Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jul. 28, 2023 | Aug. 28, 2023 | |
Cover [Abstract] | ||
Entity Registrant Name | Lands’ End, Inc. | |
Document Type | 10-Q | |
Trading Symbol | LE | |
Current Fiscal Year End Date | --02-02 | |
Entity Common Stock, Shares Outstanding | 31,926,226 | |
Amendment Flag | false | |
Entity Central Index Key | 0000799288 | |
Entity Filer Category | Accelerated Filer | |
Document Period End Date | Jul. 28, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-09769 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-2512786 | |
Entity Address, Address Line One | 1 Lands’ End Lane | |
Entity Address, City or Town | Dodgeville | |
Entity Address, State or Province | WI | |
Entity Address, Postal Zip Code | 53595 | |
City Area Code | 608 | |
Local Phone Number | 935-9341 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, par value $0.01 per share |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 28, 2023 | Jul. 29, 2022 | Jul. 28, 2023 | Jul. 29, 2022 | |
Income Statement [Abstract] | ||||
Net revenue | $ 323,363 | $ 351,178 | $ 632,921 | $ 654,843 |
Cost of sales (excluding depreciation and amortization) | 183,766 | 207,141 | 355,387 | 381,631 |
Gross profit | 139,597 | 144,037 | 277,534 | 273,212 |
Selling and administrative | 123,866 | 128,573 | 242,380 | 244,267 |
Depreciation and amortization | 9,543 | 9,883 | 18,844 | 19,467 |
Other operating expense, net | 390 | 39 | 592 | 39 |
Operating income | 5,798 | 5,542 | 15,718 | 9,439 |
Interest expense | 12,024 | 8,813 | 24,307 | 16,982 |
Other income, net | (169) | (166) | (356) | (328) |
Loss before income taxes | (6,057) | (3,105) | (8,233) | (7,215) |
Income tax expense (benefit) | 1,961 | (926) | 1,437 | (2,665) |
NET LOSS | $ (8,018) | $ (2,179) | $ (9,670) | $ (4,550) |
NET LOSS PER COMMON SHARE | ||||
Basic: | $ (0.25) | $ (0.07) | $ (0.3) | $ (0.14) |
Diluted: | $ (0.25) | $ (0.07) | $ (0.3) | $ (0.14) |
Basic weighted average common shares outstanding | 32,117 | 33,361 | 32,280 | 33,262 |
Diluted weighted average common shares outstanding | 32,117 | 33,361 | 32,280 | 33,262 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 28, 2023 | Jul. 29, 2022 | Jul. 28, 2023 | Jul. 29, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ (8,018) | $ (2,179) | $ (9,670) | $ (4,550) |
Other comprehensive income (loss), net of tax, foreign currency translation adjustments | 700 | (843) | 781 | (3,937) |
COMPREHENSIVE LOSS | $ (7,318) | $ (3,022) | $ (8,889) | $ (8,487) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jul. 28, 2023 | Jan. 27, 2023 | Jul. 29, 2022 |
Current assets | |||
Cash and cash equivalents | $ 26,610 | $ 39,557 | $ 23,505 |
Restricted cash | 1,833 | 1,834 | 2,091 |
Accounts receivable, net | 25,095 | 44,928 | 40,917 |
Inventories, net | 396,087 | 425,513 | 569,174 |
Prepaid expenses and other current assets | 43,195 | 44,894 | 39,267 |
Total current assets | 492,820 | 556,726 | 674,954 |
Property and equipment, net | 125,325 | 127,638 | 124,626 |
Operating lease right-of-use asset | 29,685 | 30,325 | 32,115 |
Goodwill | 106,700 | 106,700 | 106,700 |
Intangible asset | 257,000 | 257,000 | 257,000 |
Other assets | 2,949 | 3,759 | 3,760 |
TOTAL ASSETS | 1,014,479 | 1,082,148 | 1,199,155 |
Current liabilities | |||
Current portion of long-term debt | 13,750 | 13,750 | 13,750 |
Accounts payable | 156,342 | 171,557 | 236,015 |
Lease liability – current | 5,643 | 5,414 | 6,720 |
Accrued expenses and other current liabilities | 100,632 | 106,756 | 101,015 |
Total current liabilities | 276,367 | 297,477 | 357,500 |
Long-term borrowings under ABL Facility | 70,000 | 100,000 | 135,000 |
Long-term debt, net | 218,022 | 223,506 | 228,948 |
Lease liability – long-term | 29,973 | 31,095 | 32,333 |
Deferred tax liabilities | 51,066 | 45,953 | 45,516 |
Other liabilities | 3,283 | 3,365 | 4,913 |
TOTAL LIABILITIES | 648,711 | 701,396 | 804,210 |
Commitments and contingencies | |||
STOCKHOLDERS’ EQUITY | |||
Common stock, par value $0.01 authorized: 480,000 shares; issued and outstanding: 32,087, 33,202 and 32,626, respectively | 321 | 326 | 332 |
Additional paid-in capital | 360,091 | 366,181 | 371,245 |
Retained earnings | 21,597 | 31,267 | 39,947 |
Accumulated other comprehensive (loss) | (16,241) | (17,022) | (16,579) |
TOTAL STOCKHOLDERS’ EQUITY | 365,768 | 380,752 | 394,945 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,014,479 | $ 1,082,148 | $ 1,199,155 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jul. 28, 2023 | Jan. 27, 2023 | Jul. 29, 2022 |
Statement of Financial Position [Abstract] | |||
Common stock, par value | $ 0.01 | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 480,000,000 | 480,000,000 | 480,000,000 |
Common stock, shares issued | 32,087,000 | 32,626,000 | 33,202,000 |
Common stock, shares outstanding | 32,087,000 | 32,626,000 | 33,202,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 28, 2023 | Jul. 29, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (9,670) | $ (4,550) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 18,844 | 19,467 |
Amortization of debt issuance costs | 1,634 | 1,546 |
Loss on disposal of property and equipment | 100 | 39 |
Stock-based compensation | 1,893 | 3,403 |
Deferred income taxes | 4,905 | 372 |
Other | (255) | (374) |
Change in operating assets and liabilities: | ||
Accounts receivable, net | 19,861 | 8,292 |
Inventories, net | 30,427 | (190,885) |
Accounts payable | (8,988) | 91,370 |
Other operating assets | 2,354 | (2,105) |
Other operating liabilities | (6,278) | (44,100) |
Net cash provided by (used in) operating activities | 54,827 | (117,525) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Sales of property and equipment | 87 | |
Purchases of property and equipment | (22,862) | (14,863) |
Net cash used in investing activities | (22,862) | (14,776) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from borrowings under ABL Facility | 118,000 | 141,000 |
Payments of borrowings under ABL Facility | (148,000) | (6,000) |
Payments on term loan | (6,875) | (6,875) |
Payments of debt issuance costs | (45) | |
Payments for taxes related to net share settlement of equity awards | (1,199) | (4,310) |
Purchases and retirement of common stock | (6,789) | (2,357) |
Net cash (used in) provided by financing activities | (44,908) | 121,458 |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | (5) | 304 |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (12,948) | (10,539) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD | 41,391 | 36,135 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD | 28,443 | 25,596 |
SUPPLEMENTAL CASH FLOW DATA | ||
Unpaid liability to acquire property and equipment | 3,551 | 2,914 |
Income taxes paid (refunded) | (298) | 4,013 |
Interest paid | 22,138 | 16,661 |
Operating lease right-of-use-assets obtained in exchange for lease liabilities | $ 1,542 | $ 3,902 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock Issued | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) |
Balance at Jan. 28, 2022 | $ 406,696 | $ 330 | $ 374,413 | $ 44,595 | $ (12,642) |
Balance, shares at Jan. 28, 2022 | 32,985 | ||||
Net loss | (2,371) | (2,371) | |||
Cumulative translation adjustment, net of tax | (3,094) | (3,094) | |||
Stock-based compensation expense | 1,484 | 1,484 | |||
Vesting of restricted shares | $ 4 | (4) | |||
Vesting of restricted shares, shares | 660 | ||||
Common stock withheld related to net share settlement of equity awards | (4,310) | (4,310) | |||
Common stock withheld related to net share settlement of equity awards, shares | (232) | ||||
Balance at Apr. 29, 2022 | 398,405 | $ 334 | 371,583 | 42,224 | (15,736) |
Balance, shares at Apr. 29, 2022 | 33,413 | ||||
Balance at Jan. 28, 2022 | 406,696 | $ 330 | 374,413 | 44,595 | (12,642) |
Balance, shares at Jan. 28, 2022 | 32,985 | ||||
Net loss | (4,550) | ||||
Cumulative translation adjustment, net of tax | (3,937) | ||||
Balance at Jul. 29, 2022 | 394,945 | $ 332 | 371,245 | 39,947 | (16,579) |
Balance, shares at Jul. 29, 2022 | 33,202 | ||||
Balance at Apr. 29, 2022 | 398,405 | $ 334 | 371,583 | 42,224 | (15,736) |
Balance, shares at Apr. 29, 2022 | 33,413 | ||||
Net loss | (2,179) | (2,179) | |||
Cumulative translation adjustment, net of tax | (843) | (843) | |||
Stock-based compensation expense | 1,919 | 1,919 | |||
Vesting of restricted shares, shares | 1 | ||||
Purchases and retirement of common stock | (2,357) | $ (2) | (2,257) | (98) | |
Purchases and retirement of common stock, shares | (212) | ||||
Balance at Jul. 29, 2022 | 394,945 | $ 332 | 371,245 | 39,947 | (16,579) |
Balance, shares at Jul. 29, 2022 | 33,202 | ||||
Balance at Jan. 27, 2023 | 380,752 | $ 326 | 366,181 | 31,267 | (17,022) |
Balance, shares at Jan. 27, 2023 | 32,626 | ||||
Net loss | (1,652) | (1,652) | |||
Cumulative translation adjustment, net of tax | 81 | 81 | |||
Stock-based compensation expense | 1,083 | 1,083 | |||
Vesting of restricted shares | $ 3 | (3) | |||
Vesting of restricted shares, shares | 408 | ||||
Common stock withheld related to net share settlement of equity awards | (1,199) | (1,199) | |||
Common stock withheld related to net share settlement of equity awards, shares | (144) | ||||
Purchases and retirement of common stock | (3,781) | $ (4) | (3,777) | ||
Purchases and retirement of common stock, shares | (430) | ||||
Balance at Apr. 28, 2023 | 375,284 | $ 325 | 362,285 | 29,615 | (16,941) |
Balance, shares at Apr. 28, 2023 | 32,460 | ||||
Balance at Jan. 27, 2023 | 380,752 | $ 326 | 366,181 | 31,267 | (17,022) |
Balance, shares at Jan. 27, 2023 | 32,626 | ||||
Net loss | (9,670) | ||||
Cumulative translation adjustment, net of tax | 781 | ||||
Balance at Jul. 28, 2023 | 365,768 | $ 321 | 360,091 | 21,597 | (16,241) |
Balance, shares at Jul. 28, 2023 | 32,087 | ||||
Balance at Apr. 28, 2023 | 375,284 | $ 325 | 362,285 | 29,615 | (16,941) |
Balance, shares at Apr. 28, 2023 | 32,460 | ||||
Net loss | (8,018) | (8,018) | |||
Cumulative translation adjustment, net of tax | 700 | 700 | |||
Stock-based compensation expense | 810 | 810 | |||
Vesting of restricted shares, shares | 2 | ||||
Purchases and retirement of common stock | (3,008) | $ (4) | (3,004) | ||
Purchases and retirement of common stock, shares | (375) | ||||
Balance at Jul. 28, 2023 | $ 365,768 | $ 321 | $ 360,091 | $ 21,597 | $ (16,241) |
Balance, shares at Jul. 28, 2023 | 32,087 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 28, 2023 | Apr. 28, 2023 | Jul. 29, 2022 | Apr. 29, 2022 | Jul. 28, 2023 | Jul. 29, 2022 | |
Pay vs Performance Disclosure | ||||||
Net Income (Loss) | $ (8,018) | $ (1,652) | $ (2,179) | $ (2,371) | $ (9,670) | $ (4,550) |
Insider Trading Arrangements
Insider Trading Arrangements | 6 Months Ended |
Jul. 28, 2023 | |
Trading Arrangements, by Individual | |
Title | directors or executive officers |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Background and Basis of Present
Background and Basis of Presentation | 6 Months Ended |
