Lands' End Inc · NASDAQ:LE
Lands' End — Shareholder Meeting (June 2015)
33 slides from Lands' End's shareholder meeting presentation, Jun 5, 2015
Slide 1: Annual Meeting of Stockholders June 5, 2015
1 ANNUAL MEETING OF STOCKHOLDERS JUNE 5, 2015 DREAM THE NEW BEGINNING
Slide 2: Cautionary Statement Regarding Forward-Looking Information
2 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This presentation contains forward-looking statements, including statements about our strategies. Forward-looking statements are subject to risks and uncertainties that may cause our actual results, performance or achievements to be materi
Slide 3: Agenda
3 AGENDA – COMPANY OVERVIEW – INVESTMENT HIGHLIGHTS – VISION – STRATEGIC OBJECTIVES – FINANCIAL OBJECTIVES – PRIORITIES & ACTIONS 3
Slide 4: Lands' End: 50+ Years of History & Authentic Heritage
4 LANDS’ END 50+ YEARS OF HISTORY & AUTHENTIC HERITAGE – Founded in 1963 to sell sailboat hardware and equipment by catalog – Published first catalog in 1964 – Launched first apparel catalog in 1977 – First apparel retailer to introduce toll-free 1-800 customer service number in 1978 – Became a publ
Slide 5: Heart of a Sailor
5 HEART OF A SAILOR 43 It all starts with passion. Our founder, Gary Comer, had a passion for the sea but he also had a love of family. And while our brand started as a company that sold sailing equipment, Lands’ End has evolved over the last 50 years into a brand that produces high-quality, timeles
Slide 6: With a Passion for the Land
6 WITH A PASSION FOR THE LAND 6
Slide 7: And a Heritage of Giving Back
7 AND A HERITAGE OF GIVING BACK GARY COMER 7 7
Slide 8: Quality, Integrity, Style, Passion, Customer Service, Value
8 QUALITY INTEGRITY STYLE PASSION CUSTOMER SERVICE VALUE PRODUCT ACTIVE LIFESTYLES ENVIRONMENT PEOPLE 8
Slide 9: 2014 Key Figures at a Glance
9 Revenue $1.6B Revenue generated from direct 85% Revenue generated from retail 15% Ad?????d ?????A ?????? 11% Employees ~6,000 Countries ?????d 156 Points of sale ???? ???? ???? ???? ?????????? ??11? Revenu $1.6B Revenu generated from direct 85% Revenu generated from retail 15% Ad???? d ??? A ????
Slide 10: 2014 Revenue Breakdown and Financial Snapshot
10 2014 REVENUE BREAKDOWN BY REGION BY CHANNEL Direct 85% Retail 15% Other 0% United States 84% Europe 10% Asia 4% Other 2% * * orders filled from US FINANCIAL SNAPSHOT (in millions of USD) 2012 2013 2014 Revenue 1,586 1,563 1,555 Gross Margin 704 710 736 Gross Margin % 44.4% 45.5% 47.3% Adjusted EB
Slide 11: Investment Highlights
11 00ED-2Q15US-1206Fabcd_0081 INVESTMENT HIGHLIGHTS STRONG BRAND HERITAGE AND DNA – 50+ years of history – Rooted in quality, value and service ATTRACTIVE, LARGE AND LOYAL CUSTOMER BASE – High retention and percentage of active buyers amongst total buyers – Average household income of $105,000 and 4
Slide 12: The Vision: The Best Kept Secret
12 THE BEST KEPT SECRET TRANSFORMING AN ICONIC COMPANY INTO A MEANINGFUL GLOBAL LIFESTYLE BRAND GROWTH PROFITABILITY ADAPTABILITY THE VISION1
Slide 13: 1313
1313
Slide 14: Lands' End
LANDS’ END
Slide 15: Strategic Objectives
15 STRATEGIC OBJECTIVES – CREATE AND DISTRIBUTE SUCCESSFUL MERCHANDISE OFFERINGS – BUILD BRAND AWARENESS AND RELEVANCE TO DELIGHT AND EXPAND OUR CUSTOMER BASE – EXCEL AT OPERATIONS TO SUSTAIN GROWTH 15
Slide 16: Financial Objectives
16 FINANCIAL OBJECTIVES – SUSTAINABLE REVENUE AND EBITDA GROWTH – STRONG FREE CASH FLOW GENERATION – DEPLOY CAPITAL TO DRIVE PROFITABLE GROWTH – PROFITABLE GROWTH TO CREATE SIGNIFICANT LONG-TERM VALUE TO SHAREHOLDERS 16
Slide 17: Multi-Dimensional Strategy
17 MULTI-DIMENSIONAL STRATEGY 1/ PRODUCT & MERCHANDISING - Heighten product relevance - Reinvigorate core customers 2/ BRANDING & MARKETING - Foster brand awareness - Strengthen brand identity 3/ OPERATIONS & TECHNOLOGY - Invest in infrastructure - Upgrade technology 4/ DISTRIBUTION - Penetrate dist
Slide 18: Product & Merchandising: Opportunity and Immediate Actions
18 1/ PRODUCT & MERCHANDISING OPPORTUNITY: – Streamline merchandising strategy – Build on best sellers and key selling products – Greater design appeal and innovation – Create synergies between design and other functions – Improve inventory turns and sell-through IMMEDIATE ACTIONS: – Rationalize ass
