Lands' End, Inc. (NASDAQ:LE) Q2 2019 Earnings Conference Call Transcript

Sep 05, 2019 • 08:30 am ET

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Lands' End, Inc. (NASDAQ:LE) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen. And welcome to the Lands' End Second Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time.

[Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to introduce your host for today's conference Mr. Bernie McCracken, Chief Accounting Officer. Sir, you may begin.

Executive
Bernie McCracken

Good morning. And thank you for joining the Lands' End Earnings Call for a discussion of our second quarter fiscal 2019 results, which we released this morning and can be found on our website landsend.com. On the call today, you will hear from Jerome Griffith, our Chief Executive Officer and President; and Jim Gooch, our Chief Operating Officer and Chief Financial Officer. After the Company's prepared remarks, we will conduct a question-and-answer session. Please also note that the information we're about to discuss includes forward-looking statements. Such statements involve risks and uncertainties.

The Company's actual results could differ materially from those discussed on this call. Factors that could contribute to such differences, include but are not limited to those items noted and included in the Company's SEC filings, including our Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

The forward-looking information that is provided by the Company on this call represents the Company's outlook as of today. And we do not undertake any obligation to update forward-looking statements made by us. Subsequent events and developments may cause the Company's outlook to change.

During this call, we'll be referring to non-GAAP measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures can be found in our earnings release issued earlier today. A copy of which is posted in the Investor Relations section of our website at landsend.com.

With that, I will turn the call over to Jerome Griffith.

Executive
Jerome Griffith

Thank you, Bernie. Good morning, and thank you for joining us for a review of our second quarter financial and business results. We were pleased to have delivered sales and net income above our expectations, and adjusted EBITDA at the high end of our range, illustrating the strong progress we are making across our strategic initiatives. Based on our results and confidence in the second half, we are reiterating our revenue and increasing our EPS guidance for fiscal 2019.

Our sales increased 5.5%, when adjusted for Sears closures and the lapping of the Delta launch. This growth was led by the ongoing momentum in our global e-commerce business, which grew over 7%. In addition, our US company operated retail stores once again delivered strong comparable sales growth at 7.5%.

As we've discussed in the past, our growth strategies are centered on getting the product right, operating as a digitally-led company, executing a uni-channel strategy and improving business processes and infrastructure. The progress we're making across our numerous strategic initiatives continues to