Jul. 28, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Background and Basis of Presentation | NOTE 1. BACKGROUND AND BASIS OF PRESENTATION Description of Business Lands’ End, Inc. (“Lands’ End” or the “Company”) is a leading digital retailer of casual clothing, swimwear, outerwear, accessories, footwear, home products and uniform solutions. Lands’ End offers products online at www.landsend.com , through Company Operated stores and through third-party distribution channels. Lands’ End is a classic American lifestyle brand with a passion for quality, legendary service and real value and seeks to deliver timeless style for women, men, kids and the home. Lands’ End also offers products to businesses and schools, for their employees and students, through the Outfitters distribution channel. References to www.landsend.com do not constitute incorporation by reference of the information at www.landsend.com , and such information is not part of this Quarterly Report on Form 10-Q or any other filings with the SEC, unless otherwise explicitly stated. Terms that are commonly used in the Company’s Notes to Condensed Consolidated Financial Statements are defined as follows: • ABL Facility – Asset-based senior secured credit agreement, providing for a revolving facility, dated as of November 16, 2017, with Wells Fargo Bank, N.A. and certain other lenders, as amended to date • Adjusted EBITDA – Net income (loss) appearing on the Condensed Consolidated Statements of Operations net of Income tax expense/(benefit), Interest expense, Depreciation and amortization and certain significant items • ASC – Financial Accounting Standards Board Accounting Standards Codification, which serves as the source for authoritative GAAP, as supplemented by rules and interpretive releases by the SEC which are also sources of authoritative GAAP for SEC registrants • Company Operated stores – Lands’ End retail stores in the Retail distribution channel • Debt Facilities – Collectively, the Term Loan Facility and ABL Facility • Deferred Awards – Time vesting stock awards • EPS – Earnings per share • FASB – Financial Accounting Standards Board • First Quarter 2022 - The 13 weeks ended April 29, 2022 • Fiscal 2022 – The 52 weeks ended January 27, 2023 • GAAP – Accounting principles generally accepted in the United States • LIBOR – London inter-bank offered rate • Option Awards – Stock option awards • Performance Awards – Performance-based stock awards • SEC – United States Securities and Exchange Commission • Second Quarter 2023 - The 13 weeks ended July 28, 2023 • SOFR – Secured Overnight Funding Rate • Target Shares – Number of restricted stock units awarded to a recipient which reflects the number of shares to be delivered based on achievement of target performance goals • Term Loan Facility – Term loan credit agreement, dated as of September 9, 2020, among the Company, Fortress Credit Corp., as Administrative Agent and Collateral Agent, and the lenders party thereto, as amended to date • Third Quarter 2022 – The 13 weeks ended October 28, 2022 Basis of Presentation The Condensed Consolidated Financial Statements include the accounts of Lands’ End, Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated. The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all material adjustments which are of a normal and recurring nature necessary for a fair presentation of the results for the periods presented have been reflected. Dollar amounts are reported in thousands, except per share data, unless otherwise noted. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in the Lands’ End Annual Report on Form 10-K filed with the SEC on April 10, 2023. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jul. 28, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS In March 2020, the FASB issued ASU 2020-04, Reference Reform Rate (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The guidance provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference reform if certain criteria are met. These transactions include contract modifications, hedge relationships and sale or transfer of debt securities classified as held-to-maturity. This ASU, which was effective upon issuance and modified by ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of Sunset Date of Topic 848 , may be applied through December 31, 2024, is applicable to all contracts and hedging relationships that reference the LIBOR or any other reference rate expected to be discontinued. The guidance in ASU 2020-04 may be implemented over time as reference rate reform activities occur. As part of the response to the reference rate reform, during Second Quarter 2023, the Company amended the Debt Facilities to replace the interest rate based upon the LIBOR benchmark to the SOFR benchmark. See Note 5. Debt for additional details regarding these changes. Concurrent with the amendments, the Company adopted ASU 2020-04. The Company utilized optional practical expedients for contract modifications under ASC 848-20-358 Contracts within the Scope of Topic 470 and the adoption of ASU 2020-04 did not have a material impact on the Company’s Condensed Consolidated Financial Statements. |
Loss Per Share
Loss Per Share | 6 Months Ended |
Jul. 28, 2023 | |
Earnings Per Share [Abstract] | |
Loss Per Share | NOTE 3. LOSS PER SHARE The numerator for both basic and diluted EPS is net loss. The denominator for basic EPS is based upon the number of weighted average shares of Lands’ End common stock outstanding during the reporting periods. The denominator for diluted EPS is based upon the number of weighted average shares of Lands’ End common stock and common stock equivalents outstanding during the reporting periods using the treasury stock method in accordance with GAAP. Potentially dilutive securities for the diluted EPS calculations consist of non-vested equity shares of common stock and in-the-money outstanding options where the current stock price exceeds the option strike price. The following table summarizes the components of basic and diluted EPS: 13 Weeks Ended 26 Weeks Ended (in thousands, except per share amounts) July 28, 2023 July 29, 2022 July 28, 2023 July 29, 2022 Net loss $ ( 8,018 ) $ ( 2,179 ) $ ( 9,670 ) $ ( 4,550 ) Basic weighted average common shares outstanding 32,117 33,361 32,280 33,262 Dilutive effect of stock awards — — — — Diluted weighted average common shares outstanding 32,117 33,361 32,280 33,262 Basic loss per share $ ( 0.25 ) $ ( 0.07 ) $ ( 0.30 ) $ ( 0.14 ) Diluted loss per share $ ( 0.25 ) $ ( 0.07 ) $ ( 0.30 ) $ ( 0.14 ) Stock awards are considered anti-dilutive based on the application of the treasury stock method or in the event of a net loss. Anti-dilutive shares excluded from the diluted weighted average shares outstanding were 1,617,940 anti-dilutive shares in the 13 weeks ended July 28, 2023, 1,098,859 anti-dilutive shares in the 13 weeks ended July 29, 2022, 1,411,376 anti-dilutive shares in the 26 weeks ended July 28, 2023 and 1,209,586 anti-dilutive shares in the 26 weeks ended July 29, 2022. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 6 Months Ended |
Jul. 28, 2023 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | NOTE 4. OTHER COMPREHENSIVE INCOME (LOSS) Other comprehensive income (loss) encompasses all changes in equity other than those arising from transactions with stockholders and is comprised solely of foreign currency translation adjustments. 13 Weeks Ended 26 Weeks Ended (in thousands) July 28, 2023 July 29, 2022 July 28, 2023 July 29, 2022 Beginning balance: Accumulated other comprehensive loss 4,503 , $ 4,184 , $ 4,525 and $ 3,361 respectively) $ ( 16,941 ) $ ( 15,736 ) $ ( 17,022 ) $ ( 12,642 ) Other comprehensive income (loss): Foreign currency translation adjustments (net of tax of ($ 186 ), $ 223 , ($ 208 ) and $ 1,046 respectively) 700 ( 843 ) 781 ( 3,937 ) Ending balance: Accumulated other comprehensive loss 4,317 , $ 4,407 , $ 4,317 and $ 4,407 respectively) $ ( 16,241 ) $ ( 16,579 ) $ ( 16,241 ) $ ( 16,579 ) No amounts were reclassified out of Accumulated other comprehensive (loss) during any of the periods presented. |
Debt
Debt | 6 Months Ended |
Jul. 28, 2023 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 5. DEBT ABL Facility The Company’s $ 275.0 million committed revolving ABL Facility includes a $ 70.0 million sublimit for letters of credit and is available for working capital and other general corporate liquidity needs. The amount available to borrow is the lesser of (1) the Aggregate Commitments of $ 275.0 million (“ABL Facility Limit”) or (2) the Borrowing Base which is calculated from Eligible Inventory, Trade Receivables and Credit Card Receivables, all foregoing capitalized terms not defined herein are as defined in the ABL Facility. The following table summarizes the Company’s ABL Facility borrowing availability: July 28, 2023 July 29, 2022 January 27, 2023 (in thousands) Amount Interest Rate Amount Interest Rate Amount Interest Rate ABL Facility Limit $ 275,000 $ 275,000 $ 275,000 Borrowing Base 207,326 288,498 274,354 Outstanding borrowings 70,000 6.82 % 135,000 3.51 % 100,000 6.27 % Outstanding letters of credit 8,554 13,828 10,557 ABL Facility utilization at end of period 78,554 148,828 110,557 ABL Facility borrowing availability $ 128,772 $ 126,172 $ 163,797 Long-Term Debt The Company’s September 9, 2020 Term Loan Facility provided borrowings of $ 275.0 million. Origination costs, including an Original Issue Discount (“OID”) of 3 % and $ 5.1 million in debt origination fees, were paid in connection with entering into the Term Loan Facility. The OID and the debt origination fees are presented as a direct deduction from the carrying value of the Term Loan Facility and are amortized over the term of the loan to Interest expense in the Condensed Consolidated Statements of Operations. The Company’s long-term debt consisted of the following: July 28, 2023 July 29, 2022 January 27, 2023 (in thousands) Amount Interest Rate Amount Interest Rate Amount Interest Rate Term Loan Facility $ 237,188 14.97 % $ 250,938 12.12 % $ 244,063 14.13 % Less: Current portion of long-term debt 13,750 13,750 13,750 Less: Unamortized debt issuance costs 5,416 8,240 6,807 Long-term debt, net $ 218,022 $ 228,948 $ 223,506 Interest; Fees Effective May 12, 2023, the Company executed the Fourth Amendment (the “Fourth Amendment”) to the ABL Facility which replaced the interest rate benchmark based on LIBOR with an interest rate benchmark based on SOFR plus an adjustment of 0.10 % for all loans (“ABL Adjusted SOFR”). This transition resulted in no material interest rate impact. The ABL Adjusted SOFR rate is now available for all new loans after the effective date of the Fourth Amendment. Effective with the Fourth Amendment, the ABL Facility interest rate, selected at the borrower’s election, is either (1) ABL Adjusted SOFR, or (2) a base rate which is the greater of (a) the federal funds rate plus 0.50 %, (b) the one-month ABL Adjusted SOFR rate plus 1.00 %, or (c) the Wells Fargo “prime rate”. The borrowing margin for ABL Adjusted SOFR loans is (i) less than $95.0 