Lands' End Inc (LE) 2023 Q3 法說會逐字稿

Good day, everyone, and welcome to the Lands' End Third Quarter Earnings Conference Call. (Operator Instructions) Please note today's call will be recorded, and I'll be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Bernie McCracken, Chief Financial Officer. Please go ahead.

大家好，歡迎參加 Lands' End 第三季財報電話會議。 （操作員說明）請注意，今天的通話將被錄音，如果您需要任何幫助，我將隨時待命。現在我很高興將會議交給財務長 Bernnie McCracken。請繼續。

Good morning, and thank you for joining the Lands' End earnings call for a discussion of our third quarter 2023 results, which we released this morning and can be found at our website plans and.com. I'm Bernie McCracken, Lands' End Chief Financial Officer, and I'm pleased to join you today with Andrew McLean, our Chief Executive Officer. 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 for forward-looking information 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 during this call, we'll be referring to non-GAAP metrics. 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 and a copy of which is posted in the Investor Relations section of our website at landsend.com.

早安，感謝您參加 Lands' End 財報電話會議，討論我們今天早上發布的 2023 年第三季業績，您可以在我們的網站plans and.com 上找到該業績。我是 Lands' End 財務長伯尼·麥克拉肯 (Bernie McCracken)，很高興今天與我們的執行長 Andrew McLean 一起出席。在準備好的發言之後，我們將進行問答環節。另請注意，我們將要討論的資訊包括前瞻性陳述。此類陳述涉及風險和不確定性。該公司的實際結果可能與本次電話會議中討論的結果有重大差異。可能導致此類差異的因素包括但不限於公司向SEC 提交的文件中註明和包含的那些項目，包括我們的10-K 表格年度報告和10-Q 表格季度報告，以獲取由公司提供的前瞻性資訊。本公司在本次電話會議中代表了本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在本次電話會議期間發生變化，我們將參考非公認會計準則指標。這些非公認會計準則衡量指標並非依照公認會計原則制定。非 GAAP 財務指標與最直接可比較的 GAAP 指標的調整可以在我們今天早些時候發布的收益報告中找到，其副本也發佈在我們網站 landsend.com 的投資者關係部分。

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

這樣，我會將電話轉給安德魯。

Thank you, Bernie. Good morning and thank you for joining us today. Before I turn to our Q3 results, I'd like to congratulate Bernie on his appointment to Chief Financial Officer, which we announced in December. After having served as our interim CFO since January, I couldn't be more pleased to continue working with Bernie and I'm more than confident that he will continue to lead our financial organization with accidents.

謝謝你，伯尼。早安，感謝您今天加入我們。在討論第三季業績之前，我要祝賀 Bernie 被任命為財務官，我們在 12 月宣布了這項任命。自從一月起擔任我們的臨時財務長後，我非常高興能夠繼續與伯尼一起工作，並且我非常有信心他將繼續領導我們的金融組織應對意外。

With that, I'll turn to our Q3 performance. Our results were characterized by strong execution of our solutions based strategy to deliver quality for our customers and value to our shareholders. We build on our momentum from Q2 further improved our inventory position, injecting newness across our assortment and continue to prioritize gross margin improvements to drive incremental gross profit dollars. Our deliberate strategy to improve the relevance of our solution driven products generated more profitable sales, resulting in gross margin and profit expansion and adjusted EBITDA for $17 million above the high end of our guidance range. As I've previously noted, we're executing better deliberate strategy to drive higher quality sales with a larger portion of our sales occurring with no or lower levels of promotions rather than simply prioritizing moving units. So we can enhance gross margin and deliver improved cash flows as we've now worked to further improve our inventory position is clear. This strategy is working. Q3 marked our third successive quarter of significant inventory and margin improvement at 25% reduction and 700 basis points of improvement, respectively. We are confident that we have found a winning formula, increasing churns of merchandise while maintaining a lower, more efficient inventory geared to our targeted customer cohorts. We're taking advantage of the flexibility that our lower inventory levels provide to continuously refresh our assortment with new styles, colors and fabrics more frequently throughout the year our customers are responding exceptionally well to this approach. As we introduced last quarter, the transition from a demographic focus to behavioral will focus when it comes to our customers. We are zeroing in on two key high-value customer cohort, which we call our revolvers and our progress and leveraging our proprietary data to better understand their shopping behaviors patterns not resolve as are the largest cobalt, other existing base solutions oriented addresses that prefer a classic styles and value quality over trends and shop primarily on necessity two to three times a year. It builds on our second largest cohort and an opportunity for growth and discovering and refining this final, I think, ongoing journey where we will face the current moment. They generally have more volume potential and spent more than resolved as part of our identity as a solutions company for changing the way we think about our assortment and marketing strategy and aligning them more closely to how our key cohorts shop. We're creating more compelling customer-driven that provide a more holistic look and feel for Lands' End iconic American brand and the way these designs present and sell our products. We're taking a more outfit centric approach to our assortment and go-to-market strategy, designing and prioritizing products across categories that feature significantly more productive inventory and facilitate sales across natural adjacencies. You can see this in how we are showing up in digital and with the look and feel of our website and marketing as a digitally native companies were using this new approach alongside our investments to drive more robust engagement with option cohorts for continuing to improve our site experience to more targeted marketing to present our customers with relevant and engaging content to drive quality sales. As a result, we have seen increased traffic and engagement from social media and with repeat exposure, we expect our social media prospects to continue growing nicely on the huge strategic infrastructure enhancements we've made to improve our internal efficiency. We've begun pivoting our IT focus to enhance our customer facing processes. We recently welcomed a new technology leader to spearhead these efforts and work with me to roadmap our strategy and identify leading partners to drive innovation consistent with our asset-light model.