Slide 19: Product & Merchandising: Longer-Term
19 1/ PRODUCT & MERCHANDISING LONGER-TERM: – Establish strong, sustainable core businesses while offering unique merchandise propositions that resonate emotionally – Create a merchandise architecture to enhance our current offer for loyal consumers and appeal to a broader customer base – Add higher-
Slide 20: Branding & Marketing: Opportunity and Immediate Actions
20 2/ BRANDING & MARKETING OPPORTUNITY: – Increase traffic, demand and conversion – Better position against increased online competition – Enhance communication initiatives and tools – Update promotional approach IMMEDIATE ACTIONS: – Repurpose marketing resources to respond to current business lands
Slide 21: Branding & Marketing: Longer-Term
21 2/ BRANDING & MARKETING LONGER-TERM: – Amplify brand awareness by leveraging Brand DNA – Improve creativity to engage customers with current and new projects – Strategically use PR with influencers to establish credibility and relevance – Unveil products differently for multiple targets – Conceiv
Slide 22: Operations & Technology: Opportunity and Immediate Actions
22 3/ OPERATIONS & TECHNOLOGY OPPORTUNITY: – Upgrade sourcing and supply chain – Optimize distribution – Enhance technology infrastructure – Improve order fulfillment across digital platforms IMMEDIATE ACTIONS: – Define area of opportunity in operations – Sign Oracle’s multi-year ERP implementation
Slide 23: Operations & Technology: Longer-Term
23 3/ OPERATIONS & TECHNOLOGY LONGER-TERM: – Leverage information technology as an innovation enabler – Enable Omni-channel customer experience – Establish strong operations in each department to sustain growth and expansion – Increase productivity while maintaining Quality, Value, Service Dorian: h
Slide 24: Distribution: Opportunity and Immediate Actions
24 4/ DISTRIBUTION OPPORTUNITY: – Penetrate domestic geographies – Optimize distribution channels – Enhance current retail presence – Strengthen online competitiveness IMMEDIATE ACTIONS: – Foster diversity in customer segments and geographies through products and branding – Focus on best categories
Slide 25: Distribution: Longer-Term
25 4/ DISTRIBUTION LONGER-TERM: – Gain market share domestically before internationally – Expand in multiple channels to seize market opportunity – Adapt distribution strategy to achieve an optimal blend of channels – Grow topline and profitability across all channels 25
Slide 26: Talent: Opportunity and Immediate Actions
26 5/ TALENT OPPORTUNITY: – Blend industry know-how with current approach – Enhance creativity to win competitively – Create greater synergies between teams IMMEDIATE ACTIONS: – Infuse talent with new hiring – Ensure seamless integration of new and existing talent pools – Strengthen industry best pr
Slide 27: Talent: Longer-Term
27 5/ TALENT LONGER-TERM: – Continued long-term investment in human capital management – Use the NY office as a window to global reach – Achieve a flexible organization to face any challenge 27
Slide 28: 2015: A New Beginning
28 – Leverage the company’s DNA from its roots – Build on Gary Comer’s legacy, envision the future from its strong platform • Elevate product design and development • Strengthen brand awareness and identity • Strive for continued technological advances • Expand distribution channels and geographies
Slide 29: Envisioning the Future Made by Lands' End
29 TM ENVISIONING THE FUTURE MADE BY LANDS’ END GROWTH PROFITABILITY ADAPTABILITY 29
Slide 30: Thank You Stockholders Q&A
30 THANK YOU STOCKHOLDERS Q&A
Slide 31: Appendix
31 APPENDIX
Slide 32: Non-GAAP Financial Measures
32 Non-GAAP Financial Measures In addition to our Net income determined in accordance with GAAP, for purposes of evaluating operating performance, we use an Adjusted EBITDA measurement. Adjusted EBITDA is computed as Net income appearing on the Consolidated and Combined Statements of Comprehensive O
Slide 33: Envisioning the Future Made by Lands' End
33 TM ENVISIONING THE FUTURE MADE BY LANDS’ END GROWTH PROFITABILITY ADAPTABILITY 32