million, 1.25 %, (ii) equal to or greater than $95.0 million but less than $180.0 million, 1.50 %, and (iii) greater than or equal to $180.0 million, 1.75 %. For base rate loans, the borrowing margin is (i) less than $95.0 million, 0.50 %, (ii) equal to or greater than $95.0 million but less than $180.0 million, 0.75 %, and (iii) greater than or equal to $180.0 million, 1.00 % (“Applicable Borrowing Margin”). The Applicable Borrowing Margin for all loans is based upon the average daily total loans outstanding for the previous quarter. Prior to the Fourth Amendment to the ABL Facility, the interest rate, selected at the borrower’s election, was either (1) LIBOR (plus the Applicable Borrowing Margin), or (2) a base rate (plus the Applicable Borrowing Margin) which was the greater of (a) the federal funds rate plus 0.50 %, (b) the one-month LIBOR rate plus 1.00 %, or (c) the Wells Fargo “prime rate”. Effective June 22, 2023, the Company entered into Amendment No. 1 (the “First Amendment”) to the Term Loan Facility which (subject to a 1 % floor) replaced the interest rate benchmark based upon LIBOR with an interest rate benchmark based upon SOFR plus adjustments of either (a) 0.11448 % for a one-month interest period, (b) 0.26161 % for a three-month interest period, or (c) 0.42826 % for a six-month interest period (“Term Loan Adjusted SOFR”). This transition resulted in no material interest rate impact. Effective with the First Amendment to the Term Loan Facility, the interest rate per annum applicable to the loans under the Term Loan Facility is based on a fluctuating rate of interest measured by reference to, at the borrower’s election, either (1) a Term Adjusted Loan SOFR rate plus 9.75 % or (2) an alternative base rate (which is the greater of (i) the prime rate published in the Wall Street Journal, (ii) the federal funds rate, which shall be no lower than 0.00 % plus ½ of 1.00 %, or (iii) the one month Term Loan Adjusted SOFR rate plus 1.00 % per annum) plus 8.75 %. Prior to the First Amendment to the Term Loan Facility, the interest rate per annum applicable to the loans under the Term Loan Facility was based on a fluctuating rate of interest measured by reference to, at the borrower’s election, either (1) a LIBOR rate (with a minimum rate of 1.00 %) plus 9.75 % or (2) an alternative base rate (which was the greater of (i) the prime rate published in the Wall Street Journal, (ii) the federal funds rate, which was to be no lower than 0.00 % plus ½ of 1.00 %, or (iii) the one month LIBOR rate plus 1.00 % per annum) plus 8.75 %. During Second Quarter 2023, the Company adopted ASU 2020-04, the optional practical expedient for Reference Rate Reform related to its Debt Facilities and as such, these amendments are treated as a continuation of the existing debt agreement and no gain or loss on these modifications were recorded in the Condensed Consolidated Statement of Operations. Customary agency fees are payable in respect of the Debt Facilities. The ABL Facility fees include (i) commitment fees of 0.25 % based upon the average daily unused commitment (aggregate commitment less loans and letter of credit outstanding) under the ABL Facility for the preceding fiscal quarter and (ii) customary letter of credit fees. As of July 28, 2023, the Company had borrowings of $ 70.0 million under the ABL Facility. Maturity; Amortization and Prepayments The ABL Facility maturity date is the earlier of (a) July 29, 2026 and (b) June 9, 2025 if, on or prior to such date, the Term Loan Facility has not been refinanced, extended or repaid in full in accordance with the terms thereof and not replaced with other indebtedness. The Term Loan Facility matures on September 9, 2025 and amortizes at a rate equal to 1.25 % per quarter. It is subject to mandatory prepayments in an amount equal to a percentage of the borrower’s excess cash flows in each fiscal year, ranging from 0 % to 75 % depending on the Company’s total leverage ratio, and with the proceeds of certain asset sales, casualty events and extraordinary receipts. The loan could not be voluntarily prepaid during the first two years of its term without significant penalties. A prepayment premium of 3 % applies to voluntary prepayments and certain mandatory prepayments made after September 9, 2022 and on or prior to September 9, 2023 , 1 % for such prepayments made after September 9, 2023 and on or prior to September 9, 2024 and no premium on such prepayments thereafter. Guarantees; Security All obligations under the Debt Facilities are unconditionally guaranteed by Lands’ End, Inc. and, subject to certain exceptions, each of its existing and future direct and indirect subsidiaries. The ABL Facility is secured by a first priority security interest in certain working capital of the borrowers and guarantors consisting primarily of accounts receivable and inventory. The Term Loan Facility is secured by a second priority security interest in the same collateral, with certain exceptions. The Term Loan Facility is secured by a first priority security interest in certain property and assets of the borrowers and guarantors, including certain fixed assets such as real estate, stock of the subsidiaries and intellectual property, in each case, subject to certain exceptions. The ABL Facility is secured by a second priority interest in the same collateral, with certain exceptions. Representations and Warranties; Covenants Subject to specified exceptions, the Debt Facilities contain various representations and warranties and restrictive covenants that, among other things, restrict Lands’ End, Inc.’s and its subsidiaries’ ability to incur indebtedness (including guarantees), grant liens, make investments, make dividends or distributions with respect to capital stock, make prepayments on other indebtedness, engage in mergers or change the nature of their business. The Term Loan Facility contains certain financial covenants, including a quarterly maximum total leverage ratio test, a weekly minimum liquidity test and an annual maximum capital expenditure amount. Under the ABL Facility, if excess availability falls below the greater of 10 % of the Loan Cap amount or $ 15.0 million, the Company will be required to comply with a minimum fixed charge coverage ratio of 1.0 to 1.0. The Debt Facilities contain certain affirmative covenants, including reporting requirements such as delivery of financial statements, certificates and notices of certain events, maintaining insurance and providing additional guarantees and collateral in certain circumstances. As of July 28, 2023, the Company was in compliance with its financial covenants in the Debt Facilities. Events of Default The Debt Facilities include customary events of default including non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations or warranties, cross defaults related to certain other material indebtedness, bankruptcy and insolvency events, invalidity or impairment of guarantees or security interests, material judgments and change of control. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jul. 28, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | NOTE 6. STOCK-BASED COMPENSATION The Company expenses the fair value of all stock awards over their requisite service period, ensuring that the amount of cumulative stock-based compensation expense recognized at any date is at least equal to the portion of the grant-date fair value of the award that is vested at that date. The Company has elected to adjust stock-based compensation expense for an estimated forfeiture rate for those shares not expected to vest and to recognize stock-based compensation expense on a straight-line basis for awards that only have a service requirement with multiple vest dates. The Company has granted the following types of stock awards to employees at management levels and above, each of which are granted under the Company’s stockholder approved stock plans, other than inducement grants outside of the Company’s stockholder approved stock plans in accordance with Nasdaq Listing Rule 5635(c)(4): • Deferred Awards are in the form of restricted stock units and only require each recipient to complete a service period for the awards to be earned. Deferred Awards generally vest over three years . The fair value of Deferred Awards is based on the closing price of the Company’s common stock on the grant date. Stock-based compensation expense is recognized ratably over the service period and is reduced for estimated forfeitures of those awards not expected to vest due to employee turnover. • Performance Awards are in the form of restricted stock units and have, in addition to a service requirement, performance criteria that must be achieved for the awards to be earned. In addition, beginning with awards granted in 2023, Performance Awards are subject to a relative total shareholder return (”TSR”) modifier which is based on the Company’s total return to stockholders over the measurement period relative to a custom peer group. For Performance Awards granted, the Target Shares earned can range from 50 % to 200 % (such result, the “Earned Shares”) once minimum thresholds have been reached and depend on the achievement of Adjusted EBITDA and revenue performance measures, for the cumulative period comprised of three-consecutive fiscal years beginning with the fiscal year of the grant date. The TSR modifier can result in an adjustment of 75 % to 125 % of the Earned Shares, subject to an overall cap of 200 % and a modifier limitation to 100 % in the event TSR is negative. Performance Awards are also subject to limitations under the Company’s stockholder approved stock plans. The applicable percentage of the Target Shares, as determined by performance, vest after the completion of the applicable three-year performance period and upon determination of achievement of the performance measures by the Compensation Committee of the Board of Directors, and unearned Target Shares are forfeited. The fair value of the Performance Awards granted before 2023 are based on the closing price of the Company’s common stock on the grant date. For awards with market conditions, the grant date fair value is based on the Monte Carlo simulation model. Stock-based compensation expense, including awards with market conditions, is recognized ratably over the related service period, reduced for estimated forfeitures of those awards not expected to vest due to employee turnover and adjusted based on the Company’s estimate of the percentage of the aggregate Target Shares expected to be earned. The Company accrues for Performance Awards on a 100 % payout u nless it becomes probable that the outcome will be significantly different, or the performance can be accurately measured. • Option Awards provide the recipient with the option to purchase a set number of shares at a stated exercise price over the term of the contract, which is ten years for all Option Awards currently outstanding. Options are granted with a strike price equal to the stock price on the date of grant