接下來，我將談談我們第三季的表現。我們的業績的特點是強有力地執行了基於解決方案的策略，為我們的客戶提供質量，為我們的股東提供價值。我們在第二季度的勢頭基礎上，進一步改善了我們的庫存狀況，為我們的品種注入了新意，並繼續優先考慮毛利率的提高，以推動毛利的增量。我們精心製定的策略旨在提高解決方案驅動產品的相關性，從而產生了更有利可圖的銷售，從而提高了毛利率和利潤，調整後的 EBITDA 比我們指導範圍的上限高出 1700 萬美元。正如我之前指出的，我們正在執行更好的深思熟慮的策略，以推動更高品質的銷售，其中很大一部分銷售是在沒有促銷或較低水平的促銷的情況下進行的，而不是簡單地優先考慮移動單位。因此，我們可以提高毛利率並改善現金流，因為我們現在正在努力進一步改善我們的庫存狀況，這是顯而易見的。這個策略正在發揮作用。第三季標誌著我們連續第三個季度庫存和利潤率顯著改善，分別減少了 25% 和 700 個基點。我們相信，我們已經找到了一個成功的秘訣，增加商品的流失率，同時保持針對我們的目標客戶群的更低、更有效率的庫存。我們利用較低的庫存水準所提供的靈活性，全年更頻繁地不斷更新我們的產品系列，提供新的款式、顏色和布料，我們的客戶對這種方法反應非常好。正如我們在上季度介紹的那樣，從人口統計重點到行為重點的轉變將集中在我們的客戶身上。我們將重點放在兩個關鍵的高價值客戶群上，我們稱之為左輪手槍和我們的進步，並利用我們的專有數據來更好地了解他們的購物行為模式，而這些模式無法像最大的鈷、其他現有的基礎解決方案導向的地址那樣解決，這些地址更喜歡經典款式和重視品質勝過流行趨勢，每年購物兩到三次，主要購買必需品。它建立在我們第二大群體的基礎上，也是一個成長的機會，也是一個發現和完善這個最終的、我認為是我們將面對當下時刻的持續旅程的機會。它們通常具有更大的銷售潛力，並且作為我們作為解決方案公司身份的一部分，花費的資金超過了解決方案的一部分，以改變我們對我們的分類和營銷策略的思考方式，並使它們更緊密地與我們的關鍵群體的購物方式保持一致。我們正在創造更引人注目的以客戶為導向的產品，為 Lands' End 標誌性美國品牌提供更全面的外觀和感覺，以及這些設計展示和銷售我們產品的方式。我們正在採取更以服裝為中心的方法來製定我們的分類和上市策略，設計跨類別的產品並確定其優先級，這些產品的庫存效率顯著提高，並促進自然相鄰區域的銷售。您可以從我們在數位方面的表現以及我們網站的外觀和感覺以及行銷中看到這一點，因為數位原生公司正在使用這種新方法以及我們的投資來推動與選項群體更強有力的互動，以持續改進我們的網站經驗更有針對性的行銷，為我們的客戶提供相關且有吸引力的內容，以推動優質銷售。因此，我們看到社交媒體的流量和參與度有所增加，並且隨著重複曝光，我們預計我們的社交媒體前景將繼續良好地增長，因為我們為提高內部效率而進行了巨大的戰略基礎設施增強。我們已開始將 IT 重點轉向增強面向客戶的流程。我們最近迎來了一位新技術領導者來帶頭進行這些工作，並與我一起制定我們的策略路線圖，並確定領先的合作夥伴，以推動與我們的輕資產模式一致的創新。

Our facility in Baltimore solutions was a key driver of our strong performance this quarter, both in the US and internationally, we drove sales in key adjacencies, especially bottoms and sweaters. Our new styles in key fabrics like corduroy denim and velvet and new colors contributed to the strong performance of note, demand in nearly all our women's categories were up double digits in our US e-commerce business, US wind solutions finished the summer strong in August, and we are looking forward to building on that success with the introduction of our upcoming spring swim assortment, which includes a recommitment to the one-piece category with the creation of our products and centered around our classic touchless solutions and the enhancement of control based technologies, including a shaping technology that we have protected via a patent application. Swim remains an incredibly innovative space programs and Tupelo and developed building on the theme we've discussed before, our customers are responding positively to freshness across categories. This is contributing to strong performance in our layering products and transitional outerwear solutions, which gives us confidence that we will be able to continue this trajectory more consistently in the months and years ahead.

我們位於巴爾的摩解決方案的工廠是我們本季在美國和國際上表現強勁的關鍵驅動力，我們推動了關鍵週邊地區的銷售，尤其是下裝和毛衣。我們在燈芯絨牛仔布和天鵝絨等關鍵面料上的新款式以及新顏色為我們的強勁表現做出了貢獻，我們的美國電子商務業務中幾乎所有女裝類別的需求都實現了兩位數增長，美國風解決方案在八月份強勁地結束了夏季，我們期待在這一成功的基礎上再接再厲，推出即將推出的春季游泳系列，其中包括通過創建我們的產品重新致力於一體式類別，並以我們經典的非接觸式解決方案和基於控制的增強為中心技術，包括我們透過專利申請保護的成型技術。 Swim 仍然是一個令人難以置信的創新太空項目，而 Tupelo 是根據我們之前討論過的主題開發的，我們的客戶對跨類別的新鮮度做出了積極的反應。這有助於我們的分層產品和過渡外套解決方案表現強勁，這讓我們有信心在未來的幾個月和幾年裡能夠更一致地繼續這一發展軌跡。

Our US e-commerce business on largest direct-to-consumer channel, delivered a second consecutive quarter of great margin performance due to our more targeted approach to promotions and improved inventory management. When we offer our customers, the solutions they need in a relevant presentation with attractive fabrications, color and value. They are responding and not necessarily waiting for Tesco at the level we've had in recent years we are also continuing our efforts to maximize key events and holidays to drive demand with our customers responding well. This more targeted promotional strategy, which complements our broader strategy to minimize markdowns and show conviction in our solutions based category has led to improved margins.

由於我們更有針對性的促銷方法和改進的庫存管理，我們在最大的直接面向消費者管道上的美國電子商務業務連續第二個季度實現了較高的利潤率表現。當我們向客戶提供所需的解決方案時，我們會以具有吸引力的製作、顏色和價值的相關演示形式提供他們所需的解決方案。他們正在做出回應，不一定要像我們近年來那樣等待特易購，我們還在繼續努力，最大限度地利用關鍵活動和假期來推動需求，而我們的客戶反應良好。這種更有針對性的促銷策略補充了我們最大限度地減少降價並表現出對我們基於解決方案的類別的信心的更廣泛策略，從而提高了利潤率。

Turning to our international business. As with our US business, our strong performance is driven by our authorities and transitional asset resolutions sent to prioritizing newness and improved inventory management. We delivered margins that were in line with our US business. Gross margin in Europe grew nicely by approximately 1,000 basis points year over year.

