Lands' End Sees Positive Q3 Results
Shares of Lands' End saw an 11% uptick on Tuesday after the company announced better-than-expected results for the third quarter. The retailer now expects adjusted earnings before interest, taxes, depreciation, and amortization to range between $80 million and $84 million, raising the floor by $3 million from its previous guidance. However, the company projected a net loss of $115 million to $118 million, compared to its prior forecast of a loss of $4.5 million to a profit of $1 million.
Lands' End reported a net loss of $112.4 million, or $3.52 per share, for the quarter ended October 27, compared to a loss of $4.7 million, or 14 cents per share, in the same quarter last year. This loss was primarily due to a $106.7 million impairment of goodwill caused by declines in the company's stock price and market capitalization.
Adjusted for one-time items, the company's loss came out to be 11 cents per share, slightly better than their guidance of 13 cents to 20 cents per share. Revenue also saw a decline from $371 million to $324.7 million year-over-year, while inventory was down 25% by the end of the quarter.
Despite this positive news, shares in Lands' End are still down approximately 3% on a year-to-date basis.
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