and vest over the requisite service period of the award. The fair value of each Option Award is estimated on the grant date using the Black-Scholes option pricing model. The following table provides a summary of the Company’s stock-based compensation expense, which is included in Selling and administrative expense in the Condensed Consolidated Statements of Operations: 13 Weeks Ended 26 Weeks Ended (in thousands) July 28, 2023 July 29, 2022 July 28, 2023 July 29, 2022 Deferred awards $ 1,242 $ 1,350 $ 2,221 $ 2,905 Performance awards ( 536 ) 569 ( 536 ) 498 Option awards 104 — 208 — Total stock-based compensation expense $ 810 $ 1,919 $ 1,893 $ 3,403 Deferred Awards The following table provides a summary of the Deferred Awards activity for the 26 weeks ended July 28, 2023: Deferred Awards (in thousands, except per share amounts) Number of Weighted Average Unvested deferred awards as of January 27, 2023 906 $ 16.46 Granted 836 8.54 Vested ( 410 ) 12.35 Forfeited or expired ( 74 ) 20.68 Unvested deferred awards as of July 28, 2023 1,258 $ 12.28 Total unrecognized stock-based compensation expense related to unvested Deferred Awards was approximately $ 10.8 million as of July 28, 2023 , which is expected to be recognized ratably over a weighted average period of 2.3 years. The total fair value of Deferred Awards vested during the 26 weeks ended July 28, 2023 was $ 5.1 million. The Deferred Awards granted to employees during the 26 weeks ended July 28, 2023 vest over a period of three years . Performance Awards The following table provides a summary of the Performance Awards activity for the 26 weeks ended July 28, 2023: Performance Awards (in thousands, except per share amounts) Number of Weighted Average Unvested performance awards as of January 27, 2023 355 $ 24.39 Granted 567 9.74 Vested — — Forfeited or expired ( 55 ) 24.33 Unvested performance awards as of July 28, 2023 867 $ 14.81 Total unrecognized stock-based compensation expense related to unvested Performance Awards was approximately $ 4.4 million as of July 28, 2023 which is expected to be recognized ratably over a weighted average period of 2.7 years. The Performance Awards granted to employees during the 26 weeks ended July 28, 2023 vest, if earned, after completion of the applicable three-year performance period. The fair value for the Performance Awards granted during the 26 weeks ended July 28, 2023, which includes a relative TSR modifier, was estimated on the grant date using a Monte Carlo simulation with the below noted assumptions: Monte Carlo Simulation Assumptions Risk-free interest rate (1) 4.46 % Expected dividend yield 0.00 % Expected volatility (2) 78.04 % Expected term (in years) (3) 2.63 Grant date fair value per share $ 9.74 (1) The risk-free interest is based on the continuously compounded yield on a zero-coupon U.S. Treasury STRIPS as of the grant date for a period equal to the expected term. (2) The expected volatility is estimated based on the historical volatility of the Company’s common stock with a term consistent with the expected term of the performance award. (3) The expected term (in years) of the performance award represents the estimated period of time from the grant date to the end of the performance period. Option Awards During the 26 weeks ended July 28, 2023 there was no Option Awards activity. The following table provides a summary of information about the Option Awards vested and expected to vest during the contractual term, as well as Option Awards exercisable as of July 28, 2023: (in thousands, except contractual life and exercise price amounts) Option Awards Weighted Weighted Aggregate Intrinsic Value Option Awards vested and expected to vest 511 5.49 $ 16.08 — Option Awards exercisable 343 3.63 $ 18.66 — Total unrecognized stock-based compensation expense related to Option Awards was approximately $ 0.9 million as of July 28, 2023 , which is expected to be recognized over a weighted average period of 2.3 years. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jul. 28, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | NOTE 7. STOCKHOLDERS’ EQUITY Share Repurchase Program On June 28, 2022, the Company announced that its Board of Directors authorized the Company to repurchase up to $ 50.0 million of the Company’s common stock through February 2, 2024 (the “2022 Share Repurchase Program”). Under the 2022 Share Repurchase Program, the Company may repurchase its common stock through open market purchases, in privately negotiated transactions, or by other means in accordance with federal securities laws, including Rule 10b-18 of the Exchange Act. The amount and timing of purchases will be determined by the Company’s management depending upon market conditions and other factors and may be made pursuant to a Rule 10b5-1 trading plan. The 2022 Share Repurchase Program may be suspended or discontinued at any time. As of July 28, 2023 , additional purchases of up to $ 34.8 million could be made under the 2022 Share Repurchase Program. The following table summarizes the Company’s share repurchases through July 28, 2023: 13 Weeks Ended 26 Weeks Ended (Shares and $ in thousands except average per share cost) July 28, 2023 July 29, 2022 July 28, 2023 July 29, 2022 Number of shares repurchased 403 212 833 212 Total cost $ 3,000 $ 2,353 $ 6,772 2,353 Average per share cost $ 7.45 $ 11.10 $ 8.13 11.10 The Company retired all shares that were repurchased through the 2022 Share Repurchase Program during the 26 weeks ended July 28, 2023 . In accordance with the FASB ASC 505—Equity, the par value of the shares retired was charged against Common stock and the remaining purchase price was allocated between Additional paid-in capital and Retained earnings. The portion charged against Additional paid-in capital is determined based on the Additional paid-in capital per share amount recorded in the initial issuance of the shares with the remaining to Retained earnings. Shares purchased at a price less than that of initial issuance is charged only against Additional paid-in capital. In addition, the total cost of the broker commissions is charged directly to Retained earnings. No amount was charged to Retained earnings for the shares retired during the 13 and 26 weeks ended July 28, 2023 . |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 6 Months Ended |
Jul. 28, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | NOTE 8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following: (in thousands) July 28, 2023 July 29, 2022 January 27, 2023 Deferred gift card revenue $ 33,556 $ 31,444 $ 33,029 Accrued employee compensation and benefits 22,922 24,817 18,125 Reserve for sales returns and allowances 18,404 19,857 25,030 Accrued property, sales and other taxes 8,300 7,863 9,780 Deferred revenue 8,081 9,757 7,484 Other 9,369 7,277 13,308 Total Accrued expenses and other current liabilities $ 100,632 $ 101,015 $ 106,756 |
Lands' End Japan Closing
Lands' End Japan Closing | 6 Months Ended |
Jul. 28, 2023 | |
Restructuring and Related Activities [Abstract] | |
Lands' End Japan Closing | NOTE 9. LANDS’ END JAPAN CLOSING In July 2022, the Board of Directors approved a plan to cease operations of Lands’ End Japan KK, a subsidiary of Lands’ End, Inc. (“Lands’ End Japan”) by the end of Fiscal 2022. The dissolution of Lands’ End Japan was authorized and approved on January 31, 2023. Lands’ End Japan operations were reported in the Japan eCommerce operating segment in Fiscal 2022 and prior. For a discussion of this operating segment, see Note 13, Segment Reporting . The closing and subsequent disposal of the assets did not represent a strategic shift with a major effect on the consolidated financial condition. Accordingly, the closing of Lands’ End Japan was not presented in the Condensed Consolidated Financial Statements as discontinued operations. In Third Quarter 2022, the Company commenced recording approximately $ 3.9 million one-time closing costs for employee severance and benefit costs, early termination and restoration costs of leased facilities and contract cancellation and other costs. During the 26 weeks ended July 28, 2023 , the Company recognized one-time closing costs for contract cancellation and other costs of approximately $ 0.1 million reported in Other operating expense, net in the Condensed Consolidated Statement of Operations. As of July 28, 2023 the remaining balance of accrued closing costs related to Lands’ End Japan was approximately $ 45 thousand and is included in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets. |
Fair Value Measurements of Fina
Fair Value Measurements of Financial Assets and Liabilities | 6 Months Ended |
Jul. 28, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements of Financial Assets and Liabilities | NOTE 10. FAIR VALUE MEASUREMENTS OF FINANCIAL ASSETS AND LIABILITIES Restricted cash is reflected on the Condensed Consolidated Balance Sheets at fair value. The fair value of restricted cash was $ 1.8 million, $ 2.1 million, and $ 1.8 million as of July 28, 2023, July 29, 2022 and January 27, 2023, respectively, based on Level 1 inputs. Restricted cash amounts are valued based upon statements received from financial institutions. Carrying amounts and fair values of long-term debt, including current portion, in the Condensed Consolidated Balance Sheets are as follows: July 28, 2023 July 29, 2022 January 27, 2023 (in thousands) Carrying Fair Carrying Fair Carrying Fair Long-term debt, including current portion $ 237,188 $ 226,786 $ 250,938 $ 239,079 $ 244,063 $ 241,728 Long-term debt, including current portion, was valued by management utilizing Level 3 valuation techniques as of July 28, 2023, July 29, 2022 and January 27, 2023 . There were no nonfinancial assets or nonfinancial liabilities recognized at fair value on a nonrecurring basis as of July 28, 2023, July 29, 2022 and January 27, 2023 . |
Income Taxes
Income Taxes | 6 Months Ended |
