10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ Quarterly report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended October 29, 2021

-OR-

☐ Transition report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from to                      to                     .

Commission File Number: 001-09769

Lands’ End, Inc.

(Exact name of registrant as specified in its charter)

Delaware	36-2512786
(State or Other Jurisdiction of Incorporation of Organization)	(I.R.S. Employer Identification No.)

1 Lands’ End Lane Dodgeville, Wisconsin	53595
(Address of Principal Executive Offices)	(Zip Code)

(608) 935-9341

(Registrant’s Telephone Number Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	LE	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).   Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definition of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.  

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).    Yes  ☐    No  ☒

As of November 29, 2021, the registrant had 32,983,349 shares of common stock, $0.01 par value, outstanding.

LANDS’ END, INC.

INDEX TO QUARTERLY REPORT ON FORM 10-Q

FOR THE PERIOD ENDED OCTOBER 29, 2021

TABLE OF CONTENTS

		Page
	PART I FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	1
	Condensed Consolidated Statements of Operations	1
	Condensed Consolidated Statements of Comprehensive Operations	2
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Cash Flows	4
	Condensed Consolidated Statements of Changes in Stockholders' Equity	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	17
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	30
Item 4.	Controls and Procedures	31
	PART II OTHER INFORMATION	32
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 6.	Exhibits	33
	Signatures	34

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

LANDS’ END, INC.

Condensed Consolidated Statements of Operations

(Unaudited)

	13 Weeks Ended						39 Weeks Ended
(in thousands, except per share data)	October 29, 2021			October 30, 2020			October 29, 2021			October 30, 2020
Net revenue	$	375,843		$	359,982		$	1,081,249		$	889,073
Cost of sales (excluding depreciation and amortization)		209,028			196,527			588,908			496,041
Gross profit		166,815			163,455			492,341			393,032
Selling and administrative		137,408			134,890			399,579			352,164
Depreciation and amortization		9,788			9,627			29,483			27,791
Other operating expense, net		140			255			583			7,913
Operating income		19,479			18,683			62,696			5,164
Interest expense		8,334			9,005			26,231			19,232
Other (income) expense, net		(171	)		(250	)		(461	)		910
Income (loss) before income taxes		11,316			9,928			36,926			(14,978	)
Income tax expense (benefit)		3,917			2,752			10,667			(5,887	)
NET INCOME (LOSS)	$	7,399		$	7,176		$	26,259		$	(9,091	)
NET INCOME (LOSS) PER COMMON SHARE
Basic:	$	0.22		$	0.22		$	0.80		$	(0.28	)
Diluted:	$	0.22		$	0.22		$	0.78		$	(0.28	)
Basic weighted average common shares outstanding		32,981			32,605			32,910			32,551
Diluted weighted average common shares outstanding		33,698			33,248			33,708			32,551

See accompanying Notes to Condensed Consolidated Financial Statements.

1

LANDS’ END, INC.

Condensed Consolidated Statements of Comprehensive Operations

(Unaudited)

	13 Weeks Ended						39 Weeks Ended
(in thousands)	October 29, 2021			October 30, 2020			October 29, 2021			October 30, 2020
NET INCOME (LOSS)	$	7,399		$	7,176		$	26,259		$	(9,091	)
Other comprehensive (loss), net of tax
Foreign currency translation adjustments		(670	)		(794	)		(395	)		(671	)
COMPREHENSIVE INCOME (LOSS)	$	6,729		$	6,382		$	25,864		$	(9,762	)

See accompanying Notes to Condensed Consolidated Financial Statements.

2

LANDS’ END, INC.

Condensed Consolidated Balance Sheets

(Unaudited)

(in thousands, except per share data)	October 29, 2021			October 30, 2020			January 29, 2021
ASSETS
Current assets
Cash and cash equivalents	$	37,926		$	56,137		$	33,933
Restricted cash		1,983			2,135			1,861
Accounts receivable, net		44,078			34,238			37,574
Inventories, net		479,793			499,759			382,106
Prepaid expenses and other current assets		41,418			52,731			40,356
Total current assets		605,198			645,000			495,830
Property and equipment, net		133,572			149,342			145,288
Operating lease right-of-use asset		32,782			36,699			35,475
Goodwill		106,700			106,700			106,700
Intangible asset, net		257,000			257,000			257,000
Other assets		4,512			5,413			5,215
TOTAL ASSETS	$	1,139,764		$	1,200,154		$	1,045,508
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Current portion of long-term debt	$	13,750		$	13,750			13,750
Accounts payable		184,569			174,061			134,007
Lease liability - current		5,609			5,359			5,183
Other current liabilities		142,828			147,903			161,982
Total current liabilities		346,756			341,073			314,922
Long-term borrowings on ABL Facility		70,000			155,000			25,000
Long-term debt, net		237,245			248,700			245,632
Lease liability - long-term		34,092			39,169			37,811
Deferred tax liabilities		47,325			65,800			47,346
Other liabilities		5,834			5,487			5,094
TOTAL LIABILITIES		741,252			855,229			675,805
Commitments and contingencies
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 authorized: 480,000 shares;    issued and outstanding: 32,983, 32,608 and 32,614, respectively		330			326			326
Additional paid-in capital		372,313			366,959			369,372
Retained earnings (accumulated deficit)		37,485			(8,701	)		11,226
Accumulated other comprehensive (loss)		(11,616	)		(13,659	)		(11,221	)
TOTAL STOCKHOLDERS' EQUITY		398,512			344,925			369,703
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,139,764		$	1,200,154		$	1,045,508

