Global eCommerce revenue decreased 13.2% Y/Y to $216.4 million. Net revenue in U.S. eCommerce fell 10% Y/Y, driven by a concerted effort to reduce promotional activity and improved inventory management, and International eCommerce declined 30.9% Y/Y.  

Adjusted EPS loss of $(0.11) compared to $(0.05) in 3Q22, beat the consensus of $(0.17). 

The gross margin expanded by 700 basis points to 47%, and the gross profit increased 2.8% Y/Y to $152.6 million.

The company reported an operating loss of $(101.31) million for the quarter, compared to income of $2.74 million a year ago.

The company held cash and cash equivalents of $38.65 million as of October 27, 2023.

Net cash provided by operations stood at $36.7 million for the 39 weeks ended October 27, 2023, compared to net cash used in operations of $(126.0) million a year ago.

As of October 27, 2023, inventories totaled $422.2 million; a 25.3% decrease was driven by reducing inventory purchases and capitalizing on speed-to-market initiatives.

Adjusted EBITDA was $17.28 million, compared to $16.66 million in 3Q22. The margin expanded by 83 bps to 5.3%.

During the quarter, LE repurchased $3 million of common stock under its previously announced share repurchase program. As of October 27, 2023, additional purchases of up to $31.8 million can be made through February 2, 2024.

4Q23 Outlook: Lands' End sees Q4 sales of $490 million-$520 million vs. consensus of $547 million and Adjusted EPS of $0.25 - $0.34 versus consensus of $0.26.

Price Action: LE shares are trading higher by 10.98% at $7.38 on Tuesday.