Jul. 28, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 11. INCOME TAXES Provision for Income Taxes At the end of each quarter, the Company estimates its effective income tax rate pursuant to ASC 740. The rate for the period consists of the tax rate expected to be applied for the full year to ordinary income adjusted for any discrete items recorded in the period. The Company recorded a tax expense at an overall effective tax rate of ( 32.4 )% for the 13 weeks ended July 28, 2023 and a tax benefit at an overall effective tax rate of 29.8 % for the 13 weeks ended July 29, 2022. The Company recorded a tax expense at an overall rate of ( 17.5 )% for the 26 weeks ended July 28, 2023, and tax benefit at an overall effective tax rate of 36.9 % for the 26 weeks ended July 29, 2022. The overall effective tax rate for the 13 and 26 weeks ended July 28, 2023 reflects a one-time tax expense related to the write-off of deferred tax benefits for stock-based compensation. The overall effective tax rate for the 26 weeks ended July 29, 2022 reflects a tax benefit as a result of stock-based compensation recorded in First Quarter 2022. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jul. 28, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 12. COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company is party to various claims, legal proceedings and investigations arising in the ordinary course of business. Some of these actions involve complex factual and legal issues and are subject to uncertainties. At this time, the Company is not able to either predict the outcome of these legal proceedings or reasonably estimate a potential range of loss with respect to the proceedings. While it is not feasible to predict the outcome of such pending claims, proceedings and investigations with certainty, management is of the opinion that their ultimate resolution should not have a material adverse effect on results of operations, cash flows or financial position taken as a whole. |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jul. 28, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 13. SEGMENT REPORTING For the 26 weeks ended July 28, 2023, the Company’s operating segments consisted of: U.S. eCommerce, Europe eCommerce, Outfitters, Third Party and Retail. During the 26 weeks ended July 29, 2022, the Company’s operating segments included Japan eCommerce. See Note 9, Lands’ End Japan Closing . The Company determined that each of the operating segments have similar economic and other qualitative characteristics, thus the results of the operating segments are aggregated into one external reportable segment. Lands’ End identifies five separate distribution channels for revenue reporting purposes: • U.S. eCommerce offers products through the Company’s eCommerce website. • International offers products primarily to consumers located in Europe and through eCommerce international websites and third-party affiliates. • Outfitters sells uniform and logo apparel to businesses and their employees, as well as to student households through school relationships, located primarily in the U.S. • Third Party sells the same products as U.S. eCommerce but direct to consumers through third-party marketplace websites and through domestic wholesale customers. • Retail sells products through Company Operated stores. Net revenue is presented by distribution channel in the following tables: 13 Weeks Ended % of Net 13 Weeks Ended % of Net (in thousands) July 28, 2023 Revenue July 29, 2022 Revenue Net revenue: U.S. eCommerce $ 195,921 60.6 % $ 203,288 57.9 % International (1) 22,818 7.1 % 36,373 10.4 % Outfitters 67,984 21.0 % 70,669 20.1 % Third Party 24,395 7.5 % 27,290 7.8 % Retail 12,245 3.8 % 13,558 3.9 % Total Net revenue $ 323,363 $ 351,178 26 Weeks Ended % of Net 26 Weeks Ended % of Net (in thousands) July 28, 2023 Revenue July 29, 2022 Revenue Net revenue: U.S. eCommerce $ 373,623 59.0 % $ 378,181 57.8 % International (1) 48,210 7.6 % 80,551 12.3 % Outfitters 141,953 22.4 % 124,631 19.0 % Third Party 47,384 7.5 % 48,932 7.5 % Retail 21,751 3.4 % 22,548 3.4 % Total Net revenue $ 632,921 $ 654,843 (1) The 13 weeks and 26 weeks ended July 29, 2022 includes Net revenue of $ 7.6 million and $ 16.1 million, respectively, from the Japan eCommerce distribution channel. See Note 9, Lands’ End Japan Closing . |
Revenue
Revenue | 6 Months Ended |
Jul. 28, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE 14. REVENUE Revenue includes sales of merchandise and delivery revenue related to merchandise sold. Substantially all of the Company’s revenue is recognized when control of product passes to customers, which for the U.S. eCommerce, International, Outfitters and Third Party distribution channels is when the merchandise is received by the customer and for the Retail distribution channel is at the time of sale in the store. The Company recognizes revenue, including shipping and handling fees billed to customers, in the amount expected to be received when control of the Company’s products transfers to customers, and is presented net of various forms of promotions, which range from contractually fixed percentage price reductions to sales returns, discounts, and other incentives that may vary in amount. Variable amounts are estimated based on an analysis of historical experience and adjusted as better estimates become available. The Company’s revenue is disaggregated by distribution channel and geographic location. Revenue by distribution channel is presented in Note 13, Segment Reporting . Revenue by geographic location was: 13 Weeks Ended 26 Weeks Ended (in thousands) July 28, 2023 July 29, 2022 July 28, 2023 July 29, 2022 Net revenue: United States $ 296,653 $ 310,151 $ 577,057 $ 565,425 Europe 23,305 29,311 49,182 65,440 Asia (1) 129 7,742 286 16,439 Other 3,276 3,974 6,396 7,539 Total Net revenue $ 323,363 $ 351,178 $ 632,921 $ 654,843 (1) The 13 weeks and 26 weeks ended July 29, 2022 includes Net revenue of $ 7.6 million and $ 16.1 million, respectively, from the Japan eCommerce distribution channel. See Note 9, Lands’ End Japan Closing . Contract Liabilities Contract liabilities consist of payments received in advance of the transfer of control to the customer. As products are delivered and control transfers, the Company recognizes the deferred revenue in Net revenue in the Condensed Consolidated Statements of Operations. The following table summarizes the deferred revenue associated with payments received in advance of the transfer of control to the customer, which is reported in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets, as well as amounts recognized through Net revenue for each period presented. The majority of deferred revenue as of July 28, 2023 is expected to be recognized in Net revenue in the fiscal quarter ending October 27, 2023, as products are delivered to customers. 13 Weeks Ended 26 Weeks Ended (in thousands) July 28, 2023 July 29, 2022 July 28, 2023 July 29, 2022 Deferred revenue beginning of period $ 6,019 $ 6,074 $ 7,484 $ 8,560 Deferred revenue recognized in period ( 5,805 ) ( 5,860 ) ( 7,270 ) ( 8,346 ) Revenue deferred in period 7,867 9,543 7,867 9,543 Deferred revenue end of period $ 8,081 $ 9,757 $ 8,081 $ 9,757 Revenue from gift cards is recognized (i) when the gift card is redeemed by the customer for merchandise, or (ii) as gift card breakage, an estimate of gift cards which will not be redeemed where the Company does not have a legal obligation to remit the value of the unredeemed gift cards to the relevant jurisdictions. Gift card breakage is recorded within Net revenue in the Condensed Consolidated Statements of Operations. Prior to their redemption, gift cards are recorded as a liability and included within Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets. The liability is estimated based on expected breakage that considers historical patterns of redemption. The following table provides the reconciliation of the contract liability related to gift cards: 13 Weeks Ended 26 Weeks Ended (in thousands) July 28, 2023 July 29, 2022 July 28, 2023 July 29, 2022 Balance as of beginning of period $ 34,222 $ 32,015 $ 33,029 $ 33,070 Gift cards sold 13,171 17,042 28,786 31,670 Gift cards redeemed ( 13,048 ) ( 17,245 ) ( 26,682 ) ( 32,713 ) Gift card breakage ( 789 ) ( 368 ) ( 1,577 ) ( 583 ) Balance as of end of period $ 33,556 $ 31,444 $ 33,556 $ 31,444 Refund Liabilities Refund liabilities, primarily associated with product sales returns and retrospective volume rebates, represent variable consideration and are estimated and recorded as a reduction to Net revenue based on historical experience. As of July 28, 2023, July 29, 2022 and January 27, 2023 , $ 18.4 million, $ 19.9 million and $ 25.0 million, respectively, of refund liabilities, primarily associated with product returns, were reported in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets. An asset for product returns is recorded in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets. |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jul. 28, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | In March 2020, the FASB issued ASU 2020-04, Reference Reform Rate (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”) which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The guidance provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference reform if certain criteria are met. These transactions include contract modifications, hedge relationships and sale or transfer of debt securities classified as held-to-maturity. This ASU, which was effective upon issuance and modified by ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of Sunset Date of Topic 848 , may be applied through December 31, 2024, is applicable to all contracts and hedging relationships that reference the LIBOR or any other reference rate expected to be discontinued. The guidance in ASU 2020-04 may be implemented over time as reference rate reform activities occur. As part of the response to the reference rate reform, during Second Quarter 2023, the Company amended the Debt Facilities to replace the interest rate based upon the LIBOR benchmark to the SOFR benchmark. See Note 5. Debt for additional details regarding these changes. Concurrent with the amendments, the Company adopted ASU 2020-04. The Company utilized optional practical expedients for contract modifications under ASC 848-20-358 Contracts within the Scope of Topic 470 and the adoption of ASU 2020-04 did not have a material impact on the Company’s Condensed Consolidated Financial Statements. |
Loss Per Share (Tables)
Loss Per Share (Tables) | 6 Months Ended |
Jul. 28, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Components of Basic and Diluted EPS | The following table summarizes the components of basic and diluted EPS: 13 Weeks Ended 26 Weeks Ended (in thousands, except per share amounts) July 28, 2023 July 29, 2022 July 28, 2023 July 29, 2022 Net loss $ ( 8,018 ) $ ( 2,179 ) $ ( 9,670 ) $ ( 4,550 ) Basic weighted average common shares outstanding 32,117 33,361 32,280 33,262 Dilutive effect of stock awards — — — — Diluted weighted average common shares outstanding 32,117 33,361 32,280 33,262 Basic loss per share $ ( 0.25 ) $ ( 0.07 ) $ ( 0.30 ) $ ( 0.14 ) Diluted loss per share $ ( 0.25 ) $ ( 0.07 ) $ ( 0.30 ) $ ( 0.14 ) |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jul. 28, 2023 | |
Equity [Abstract] | |
Schedule of Other Comprehensive Income (Loss) | Other comprehensive income (loss) encompasses all changes in equity other than those arising from transactions with stockholders and is comprised solely of foreign currency translation adjustments. 13 Weeks Ended 26 Weeks Ended (in thousands) July 28, 2023 July 29, 2022 July 28, 2023 July 29, 2022 Beginning balance: Accumulated other comprehensive loss 4,503 , $ 4,184 , $ 4,525 and $ 3,361 respectively) $ ( 16,941 ) $ ( 15,736 ) $ ( 17,022 ) $ ( 12,642 ) Other comprehensive income (loss): Foreign currency translation adjustments (net of tax of ($ 186 ), $ 223 , ($ 208 ) and $ 1,046 respectively) 700 ( 843 ) 781 ( 3,937 ) Ending balance: Accumulated other comprehensive loss 4,317 , $ 4,407 , $ 4,317 and $ 4,407 respectively) $ ( 16,241 ) $ ( 16,579 ) $ ( 16,241 ) $ ( 16,579 ) |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jul. 28, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Company's Maximum Borrowing Availability Under ABL Facility | July 28, 2023 July 29, 2022 January 27, 2023 (in thousands) Amount Interest Rate Amount Interest Rate Amount Interest Rate ABL Facility Limit $ 275,000 $ 275,000 $ 275,000 Borrowing Base 207,326 288,498 274,354 Outstanding borrowings 70,000 6.82 % 135,000 3.51 % 100,000 6.27 % Outstanding letters of credit 8,554 13,828 10,557 ABL Facility utilization at end of period 78,554 148,828 110,557 ABL Facility borrowing availability $ 128,772 $ 126,172 $ 163,797 |
