For its third quarter, Lands’ End, Inc. net revenue decreased 0.5 percent to 340 million dollars compared to the same period last year. The company said in a statement that sales decline reflected 89 fewer Lands’ End shops at Sears, which resulted in a net revenue decline from Sears operations of 17 million dollars. US ecommerce revenue growth was 7.4 percent, driven by greater demand for key items and a high single digit increase in new customer acquisitions, while same store sales for US company operated stores increased by 8.3 percent.
Commenting on the third quarter results, Jerome S. Griffith, the company’s Chief Executive Officer and President, stated: “We were pleased to have delivered strong financial results for the third quarter as gross margin expansion and expense management enabled us to achieve Adjusted EBITDA growth of approximately 20 percent. Overall, we are pleased with our progress and remain on track to achieve our long-term financial targets.”
Gross margin for the quarter increased to 45.3 percent compared to 44.2 percent in the third quarter last year. Net income was 3.6 million dollars or 11 cents per diluted share compared to 3.3 million dollars or 10 cents earnings per diluted share, in the third quarter of fiscal 2018. Adjusted EBITDA was 18.8 million dollars compared to 15.7 million dollars in the third quarter of fiscal 2018.
For the fourth quarter of fiscal 2019 the company expects net revenue to be between 545 million dollars and 555 million dollars, net income to be between 24 million dollars and 27 million dollars, diluted earnings per share to be between 74 cents and 83 cents and adjusted EBITDA in the range of 46 million dollars to 50 million dollars.
For fiscal 2019 the company now expects net revenue to be between 1.45 billion dollars and 1.46 billion dollars, net income to be between 18 million dollars and 21 million dollars, diluted earnings per share to be between 55 cents and 64 cents and adjusted EBITDA in the range of 75 million dollars to 79 million dollars.