See accompanying Notes to Condensed Consolidated Financial Statements.

3

LANDS’ END, INC.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

	39 Weeks Ended
(in thousands)	October 29, 2021			October 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	26,259		$	(9,091	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization		29,483			27,791
Amortization of debt issuance costs		2,358			2,291
Loss on disposal of property and equipment		583			994
Stock-based compensation		8,043			6,743
Deferred income taxes		80			7,979
Goodwill impairment		—			3,300
Other		(1,097	)		326
Change in operating assets and liabilities:
Accounts receivable, net		(7,219	)		17,289
Inventories, net		(98,391	)		(123,811	)
Accounts payable		51,152			20,104
Other operating assets		95			(16,151	)
Other operating liabilities		(17,700	)		36,172
Net cash used in operating activities		(6,354	)		(26,064	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment		(18,739	)		(25,638	)
Net cash used in investing activities		(18,739	)		(25,638	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings under ABL Facility		140,000			230,000
Payments of borrowings under ABL Facility		(95,000	)		(75,000	)
Proceeds from issuance of long term debt, net		—			266,750
Principal payments on long-term debt, net		(10,313	)		(385,388	)
Payments for taxes related to net share settlement of equity awards		(5,098	)		(438	)
Payment of debt-issuance costs		(1,161	)		(5,080	)
Net cash provided by financing activities		28,428			30,844
Effects of exchange rate changes on cash, cash equivalents and restricted cash		780			(167	)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND       RESTRICTED CASH		4,115			(21,025	)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH,       BEGINNING OF PERIOD		35,794			79,297
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	$	39,909		$	58,272
SUPPLEMENTAL CASH FLOW DATA
Unpaid liability to acquire property and equipment	$	2,836		$	2,620
Income taxes paid, net of refunds	$	23,570		$	257
Interest paid	$	23,972		$	11,334
Lease liabilities arising from obtaining operating lease right-of-use assets	$	1,161		$	3,525

See accompanying Notes to Condensed Consolidated Financial Statements.

4

LANDS’ END, INC.

Condensed Consolidated Statements of Changes in Stockholders’ Equity

(Unaudited)

	Common Stock Issued					Additional Paid-in			Retained		Accumulated Other Comprehensive			Total Stockholders'
(in thousands)	Shares			Amount		Capital			Earnings		(Loss)			Equity
Balance at January 29, 2021		32,614		$	326	$	369,372		$	11,226	$	(11,221	)	$	369,703
Net income		—			—		—			2,639		—			2,639
Cumulative translation adjustment, net of tax		—			—		—			—		311			311
Stock-based compensation expense		—			—		2,513			—		—			2,513
Vesting of restricted shares		553			4		(4	)		—		—			—
Common stock withheld related to net share       settlement of equity awards		(190	)		—		(5,013	)		—		—			(5,013	)
Balance at April 30, 2021		32,977		$	330	$	366,868		$	13,865	$	(10,910	)	$	370,153
Net income		—			—		—			16,221		—			16,221
Cumulative translation adjustment, net of tax		—			—		—			—		(36	)		(36	)
Stock-based compensation expense		—			—		3,556			—		—			3,556
Vesting of restricted shares		7			—		—			—		—			—
Common stock withheld related to net share       settlement of equity awards		(3	)		—		(71	)		—		—			(71	)
Balance at July 30, 2021		32,981		$	330	$	370,353		$	30,086	$	(10,946	)	$	389,823
Net income		—			—		—			7,399		—			7,399
Cumulative translation adjustment, net of tax		—			—		—			—		(670	)		(670	)
Stock-based compensation expense		—			—		1,974			—		—			1,974
Vesting of restricted shares		3			—		—			—		—			—
Common stock withheld related to net share       settlement of equity awards		(1	)		—		(14	)		—		—			(14	)
Balance at October 29, 2021		32,983		$	330	$	372,313		$	37,485	$	(11,616	)	$	398,512

