Editor’s note: This article has been updated to provide additional context regarding Lands’ End’s net loss in FY 2023.
Lands’ End made “high single-digit percentage” reductions to its corporate workforce in January which, combined with earlier cuts to its sourcing organization, amount to a 10% corporate headcount reduction for the apparel and outerwear retailer.
“We determined that creating a flatter, more agile organization would set us up to continue to profitably grow over the long term, while generating additional cost savings that can be reinvested in the business,” said Bernie McCracken, CFO of Lands’ End during a call discussing the retailer’s Q4 and fiscal year results.
For its 2023 fiscal year, which ended Feb. 2, 2024, Lands’ End’s net revenue decreased 5.3%, to $1.47 million, down from the $1.56 million generated during FY 2022. The company suffered a net loss of $130.7 million, or $4.09 per diluted share in FY 2023, compared to a net loss of $12.5 million, or $0.38 per diluted share, the previous year. The net loss figure includes a non-cash $106.7 million impairment of goodwill due to the decline in the Company’s stock price and market capitalization and additional significant events.
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Lands’ End CEO Andrew McLean cited several positive signals for the coming year, including merchandising and assortment updates: “We’re taking a more outfit-centric approach to our assortment that features significantly more productive inventory and facilitates demand across natural adjacencies,” said McLean during the call. “Our success in outerwear helped facilitate sales of layering products, effectively supporting the new seasonal launches of our women’s tops and bottoms businesses.” McLean also noted that “our new exclusive swimwear product in 200 Target doors is performing well.”