轉向我們的國際業務。與我們的美國業務一樣，我們的強勁業績是由我們的當局和旨在優先考慮新產品和改進庫存管理的過渡性資產決議推動的。我們的利潤率與我們的美國業務相符。歐洲的毛利率年增約 1,000 個基點，表現良好。

During Q3, we continued executing on our licensing strategy, which adds more mortality guarantees and new income streams, allowing us to continue to focus on our core capabilities. And recently we entered into a licensing agreement for all case categories, and we're continuing to ramp up activities under our existing agreements for Costco. And as I mentioned on our last call for footwear, we expect to begin seeing income from Phase 3 licenses in 2024. Moving forward, we expect to maintain our expanded focus on licensing and are continuing to build a robust pipeline of potential partners.

在第三季度，我們繼續執行我們的授權策略，這增加了更多的死亡率保證和新的收入來源，使我們能夠繼續專注於我們的核心能力。最近，我們簽訂了針對所有箱子類別的授權協議，我們將根據與 Costco 的現有協議繼續加強活動。正如我在上次鞋類電話會議中提到的，我們預計將於2024 年開始看到來自第三階段許可的收入。展望未來，我們預計將繼續擴大對許可的關注，並繼續建立強大的潛在合作夥伴管道。

Turning to the asset asset-based business, we are making headway in our efforts to enhance performance and ensure this critical business achieves the results were constant. They tend to be clear. We see great opportunity and profitably grow our share of open market certain business systems to help fuel our BCC customer acquisition engine partnership with American Airlines and the upcoming launch of our partnership with Santander are great examples of our work to earn the business of large accounts. In addition, we will launch a new partnership with Health Care Corporation of America in the first quarter of 2024 outfitting 3,500 managers and frontline employees in parallel division.

在資產業務方面，我們正在努力提升業績，確保這項關鍵業務持續取得成果。他們往往很清楚。我們看到了巨大的機遇，並以盈利方式增加了我們在開放市場某些業務系統中的份額，以幫助推動我們與美國航空的BCC 客戶獲取引擎合作夥伴關係，以及即將推出的與桑坦德銀行的合作夥伴關係，這些都是我們贏得大客戶業務的工作的很好例子。此外，我們將於 2024 年第一季與美國醫療保健公司建立新的合作夥伴關係，為平行部門配備 3,500 名管理人員和第一線員工。

Similarly, for expanding on the progress we made last quarter and our school uniform business through new relationships with large school districts that will ramp up in 2024. We continue to see schools as a key pipeline for Outfitters business and having achieved a 92% satisfaction rate among our existing partners this season, we believe we're well positioned to capture additional market share. We're driving innovation in our business with our planned introduction of integrated saving technology for celebrities in customer versus stores with plans to roll it out more broadly into provided by size that allows the purchaser to scan their body with BakBone and get fitted with a 97% accuracy rate, driving both customer satisfaction and an expected reduction in returns and exchanges. This technology which takes into consideration personal privacy and information security also has applications to our B2C business. And we are actively exploring ways to integrate it is the consumer experience. We're taking steps to drive efficiency across our B2B business through the process of reorganizing and revamping the organizational structure of our Outfitters division to expand our reach and capture greater market share. We recently hired a new B2B business development leader with over 20 years of experience who is focused on building out a pipeline of mid-market and enterprise opportunities. We also restructured our portfolio management team from a regional focus. So business segment or in construction that will enable our teams to hyper focus on the needs of each customer group, working with our partners at Salesforce to enable a stronger data-driven sales process and also implementing marketing automation technology to improve customer communications, create better defined customer journeys from outreach and lead generation and more effectively engage with existing and prospective customers.

同樣，為了擴大我們上季度取得的進展以及我們的校服業務，我們將在 2024 年與大型學區建立新的關係。我們繼續將學校視為 Outfitters 業務的關鍵管道，並已實現 92% 的滿意度在本季我們現有的合作夥伴中，我們相信我們處於有利地位，可以佔領更多的市場份額。我們正在推動業務創新，計劃為顧客和商店中的名人引入整合保存技術，並計劃更廣泛地推廣到按尺寸提供，允許購買者使用 BakBone 掃描他們的身體並安裝 97 % 準確率，提高客戶滿意度並減少退貨和換貨的預期。這項考慮到個人隱私和資訊安全的技術也適用於我們的B2C業務。我們正在積極探索如何將其整合為消費者體驗。我們正在採取措施，透過重組和改造 Outfitters 部門的組織結構來提高整個 B2B 業務的效率，以擴大我們的業務範圍並佔領更大的市場份額。我們最近聘請了一位擁有 20 多年經驗的新 B2B 業務開發領導者，他專注於建立中端市場和企業機會的管道。我們也以區域為重點重組了我們的投資組合管理團隊。因此，業務部門或建設將使我們的團隊能夠高度關注每個客戶群的需求，與Salesforce 的合作夥伴合作，實現更強大的數據驅動的銷售流程，並實施行銷自動化技術來改善客戶溝通，創造更好的客戶體驗。從外展和潛在客戶開發中定義客戶旅程，並更有效地與現有和潛在客戶互動。

Moving to our third party business, we saw a nice improvement in the quality of the demand and the deliberate approach we took to better tailor our assortments to each marketplace and the successful categories with a focus on quality of sales, improving gross margin, faster, inventory turn and freshness. The results were picked up tick with Macy's Target and Amazon performing consistently well with women as to where and swim driving demand across each of these marketplaces. With the holiday season underway, Valens and have launched an exclusive women's swim collection that target and select warm-weather doors. Beginning November 26, we'll roll out 200 total doors by early January 2024 for new swim collection includes nearly 70 pieces of our iconic stone, where a new fabrics trends and colors, including accessories. We're very excited to be partnering with Target to make our leading product category available to target customers. Bernie will then discuss our third quarter performance as well as our fourth quarter outlook. Following that discussion, we will share what we've seen so far in the holiday season before taking your questions.