	Common Stock Issued					Additional Paid-in			Retained Earnings/ (Accumulated			Accumulated Other Comprehensive			Total Stockholders'
(in thousands)	Shares			Amount		Capital			Deficit)			(Loss)			Equity
Balance at January 31, 2020		32,382		$	324	$	360,656		$	390		$	(12,988	)	$	348,382
Net loss		—			—		—			(20,643	)		—			(20,643	)
Cumulative translation adjustment, net of tax		—			—		—			—			(1,259	)		(1,259	)
Stock-based compensation expense		—			—		1,828			—			—			1,828
Vesting of restricted shares		275			2		(2	)		—			—			—
Common stock withheld related to net share       settlement of equity awards		(61	)		—		(410	)		—			—			(410	)
Balance at May 1, 2020		32,596		$	326	$	362,072		$	(20,253	)	$	(14,247	)	$	327,898
Net income		—			—		—			4,376			—			4,376
Cumulative translation adjustment, net of tax		—			—		—			—			1,382			1,382
Stock-based compensation expense		—			—		2,714			—			—			2,714
Vesting of restricted shares		10			—		—			—			—			—
Common stock withheld related to net share       settlement of equity awards		(2	)		—		(13	)		—			—			(13	)
Balance at July 31, 2020		32,604		$	326	$	364,773		$	(15,877	)	$	(12,865	)	$	336,357
Net income		—			—		—			7,176			—			7,176
Cumulative translation adjustment, net of tax		—			—		—			—			(794	)		(794	)
Stock-based compensation expense		—			—		2,201			—			—			2,201
Vesting of restricted shares		5			—		—			—			—			—
Common stock withheld related to net share       settlement of equity awards		(1	)		—		(15	)		—			—			(15	)
Balance at October 30, 2020		32,608		$	326	$	366,959		$	(8,701	)	$	(13,659	)	$	344,925

See accompanying Notes to Condensed Consolidated Financial Statements.

5

LANDS’ END, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. BACKGROUND AND BASIS OF PRESENTATION

Description of Business

Lands’ End, Inc. (“Lands’ End” or the “Company”) is a leading uni-channel retailer of casual clothing, accessories, footwear and home products. Lands’ End offers products online at www.landsend.com, on third-party online marketplaces and through its own Company Operated stores, as well as third-party retail locations. Lands’ End is a classic American lifestyle brand with a passion for quality, legendary service and real value and seeks to deliver timeless style for women, men, kids and home.

Terms that are commonly used in the Company’s Notes to Condensed Consolidated Financial Statements are defined as follows:

• ABL Facility – Asset-based senior secured credit agreements, providing for a revolving facility, dated as of November 16, 2017, with Wells Fargo Bank, N.A. and certain other lenders, as amended to date

• Adjusted EBITDA – Net income (loss) appearing on the Condensed Consolidated Statements of Operations net of Income tax expense/(benefit), Interest expense, Depreciation and amortization and certain significant items

• ASC – Financial Accounting Standards Board Accounting Standards Codification, which serves as the source for authoritative GAAP, as supplemented by rules and interpretive releases by the SEC which are also sources of authoritative GAAP for SEC registrants

• ASU – Financial Accounting Standards Board Accounting Standards Update

• CARES Act – The Coronavirus Aid, Relief and Economic Security Act signed into law on March 27, 2020

• Company Operated stores – Lands’ End retail stores in the Retail distribution channel

• Debt Facilities – Collectively, the Term Loan Facility and ABL Facility

• Deferred Awards – Time vesting stock awards

• EPS – Earnings per share

• FASB – Financial Accounting Standards Board

• First Quarter 2021 – The 13 weeks ended April 30, 2021

• First Quarter 2020 – The 13 weeks ended May 1, 2020

• Fiscal 2022 – The 52 weeks ending January 27, 2023

• Fiscal 2021 – The 52 weeks ending January 28, 2022

• Fiscal 2020 – The 52 weeks ended January 29, 2021

• GAAP – Accounting principles generally accepted in the United States

• LIBOR – London inter-bank offered rate

• Option Awards – Stock option awards

• Performance Awards – Performance-based stock awards

• SEC – United States Securities and Exchange Commission

6

• Second Quarter 2020 – The 13 weeks ended July 31, 2020

• Term Loan Facility – Term loan credit agreement, dated as of September 9, 2020, among the Company, Fortress Credit Corp., as Administrative Agent and Collateral Agent, and the lenders party thereto

• Third Quarter 2021 – The 13 weeks ended October 29, 2021

• Third Quarter 2020 – The 13 weeks ended October 30, 2020

• Year-to-Date 2021 – The 39 weeks ended October 29, 2021

• Year-to-Date 2020 – The 39 weeks ended October 30, 2020

Basis of Presentation

The Condensed Consolidated Financial Statements include the accounts of Lands’ End, Inc., and its subsidiaries. All intercompany transactions and balances have been eliminated.

