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Lands' End Earnings Make an Impressive Start, Stock Jumps 8% - Analyst Blog

Lands' End, Inc. ( LE ) reported its first earnings results after coming into existence following the spin-off from Sears Holdings Corporation ( SHLD ) on Apr 4, 2014. Yesterday, the company's share price gained 8.2% after the release of fiscal first-quarter 2014 (ended May 2) results.

Earnings came in at 34 cents per share, reflecting an increase of 48.1% year over year.

Revenues

Total revenues generated were $330.5 million, up 3.6% year over year. Lands' End reports financial results under the heads discussed below:

Revenues from the Direct segment were $276.0 million, up 4.8% year over year and representing 83.5% of total revenue. The Retail segment produced revenues of $54.4 million, down 2.3% year over year. Revenues from Corporate/Other segment were $12 million versus $13 million in the prior-year quarter.

Costs/Margins

Lands' End's cost of sales climbed 2.4% year over year and represented 51% of total revenue, down from 51.5% reported in the year-ago quarter. Selling and administrative expense, as a percentage of total revenue, were 41.8% versus 42.9% recorded in the year-ago quarter.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $23.8 million, up from $17.6 million in the year-ago quarter.

Balance Sheet/ Cash Flow

Exiting fiscal first-quarter 2014, Lands' End had cash and cash equivalents of $68.3 million versus $25.7 million recorded in the previous quarter. Long-term debt was roughly $509.9 million.

Lands' End generated cash of $31.4 million from its operating activities, up from $19.5 million in the prior-year quarter. Capital expenditure surged 89.2% year over year to $1.5 million.

Lands' End has a $920.7 million market capitalization. Some stocks worth considering in the retail industry include PC Connection, Inc. ( PCCC ) and Gaiam Inc. ( GAIA ). Both PC Connection and Gaiam hold a Zacks Rank #2 (Buy).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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