Q4 2024 Lands End Inc Earnings Call Transcript
Key Points
- Lands' End Inc (LE) achieved its eighth consecutive quarter of gross margin expansion, with a 760 basis point improvement year-over-year.
- The company reported a 38% year-over-year increase in adjusted EBITDA for the fourth quarter, reaching $44 million.
- Lands' End Inc (LE) successfully expanded its licensing segment, creating a $150 million GMV business with strong gross margins.
- The company improved its inventory position by 12% year-over-year, allowing for better cost structure and increased product turnover.
- Lands' End Inc (LE) saw significant growth in its digital marketing efforts, doubling its Instagram following and successfully engaging younger customers through social media and pop-up events.
- Total revenue for the fourth quarter decreased by 14% compared to the previous year.
- The European E-commerce business underperformed, with a 22% year-over-year sales decline.
- The US E-commerce business saw a 19% decrease in sales compared to the fourth quarter of 2023.
- SG&A expenses as a percentage of sales increased by approximately 230 basis points due to revenue deleverage.
- The company's holiday promotional strategy did not resonate with a subset of its customer base, impacting sales.
Good day, everyone, and welcome to today's Lands' End 4Q fiscal year 2024 end earnings call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question-and-answer session. (Operator Instructions) Please note today's conference is being recorded.
It is now my pleasure to turn the conference over to Tom Altholz. Please go ahead.
Good morning, and thank you for joining the Lands' End earnings call for discussion of our fourth quarter and fiscal 2024 results, which we released this morning and can be found on our website, landsend.com.
I'm Tom Altholz, Lands' End Senior Director of Financial Planning and Analysis, and I'm pleased to join you today with Andrew McLean, our Chief Executive Officer; and Bernie McCracken, our Chief Financial Officer. After the prepared remarks, we will conduct a question-and-answer session.
Please also note that the information we are about to discuss
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