana Telsey 如果您想提出問題，請現在發言。

Can you hear me okay?

你能聽到我說話嗎？

We can hear you fine.

我們可以聽到你的聲音。

So congratulation on the nice progress. As you think of the swim and vacation related apparel, how's do you see this expanding beyond the purview during the remainder of the year beyond summer? Secondly, on the marketplace initiative that you have, where you're seeing the greatest growth from and how was margins there? And also on the inventory levels, which are brought in nicely, how do you see that going through the rest of the year? And what are you seeing in the promotional landscape?

祝賀你取得了不錯的進步。當您想到與游泳和度假相關的服裝時，您如何看待在今年夏季之後的剩餘時間裡這種服裝超出範圍的範圍？其次，在您擁有的市場計劃中，您從哪裡看到了最大的增長以及那裡的利潤率如何？還有關於很好地引入的庫存水平，您如何看待今年餘下時間的情況？您在促銷環境中看到了什麼？

Okay. Thank you, Dana. Talking to swim and vacation. I mean, we took a view coming into the quarter that we had a leading market share and the best thing to do with a leading market share is defend (inaudible) attack, and we went out and we actually found that we took market share by starting earlier and running longer and then being able to get ourselves into trend faster by being able to pull product through our supply chain faster. So we've been able to react to trends. We used our data to give us a good insight into where the trends were going to go. And we expect that market now will continue to be something that prolongs into the back half.

好的。謝謝你，丹娜。談游泳和度假。我的意思是，我們進入本季度時認為我們擁有領先的市場份額，而擁有領先市場份額的最好辦法就是防禦（聽不清）攻擊，我們出去了，實際上我們發現我們的市場份額是更早開始，運行更久，然後能夠通過我們的供應鏈更快地拉動產品，讓自己更快地進入趨勢。所以我們已經能夠對趨勢做出反應。我們使用我們的數據讓我們深入了解趨勢的走向。我們預計現在的市場將繼續延續到後半段。

Traditionally, we've wrapped up swim in the June, July time frame. We now expect to see that continue on into late summer and to all intents and purposes, be part of a year-round business for us particularly given what we saw in the fourth quarter with some of our swim sales. Where vacation goes is we're going to continue to evolve it. So vacation for us will evolve into the back half of the year. And we'll pick up at somewhere. We have a strong market share position in outerwear. And largely, our intention is to do with outerwears what we've done with swim and we feel really strong about the product that we put behind that.

傳統上，我們在 6 月、7 月的時間框架內結束游泳。我們現在希望看到這種情況持續到夏末，並且出於所有意圖和目的，成為我們全年業務的一部分，特別是考慮到我們在第四季度看到的一些游泳銷售情況。假期去哪裡，我們將繼續發展它。所以我們的假期將演變成下半年。我們會在某個地方接你。我們在外套領域擁有強大的市場份額。在很大程度上，我們的意圖是像我們在游泳方面所做的那樣處理外套，我們對我們推出的產品感到非常強烈。

What we're seeing is it expands having vacation and having this ownership and having these solutions, we're able to expand beyond that. So we've seen ownership in our bottoms business, which we called out on the call, been really strong, and we're seeing trends, particularly wide lag, particularly knits that are long lasting and enduring for us. We knew early it wasn't going to be a denim cycle. We actively managed our inventory around that. And we're able to like lean into knit bottoms. We've made them part of the vacation solutions. For us vacation could be walk in the dog, it can be a staycation. There can be -- it's about your lifestyle, it's about a state of mind. And so it's about evolving those categories to have authorities and might really back up what we're doing in that marketplace.

我們看到的是它擴展了假期和擁有這種所有權並擁有這些解決方案，我們能夠擴展到更遠的地方。因此，我們已經看到我們在電話會議上提到的底部業務的所有權非常強大，而且我們看到了趨勢，特別是滯後性，尤其是對我們來說經久耐用的針織品。我們很早就知道這不會是一個牛仔布週期。我們圍繞這一點積極管理我們的庫存。而且我們能夠喜歡穿針織褲。我們已將它們納入假期解決方案。對我們來說，假期可以是遛狗，也可以是在家度假。可能有——這關乎你的生活方式，關乎一種心態。因此，這是關於發展這些類別以擁有權威並且可能真正支持我們在該市場中所做的事情。

I'll take the marketplace as the next question, and then I'm going to let Bernie answer on inventory. We're really very happy with where we're going with the marketplace. I said it on the call, I view that as just part of our domestic consumer digital journey. And if I look at Lands' End fulfill product for the marketplaces along with Lands' End along with Amazon. That was a mid-single-digit growth for us. And when you put it all together and we see consistency in the journey, but we see opportunities. So I actually like lost my words for a minute. We actually see opportunities to stratify product strategies against the Target, against the Macy's, against the Amazon.

