Lands End Inc Q1 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Dana Telsey - Telsey Advisory Group - Analyst : Good morning, Andrew and Bernie. Congratulations on the nice progress, nice to see. As you think about your core customer, the resolver, the evolver, what are you seeing in terms of -- is it differentiation in terms of price point, differentiation in category sell-through, and with the improved REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 05, 2024 / 12:30PM, LE.OQ - Q1 2024 Lands End Inc Earnings Call gross margin, the reduction in promotions, anything changing on the full-price sell-through that you're getting? And also anything different in terms of sell-through of newer items versus core and classic, basically the health of the consumer as you see it? Thank you.

Question: Dana Telsey - Telsey Advisory Group - Analyst : Got it. Thank you. Follow-up, how you're thinking about marketing spend for the year to acquire new customers? And then you mention the Costco business and that strength, anything else happening on third parties that we should -- that could be interesting whether increasing third party business, new third party business or third party business that you're swapping for something else? Thank you.

Question: Dana Telsey - Telsey Advisory Group - Analyst : Yes, I can hear you.

Question: Dana Telsey - Telsey Advisory Group - Analyst : Got it. Thank you.

Question: Eric Beder - Small Cap Consumer Research, LLC - Analyst : Good morning. Let me add my congratulations.

Question: Eric Beder - Small Cap Consumer Research, LLC - Analyst : I want to talk a little bit about licensing. I believe that you started now to do the shoe business again with the licensee. I'm curious what the response has been to that in terms of being able to offer expanded styles on the customer response to that. And I guess an update here now when you should start to see that kids license product shipped over and the new category you mentioned also. And I do have a follow.

Question: Eric Beder - Small Cap Consumer Research, LLC - Analyst : Very good. Shift here to talk about international. So that was really a strong international results. I'd like to drill down a little bit more I know you've talked before about international having some of their own products for each region and how that really helped drive margins and other pieces. I'm curious, did that where that kind of strategy is? And when you look at the international, where do you think the best potential in terms of club countries, is also to? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. JUNE 05, 2024 / 12:30PM, LE.OQ - Q1 2024 Lands End Inc Earnings Call

Question: Eric Beder - Small Cap Consumer Research, LLC - Analyst : Great. Thank you. Congrats again.

Question: Alex Fuhrman - Craig-Hallum Capital Group, LLC - Analyst : Hey, guys. Thanks very much for taking my question. I wanted to ask about the impact that some of your more kind of high end technical items that are more functional or having on gross margin, looks like you guys are having a lot of success. You mentioned the Wanderweight packable jacket, swimwear as well being seeing you guys are selling a lot of more technical UV resistant and tummy tucking type item, over $100, which I believe, is more than the brand that's historically commanded. How much more opportunity is there to be inserting more of those high value, higher priced items into the assortment and are there other categories where you think there's an opportunity outside of maybe swim and outerwear where you can really take the assortment up like that?

Question: Alex Fuhrman - Craig-Hallum Capital Group, LLC - Analyst : I'm doing great. Thanks, Andrew.

Question: Alex Fuhrman - Craig-Hallum Capital Group, LLC - Analyst : Great. That's really helpful. Thank you, both for the very thorough response and congratulations on the strong results you're seeing.

Question: Steve Silver - Argus Research Corporation - Analyst : Good morning. Thanks, operator and thanks for taking the question. A lot of my questions have already been asked. So I guess I just have a big picture question for you guys. In your prepared remarks, you touched upon quite a few themes of using technology, having a strategy focused on innovation and announcing new patents for swimwear, for example, announcing great results in terms of social media campaigns. I'm just curious as to whether you think Lands' End is doing anything unique in these regards or if you're just doing a lot of these things better than competitors that are also looking to take their data and leverage it into high-growth areas?

Question: Steve Silver - Argus Research Corporation - Analyst : That's very helpful. Thank you so much and congratulations on the quarter.