Schedule of Company's Long Term Debt | The Company’s long-term debt consisted of the following: July 28, 2023 July 29, 2022 January 27, 2023 (in thousands) Amount Interest Rate Amount Interest Rate Amount Interest Rate Term Loan Facility $ 237,188 14.97 % $ 250,938 12.12 % $ 244,063 14.13 % Less: Current portion of long-term debt 13,750 13,750 13,750 Less: Unamortized debt issuance costs 5,416 8,240 6,807 Long-term debt, net $ 218,022 $ 228,948 $ 223,506 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jul. 28, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock-Based Compensation Expense | The following table provides a summary of the Company’s stock-based compensation expense, which is included in Selling and administrative expense in the Condensed Consolidated Statements of Operations: 13 Weeks Ended 26 Weeks Ended (in thousands) July 28, 2023 July 29, 2022 July 28, 2023 July 29, 2022 Deferred awards $ 1,242 $ 1,350 $ 2,221 $ 2,905 Performance awards ( 536 ) 569 ( 536 ) 498 Option awards 104 — 208 — Total stock-based compensation expense $ 810 $ 1,919 $ 1,893 $ 3,403 |
Summary of Deferred Awards Activity | The following table provides a summary of the Deferred Awards activity for the 26 weeks ended July 28, 2023: Deferred Awards (in thousands, except per share amounts) Number of Weighted Average Unvested deferred awards as of January 27, 2023 906 $ 16.46 Granted 836 8.54 Vested ( 410 ) 12.35 Forfeited or expired ( 74 ) 20.68 Unvested deferred awards as of July 28, 2023 1,258 $ 12.28 |
Summary of Performance Awards Activity | The following table provides a summary of the Performance Awards activity for the 26 weeks ended July 28, 2023: Performance Awards (in thousands, except per share amounts) Number of Weighted Average Unvested performance awards as of January 27, 2023 355 $ 24.39 Granted 567 9.74 Vested — — Forfeited or expired ( 55 ) 24.33 Unvested performance awards as of July 28, 2023 867 $ 14.81 |
Schedule of Grand Date Fair Value of Option Award Granted | The fair value for the Performance Awards granted during the 26 weeks ended July 28, 2023, which includes a relative TSR modifier, was estimated on the grant date using a Monte Carlo simulation with the below noted assumptions: Monte Carlo Simulation Assumptions Risk-free interest rate (1) 4.46 % Expected dividend yield 0.00 % Expected volatility (2) 78.04 % Expected term (in years) (3) 2.63 Grant date fair value per share $ 9.74 (1) The risk-free interest is based on the continuously compounded yield on a zero-coupon U.S. Treasury STRIPS as of the grant date for a period equal to the expected term. (2) The expected volatility is estimated based on the historical volatility of the Company’s common stock with a term consistent with the expected term of the performance award. (3) The expected term (in years) of the performance award represents the estimated period of time from the grant date to the end of the performance period. |
Summary of Information about Option Awards Vested and Expected to Vest | The following table provides a summary of information about the Option Awards vested and expected to vest during the contractual term, as well as Option Awards exercisable as of July 28, 2023: (in thousands, except contractual life and exercise price amounts) Option Awards Weighted Weighted Aggregate Intrinsic Value Option Awards vested and expected to vest 511 5.49 $ 16.08 — Option Awards exercisable 343 3.63 $ 18.66 — |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jul. 28, 2023 | |
Share Repurchase Program | |
Equity Class Of Treasury Stock [Line Items] | |
Summary of Share Repurchases | The following table summarizes the Company’s share repurchases through July 28, 2023: 13 Weeks Ended 26 Weeks Ended (Shares and $ in thousands except average per share cost) July 28, 2023 July 29, 2022 July 28, 2023 July 29, 2022 Number of shares repurchased 403 212 833 212 Total cost $ 3,000 $ 2,353 $ 6,772 2,353 Average per share cost $ 7.45 $ 11.10 $ 8.13 11.10 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended |
Jul. 28, 2023 | |
Payables and Accruals [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following: (in thousands) July 28, 2023 July 29, 2022 January 27, 2023 Deferred gift card revenue $ 33,556 $ 31,444 $ 33,029 Accrued employee compensation and benefits 22,922 24,817 18,125 Reserve for sales returns and allowances 18,404 19,857 25,030 Accrued property, sales and other taxes 8,300 7,863 9,780 Deferred revenue 8,081 9,757 7,484 Other 9,369 7,277 13,308 Total Accrued expenses and other current liabilities $ 100,632 $ 101,015 $ 106,756 |
Lands' End Japan Closing (Table
Lands' End Japan Closing (Tables) | 6 Months Ended |
Jul. 28, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of Accrued Closing Cost Activity Related to Lands' End Japan Included in Accrued Expenses and Other Current Liabilities in Condensed Consolidated Balance Sheets | included in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets. |
Fair Value Measurements of Fi_2
Fair Value Measurements of Financial Assets and Liabilities (Tables) | 6 Months Ended |
Jul. 28, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Carrying Amounts and Fair Values of Long-term Debt, Including Current Portion | Carrying amounts and fair values of long-term debt, including current portion, in the Condensed Consolidated Balance Sheets are as follows: July 28, 2023 July 29, 2022 January 27, 2023 (in thousands) Carrying Fair Carrying Fair Carrying Fair Long-term debt, including current portion $ 237,188 $ 226,786 $ 250,938 $ 239,079 $ 244,063 $ 241,728 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jul. 28, 2023 | |
Segment Reporting [Abstract] | |
Summary of Net Revenue by Distribution Channel | Net revenue is presented by distribution channel in the following tables: 13 Weeks Ended % of Net 13 Weeks Ended % of Net (in thousands) July 28, 2023 Revenue July 29, 2022 Revenue Net revenue: U.S. eCommerce $ 195,921 60.6 % $ 203,288 57.9 % International (1) 22,818 7.1 % 36,373 10.4 % Outfitters 67,984 21.0 % 70,669 20.1 % Third Party 24,395 7.5 % 27,290 7.8 % Retail 12,245 3.8 % 13,558 3.9 % Total Net revenue $ 323,363 $ 351,178 26 Weeks Ended % of Net 26 Weeks Ended % of Net (in thousands) July 28, 2023 Revenue July 29, 2022 Revenue Net revenue: U.S. eCommerce $ 373,623 59.0 % $ 378,181 57.8 % International (1) 48,210 7.6 % 80,551 12.3 % Outfitters 141,953 22.4 % 124,631 19.0 % Third Party 47,384 7.5 % 48,932 7.5 % Retail 21,751 3.4 % 22,548 3.4 % Total Net revenue $ 632,921 $ 654,843 (1) The 13 weeks and 26 weeks ended July 29, 2022 includes Net revenue of $ 7.6 million and $ 16.1 million, respectively, from the Japan eCommerce distribution channel. See Note 9, Lands’ End Japan Closing . |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jul. 28, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated of Revenue by Geographic Location | The Company’s revenue is disaggregated by distribution channel and geographic location. Revenue by distribution channel is presented in Note 13, Segment Reporting . Revenue by geographic location was: 13 Weeks Ended 26 Weeks Ended (in thousands) July 28, 2023 July 29, 2022 July 28, 2023 July 29, 2022 Net revenue: United States $ 296,653 $ 310,151 $ 577,057 $ 565,425 Europe 23,305 29,311 49,182 65,440 Asia (1) 129 7,742 286 16,439 Other 3,276 3,974 6,396 7,539 Total Net revenue $ 323,363 $ 351,178 $ 632,921 $ 654,843 (1) The 13 weeks and 26 weeks ended July 29, 2022 includes Net revenue of $ 7.6 million and $ 16.1 million, respectively, from the Japan eCommerce distribution channel. See Note 9, Lands’ End Japan Closing . |
Summary of Deferred Revenue | The following table summarizes the deferred revenue associated with payments received in advance of the transfer of control to the customer, which is reported in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets, as well as amounts recognized through Net revenue for each period presented. The majority of deferred revenue as of July 28, 2023 is expected to be recognized in Net revenue in the fiscal quarter ending October 27, 2023, as products are delivered to customers. 13 Weeks Ended 26 Weeks Ended (in thousands) July 28, 2023 July 29, 2022 July 28, 2023 July 29, 2022 Deferred revenue beginning of period $ 6,019 $ 6,074 $ 7,484 $ 8,560 Deferred revenue recognized in period ( 5,805 ) ( 5,860 ) ( 7,270 ) ( 8,346 ) Revenue deferred in period 7,867 9,543 7,867 9,543 Deferred revenue end of period $ 8,081 $ 9,757 $ 8,081 $ 9,757 |
Reconciliation of Gift Card Contract Liability | The following table provides the reconciliation of the contract liability related to gift cards: 13 Weeks Ended 26 Weeks Ended (in thousands) July 28, 2023 July 29, 2022 July 28, 2023 July 29, 2022 Balance as of beginning of period $ 34,222 $ 32,015 $ 33,029 $ 33,070 Gift cards sold 13,171 17,042 28,786 31,670 Gift cards redeemed ( 13,048 ) ( 17,245 ) ( 26,682 ) ( 32,713 ) Gift card breakage ( 789 ) ( 368 ) ( 1,577 ) ( 583 ) Balance as of end of period $ 33,556 $ 31,444 $ 33,556 $ 31,444 |
Loss Per Share - Schedule of Co
Loss Per Share - Schedule of Components of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 28, 2023 | Apr. 28, 2023 | Jul. 29, 2022 | Apr. 29, 2022 | Jul. 28, 2023 | Jul. 29, 2022 | |
Earnings Per Share [Abstract] | ||||||
Net loss | $ (8,018) | $ (1,652) | $ (2,179) | $ (2,371) | $ (9,670) | $ (4,550) |
Basic weighted average common shares outstanding | 32,117 | 33,361 | 32,280 | 33,262 | ||
Diluted weighted average common shares outstanding | 32,117 | 33,361 | 32,280 | 33,262 | ||
Basic loss per share | $ (0.25) | $ (0.07) | $ (0.3) | $ (0.14) | ||
Diluted loss per share | $ (0.25) | $ (0.07) | $ (0.3) | $ (0.14) |
Loss Per Share - Additional Inf
Loss Per Share - Additional Information (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jul. 28, 2023 | Jul. 29, 2022 | Jul. 28, 2023 | Jul. 29, 2022 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive shares excluded from diluted weighted average shares outstanding | 1,617,940 | 1,098,859 | 1,411,376 | 1,209,586 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Schedule of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jul. 28, 2023 | Apr. 28, 2023 | Jul. 29, 2022 | Apr. 29, 2022 | Jul. 28, 2023 | Jul. 29, 2022 | |
Equity [Abstract] | ||||||
