Lands' End Inc · NASDAQ:LE
Lands' End — Investor Presentation (June 2023)
19 slides from Lands' End's investor presentation, Jun 26, 2023
Slide 1: June 2023 Investor Presentation
JUNE 2023 Investor Presentation
Slide 2: Forward-looking statements
2 This presentation contains forward-looking statements that involve risks and uncertainties, including statements regarding the Company’s strategies and the expected impact of their implementation, opportunities for growth and value creation, ability to build, positioning for long-term success, foc
Slide 3: Key Investment Highlights
Lands’ End is an iconic American brand well-positioned for long-term success. We have two profitable, digitally-enabled e-commerce businesses, deep customer relationships and many opportunities for growth and value creation. Key Investment Highlights We have a tremendously loyal customer base with a
Slide 4: Solutions: Our Competitive Advantage
4 Own the vacation #1 Online Retailer in women’s swim. #2 Online Retailer in total swim. Source: NPD 12 months through October 31, 2022 Own the weather We offer a 365 day outerwear collection featuring all-weather protection, warm/warmer/warmest designations, and industry-leading value. #6 Online Re
Slide 5: Focused on Three Strategic Pillars
5 As we embark on the next phase of our strategy, we aim to capitalize on our strengths, simplify our approach and drive profitability. Our merchandising strategy is focused on growing key items, categories and franchises: We lead with a digitally-native culture and approach. Product Digital Custome
Slide 6: Our Business
6 Women 30% Men 17% Swim 19% Kids 4% Home 9% Outerwear 14% Footwear & Accessories 7% We meet our customers where they are and serve the whole family. US eCommerce 61% Retail 3% Outfitters 17% Third Party 8% Kohl’s, Target, Amazon and others International eCommerce 11% Our Business US eCommerce Produ
Slide 7: Lands' End Outfitters: Differentiation with B2B Offering
Lands’ End Outfitters provides a compelling opportunity to reach new customers. 4,500 schools currently partnering with Lands’ End across the US. ~12% of US private school market. Full range of school uniform items available. Collaborating with large businesses to deliver high quality uniform soluti
Slide 8: We Know Our Customers
Our existing customers are extremely valuable to Lands’ End. Our new customers and prospects have high potential. 80% female Average age 60 College educated More affluent Married and more likely to have children at home Household income +209% vs. US population Existing customers spend +100% more in
Slide 9: We Know Our Customers: High-Value Cohorts
We Know Our Customers Leveraging our data to prioritize high-value customer cohorts. 9 Our evolved approach of focusing on behaviors, rather than demographics, enables us to define, prioritize, reach and cater to the customers that matter most, while expanding our customer base over time. • Largest
Slide 10: We Know How to Meet and Keep Our Customers
Lands’ End shows up when the customer is ready to buy. New customers are primarily acquired via search channels. We retain her with relevant contacts such as catalogs and connected digital campaigns. Social is increasingly important to all customer segments at all points in the funnel. 10 90% of our
Slide 11: Continued Digital Innovation and Infrastructure
Continued Digital Innovation 11 ✓ Target gross profit optimization through continued build-out of Dynamic Promo. ✓ Drive cross-category shopping by interpretation of “next product to buy.” ✓ Integration of SKU optimization, demand forecasting and promotion planning. Application of Artificial Intelli
Slide 12: Marketplaces, Licensing and International Expansion
LEVERAGING MARKETPLACES ✓ Leveraging expanded digital footprint and driving inventory utilization with product sold through Kohls.com, Amazon, Macys.com and Target.com. ✓ 75% of marketplace customers new to brand or reacquired after 5+ years. GROWING LICENSING ✓ Growing licensing of non-core product
Slide 13: Global Customer File
Global Customer File Our global eCommerce existing buyer file stabilized in the first quarter of 2023 as customers came back to rebuy driven by vacation solutions products. 4.3M Existing 1.1M New to Brand 5.4M Total FY2016 4.6M Existing 1.3M New to Brand 5.8M Total FY2017 4.8M Existing 1.4M New to B
Slide 14: Financial Profile
14 FY 2017 FY 2019 FY 2021 FY 2022 $1.41B Total $171M Retail $259M Outfitters $179M International eCommerce $798M US eCommerce $1.64B Total $47M Retail $87M Third Party $254M Outfitters $222M International eCommerce $1.03B US eCommerce $1.56B Total $48M Retail $119M Third Party $266M Outfitters $167
Slide 15: First Quarter Financial Profile
15 $319M Historical Revenue Performance Historical Inventory Balances First Quarter Financial Profile* 2019 2021 2022 2023 $310M $437M $376M 2019 2021 2022 2023 $394M $304M $321M $262M Historical Profitability Performance 2019 2021 2022 2023 $3M Adjusted EBITDA $23M Adjusted EBITDA Historical Net De
Slide 16: Key Investment Highlights
Lands’ End is an iconic American brand well-positioned for long-term success. We have two profitable, digitally-enabled e-commerce businesses, deep customer relationships and many opportunities for growth and value creation. Key Investment Highlights We have a tremendously loyal customer base with a
Slide 17: Appendix
APPENDIX
Slide 18: Full Year Reconciliation of Non-GAAP Measures
18 Full Year Reconciliation of Non-GAAP Measures (in millions) FY 2017 FY 2019 FY 2020 FY 2021 FY 2022 Net Income/ (loss) $28.2 $19.3 $10.8 $33.4 $(12.5) Taxes (27.7) 2.1 1.8 12.6 (2.2) Interest 25.9 26.0 27.8 34.4 39.8 Depreciation 24.9 31.1 37.3 39.2 38.7 Other Adjustments 7.0 (0.6) 9.3 1.3 6.7 Ad
Slide 19: First Quarter Reconciliation of Non-GAAP Measures
19 First Quarter Reconciliation of Non-GAAP Measures (in millions) 1Q 2019 1Q 2021 1Q 2022 1Q 2023 Net Income/ (loss) $(6.8) $2.6 $(2.4) $(1.7) Taxes (4.9) 0.3 (1.7) (0.5) Interest 7.8 9.1 8.2 12.3 Depreciation 7.6 9.9 9.6 9.3 Other Adjustments (0.7) 0.6 0.1 0.1 Adjusted EBITDA $3.0 $22.5 $13.8 $19.