轉向我們的第三方業務，我們看到需求品質有了很大的改善，並且我們採取了深思熟慮的方法，更好地根據每個市場和成功的類別定制我們的產品，重點是銷售質量，提高毛利率，更快，庫存週轉率和新鮮度。結果顯示，梅西百貨 Target 和亞馬遜在女性消費者中表現良好，在各個市場的去向和游泳推動需求方面表現出色。隨著假期的到來，Valens 推出了專門針對溫暖天氣的女士游泳系列。從 11 月 26 日開始，我們將在 2024 年 1 月初之前推出總計 200 個新游泳系列，其中包括近 70 件我們標誌性的石頭，其中包括新的布料趨勢和顏色，包括配件。我們非常高興與 Target 合作，向目標客戶提供我們領先的產品類別。然後伯尼將討論我們第三季的業績以及第四季的前景。討論結束後，我們將在回答您的問題之前先分享我們在假期期間所看到的情況。

Thank you, Andrew. For the third quarter, total revenue performance came in slightly below our guidance range at $325 million, a decrease of 12.5% compared to last year or 9% when adjusting for our Japan eCommerce business, which closed in 2022 and accounted for $10 million of revenue in the third quarter of last year and excluding the $4 million difference in year-over-year revenue from Delta, as Andrew noted, we delivered adjusted EBITDA of $17 million, up 4% year over year, which exceeded the high end of our guidance range. Fundamental to these results is our conscious decision to focus on profitability and balance sheet efficiency versus solely on revenue, which has improved our gross profit dollars end markets. First margin in the third quarter was 47% and approximately 700 basis point improvement from the third quarter of 2022. Margin improvement was primarily driven by new products across the brand's strength in transitional outerwear and adjacent product categories, reduction in sales of clearance inventory and improvements in supply chain costs. While we are pleased with our gross margin improvements. We will focus on driving additional supply chain cost savings through product cost reductions and improved seasonal inventory management.

謝謝你，安德魯。第三季的總營收表現略低於我們的指引範圍，為3.25 億美元，比去年下降12.5%，對我們的日本電子商務業務進行調整後下降9%，該業務於2022 年結束，營收為1000萬美元正如安德魯指出的，去年第三季度，排除達美航空 400 萬美元的同比收入差異，我們的調整後 EBITDA 為 1700 萬美元，同比增長 4%，超過了我們指導的上限範圍。這些結果的基礎是我們有意識地決定專注於獲利能力和資產負債表效率，而不是僅僅關注收入，這改善了我們終端市場的毛利。第三季的第一利潤率為47%，較2022 年第三季提高了約700 個基點。利潤率的改善主要是由於該品牌在過渡外套和鄰近產品類別方面的新產品、清倉庫存銷售的減少以及改善在供應鏈成本方面。雖然我們對毛利率的提高感到滿意。我們將專注於透過降低產品成本和改進季節性庫存管理來進一步節省供應鏈成本。

Our US eCommerce business saw a sales decrease of 10% compared to the third quarter of 2022, we generated an increase in gross profit dollars of 7%, driven by our concerted effort to reduce promotions within key categories especially our outerwear solutions, new products across the brand and improved inventory management.

與2022 年第三季相比，我們的美國電子商務業務銷售額下降了10%，但我們的毛利成長了7%，這得益於我們齊心協力減少關鍵類別的促銷活動，特別是我們的外套解決方案、跨領域的新產品品牌和改進的庫存管理。

Sales in our Europe e-commerce business in the quarter were down 8% year-over-year, reflecting continued macro economic challenges, but again, increased gross profit dollars by 18%, driven by promotional effectiveness and improved inventory management globally. E-commerce sales decreased 13% from last year or 10% when adjusting for Japan, sales from Lands' End Outfitters were down 8% from the third quarter of 2022, excluding the $4 million decrease in year-over-year revenue from Delta for Outfitters business about 3%, primarily driven by high single digit growth in both our national accounts and midsize customers, more than offset by school uniforms due to timing shifts in back-to-school deliveries last year related to supply chain disruptions from the second quarter to the third quarter, revenue for our third party business was down 22% compared to the prior year primarily driven by weaker performance at Kohl's, partially offset by strong performance at Macy's end target for our partnership with Macy's, which launched this year is performing very well, driven by strong sales in women's swim and apparel. SG&A expenses increased $3 million compared to last year. As a percentage of sales, SG&A was 42%, which was an increase of 590 basis points compared to 2022, primarily due to approximately 400 basis points of deleverage from lower revenues at 145 basis points to higher incentive space personnel costs, partially offset by lower marketing and to continued cost controls. We're continuing to look for ways to improve SG&A, and we'll be taking action to drive savings as we continue to evolve our digitally native business. For the third quarter, we took a $107 million impairment of goodwill due to the decline of our stock price and the resulting market capitalization, which led to a net loss for the quarter of $112 million, or $3.52 per share compared to a net loss of $5 million or $0.14 per share in 2022. Excluding the non-cash goodwill impairment, our adjusted net loss was $4 million or $0.11 per share moving to our balance sheet. Inventories at the end of the third quarter were $422 million compared to %565 million a year ago. The 25% improvement in our inventory position was a result of the actions the company has taken to improve inventory efficiency by reducing inventory purchases and capitalizable speed-to-market initiatives year to date, net cash provided by operations was $163 million greater than last year, primarily due to this improved inventory productivity.

