Lands’ End Inc., seeing revenues decline 17.3 percent due to the impact of COVID-19, posted a net loss of $20.6 million in the first quarter ended May 1, compared to a profit of $6.8 million in the year-ago quarter.
Revenues were $217 million versus $262.4 million in the year-ago period.
The results released Tuesday were preliminary. The final quarterly report will require additional time to complete due to COVID-19.
U.S. e-commerce net revenue declined 16.5 percent for the first quarter due to decreased demand as a result of the pandemic while international e-commerce net revenue remained approximately flat.
Company operated stores achieved comparable store sales growth of 14.2 percent in February before closing mid-March.
Outfitters successfully completed the remainder of the American Airlines uniform launch totaling $4 million in revenue during the first quarter with the total launch approximating $44 million. For the first quarter, Outfitters net revenue declined 26.2 percent driven by decreased demand due to COVID-19.
Adjusted earnings before interest, taxes, depreciation and amortization EBITDA decreased to a loss of $11.6 million compared to positive $3 million in the first quarter of fiscal 2019.
In response to the pandemic, the company has been reducing operating expenses and structural costs through furloughs, and temporary tiered salary reductions for executives and corporate staff starting in the first quarter, and reduced 10 percent of the corporate staff in the second quarter.
In addition, inventory receipts for fall and holiday 2020 were substantially reduced, cap-ex was cut in half to $20 million from $40 million, and its asset based lending facility was increased in March.
“While COVID-19 has created a complex environment on many fronts we believe that our business model provides the flexibility to mitigate many of the challenges this has created across the industry,” said Jerome Griffith, president and chief executive officer. “Following strong trends early in the first quarter, we saw the impact of COVID-19 in mid-March. Beginning in mid-April, we were pleased to see a rebound in our global e-commerce channel, which accelerated to double digit growth in May. We believe these trends demonstrate the resiliency of our business and we are no less optimistic about our future for several reasons. First, we are a digitally driven company with approximately 80 percent of our business in direct-to-consumer e-commerce. Second, we provide key item basics at great value with great service, at a time when we are seeing growing demand for our offerings. Third, we have demonstrated the adeptness and agility to appropriately adjust our cost structure as we reset for the new normal. And finally, we see opportunities to expand our customer base through more recent strategies, including the planned launch of Lands’ End on kohls.com and in 150 Kohl’s retail stores this coming fall. With our resilient e-commerce business and casual and value-oriented product assortment, combined with our lean operating structure and liquidity, we are positioned to capitalize on the opportunities ahead. While we expect the environment to remain difficult, we are excited about the future of Lands’ End.”