Lands' End, Inc. reported its financial results for the 13 and 26 weeks ended August 2, 2024, revealing a decline in net revenue and ongoing challenges in profitability. For the 13-week period, net revenue was $317.2 million, down from $323.4 million in the same quarter of the previous year. The company’s gross profit increased to $151.9 million, representing a gross margin of 47.9%, compared to 43.2% in the prior year. However, selling and administrative expenses rose to $135.5 million, up from $123.9 million, leading to a decrease in operating income to $2.5 million from $5.8 million year-over-year.

The net loss for the quarter was $5.3 million, an improvement from a net loss of $8.0 million in the same period last year. This resulted in a diluted loss per share of $0.17, compared to $0.25 in the prior year. For the 26 weeks ended August 2, 2024, net revenue totaled $602.6 million, down from $632.9 million, with a net loss of $11.7 million compared to a loss of $9.7 million in the previous year.

The company faced macroeconomic challenges, including inflation and high interest rates, which impacted consumer spending. In response, Lands' End undertook restructuring efforts, reducing approximately 10% of its corporate office and Hong Kong sourcing positions, incurring restructuring costs of $2.7 million for the 26-week period, significantly higher than $0.4 million in the prior year.

Lands' End's balance sheet showed total current assets of $414.8 million as of August 2, 2024, down from $492.8 million a year earlier. Total assets decreased to $802.5 million from $1.0 billion. The company reduced long-term borrowings under its Asset-Based Lending (ABL) Facility to $20.0 million from $70.0 million in the previous year, reflecting improved cash management.

The company also initiated a new share repurchase program in March 2024, allowing for the repurchase of up to $25.0 million of common stock through March 31, 2026. During the second quarter of 2024, Lands' End repurchased shares totaling $3.7 million, compared to $3.0 million in the same quarter of 2023.

Overall, while Lands' End showed some improvement in gross profit and reduced net loss, it continues to navigate a challenging retail environment marked by rising costs and changing consumer behavior.