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all material adjustments which are of a normal and recurring nature necessary for a fair presentation of the results for the periods presented have been reflected. Dollar amounts are reported in thousands, except per share data, unless otherwise noted. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in the Lands’ End Annual Report on Form 10-K filed with the SEC on March 25, 2021.

Impact of the COVID-19 Pandemic

COVID-19 surfaced in late 2019 and in March 2020, the World Health Organization declared COVID-19 a pandemic. The onset of the COVID-19 pandemic had a disruptive impact on the Company’s business operations and an unfavorable impact on the Company’s results of operations during the first half of Fiscal 2020. During the Second Quarter 2020, the Company began a significant recovery that continued to build on the momentum experienced before the COVID-19 pandemic. The Company’s strong foundation and ongoing enhancements across the four strategic pillars of product, digital, uni-channel distribution and infrastructure and business processes supported the Company during this COVID-19 pandemic and continues to support the Company’s financial performance and encouraging customer metrics. The ultimate timing and impact of customer demand levels across all distribution channels will depend on the duration and scope of the COVID-19 pandemic, overall economic conditions and consumer preferences. The ongoing COVID-19 pandemic continued to adversely impact the Company in the Third Quarter 2021 by disrupting its supply chain, leading to shipping and inventory receipt delays, and remains a threat to the health and welfare of the Company’s workforce.

Health and Safety of Employees and Consumers

From the beginning of the COVID-19 pandemic, the Company’s priority has been the safety of employees and customers. On March 16, 2020, the Company temporarily closed its Company Operated stores. These stores reopened during Second Quarter 2020. Since the onset of the COVID-19 pandemic, the Company has taken extra precautions in its offices, distribution centers and Company Operated stores which have varied from time to time based on the then current guidance from global, federal and state health authorities. These measures have included COVID-19 retail guidelines, work-from-home policies, social distancing, masking, thermal scanning and partitions in facilities. With the emergence of COVID-19 variants and periodic increases in number of reported cases affecting different regions, the Company has been required to keep these measures in place longer than anticipated.

Supply Chain

The COVID-19 pandemic continues to cause supply chain disruptions across all industries, and the Company continually monitors its supply chain for manufacturing and transportation delays caused or exacerbated by the COVID-19 pandemic. During Fiscal 2021, the COVID-19 pandemic impacted the Company’s distribution centers, third-party manufacturing partners and logistics partners, including shipping delays and port congestion, and closure of certain third-party manufacturing facilities and production lines. These disruptions have resulted in later timing of Fiscal 2021 inventory receipts that have led, at times, to lower inventory positions and higher than normal back orders, as manufacturing, transport and receipt of inbound product is delayed. In addition, the Company has experienced higher freight and distribution costs.

7

The Company expects some of these supply chain disruptions and increases in costs to continue through the balance of Fiscal 2021 and into the first half of Fiscal 2022. As a result of these impacts, the Company has experienced later than expected inventory receipts and inventory availability for the Company’s distribution channels. These shipping delays and additional costs may impact the Company’s future net sales, gross margin and net earnings depending upon the ultimate timing of delivery and availability of product to sell.

Labor Shortages

Due to the seasonal nature of the business, the Company relies heavily on flexible part-time employees to staff the distribution centers in support of its peak seasons, including the back-to-school shopping season and fourth fiscal quarter holiday shopping season. The Company has experienced a labor shortage and has been unable to fill the flexible part-time peak staffing requirements at the distribution centers for both peak seasons. During the back-to-school season the labor shortage in monogramming and embroidery services caused delays in fulfilling customer orders. The Company has also been unable to attract as many seasonal part-time workers as was targeted to hire for the holiday shopping season. The Company provided financial incentives to attract and retain the part-time staffing and has utilized the Company’s corporate employee workforce to provide additional assistance in the distribution centers. The labor shortage may adversely impact the Company’s future net sales and earnings if orders are not fulfilled on a timely basis, which could discourage orders or lead to cancelled orders.

NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): “Simplifying the Accounting for Income Taxes”, which is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and by clarifying and amending existing guidance to improve consistent application. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Certain amendments within this ASU are required to be applied on a retrospective basis, certain other amendments are required to be applied on a modified retrospective basis and all other amendments on a prospective basis. The Company adopted this standard in First Quarter 2021 and the adoption did not have a material impact on the Company’s Condensed Consolidated Financial Statements and related disclosures.

NOTE 3. EARNINGS (LOSS) PER SHARE

The numerator for both basic and diluted EPS is net income (loss). The denominator for basic EPS is based upon the number of weighted average shares of Lands’ End common stock outstanding during the reporting periods. The denominator for diluted EPS is based upon the number of weighted average shares of Lands’ End common stock and common stock equivalents outstanding during the reporting periods using the treasury stock method in accordance with GAAP. Potentially dilutive securities for the diluted EPS calculations consist of non-vested equity shares of common stock and in-the-money outstanding options where the current stock price exceeds the option strike price.

The following table summarizes the components of basic and diluted EPS:

	13 Weeks Ended				39 Weeks Ended
(in thousands, except per share amounts)	October 29, 2021		October 30, 2020		October 29, 2021		October 30, 2020
Net income (loss)	$	7,399	$	7,176	$	26,259	$	(9,091	)
Basic weighted average common shares outstanding		32,981		32,605		32,910		32,551
Dilutive effect of stock awards		717		643		798		—
Diluted weighted average common shares outstanding		33,698		33,248		33,708		32,551
Basic earnings (loss) per share	$	0.22	$	0.22	$	0.80	$	(0.28	)
Diluted earnings (loss) per share	$	0.22	$	0.22	$	0.78	$	(0.28	)

Stock awards are considered anti-dilutive based on the application of the treasury stock method or in the event of a net loss. Anti-dilutive shares excluded from the diluted weighted average shares outstanding were 142 anti-dilutive shares in the 13 weeks ended October 29, 2021, 570,364 anti-dilutive shares in the 13 weeks ended October 30, 2020, 77 anti-dilutive shares in the 39 weeks ended October 29, 2021 and 1,213,317 anti-dilutive shares in the 39 weeks ended October 30, 2020.

8

NOTE 4. OTHER COMPREHENSIVE (LOSS)

Other comprehensive (loss) encompasses all changes in equity other than those arising from transactions with stockholders and is comprised solely of foreign currency translation adjustments.

	13 Weeks Ended						39 Weeks Ended
(in thousands)	October 29, 2021			October 30, 2020			October 29, 2021			October 30, 2020
Beginning balance: Accumulated other       comprehensive (loss) (net of tax of $2,910,       $3,420, $2,987 and $3,453, respectively)	$	(10,946	)	$	(12,865	)	$	(11,221	)	$	(12,988	)
Other comprehensive (loss):
Foreign currency translation adjustments (net of tax of $178, $(138), $101 and $(171), respectively)		(670	)		(794	)		(395	)		(671	)
Ending balance: Accumulated other       comprehensive (loss) (net of tax of $3,088,       $3,282, $3,088 and $3,282, respectively)	$	(11,616	)	$	(13,659	)	$	(11,616	)	$	(13,659	)

No amounts were reclassified out of Accumulated other comprehensive (loss) during any of the periods presented.

NOTE 5. DEBT

ABL Facility

The Company’s $275.0 million revolving ABL Facility includes a $70.0 million sublimit for letters of credit and is available for working capital and other general corporate liquidity needs. The balance outstanding was $70.0 million and $155.0 million on October 29, 2021 and October 30, 2020, respectively. The balance of outstanding letters of credit was $21.4 million and $15.3 million on October 29, 2021 and October 30, 2020, respectively.

During Fiscal 2020, the Company exercised the “accordion” feature under the ABL Facility increasing the maximum borrowings available under the facility from $175.0 million to $275.0 million, subject to a borrowing base (the “Loan Cap”). This was completed in two separate transactions. The first was a $25.0 million increase effective March 19, 2020 and the second was a $75.0 million increase effective September 9, 2020. The latter was completed through the Second Amendment to the ABL Facility executed on August 12, 2020.

On July 29, 2021, the Company executed the Third Amendment to the ABL Facility resulting in favorable financial terms compared to the Second Amendment to the ABL Facility and extension of the maturity date of the ABL Facility, as discussed below.

