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Lands' End Inc. (LE+0.11%) has submitted its 10-K filing for the fiscal year ended January 31, 2025.
The filing reports total net revenue of $1.36 billion, a decrease from $1.47 billion in the previous fiscal year. This decline is attributed to the transition of kids and footwear product lines to licensing arrangements and reduced promotional activity.
U.S. Digital Segment revenue was $1.15 billion, down from $1.29 billion the previous year. The decline is primarily due to the transition of certain product lines and inventory buyouts by corporate clients.
Europe eCommerce revenue decreased to $103.1 million from $112.9 million, driven by a focus on higher margin sales and reduced markdowns.
Licensing and Retail revenue increased to $105.4 million from $66.5 million, primarily due to licensing arrangements and increased same-store sales.
Gross profit increased to $653.3 million from $625.5 million, with gross margin improving to 47.9% from 42.5%, attributed to better inventory management and lower promotional activity.
Selling and administrative expenses were $561.8 million, representing 41.2% of net revenue, up from 37.4% the previous year, due to higher marketing spend and professional services.
Operating income was reported at $51.0 million, a significant improvement from an operating loss of $77.5 million in the prior year, which included a $106.7 million goodwill impairment charge.
Interest expense decreased to $40.4 million from $48.3 million, reflecting lower average balances and interest rates.
Net income for the fiscal year was $6.2 million, compared to a net loss of $130.7 million in the previous year. Adjusted net income was $12.6 million, compared to an adjusted net loss of $4.8 million.
The company identified macroeconomic challenges such as inflation and high interest rates as factors affecting consumer spending and operational costs.
Restructuring efforts included a 10% reduction in corporate office positions, resulting in restructuring charges of $5.6 million for the fiscal year.
Lands' End continues to focus on its strategic priorities, including leveraging its brand, growing its customer base, and increasing margins through its core principles and approach.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Lands' End Inc. annual 10-K report dated March 27, 2025. To report an error, please email earnings@qz.com.