我將把市場作為下一個問題，然後讓伯尼回答庫存問題。我們對市場的發展方向非常滿意。我在電話中說過，我認為這只是我們國內消費者數字化旅程的一部分。如果我看看 Lands' End 以及 Lands' End 和亞馬遜為市場提供的產品。這對我們來說是一個中個位數的增長。當你把它們放在一起時，我們看到了旅程的一致性，但我們看到了機會。所以我實際上喜歡在一分鐘內失去我的話。我們實際上看到了針對目標、梅西百貨和亞馬遜對產品戰略進行分層的機會。

So Amazon, for example, would be more about basics. And then I think as we build it out from there, we're finding a new customer and by offering them a certain profile on that marketplace and then being able to expand the offering. With landsend.com, we bring them from the marketplace to the main site. It's like we see the growth, and it helps us to pick up customers. I would say that the margins for the Lands' End fulfill business continue to please us and it's the side of the business that we feel strongest about versus the wholesale doors. It just leverages the inventory that we own. We're not buying specifically for it and becomes a merchandising strategy that allows us to leverage a single inventory. Turning to inventory, Bernie?

因此，例如，亞馬遜將更多地關注基礎知識。然後我認為，當我們從那裡開始構建時，我們正在尋找一個新客戶，並通過在該市場上為他們提供一定的形象，然後能夠擴大產品範圍。通過 landsend.com，我們將它們從市場帶到主站點。這就像我們看到了增長，它幫助我們吸引客戶。我想說的是，Lands' End 履行業務的利潤率繼續令我們滿意，而且與批發門相比，這是我們感覺最強烈的業務方面。它只是利用我們擁有的庫存。我們不是專門為此購買，而是成為一種銷售策略，使我們能夠利用單一庫存。轉向庫存，伯尼？

Thanks, Andrew. Yes. So inventory, the transportation has stabilized for us on the inbound and we've really taken advantage of that. The team's worked very hard to get our inventory flows aligned with our selling periods. And we are now going to be able to keep our inventories down mid-double digits in that 15% range for the rest of the year on the quarters. We are -- as far as the promotional business, it is definitely a very promotional market still, where we found strength is in newness, as Andrew has noted. And that is where we are going to lean in and try to drive our higher margin business and know that there are other products, we will have to join the rest of the promotional industry and have to go into a discount to liquidate that inventory.

謝謝，安德魯。是的。因此，庫存、運輸在入境時對我們來說已經穩定下來，我們真的利用了這一點。該團隊非常努力地使我們的庫存流量與我們的銷售期保持一致。我們現在將能夠在今年剩餘時間的季度中將我們的庫存保持在 15% 範圍內的中兩位數。我們 - 就促銷業務而言，這絕對是一個非常促銷的市場，正如安德魯所指出的那樣，我們發現力量在於新奇。這就是我們要依靠的地方，並嘗試推動我們更高利潤的業務，並且知道還有其他產品，我們將不得不加入促銷行業的其他部分，並且必須打折以清算該庫存。

But from a total inventory standpoint, we feel very good about our inventory levels and our normal -- and will be at normalized levels for the rest of the year.

但從總庫存的角度來看，我們對我們的庫存水平和我們的正常水平感覺非常好 - 並且在今年剩餘時間裡將處於正常水平。

Dana, just to add to that, as like we want -- we're determined to drive a turn up and keep that freshness at much higher and I think that traditionally, we've got a cataloging background. We were one of the original catalogers, and in fact we would bring in a lot of inventory set at the beginning of the season and let it run down. So it starts to get a little stale as you get towards the end of the season. In fact, we're going to and are progressively bringing in the inventory in shots and matching it better against the revenue. It's better for cash flow. It's better for freshness. It's better for markdowns. There's just a whole lot of advantages to it.

Dana，我想補充一點，就像我們想要的那樣——我們決心提高知名度並保持更高的新鮮度，我認為傳統上，我們有編目背景。我們是最初的編目員之一，事實上我們會在季節開始時引入大量庫存，然後讓它耗盡。所以當你接近賽季末時，它開始變得有點陳舊。事實上，我們將要並且正在逐步引入鏡頭中的庫存，並將其與收入更好地匹配。這對現金流更好。它更適合新鮮。更適合打折。它有很多優點。

But as we move forward, you'll see the business run that way. And it will come through materially in margins for us, and you'll see it reflected in turns as well as we're able to keep that inventory better matched to the revenue profile.