The following table summarizes the Company’s borrowing availability under the ABL Facility:

	October 29, 2021			October 30, 2020			January 29, 2021
(in thousands)	Amount		Interest Rate	Amount		Interest Rate	Amount		Interest Rate
ABL Facility maximum borrowing	$	275,000		$	275,000		$	275,000
Less: Outstanding borrowings		70,000	1.34%		155,000	2.27%		25,000	3.00%
Less: Outstanding letters of credit		21,400			15,265			27,131
Borrowing availability under ABL Facility	$	183,600		$	104,735		$	222,869

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Long-Term Debt

On September 9, 2020, the Company entered into the Term Loan Facility which provided borrowings of $275.0 million.  Origination costs, including an Original Issue Discount (“OID”) of 3% and $5.1 million in debt origination fees, were paid upon entering into the Term Loan Facility. The OID and the debt origination fees are presented as a direct deduction from the carrying value of the Term Loan Facility and are amortized over the term of the loan to Interest expense in the Condensed Consolidated Statements of Operations.

The Company’s long-term debt consisted of the following:

	October 29, 2021			October 30, 2020			January 29, 2021
(in thousands)	Amount		Interest Rate	Amount		Interest Rate	Amount		Interest Rate
Term Loan Facility	$	261,250	10.75%	$	275,000	10.75%	$	271,563	10.75%
Less: Current portion of long-term debt		13,750			13,750			13,750
Less: Unamortized debt issuance costs		10,255			12,550			12,181
Long-term debt, net	$	237,245		$	248,700		$	245,632

Interest; Fees

  The Third Amendment to the ABL Facility lowered the interest rates applicable to borrowings under the ABL Facility. For LIBOR loans, commencing July 31, 2021 the borrowing margin is, where the average daily total loans outstanding for the previous quarter are (i) less than $95.0 million, 1.25%, (ii) equal to or greater than $95.0 million but less than $180.0 million, 1.50%, and (iii) greater than or equal to $180.0 million, 1.75%.  For Base Rate loans, the borrowing margin is, where the average daily total loans outstanding for the previous quarter are (i) less than $95.0 million for the previous quarter, 0.50%, (ii) equal to or greater than $95.0 million but less than $180.0 million, 0.75%, and (iii) greater than or equal to $180.0 million, 1.00%. The Third Amendment to the ABL Facility replaced the 0.75% LIBOR floor with a 0.00% LIBOR floor.

The interest rates per annum applicable to the loans under the Term Loan Facility are based on a fluctuating rate of interest measured by reference to, at the borrowers’ election, either (1) an adjusted LIBOR rate (with a minimum rate of 1.00%) plus 9.75%, or (2) an alternative base rate (which is the greater of (i) the prime rate published in the Wall Street Journal, (ii) the federal funds rate, which shall be no lower than 0.00% plus ½ of 1.00%, or (iii) the one month LIBOR rate plus 1.00% per annum) plus 8.75%.

The ABL Facility fees include (i) commitment fees of 0.25% based upon the average daily unused commitment (aggregate commitment less loans and letter of credit outstanding) under the ABL Facility for the preceding fiscal quarter and (ii) customary letter of credit fees. As of the end of Third Quarter 2021, the Company had borrowings of $70.0 million on the ABL Facility.

Customary agency fees are payable in respect of the Debt Facilities.  

Maturity; Amortization and Prepayments

The Third Amendment to the ABL Facility extended the maturity from November 16, 2022 to the earlier of (a) July 29, 2026 and (b) June 9, 2025 if, on or prior to such date, the Term Loan Facility has not been refinanced, extended or repaid in full in accordance with the terms thereof and not replaced with other indebtedness.

The Term Loan Facility matures on September 9, 2025 and amortizes at a rate equal to 1.25% per quarter. It is subject to mandatory prepayments in an amount equal to a percentage of the borrower’s excess cash flows in each fiscal year, ranging from 0% to 75% depending on the Company’s total leverage ratio, and with the proceeds of certain asset sales, casualty events and extraordinary receipts. The loan may not be voluntarily prepaid during the first two years of its term, without significant penalties. A prepayment premium is applicable to voluntary prepayments and certain mandatory prepayments made prior to the fourth anniversary of the closing date of the Term Loan Facility.

Guarantees; Security

All obligations under the Debt Facilities are unconditionally guaranteed by Lands’ End, Inc. and, subject to certain exceptions, each of its existing and future direct and indirect subsidiaries. The ABL Facility is secured by a first priority security interest in certain working capital of the borrowers and guarantors consisting primarily of accounts receivable and inventory. The Term Loan Facility is secured by a second priority security interest in the same collateral with certain exceptions.

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The Term Loan Facility is secured by a first priority security interest in certain property and assets of the borrowers and guarantors, including certain fixed assets such as real estate, stock of the subsidiaries and intellectual property, in each case, subject to certain exceptions. The ABL Facility is secured by a second priority interest in the same collateral, with certain exceptions.