本季我們歐洲電子商務業務的銷售額年減 8%，反映出持續的宏觀經濟挑戰，但在促銷效果和全球庫存管理改善的推動下，毛利再次成長了 18%。電子商務銷售額較去年下降13%，根據日本調整後下降10%，Lands' End Outfitters 的銷售額較2022 年第三季下降8%，不包括達美航空2019 年營收年減400 萬美元的情況。服裝商業務增長約3%，主要是由我們的國民賬戶和中型客戶的高個位數增長推動的，但由於去年第二季度供應鏈中斷導致返校送貨時間發生變化，校服的增長遠遠超過了校服的成長到第三季度，我們的第三方業務收入比上年下降了22%，主要是由於Kohl's 業績疲軟，部分被梅西百貨的強勁業績所抵消，因為我們與梅西百貨的合作夥伴關係今年推出的最終目標表現非常出色嗯，這是由女士游泳和服裝的強勁銷售所推動的。 SG&A 費用與去年相比增加了 300 萬美元。 SG&A 佔銷售額的百分比為42%，與2022 年相比增加了590 個基點，主要是由於收入下降145 個基點，激勵空間人員成本上升，導致去槓桿化約400 個基點，部分被較低的激勵空間所抵銷。行銷和持續的成本控制。我們將繼續尋找改善銷售、管理和行政費用的方法，並且在繼續發展我們的數位原生業務的同時，我們將採取行動來節省開支。第三季度，由於股價下跌以及由此產生的市值，我們提列了 1.07 億美元的商譽減值，導致該季度淨虧損 1.12 億美元，即每股 3.52 美元，而每股淨虧損為2022 年，淨虧損為500 萬美元，即每股0.14 美元。不包括非現金商譽減值，調整後的淨虧損為400 萬美元，即每股0.11 美元，計入資產負債表。第三季末的庫存為 4.22 億美元，而去年同期為 5.65 億美元。我們的庫存狀況改善了 25%，這是公司透過減少庫存採購和資本化的快速上市計劃來提高庫存效率的結果，迄今為止，營運提供的淨現金比去年增加了 1.63 億美元，主要是由於庫存生產率的提高。

In terms of our debt at the end of the third quarter, our total term loan balance was $234 million at our $275 million ABL had $110 million of borrowings outstanding, which was $15 million lower than the third quarter last year. Despite lower borrowings outstanding on the ABL, we've continued to have elevated interest expense driven by higher market rates. We're continuing to explore opportunities to finance our debt and are committed to doing so subject to favorable market conditions.

就第三季末的債務而言，我們的定期貸款餘額總額為 2.34 億美元，ABL 為 2.75 億美元，未償還借款為 1.1 億美元，比去年第三季減少了 1,500 萬美元。儘管 ABL 的未償還借款減少，但由於市場利率上升，我們的利息支出仍持續增加。我們正在繼續探索債務融資的機會，並致力於在有利的市場條件下這樣做。

For the third quarter, we purchased repurchased $3 million worth of shares under the company's previously announced $50 million share repurchase authorization, bringing the balance of the remaining authorization to $32 million as of the end of this quarter.

第三季度，我們根據該公司先前宣布的 5,000 萬美元股票回購授權回購了價值 300 萬美元的股票，使截至本季末剩餘授權餘額達到 3,200 萬美元。

Now moving to guidance building on our prior discussion, we are continuing to prioritize high-quality sales and improved cash flows, which we expect to drive continued gross profit and margin expansion during the holiday season. In the fourth quarter, we expect net revenue to be between $490 million and $520 million. We expect adjusted net income of $8 million to $11 million and adjusted diluted earnings per share to be between $0.25 and $0.34. We expect adjusted EBITDA to be in the range of $27.5 million to $31.5 million, which takes into account SG&A impacts related to normalized compensation accruals.

現在轉向基於我們之前討論的指導，我們將繼續優先考慮高品質的銷售和改善的現金流，我們預計這將在假期期間推動毛利和利潤率的持續擴張。我們預計第四季淨收入將在 4.9 億美元至 5.2 億美元之間。我們預計調整後淨利潤為 800 萬至 1,100 萬美元，調整後攤薄每股收益為 0.25 至 0.34 美元。我們預計調整後的 EBITDA 將在 2,750 萬美元至 3,150 萬美元之間，其中考慮到與標準化應計薪酬相關的 SG&A 影響。

Based on our third quarter results and quarter guidance we are updating our full year guidance and now expect net revenue of $1.45 billion to $1.48 billion. We expect adjusted net income to be in the range of a net loss of $5 million to $2 million and adjusted diluted loss per share of $0.16 to $0.07. We expect adjusted EBITDA to be in a range of $80 million to $84 million. Our guidance for the full year incorporates approximately $35 million in capital expenditures. As we have discussed, our improved inventory management will enable us to maintain inventory at normalized levels and bolster our work to further expand gross margin moving forward so that I will turn the call back over to Andrew.

根據我們的第三季業績和季度指引，我們正在更新全年指引，目前預計淨收入為 14.5 億美元至 14.8 億美元。我們預計調整後淨利潤將在 500 萬至 200 萬美元淨虧損範圍內，調整後每股攤薄虧損將在 0.16 至 0.07 美元之間。我們預計調整後 EBITDA 將在 8,000 萬美元至 8,400 萬美元之間。我們對全年的指導包括約 3500 萬美元的資本支出。正如我們所討論的，我們改進的庫存管理將使我們能夠將庫存維持在正常水平，並加強我們的工作，進一步擴大毛利率，以便我將把電話轉回給安德魯。

Thank you, Bernie. Before we wrap up, I'd like to briefly touch on our holiday sales trends like other retailers. We introduced Black Friday promotions earlier this year, and we can see traffic ramp up as we progress through November, significantly stronger traffic and increased gross profit dollars across our channels on Black Friday and over the weekend had been Cyber Week. This holiday season. We are better engaging with our customers to our improved brand focus to drive higher-quality sales. So that's supporting our enhanced inventory position as we approach the end of our fiscal year. Like other retailers, holiday promotions are higher from across the balance of the year. However, we continue to scale those promotions back versus prior holiday periods and remain committed. So our strategy of driving increased gross margin in both dollars and rate. We will remain competitive with our pricing and be smart about how we target the different segments of our customer file to drive profitable demand throughout the holiday season. However, we remain cautious given the weeks ahead and the additional weekend between Black Friday and Christmas, which could for some business later on beyond our shipping customer. As I mentioned earlier, we are confident that we have found a winning formula to achieve more productive sales by focusing on a better understanding of our customers' shopping behavior.