但隨著我們向前邁進，您會看到業務以這種方式運行。它將為我們帶來實質性的利潤，你會看到它輪流反映出來，而且我們能夠使庫存與收入狀況更好地匹配。

Got it. And just one follow-up. With the better-than-expected adjusted EBITDA uptick from the prior guidance, the main driver of that is that on the gross margin side, the SG&A side? How do we unpack that in terms of the levers?

知道了。只有一個後續行動。調整後的 EBITDA 比之前的指引好於預期，其主要驅動力是毛利率方面，SG&A 方面？我們如何根據槓桿來解壓它？

Yes, Dana, it's driven by gross margin. And our improvements in -- as you have heard from most of our industry, transportation costs are down and we're benefiting from that. And we also see continued improvement in our average unit cost of our product coming in, and we see real tailwinds in our lower cost and our ability to drive those lower costs through, as Andrew said, the timing and have it at the right times.

是的，Dana，它是由毛利率驅動的。我們的改進——正如你從我們行業的大多數人那裡聽到的那樣，運輸成本下降了，我們正從中受益。我們還看到我們產品的平均單位成本持續改善，我們看到了我們降低成本的真正順風，以及我們推動這些降低成本的能力，正如安德魯所說，時機並在正確的時間擁有它。

Yes. I mean one of the opportunities Dana as we speed our [churn] it looks like we're sitting on less inventory progressively from last year at a higher cost. And so we see that as a tailwind that we can take forward for some considerable period of time.

是的。我的意思是 Dana 的機會之一，因為我們加快了我們的 [流失] 看起來我們從去年開始以更高的成本逐步減少庫存。因此，我們將其視為我們可以在相當長的一段時間內推進的順風。

And we'll take our next question from Alex Fuhrman with Craig-Hallum Capital Group.

我們將從克雷格-哈勒姆資本集團的 Alex Fuhrman 那裡回答下一個問題。

Nice to speak with you. Congratulations on a really nice start to the year here. Let's see, Dana didn't leave a whole lot to ask about. But maybe just to start from a high level here. A lot of other retailers have been talking about just seeing demand soften over the last month or 2? Obviously, it doesn't sound like you're seeing that with a really strong guidance for the year. Is there anything you have noticed lately in terms of maybe basket size or customer acquisition costs that would kind of be indicative of that? Or has it really just been kind of steady as she goes here for your customer over since the last update?

很高興和你說話。祝賀你在這裡度過了一個非常美好的一年。讓我們看看，Dana 並沒有留下太多要問的事情。但也許只是從高層次開始。許多其他零售商一直在談論在過去一兩個月看到需求疲軟？顯然，聽起來你並沒有看到今年有非常強大的指導。您最近在籃子大小或客戶獲取成本方面是否注意到任何可以表明這一點的事情？還是自從上次更新以來，她來這里為您的客戶服務時真的很穩定？

I mean, overall, Alex, it's been pretty steady. But I mean, as you can imagine, and I know you're a keen watcher of our site. It's just like it's choppy. Every day is a little different, and we're thinking more -- we think a lot more about how to reach our customers across the various channels from Macy's to Target, to Amazon to landsend.com and how we're -- how we're best in the position for them. And I think that we're doing a better job as a company working out how to address our customers in those channels. So for example, we're reaching a much younger consumer with our swim business, and we're able to do that via Instagram. I don't know if you noticed, but we made the Instagram site shoppable and that's become a viable place to acquire new customers. And we've seen about a 10% lift in the number of followers that we're getting off Instagram.

我的意思是，總的來說，亞歷克斯，它一直很穩定。但我的意思是，正如您想像的那樣，我知道您是我們網站的熱心觀察者。就像波濤洶湧一樣。每一天都有點不同，我們想得更多——我們想得更多關於如何通過各種渠道接觸我們的客戶，從梅西百貨到塔吉特，從亞馬遜到 landsend.com 以及我們如何——我們如何最適合他們的位置。而且我認為，作為一家致力於解決這些渠道中的客戶問題的公司，我們做得更好。因此，例如，我們的游泳業務吸引了更年輕的消費者，我們可以通過 Instagram 做到這一點。我不知道您是否注意到，我們讓 Instagram 網站可以購物，這已成為獲取新客戶的可行場所。我們發現 Instagram 上的關注者數量增加了大約 10%。

And I just called that as an example because it's one that's probably shown the most change and it's probably the easiest to track. So we're being more thoughtful about the levers that we pull within the channels that we operate and viewing them as one digital enterprise rather than a series of silos where we think about Macy's differently, where we think about Amazon differently, we're actually connected the dots between them all and are able to amplify that and get leverage across the business. So I think you're seeing more of that coming through. And that, along with everything we talked to Dana about it gives us some running as we get through the rest of the year.