Representations and Warranties; Covenants

Subject to specified exceptions, the Debt Facilities contain various representations and warranties, and restrictive covenants that, among other things and subject to specified exceptions, restrict Lands’ End, Inc.’s and its subsidiaries’ ability to incur indebtedness (including guarantees), grant liens, make investments, make dividends or distributions with respect to capital stock, make prepayments on other indebtedness, engage in mergers or change the nature of their business.

The Term Loan Facility is subject to certain financial covenants, including a quarterly maximum total leverage ratio test, a weekly minimum liquidity test and an annual maximum capital expenditure amount.  

Under the ABL Facility, if excess availability falls below the greater of 10% of the Loan Cap amount or $15.0 million, the Company will be required to comply with a minimum fixed charge coverage ratio of 1.0 to 1.0.

 The Debt Facilities contain certain affirmative covenants, including reporting requirements such as delivery of financial statements, certificates and notices of certain events, maintaining insurance, and providing additional guarantees and collateral in certain circumstances.

As of October 29, 2021, the Company was in compliance with all of its covenants in the Debt Facilities.

Events of Default

The Debt Facilities include customary events of default including non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations or warranties, cross defaults related to certain other material indebtedness, bankruptcy and insolvency events, invalidity or impairment of guarantees or security interests, and material judgments and change of control.

NOTE 6. STOCK-BASED COMPENSATION

The Company expenses the fair value of all stock awards over their respective vesting periods, ensuring that, the amount of cumulative compensation cost recognized at any date is at least equal to the portion of the grant-date fair value of the award that is vested at that date. The Company has elected to adjust compensation expense for an estimated forfeiture rate for those shares not expected to vest and to recognize compensation cost on a straight-line basis for awards that only have a service requirement with multiple vest dates.

The Company has granted the following types of stock awards to employees at management levels and above, each of which are granted under the Company’s stockholder approved stock plans, other than March 6, 2017 grants to the Company’s Chief Executive Officer which were made as inducement grants outside of the Company’s stockholder approved stock plans in accordance with NASDAQ Listing Rule 5635(c)(4):

i. Time vesting stock awards (“Deferred Awards”) are in the form of restricted stock units and only require each recipient to complete a service period for the award to be earned. Deferred Awards generally vest over three years. The fair value of Deferred Awards is based on the closing price of the Company's common stock on the grant date and is reduced for estimated forfeitures of those awards not expected to vest due to employee turnover.

ii. Performance-based stock awards (“Performance Awards”) are in the form of restricted stock units and have, in addition to a service requirement, performance criteria that must be achieved for the awards to be earned. For Performance Awards the Target Shares earned can range from 50% to 200% once minimum thresholds have been reached and depend on the achievement of Adjusted EBITDA and revenue performance measures for the cumulative three-fiscal year performance period beginning with the fiscal year of the grant date. The applicable percentage of the Target Shares, as determined by performance, vest after the completion of the applicable three-year performance period and upon determination of achievement of the performance measures by the Compensation Committee of the Board of Directors, and unearned Target Shares are forfeited. The fair value of the Performance Awards is based on the closing price of the Company’s common stock on the grant date. Stock based compensation expense is recognized ratably over the related service period, reduced for estimated forfeitures of those awards not expected to vest due to employee turnover, and adjusted based on the Company’s estimate of the percentage of the aggregate Target Shares expected to be earned. The 2018 Performance Awards vested on

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March 25, 2021 at 111%. The compensation expense associated with the 2021 Performance Awards and 2019 Performance Awards is accrued at 193% and 129% of Target Shares, respectively.  

iii. Stock option awards (“Option Awards”) provide the recipient with the option to purchase a set number of shares at a stated exercise price over the term of the contract, which is ten years for all Option Awards currently outstanding. Options are granted with a strike price equal to the stock price on the date of grant and vest ratably over a four-year period. The fair value of each Option Award is estimated on the grant date using the Black-Scholes option pricing model.

The following table provides a summary of the Company’s stock-based compensation expense, which is included in Selling and administrative expense in the Condensed Consolidated Statements of Operations:

	13 Weeks Ended				39 Weeks Ended
(in thousands)	October 29, 2021		October 30, 2020		October 29, 2021		October 30, 2020
Deferred awards	$	1,381	$	1,442	$	4,226	$	4,466
Performance awards		593		572		3,714		1,716
Option awards	—			187		103		561
Total stock-based compensation expense	$	1,974	$	2,201	$	8,043	$	6,743

The following table provides a summary of the Deferred Awards activity for Year-to-Date 2021:

	Deferred Awards
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested as of January 29, 2021		1,093		$	10.86
Granted		246			29.94
Vested		(397	)		13.86
Forfeited or expired		(25	)		12.86
Unvested as of October 29, 2021		917			14.62

Total unrecognized stock-based compensation expense related to unvested Deferred Awards was approximately $9.0 million as of October 29, 2021, which is expected to be recognized ratably over a weighted average period of 2.0 years. Deferred Awards granted to employees during Fiscal 2021 vest ratably over a period of three years.

