Lands End Inc Q2 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, everyone, and nice to see the progress. New customer file up mid-single (technical difficulty) the new customer file up mid-single-digits is impressive. Anything that you're noticing about the demographics of that customer base versus your core, given what you've mentioned about younger customers, and then also what resonated throughout with the gross margin is lower promotions, what are you seeing in each of the channels with pricing and promotion? And can you just also talk about the cadence in the quarter and how the exit rate is into the third quarter? Thank you.

Question: Dana Telsey - Telsey Advisory Group - Analyst : Got it. Thank you. And just one other quick thing on the inventory levels turning. Inventory continues to remain very clean. Are you seeing any how you're planning inventories go forward? And what are you seeing in terms of freight charges or lead times and getting product and out any outlook for the holiday? Thank you.

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

Question: Eric Beder - Small Cap Consumer Research, LLC - Analyst : Good morning.

Question: Eric Beder - Small Cap Consumer Research, LLC - Analyst : Morning. Congratulations Nordstrom to the digital marketplace mix. You now have a pretty wide range of customers now in the digital marketplace, from Kohl's, Target, Nordstrom, Macy's. Do you -- are you actively looking for even further partners here on? Is there ability to maybe do that internationally? Where should we see that evolving now that you've added all these players to the mix in terms of digital marketplaces?

Question: Eric Beder - Small Cap Consumer Research, LLC - Analyst : Interesting. I see that you have continued to expand the categories in the catalog. You rolled out [jewelry] this month. When you look at it, I guess as you go back and forth on the catalog, trying to maximize the overall returns, how should we be thinking about the potential to add categories, and actually, could you remind us how the catalog interplays with the licenses also? Thank you -- Excuse me, the catalog interplays with the licensing.

Question: Eric Beder - Small Cap Consumer Research, LLC - Analyst : Great. And last question. In terms of (technical difficulty) in terms of Outfitters, I know you've got your management in there. You're starting to see the turns. Where are we, kind of like, what inning or quarter are we in in terms of outfitters getting to kind of where you like it to be and the potential for it? 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. SEPTEMBER 05, 2024 / 12:30PM, LE.OQ - Q2 2024 Lands End Inc Earnings Call

Question: Eric Beder - Small Cap Consumer Research, LLC - Analyst : Many congrats. Good luck for the holiday season.

Question: Alex Fuhrman - Craig-Hallum Capital Group - Analyst : Great. Thanks very much for taking my question. It sounds like you're having a lot of success in the club channel. I'm curious if that is the biggest driver of the higher GMV guidance despite GAAP revenues moving a little bit lower, if there's maybe strength elsewhere in the third party or licensing portfolio that that's driving that dynamic?

Question: Alex Fuhrman - Craig-Hallum Capital Group - Analyst : Great. That's really helpful. Thanks. And then just lastly for me, Andrew, you mentioned new customers coming in have been about 10 years younger than the average customer in your file. How should we think about that? Is that more or less consistent with what you need to kind of maintain a steady age profile as the rest of your customers get older or is this really a conscious effort to try to attract younger customers and move the brand? You know, perhaps a tiny bit younger?

Question: Alex Fuhrman - Craig-Hallum Capital Group - Analyst : Great. That's really helpful. Thank you so much.

Question: Steve Silver - Argus Research Corporation - Analyst : Thanks, operator, and congratulations on the quarter as well. My question is, given the fact that a really big part of the growth proposition for Lands' End is being able to sell products with minimal discounting, I'm curious as to how that's playing into the SG&A cost expansion, we saw in Q2 to acquire new customers, and just if you're using more aggressive discounting in conjunction with customer acquisitions for first time visits to the website and things of that nature.

Question: Steve Silver - Argus Research Corporation - Analyst : Great. And one follow-up, if I can. You talked about the new patent being filed in the swim category. I'm curious as to whether the company maintains a pipeline of patent eligible products in development and maybe if so, how that tracks, maybe even as compared to just a couple of years ago.

Question: Steve Silver - Argus Research Corporation - Analyst : Okay. Thanks for all the additional color. I appreciate it. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. SEPTEMBER 05, 2024 / 12:30PM, LE.OQ - Q2 2024 Lands End Inc Earnings Call