我只是將其稱為示例，因為它可能顯示出最大的變化，並且可能最容易跟踪。因此，我們更加深思熟慮我們在我們運營的渠道中拉動的槓桿，並將它們視為一個數字企業，而不是我們以不同方式看待梅西百貨、以不同方式看待亞馬遜的一系列孤島，我們實際上是將它們之間的所有點連接起來，並能夠放大並在整個業務中發揮影響力。所以我認為你會看到更多這樣的事情發生。而且，連同我們與 Dana 談論的所有內容，讓我們在今年餘下的時間裡有一些跑步。

Okay. That's really helpful. And then Andrew, I thought it was interesting the commentary about licensing. I feel like that's something we've seen kind of some efforts that never really got off the ground, several CEOs ago in that area. Can you give us a little bit more insight into how those talks have progressed and what categories you might be looking to license?

好的。這真的很有幫助。然後是安德魯，我認為關於許可的評論很有趣。我覺得這是我們已經看到的一些努力，但從未真正起步，幾位 CEO 在該領域之前。您能否讓我們更深入地了解這些談判的進展情況以及您可能希望獲得哪些類別的許可？

So yes, sure, it's a good question. For us, it's very important that we maintain a stance as a family variety retailer. We've always been that. It's been our heritage. We're going to stay with that at $1.6 billion, we can't be putting all of our eggs in one basket. We've got this resource that we're spreading across a lot of categories and a lot of geographies. And for us, we view licensing as an opportunity to still remain really competitive in categories or channels or geographies that we wouldn't otherwise be able to show up in a way that we were completely proud of. And at the same time, it allows us to take that resource and position it behind things where we know we can really, really set ourselves apart like swim or light bottoms or like outerwear.

所以是的，當然，這是一個很好的問題。對我們來說，保持家庭品種零售商的立場非常重要。我們一直都是這樣。這是我們的傳統。我們將保持在 16 億美元，我們不能把所有的雞蛋放在一個籃子裡。我們擁有這種資源，我們將其分佈在很多類別和很多地區。對我們來說，我們將許可視為一個機會，可以在類別、渠道或地區保持真正的競爭力，否則我們將無法以我們引以為豪的方式展現出來。同時，它使我們能夠利用該資源並將其定位在我們知道我們可以真正使自己與眾不同的事物之後，例如游泳或輕便底部或外套。

So it's more about where we want to invest our next dollar ourselves and then look for partners to really support the growth of the business. And I would say to you, it's going to be the lesser categories or the noncore categories and geographies and channels that we haven't necessarily got to. We're in conversations geographically to take the business into places like Latin America or into the Middle East. We couldn't possibly go in there ourselves. We don't have that expertise to get in there, but we recognize from our digital sales that there's demand that we can capture. And so having that partner in place really helps us. And again, I mean, you can do the math on it. It really -- it's a great opportunity for us to build our margins and build our expansion and demand much quicker than we could sort of organically just given some of the constraints we face.

因此，更多的是我們自己想在哪裡投資下一美元，然後尋找合作夥伴來真正支持業務的增長。我會告訴你，這將是我們不一定要涉及的較小類別或非核心類別以及地理和渠道。我們正在就地理位置進行對話，以便將業務帶入拉丁美洲或中東等地。我們不可能自己進去。我們沒有進入那裡的專業知識，但我們從我們的數字銷售中認識到我們可以捕捉到需求。因此，擁有該合作夥伴確實對我們有幫助。再一次，我的意思是，你可以計算一下。這真的 - 這對我們來說是一個很好的機會來建立我們的利潤率並建立我們的擴張和需求，這比我們有機地考慮到我們面臨的一些限制要快得多。

Okay. That's really helpful. And congratulations again on the great start to the year.

好的。這真的很有幫助。再次祝賀今年開局良好。

Yes, thank. Appreciate it.

是的，謝謝。欣賞它。

And there are no more questions at this time. That concludes today's teleconference. Thank you for your participation. you may now disconnect.

現在沒有更多問題了。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。