Lands’ End Posts a Solid Third Quarter
Lands’ End doubled its profits in the third quarter, capitalizing on its “let’s get comfy” marketing mantra, the launch of the line at Kohl’s, and a business model built almost entirely on digital selling.
From Lands’ End’s “comfy” assortment.
Griffith underscored the company’s limited brick-and-mortar exposure as a particular advantage at at time when shoppers are avoiding stores due to the health crisis. The company has just 31 stores and no plans to open more next year. In the latest quarter, the brand’s brick-and-mortar business was down 44 percent to $8 million.
In another third-quarter highlight, the company completed a closing of a $275 million term loan and an increase in its asset-based senior secured credit facility to a maximum of $275 million in borrowings.
“We are pleased to have refinanced our term loan during the third quarter, in a very difficult debt market,” said Jim Gooch, chief operating officer and chief financial officer.
“We believe the strong momentum in our business, along with our enhanced financial flexibility, positions us optimally to continue to execute our long-term growth strategies, as we continue to navigate the continued challenges of the COVID-19 pandemic,” Gooch said. “While we are encouraged by the continued resilience and performance of our global e-commerce business, the fourth quarter has gotten off to a slow start in the U.S., due to the impact of unseasonably warm weather on our heavy outerwear category.
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