Beginning balance: Accumulated other comprehensive loss (net of tax of $4,503, $4,184, $4,525 and $3,361 respectively) | $ (16,941) | $ (17,022) | $ (15,736) | $ (12,642) | $ (17,022) | $ (12,642) |
Other comprehensive income (loss): | ||||||
Foreign currency translation adjustments (net of tax of ($186), $223, ($208) and $1,046 respectively) | 700 | 81 | (843) | (3,094) | 781 | (3,937) |
Ending balance: Accumulated other comprehensive loss (net of tax of $4,317, $4,407, $4,317 and $4,407 respectively) | $ (16,241) | $ (16,941) | $ (16,579) | $ (15,736) | $ (16,241) | $ (16,579) |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) - Schedule of Other Comprehensive Income (Loss) (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jul. 28, 2023 | Jul. 29, 2022 | Jul. 28, 2023 | Jul. 29, 2022 | Apr. 28, 2023 | Jan. 27, 2023 | Apr. 29, 2022 | Jan. 28, 2022 | |
Equity [Abstract] | ||||||||
Accumulated other comprehensive loss, tax | $ 4,317 | $ 4,407 | $ 4,317 | $ 4,407 | $ 4,503 | $ 4,525 | $ 4,184 | $ 3,361 |
Foreign currency translations adjustments, tax | $ (186) | $ 223 | $ (208) | $ 1,046 |
Other Comprehensive Income (L_5
Other Comprehensive Income (Loss) - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jul. 28, 2023 | Jul. 29, 2022 | Jul. 28, 2023 | Jul. 29, 2022 | |
Equity [Abstract] | ||||
Amounts reclassified from accumulated other comprehensive (loss) | $ 0 | $ 0 | $ 0 | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Details) | 6 Months Ended | |||||||
Jun. 22, 2023 | Jun. 21, 2023 | May 12, 2023 | May 11, 2023 | Sep. 09, 2020 USD ($) | Jul. 28, 2023 USD ($) | Jan. 27, 2023 USD ($) | Jul. 29, 2022 USD ($) | |
ABL Facility | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 275,000,000 | $ 275,000,000 | $ 275,000,000 | |||||
Line of credit facility, available to barrow of facility limit | 275,000,000 | |||||||
Borrowing under facility | $ 70,000,000 | 100,000,000 | 135,000,000 | |||||
ABL Facility | Minimum | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, maturity date | Jun. 09, 2025 | |||||||
ABL Facility | Maximum | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, maturity date | Jul. 29, 2026 | |||||||
ABL Facility | Letter of Credit | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, maximum borrowing capacity | $ 70,000,000 | |||||||
ABL Facility | Secured Debt | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, unused commitment fee percentage | 0.25% | |||||||
Borrowing under facility | $ 70,000,000 | |||||||
Line of credit facility, covenant terms, minimum percentage of loan cap amount | 10% | |||||||
Line of credit facility, covenant terms, minimum excess credit availability | $ 15,000,000 | |||||||
Line of credit facility, covenant terms, minimum fixed charge coverage ratio | 1 | |||||||
ABL Facility | Secured Debt | Base Rate | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Variable rate spread on outstanding loans less than $95 million | 0.50% | |||||||
Variable rate spread on outstanding loans equal to or greater than $95 million but less than $180 million | 0.75% | |||||||
Variable rate spread on outstanding loans greater than or equal to $180 million | 1% | |||||||
ABL Facility | Secured Debt | One Month Adjusted SOFR | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Spread on variable rate | 1% | |||||||
ABL Facility | Secured Debt | Adjusted SOFR | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Variable rate spread on outstanding loans less than $95 million | 1.25% | |||||||
Variable rate spread on outstanding loans equal to or greater than $95 million but less than $180 million | 1.50% | |||||||
Variable rate spread on outstanding loans greater than or equal to $180 million | 1.75% | |||||||
Spread on variable rate | 0.10% | |||||||
Term Loan Facility | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Secured debt | $ 275,000,000 | $ 237,188,000 | $ 244,063,000 | $ 250,938,000 | ||||
Debt origination fees | $ 5,100,000 | |||||||
Percentage of original issue discount | 3% | |||||||
Percentage of prepayment premium to voluntary prepayments and mandatory prepayments | 3% | |||||||
Prepayments premium 3% payment start date | Sep. 09, 2022 | |||||||
Prepayments premium 3% payment end date | Sep. 09, 2023 | |||||||
Percentage of prepayments made | 1% | |||||||
Prepayments 1% premium payment start date | Sep. 09, 2023 | |||||||
Prepayments 1% premium payment end date | Sep. 09, 2024 | |||||||
Term Loan Facility | Fortress Credit Corp | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Line of credit facility, amortization rate | 1.25% | |||||||
Term Loan Facility | Secured Debt | Minimum | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Federal funds rate | 0% | 0% | ||||||
Term Loan Facility | Secured Debt | Minimum | Fortress Credit Corp | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Mandatory prepayment terms, amount equal to borrowers' excess cash flows, percentage | 0% | |||||||
Term Loan Facility | Secured Debt | Maximum | Fortress Credit Corp | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Mandatory prepayment terms, amount equal to borrowers' excess cash flows, percentage | 75% | |||||||
Term Loan Facility | Secured Debt | LIBOR | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Spread on variable rate | 1% | 9.75% | ||||||
Minimum LIBOR rate | 1% | |||||||
Term Loan Facility | Secured Debt | Federal Funds Rate | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Spread on variable rate | 0.50% | 0.50% | 0.50% | 0.50% | ||||
Term Loan Facility | Secured Debt | One Month LIBOR | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Spread on variable rate | 1% | 1% | ||||||
Term Loan Facility | Secured Debt | One Month SOFR | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Spread on variable rate | 1% | |||||||
Term Loan Facility | Secured Debt | Alternate Base Rate | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Spread on variable rate | 8.75% | 8.75% | ||||||
Term Loan Facility | Secured Debt | One Month Adjusted SOFR | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Spread on variable rate | 0.11448% | |||||||
Term Loan Facility | Secured Debt | Three Month Adjusted SOFR | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Spread on variable rate | 0.26161% | |||||||
Term Loan Facility | Secured Debt | Six Month Adjusted SOFR | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Spread on variable rate | 0.42826% | |||||||
Term Loan Facility | Secured Debt | SOFR | ||||||||
Line Of Credit Facility [Line Items] | ||||||||
Spread on variable rate | 9.75% |
Debt - Summary of Company's Max
Debt - Summary of Company's Maximum Borrowing Availability Under ABL Facility (Details) - ABL Facility - USD ($) | 6 Months Ended | 12 Months Ended | |
Jul. 28, 2023 | Jul. 29, 2022 | Jan. 27, 2023 | |
Line Of Credit Facility [Line Items] | |||
ABL Facility maximum borrowing | $ 275,000,000 | $ 275,000,000 | $ 275,000,000 |
Borrowing base | 207,326,000 | 288,498,000 | 274,354,000 |
Less: Outstanding borrowings | 70,000,000 | 135,000,000 | 100,000,000 |
Less: Outstanding letters of credit | 8,554,000 | 13,828,000 | 10,557,000 |
Utilization of ABL Facility at end of period | 78,554,000 | 148,828,000 | 110,557,000 |
Borrowing availability under ABL Facility | $ 128,772,000 | $ 126,172,000 | $ 163,797,000 |
Interest Rate | 6.82% | 3.51% | 6.27% |
Debt - Schedule of Company's Lo
Debt - Schedule of Company's Long Term Debt (Details) - USD ($) $ in Thousands | Jul. 28, 2023 | Jan. 27, 2023 | Jul. 29, 2022 | Sep. 09, 2020 |
Line Of Credit Facility [Line Items] | ||||
Less: Current portion of long-term debt | $ 13,750 | $ 13,750 | $ 13,750 | |
Less: Unamortized debt issuance costs | 5,416 | 6,807 | 8,240 | |
Long-term debt, net | 218,022 | 223,506 | 228,948 | |
Term Loan Facility | ||||
Line Of Credit Facility [Line Items] | ||||
Secured debt | $ 237,188 | $ 244,063 | $ 250,938 | $ 275,000 |
Debt instrument, interest rate, stated percentage | 14.97% | 14.13% | 12.12% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) $ in Millions | 6 Months Ended |
Jul. 28, 2023 USD ($) shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target shares earned | 100% |
Adjustment percentage of earned shares, overall cap | 200% |
Modifier limitationin event of TSR negative | 100% |
Minimum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target shares earned | 50% |
Adjustment percentage of earned shares | 75% |
Maximum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Target shares earned | 200% |
Adjustment percentage of earned shares | 125% |
Deferred Awards | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Vesting period | 3 years |
Compensation expense not yet recognized | $ 10.8 |
Compensation expense not yet recognized, recognition period | 2 years 3 months 18 days |
Fair value of awards, vested | $ 5.1 |
Performance Awards | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Compensation expense not yet recognized, recognition period | 2 years 8 months 12 days |
Performance awards period considered | 3 years |
Compensation expense not yet recognized | $ 4.4 |
Option Awards | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options awards expiration period | 10 years |
Compensation expense not yet recognized, recognition period | 2 years 3 months 18 days |
Options award activity | shares | 0 |
Compensation expense not yet recognized | $ 0.9 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 28, 2023 | Jul. 29, 2022 | Jul. 28, 2023 | Jul. 29, 2022 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation | $ 810 | $ 1,919 | $ 1,893 | $ 3,403 |
Deferred Awards | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation | 1,242 | 1,350 | 2,221 | 2,905 |
Performance Awards | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation | (536) | $ 569 | (536) | $ 498 |
Option Awards | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Share-based compensation | $ 104 | $ 208 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Deferred Awards Activity (Details) - Deferred Awards shares in Thousands | 6 Months Ended |
Jul. 28, 2023 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Unvested deferred awards at beginning of year | shares | 906 |
Number of Shares, Granted | shares | 836 |
Number of Shares, Vested | shares | (410) |
Number of Shares, Forfeited | shares | (74) |
Number of Shares, Unvested deferred awards at end of quarter | shares | 1,258 |
Weighted Average Grant Date Fair Value, Unvested awards at beginning of year | $ / shares | $ 16.46 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 8.54 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 12.35 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 20.68 |
Weighted Average Grant Date Fair Value, Unvested awards at end of year | $ / shares | $ 12.28 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Performance Awards Activity (Details) - Performance Awards | 6 Months Ended |
Jul. 28, 2023 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Number of Shares, Unvested deferred awards at beginning of year | shares | 355,000 |