謝謝你，伯尼。在結束之前，我想像其他零售商一樣簡要介紹我們的假期銷售趨勢。我們在今年稍早推出了黑色星期五促銷活動，隨著 11 月的進展，我們可以看到流量不斷增加，黑色星期五和週末是網路週，我們的管道流量顯著增加，毛利也增加。這個假期。我們更好地與客戶互動，提高品牌關注度，以推動更高品質的銷售。因此，隨著我們接近財政年度結束，這支持了我們增強的庫存狀況。與其他零售商一樣，全年的假期促銷活動也較多。然而，與先前的假期相比，我們將繼續縮減這些促銷活動的規模，並保持承諾。因此，我們的策略是推動美元和利率毛利率的提高。我們將保持定價競爭力，並明智地針對客戶檔案的不同部分，以推動整個假期期間的獲利需求。然而，考慮到未來幾週以及黑色星期五和聖誕節之間的額外周末，我們仍然保持謹慎態度，這可能會影響我們的運輸客戶以外的一些業務。正如我之前提到的，我們相信我們已經找到了一個成功的秘訣，透過專注於更好地了解客戶的購物行為來實現更有效率的銷售。

And then moving to inventory. Customer-centric strategy is working, and I am pleased with the progress our team has made as we continue to play to our strengths and improve operational efficiencies across the business, well positioned to finish strong through the year.

然後轉向庫存。以客戶為中心的策略正在發揮作用，我對我們的團隊的進展感到高興，因為我們將繼續發揮我們的優勢並提高整個業務的營運效率，為全年的強勁表現做好準備。

That concludes our prepared remarks. We look forward to your questions.

我們準備好的演講到此結束。我們期待您的提問。

(Operator Instructions)

（操作員說明）

Dana Telsey, Telsey Advisory Group.

達納‧特爾西，特爾西諮詢小組。

Please go ahead.

請繼續。

Hi. Good morning, everyone, and nice to see the progress on the profitability the continuation of the lower inventories, I think down 30% in the second quarter, down 25% now in the third quarter. Where do you see what the normalized rate of inventory level should be how you planning that going forward. And then on, it's nice to see scaling back on the promotions and that you're seeing, especially post the Black Friday time period, what are you seeing in terms of categories, outerwear, how you plan a power A. was? And then on the margin focus, what are you seeing in terms of under the hood on the margins, whether it's sprayed or whether it's a Sea where what is the opportunity for the gross margin going forward? Thank you.

你好。大家早上好，很高興看到盈利能力方面的進展以及庫存持續下降，我認為第二季度下降了 30%，第三季現在下降了 25%。您在哪裡可以看到庫存水準的標準化比率應該是多少，您應該如何規劃未來的計劃。然後，很高興看到促銷活動的縮減，特別是在黑色星期五之後，您在類別、外套方面看到了什麼，您如何計劃一個強力 A. 是？然後在利潤率方面，您在利潤率方面看到了什麼，無論是噴塗還是海洋，未來毛利率的機會是什麼？謝謝。

Big Data Center go in that area seems good to bump up leading into directly into the question that we continue to see opportunity for us on inventory and then pulling that back. We're going to work the business more to a churn and see an opportunity. We're moving the business between three and four turns. I mean, obviously, it gets harder as the turns increase where you're looking, but it's a function of the speed that we're putting into our supply chain. So we've talked a lot and it's going to be related to your AUR comment, your AUR comments as well. And we've talked a lot about getting speed in and having more freshness more consistently in the business month after month after month versus a more traditional model of buying twice a year. And that in of itself will give us more opportunity to increase the turns going into next year. And it will give us opportunity to show off and maintain the average unit retails. I'm going to talk to Bob scaling back promotions. We scaled back promotions even through Black Friday and Cyber Monday. Com. I just wanted to emphasize that point in the script, we it come into an early one of the things I've noticed about Lands' End is probably more to do with our cataloging history than anything else. So we really kick off holiday in October, October tends to be a bigger month for open August. So that's different than I've experienced in my career on. And it's really it's the start at the start of the holiday shopping period and holiday for us is really all about exit successful, October and November and then that last couple of weeks after Cyber Monday. So what you saw that really begin to market Black Friday in October are consistent with our styling holiday, and that's what's new in their insurance that the overall level of promotion they were following and they were falling consistently. It does take a lot of box. Our coffers that we've traditionally done. You will see us going up to 70% less pages of up to 7% growth. I thought we were up to 40% of that. Given that that's where we've started this. We sort of pull the needle out to in terms of where the problems arise. And we saw that that customer came with us on the journey, particularly when we offered newness in their farm. We noted in the call in Q three and it's been a it's been something we've seen all year that the women's categories were all posting double-digit comps and gross margin comps. And I wouldn't be fair to say that we've seen that continue. We've seen very successful acceptance of our product in those categories.

大數據中心在該領域的發展似乎很好，可以直接導致我們繼續看到庫存機會，然後將其撤回的問題。我們將更加努力地開展業務，並看到機會。我們正在將業務轉移三到四輪。我的意思是，顯然，隨著轉彎次數的增加，事情會變得更加困難，但這是我們投入供應鏈的速度的函數。我們已經談了很多，這將與您的 AUR 評論相關，也與您的 AUR 評論相關。我們已經討論了很多關於在業務中月復一月地加快速度並保持更多新鮮感，而不是一年兩次購買的傳統模式。這本身將為我們提供更多機會來增加明年的周轉率。這將為我們提供展示和維持平均單位零售量的機會。我要和鮑伯談談縮減促銷活動。即使在黑色星期五和網路星期一期間，我們也縮減了促銷活動。 com。我只是想在劇本中強調這一點，我們進入了早期，我注意到關於《天涯海角》的事情可能更多地與我們的編目歷史有關，而不是其他任何事情。所以我們真的在十月開始假期，十月往往是八月開放的更大月份。所以這與我職業生涯中所經歷的不同。這其實是假日購物期的開始，對我們來說，假期其實就是成功退出，十月和十一月，然後是網路星期一後的最後幾週。所以你所看到的，十月份真正開始行銷的黑色星期五與我們的造型假期是一致的，這就是他們保險中的新內容，他們所遵循的整體促銷水平一直在下降。確實需要很多盒子。我們傳統上做的金庫。您會看到我們的頁面減少了 70%，但增長了 7%。我認為我們已經達到了其中的 40%。鑑於這就是我們開始的地方。我們可以根據問題出現的地方來解決問題。我們看到該客戶與我們一起踏上旅程，特別是當我們為他們的農場提供新鮮事物時。我們在第三季的電話會議中註意到，我們全年都看到，女性類別的表現和毛利率都達到兩位數。我不能公平地說我們已經看到這種情況繼續下去。我們已經看到我們的產品在這些類別中非常成功地被接受。

Answering your question about categories, you know, probably sort of worried not worried in that we took and we made some changes in how we approached as to where we are coming through last year. It was clear we were taking really our best stuff. Starts are down parkas we were discounting them. It gives credit for Black Friday, Cyber Monday, and it was just too much discounts. We've given that I felt we needed to take a different direction on that in addition to that, not to not, it's not not a political statement. Winters are getting warmer and they happen later. So we had changed the weighting of the fabrics and the products that we brought in really for the early part of holiday. So it was less about that heavy outerwear. I will tell you certainly needed in the Midwest today as we sit here in the snow, but even for the first five, six weeks, we really got behind other programs. We brought in a non than on Title issue late, but it's a vast program that's been very successful. It gave us a price point at a margin and actually fit with where the climate was that.