Number of Shares, Granted | shares | 567,000 |
Number of Shares, Forfeited | shares | (55,000) |
Number of Shares, Unvested deferred awards at end of quarter | shares | 867,000 |
Weighted Average Grant Date Fair Value, Unvested awards at beginning of year | $ / shares | $ 24.39 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 9.74 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 24.33 |
Weighted Average Grant Date Fair Value, Unvested awards at end of year | $ / shares | $ 14.81 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Grand Date Fair Value of Option Award Granted (Details) | 6 Months Ended | |
Jul. 28, 2023 $ / shares | ||
Share-Based Payment Arrangement [Abstract] | ||
Risk-free interest rate | 4.46% | [1] |
Expected dividend yield | 0% | |
Expected volatility | 78.04% | [2] |
Expected term (in years) | 2 years 7 months 17 days | [3] |
Grant date fair value per share | $ 9.74 | |
[1] The risk-free interest is based on the continuously compounded yield on a zero-coupon U.S. Treasury STRIPS as of the grant date for a period equal to the expected term. The expected volatility is estimated based on the historical volatility of the Company’s common stock with a term consistent with the expected term of the performance award. The expected term (in years) of the performance award represents the estimated period of time from the grant date to the end of the performance period. |
Stock-Based Compensation - Su_4
Stock-Based Compensation - Summary of Information about Option Awards Vested and Expected to Vest (Details) - Option Awards | 6 Months Ended |
Jul. 28, 2023 $ / shares shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Option Awards, Option Awards vested and expected to vest | shares | 511,000 |
Option Awards, Option Awards exercisable | shares | 343,000 |
Weighted Average Remaining Contractual Life (Years), Option Awards vested and expected to vest | 5 years 5 months 26 days |
Weighted Average Remaining Contractual Life (Years), Option Awards vested and expected to vest, Option Awards exercisable | 3 years 7 months 17 days |
Weighted Average Exercise Price, Option Awards vested and expected to vest | $ / shares | $ 16.08 |
Weighted Average Exercise Price, Option Awards exercisable | $ / shares | $ 18.66 |
Stockholders Equity - Additiona
Stockholders Equity - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 28, 2022 | Jul. 28, 2023 | Apr. 28, 2023 | Jul. 29, 2022 | Jul. 28, 2023 | |
Equity Class Of Treasury Stock [Line Items] | |||||
Stock repurchased and retired during period, value | $ 3,008,000 | $ 3,781,000 | $ 2,357,000 | ||
Retained Earnings | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Stock repurchased and retired during period, value | $ 98,000 | ||||
2022 Share Repurchase Program | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 50,000,000 | ||||
Stock repurchase program expiration date | Feb. 02, 2024 | ||||
Stock repurchase program, additional purchases could be made | 34,800,000 | $ 34,800,000 | |||
2022 Share Repurchase Program | Retained Earnings | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Stock repurchased and retired during period, value | $ 0 | $ 0 |
Stockholder' Equity - Summary o
Stockholder' Equity - Summary of Share Repurchases (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 28, 2023 | Apr. 28, 2023 | Jul. 29, 2022 | Jul. 28, 2023 | Jul. 29, 2022 | |
Equity Class Of Treasury Stock [Line Items] | |||||
Total cost | $ 3,008 | $ 3,781 | $ 2,357 | ||
Share Repurchase Program | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Number of shares repurchased | 403 | 212 | 833 | 212 | |
Total cost | $ 3,000 | $ 2,353 | $ 6,772 | $ 2,353 | |
Average per share cost | $ 7.45 | $ 11.10 | $ 8.13 | $ 11.10 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jul. 28, 2023 | Apr. 28, 2023 | Jan. 27, 2023 | Jul. 29, 2022 | Apr. 29, 2022 | Jan. 28, 2022 |
Other Liabilities, Current [Abstract] | ||||||
Deferred gift card revenue | $ 33,556 | $ 34,222 | $ 33,029 | $ 31,444 | $ 32,015 | $ 33,070 |
Accrued employee compensation and benefits | 22,922 | 18,125 | 24,817 | |||
Reserve for sales returns and allowances | 18,404 | 25,030 | 19,857 | |||
Accrued property, sales and other taxes | 8,300 | 9,780 | 7,863 | |||
Deferred revenue | 8,081 | 7,484 | 9,757 | |||
Other | 9,369 | 13,308 | 7,277 | |||
Total Accrued expenses and other current liabilities | $ 100,632 | $ 106,756 | $ 101,015 |
Lands' End Japan Closing - Addi
Lands' End Japan Closing - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Oct. 28, 2022 | Jul. 28, 2023 | |
Restructuring Cost And Reserve [Line Items] | ||
Employee severance and benefit costs | $ 3,900 | |
Accrued Expenses and Other Current Liabilities | ||
Restructuring Cost And Reserve [Line Items] | ||
Accrued closing costs | $ 45 | |
Other Operating Expense (Income) | ||
Restructuring Cost And Reserve [Line Items] | ||
One-time closing costs | $ 100 |
Fair Value Measurements of Fi_3
Fair Value Measurements of Financial Assets and Liabilities - Additional Information (Details) - USD ($) | Jul. 28, 2023 | Jan. 27, 2023 | Jul. 29, 2022 |
Nonrecurring | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Nonfinancial assets fair value disclosure | $ 0 | $ 0 | $ 0 |
Nonfinancial liabilities fair value disclosure | 0 | 0 | 0 |
Fair Value | Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Restricted cash fair value | $ 1,800,000 | $ 1,800,000 | $ 2,100,000 |
Fair Value Measurements of Fi_4
Fair Value Measurements of Financial Assets and Liabilities - Schedule of Carrying Amounts and Fair Values of Long-term Debt, Including Current Portion (Details) - USD ($) $ in Thousands | Jul. 28, 2023 | Jan. 27, 2023 | Jul. 29, 2022 |
Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | $ 237,188 | $ 244,063 | $ 250,938 |
Fair Value | Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt, including current portion | $ 226,786 | $ 241,728 | $ 239,079 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||
Jul. 28, 2023 | Jul. 29, 2022 | Jul. 28, 2023 | Jul. 29, 2022 | |
Income Tax Examination [Line Items] | ||||
Effective income tax expense (benefit), percentage | (32.40%) | 29.80% | (17.50%) | 36.90% |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 6 Months Ended |
Jul. 28, 2023 Channel Segment | |
Segment Reporting [Abstract] | |
Number of external reportable segment | Segment | 1 |
Number of distribution channels for revenue reporting purposes | Channel | 5 |
Segment Reporting - Summary of
Segment Reporting - Summary of Net Revenue by Distribution Channel (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 28, 2023 | Jul. 29, 2022 | Jul. 28, 2023 | Jul. 29, 2022 | ||
Segment Reporting Information [Line Items] | |||||
Net revenue | $ 323,363 | $ 351,178 | $ 632,921 | $ 654,843 | |
US eCommerce | |||||
Segment Reporting Information [Line Items] | |||||
Net revenue | $ 195,921 | $ 203,288 | $ 373,623 | $ 378,181 | |
Percentage of net revenue | 60.60% | 57.90% | 59% | 57.80% | |
International | |||||
Segment Reporting Information [Line Items] | |||||
Net revenue | [1] | $ 22,818 | $ 36,373 | $ 48,210 | $ 80,551 |
Percentage of net revenue | [1] | 7.10% | 10.40% | 7.60% | 12.30% |
Outfitters | |||||
Segment Reporting Information [Line Items] | |||||
Net revenue | $ 67,984 | $ 70,669 | $ 141,953 | $ 124,631 | |
Percentage of net revenue | 21% | 20.10% | 22.40% | 19% | |
Third Party | |||||
Segment Reporting Information [Line Items] | |||||
Net revenue | $ 24,395 | $ 27,290 | $ 47,384 | $ 48,932 | |
Percentage of net revenue | 7.50% | 7.80% | 7.50% | 7.50% | |
Retail | |||||
Segment Reporting Information [Line Items] | |||||
Net revenue | $ 12,245 | $ 13,558 | $ 21,751 | $ 22,548 | |
Percentage of net revenue | 3.80% | 3.90% | 3.40% | 3.40% | |
[1] The 13 weeks and 26 weeks ended July 29, 2022 includes Net revenue of $ 7.6 million and $ 16.1 million, respectively, from the Japan eCommerce distribution channel. See Note 9, Lands’ End Japan Closing . |
Segment Reporting - Summary o_2
Segment Reporting - Summary of Net Revenue by Distribution Channel (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 28, 2023 | Jul. 29, 2022 | Jul. 28, 2023 | Jul. 29, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 323,363 | $ 351,178 | $ 632,921 | $ 654,843 |
Japan eCommerce | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue | $ 7,600 | $ 16,100 |
Revenue - Disaggregated of Reve
Revenue - Disaggregated of Revenue by Geographic Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jul. 28, 2023 | Jul. 29, 2022 | Jul. 28, 2023 | Jul. 29, 2022 | ||
Disaggregation of Revenue [Line Items] | |||||
Net revenue | $ 323,363 | $ 351,178 | $ 632,921 | $ 654,843 | |
United States | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenue | 296,653 | 310,151 | 577,057 | 565,425 | |
Europe | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenue | 23,305 | 29,311 | 49,182 | 65,440 | |
Asia | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenue | [1] | 129 | 7,742 | 286 | 16,439 |
Other Geographical Location | |||||
Disaggregation of Revenue [Line Items] | |||||
Net revenue | $ 3,276 | $ 3,974 | $ 6,396 | $ 7,539 | |
[1] The 13 weeks and 26 weeks ended July 29, 2022 includes Net revenue of $ 7.6 million and $ 16.1 million, respectively, from the Japan eCommerce distribution channel. See Note 9, Lands’ End Japan Closing . |
Revenue - Disaggregated of Re_2
Revenue - Disaggregated of Revenue by Geographic Location (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 28, 2023 | Jul. 29, 2022 | Jul. 28, 2023 | Jul. 29, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 323,363 | $ 351,178 | $ 632,921 | $ 654,843 |
Japan eCommerce | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue | $ 7,600 | $ 16,100 |
Revenue - Summary of Deferred R
Revenue - Summary of Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 28, 2023 | Jul. 29, 2022 | Jul. 28, 2023 | Jul. 29, 2022 | |
Revenue from Contract with Customer [Abstract] | ||||
Deferred revenue beginning of period | $ 6,019 | $ 6,074 | $ 7,484 | $ 8,560 |
Deferred revenue recognized in period | (5,805) | (5,860) | (7,270) | (8,346) |
Revenue deferred in period | 7,867 | 9,543 | 7,867 | 9,543 |
Deferred revenue end of period | $ 8,081 | $ 9,757 | $ 8,081 | $ 9,757 |
Revenue - Reconciliation of Gif
Revenue - Reconciliation of Gift Card Contract Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 28, 2023 | Jul. 29, 2022 | Jul. 28, 2023 | Jul. 29, 2022 | |
Revenue from Contract with Customer [Abstract] | ||||
Balance as of beginning of period | $ 34,222 | $ 32,015 | $ 33,029 | $ 33,070 |
Gift cards sold | 13,171 | 17,042 | 28,786 | 31,670 |
Gift cards redeemed | (13,048) | (17,245) | (26,682) | (32,713) |
Gift card breakage | (789) | (368) | (1,577) | (583) |
Balance as of end of period | $ 33,556 | $ 31,444 | $ 33,556 | $ 31,444 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | Jul. 28, 2023 | Jan. 27, 2023 | Jul. 29, 2022 |
Accrued Expenses and Other Current Liabilities | |||
Deferred Revenue Arrangement [Line Items] | |||
Refund liabilities | $ 18.4 | $ 25 | $ 19.9 |