回答你關於類別的問題，你知道，可能有點擔心而不是擔心，因為我們對去年的進展方式做了一些改變。很明顯，我們確實拿走了我們最好的東西。派克大衣的起始價下降了，我們正在打折。它讚揚了黑色星期五和網路星期一，而且折扣太多了。我們已經說過，我覺得我們需要對此採取不同的方向，除此之外，這不是一個政治聲明。冬天越來越暖和，而且發生得越來越晚。因此，我們改變了假期初期引入的布料和產品的重量。所以這與厚重的外套無關。我會告訴你，今天中西部確實需要，因為我們坐在雪地裡，但即使在前五、六週，我們也確實落後於其他項目。我們在標題問題上引入了非比，但這是一個非常成功的龐大計劃。它給了我們一個邊際價格點，並且實際上適合當地的氣候。

In addition to that, we brought in a new middleweight jacket. We've introduced new program, Wonder weight five and one. It's done so that it's pack and pull down and it's been a very successful. So entry price point into heavier, whereas heavier outerwear for us. So very pleased with how outerwear has performance fees that our women's has performed. And actually, we showed we showed that we thought categories alongside tag along for the ride. We saw good performance in men's and actually even our products like home less last year. And I remember this very clearly, we were discounting home very heavily. We haven't needed to do that. And actually on the one offer we gave, which was a $10 CPM Macau, which sold a lot of talent that day there was a pent up demand waiting for that last part of it as we think about them, as you see at the margin compensations, we've got a lot of our gains in Q3 from actually lower at lower discount rates. So the real benefit of the average of the cost work that we did a still to come to us, if you remember, we made the arrangement and made the changes in our sourcing organization to move to Li & Fung on that is a Q2 event. And we can have really even with the speed of our supply chain, you go to the full effect of that given inventory turns and so middle to back half of next year. So we still think that the best is to come in terms of continued margin upside from AUC. And that is kind of thing we started with it. And it's like women's is where we've seen the most progress as we expand that thinking to other categories. And we see that we will be able to continue that momentum as well. And that's the story we've stuck to Dana. We've stayed with it pretty consistently says I took over, I absolutely committed to it. I believe we'll get this done. And this is a this is a really great margin story that we have at Lands' End at the moment and really a reallocation of our product.

除此之外，我們還帶來了一件新的中量級外套。我們推出了新計劃，Wonder 重量五加一。這樣做是為了將其打包並拉下來，並且非常成功。因此，入門價格指向較重的外套，而對我們來說較重的外套。我們對外套的性能表現與我們女裝的表現非常滿意。事實上，我們展示了我們認為類別和標籤一起進行。去年，我們在男裝領域看到了良好的表現，甚至我們的產品如 home less 也表現出色。我記得很清楚，我們的房屋折扣非常大。我們不需要這樣做。事實上，我們給出的一個報價是 10 美元的 CPM 澳門，那天賣掉了很多人才，當我們考慮它們時，有一個被壓抑的需求在等待最後一部分，正如你在邊際補償中看到的那樣，我們在第三季獲得了很多收益，這些收益實際上是在較低的折現率下實現的。因此，如果您還記得的話，我們所做的平均成本工作的真正好處仍然是我們，我們做出了安排，並對我們的採購組織進行了更改，以轉移到利豐，這是第二季度的事件。即使以我們供應鏈的速度，我們也可以真正實現給定庫存週轉的全部效果，因此在明年中後半段。因此，我們仍然認為最好的辦法是 AUC 的利潤率持續上升。這就是我們開始的事情。當我們將這種想法擴展到其他類別時，就像女性是我們看到最大進步的領域一樣。我們看到我們也將能夠繼續這種勢頭。這就是我們一直堅持 Dana 的故事。我們一直堅持下去，一直說我接手了，我絕對致力於它。我相信我們會完成這件事。這是我們目前在 Lands' End 的一個非常好的利潤故事，也是我們產品的重新分配。

And then, Dana, I'll just add for the inventories for perspective that you can use pre-pandemic levels as a guide to what our future levels will be and the timing of the inventory levels. And then you also receive benefit as soon as you have saw part of the announcement that we also announced another license, which case our licensing arrangements will also have a benefit, so reducing our inventories.

然後，達納，我將補充庫存，以便您可以使用大流行前的水平作為我們未來水平和庫存水平時間的指南。然後，一旦您看到我們也宣布了另一個許可證的公告的一部分，您也會受益匪淺，在這種情況下，我們的許可安排也會帶來好處，從而減少我們的庫存。

Got it. Thank you very much.

知道了。非常感謝。

Thank you, Dana.

謝謝你，達納。

Thank you. Alex Fuhrman, Craig-Hallum Capital Group. Please go ahead.

謝謝。亞歷克斯·福爾曼，克雷格-哈勒姆資本集團。請繼續。

Hey, guys. Thanks very much for taking my question on. So clearly, the focus online, prioritizing profitability over revenue is producing some nice results here. I'm curious how much more room you think there is pull back on unprofitable sales. Could there be another leg down of revenue as you identify more and promotions or clearance activity that you want to pull back on? And then looking out over the couple of years as you add more high-margin revenue, presumably from growing the licensing business and can you continue to grow EBITDA without necessarily a big increase in revenue. Can this be $100 million EBITDA business on the current $1.5 billion revenue base as you start to grow some of those other areas like licensing?

大家好。非常感謝您回答我的問題。很明顯，在線上的重點，優先考慮盈利能力而不是收入，在這裡產生了一些不錯的結果。我很好奇您認為無利可圖的銷售還有多少回落空間。當您發現更多想要取消的促銷或清倉活動時，收入是否會再次下降？然後展望未來幾年，隨著您增加更多高利潤收入（可能來自授權業務的成長），您能否繼續增加 EBITDA，而不必大幅增加收入。當您開始發展授權等其他領域時，在當前 15 億美元的收入基礎上，這是否可以成為 1 億美元的 EBITDA 業務？

Yes. So I'm not sure you've been sending some of our strategy meetings. But yes, I think what really is important for us when we talk about licensing, that's one of the strategies that will reduce our clearance sales and when we get out of the products we're not as focused on that and don't have authority online will be able to drive about a top line, we'll be able to drive a better profit and better net income number from a licensing arrangement. Then selling a lot of product at clearance of that we tended to do ask. So I think you definitely hit on that. We expect to be able to drive ultimately would have been $1.5 billion revenue company.

是的。所以我不確定您是否已經召開了我們的一些策略會議。但是，是的，我認為當我們談論許可時，對我們來說真正重要的是，這是減少我們清倉銷售的策略之一，當我們退出產品時，我們不會那麼關注這一點，也沒有權力在線將能夠推動營收成長，我們將能夠透過許可安排獲得更好的利潤和更好的淨利潤。然後在我們傾向於要求的清倉時出售大量產品。所以我認為你肯定想到了這一點。我們預計最終能夠為公司帶來 15 億美元的收入。

Saying that, Alex, as you know, as we look further out, but there is a point where we have the customer reeducate, and that's what's happening right now. I mean, the we have a customer deciles and our lowest lowest decile is the one that we have probably averaged the most customer that they lost the brands they're committed to the brand. You know, customers come and they stay with Lands' End for 17, 18, 19 years, what? They're not well, what they're struggling most to respond to it is that they traditionally use it a little bit like a stock option, which is like they put product in their basket and they wait until they get the price they want and then they'll buy it. We're moving towards customers who will buy the product now or it won't be there if we're not going to discount our product portfolio to spend on our brands, we're going to expand on what we believe are the key attributes of the lens and solution company that we have built, convert kind of drive that. I think what you will see and we're seeing ourselves further into our in our internal discussions is we're shifting from us are relatively simple decile based model that looks at all customers the same and we're moving towards a more thoughtful from a psychographic model that looks at customers in cohorts. And the two cohorts that we've identified are resolved with a goal of reserves. It would be fair to say that we've used the fourth quarter to start repositioning some of the thinking around them and how we go to market and to them how we sell to them what uniquely versus more generic place and how we track them on top of what we've been doing in Q4 and part of what we use Black Friday and Cyber Monday for us to go out and find new customers, new customers that we like, which is why? And then there was just some throwaway comments in the script, but it's why we talk so much about social media. We really like the customer we're finding from that. They fit our revolver platform and have had they are much less inclined to buy at a discount. So we're doing the hard work right now. The commitment you're getting from meet the commitment you're getting from this management team is that we're going to deliver gross margin comps. And this isn't just about getting rate and declaring victory. We understand we are here to drive EBITDA and ultimately earnings per share. And that's why we are very focused on that. So we're constantly evaluating that and surrounding that need 11 days be that Black Friday, Cyber Monday or just they cancel the Tuesday in January.

話雖如此，亞歷克斯，正如你所知，當我們看得更遠時，但有一個點是我們對客戶進行再教育，這就是現在正在發生的事情。我的意思是，我們有一個客戶十分位數，我們最低的十分位數可能是我們平均失去了他們所致力於的品牌的最多客戶的客戶。你知道，顧客來了之後，他們會在 Lands' End 待上 17 年、18 年、19 年，什麼？他們的情況不太好，他們最難以應對的是，他們傳統上使用它有點像股票期權，就像他們把產品放在籃子裡，然後等到他們得到他們想要的價格，然後他們就會買它。我們正在向那些現在就會購買該產品的客戶邁進，否則如果我們不打折我們的產品組合來購買我們的品牌，那麼該產品就不會存在，我們將擴展我們認為的關鍵屬性我們已經建立的鏡頭和解決方案公司，轉換了一種驅動力。我想你會看到，我們在內部討論中進一步看到的是，我們正在從相對簡單的基於十分位數的模型轉變，該模型對所有客戶都一視同仁，我們正在從一個更加深思熟慮的模型轉向更周到的模型觀察群體中的顧客的心理模型。我們確定的兩個群體的目標是儲備。可以公平地說，我們已經利用第四季度開始重新定位圍繞他們的一些想法，以及我們如何進入市場，以及我們如何向他們銷售什麼獨特的地方與更通用的地方以及我們如何跟踪他們我們在第四季度所做的事情以及我們利用黑色星期五和網路星期一出去尋找新客戶、我們喜歡的新客戶的一部分，這就是為什麼？然後劇本中只有一些隨意的評論，但這就是我們如此多地談論社交媒體的原因。我們真的很喜歡從中找到的客戶。他們適合我們的左輪手槍平台，並且不太願意打折購買。所以我們現在正在做艱苦的工作。您從管理團隊獲得的承諾是，我們將提供毛利率比較。這不僅僅是獲得分數和宣布勝利。我們知道我們來這裡是為了提高 EBITDA 並最終提高每股收益。這就是為什麼我們非常關注這一點。因此，我們不斷評估這一點，並圍繞需要 11 天的時間進行評估，無論是黑色星期五、網路星期一還是只是他們取消了一月份的星期二。

Okay. That's really helpful. Thank you. I appreciate your insights and congratulations again on the strong third quarter results.

好的。這真的很有幫助。謝謝。我感謝您的見解，並再次祝賀第三季的強勁業績。

Thank you.

謝謝。

Thank you, Alex.

謝謝你，亞歷克斯。

Thank you. This does conclude today's Lands' End third quarter earnings call. You may all disconnect at this time and have a wonderful day.

謝謝。今天的 Lands' End 第三季財報電話會議到此結束。你們可能會在這個時候斷開連接並度過美好的一天。