The following table provides a summary of the Performance Awards activity for Year-to-Date 2021:

	Performance Awards
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested as of January 29, 2021		393		$	18.32
Granted (1)		166			29.95
Vested		(165	)		21.90
Forfeited or expired		—			—
Unvested as of October 29, 2021		394			21.72

⁽¹⁾ Performance shares granted assume achievement performance at 100% of target.

Total unrecognized stock-based compensation expense related to unvested Performance Awards was approximately $8.6 million as of October 29, 2021, which is expected to be recognized ratably over a weighted average period of 2.3 years. Performance Awards granted to employees during Fiscal 2021 and Fiscal 2019 vest, if earned, after completion of the applicable three-year performance period.

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The following table provides a summary of the Options Award activity for Year-to-Date 2021:

	Option Awards
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested as of January 29, 2021		85		$	8.73
Granted		—			—
Vested		(85	)		8.73
Forfeited or expired		—			—
Unvested as of October 29, 2021		—		—

As of October 29, 2021, there were no unvested Option Awards. The Option Awards have a contractual term of ten years and vested ratably over the first four years. As of October 29, 2021, 343,135 shares related to Option Awards were exercisable and no options have been exercised.

NOTE 7. FAIR VALUE MEASUREMENTS OF FINANCIAL ASSETS AND LIABILITIES

Restricted cash is reflected on the Condensed Consolidated Balance Sheets at fair value. The fair value of restricted cash was $2.0 million, $2.1 million and $1.9 million as of October 29, 2021, October 30, 2020 and January 29, 2021, respectively based on Level 1 inputs. Restricted cash amounts are valued based upon statements received from financial institutions.

Carrying values and fair values of long-term debt, including current portion, in the Condensed Consolidated Balance Sheets are as follows:

	October 29, 2021				October 30, 2020				January 29, 2021
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion	$	261,250	$	261,396	$	275,000	$	275,000	$	271,563	$	277,265

Long-term debt, including current portion, was valued utilizing Level 3 valuation techniques based on a third-party analysis on October 29, 2021, October 30, 2020 and January 29, 2021. There were no nonfinancial assets or nonfinancial liabilities recognized at fair value on a nonrecurring basis as of October 29, 2021, October 30, 2020, and January 29, 2021.

NOTE 8. INCOME TAXES

Provision for Income Taxes

At the end of each quarter, the Company estimates its effective income tax rate pursuant to ASC 740. The rate for the period consists of the tax rate expected to be applied for the full year to ordinary income adjusted for any discrete items recorded in the period.  

The Company recorded a tax expense at an overall effective tax rate of 34.6% and 27.7% for the Third Quarter 2021 and 2020, respectively. The Company recorded a tax expense at an overall effective tax rate of 28.9% for Year-to-Date 2021 and a tax benefit of 39.3% for Year-to-Date 2020. The Year-to-Date 2021 rate is lower than Year-to-Date 2020 primarily due to the generation of pretax income in 2021 compared to a pretax loss in 2020 in addition to the estimated tax benefits recorded as a result of the CARES Act in 2020.

NOTE 9. COMMITMENTS AND CONTINGENCIES

Legal Proceedings

The Company is party to various claims, legal proceedings and investigations arising in the ordinary course of business. Some of these actions involve complex factual and legal issues and are subject to uncertainties. At this time, the Company is not able to either predict the outcome of these legal proceedings or reasonably estimate a potential range of loss with respect to the proceedings. While it is not feasible to predict the outcome of such pending claims, proceedings and investigations with certainty,

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management is of the opinion that their ultimate resolution should not have a material adverse effect on results of operations, cash flows or financial position taken as a whole.

As disclosed in the Company’s Annual Report on Form 10-K for the year ended January 29, 2021, the Company is the defendant in three separate lawsuits, each of which allege adverse health events and personal property damage as a result of wearing uniforms manufactured by Lands’ End: (1) Gilbert et al. v. Lands’ End, Inc., United States District Court for the Western District of Wisconsin, Civil Action No. 3:19-cv-00823-JDP, complaint filed October 3, 2019; (2) Andrews et al. v. Lands’ End, Inc., United States District Court for the Western District of Wisconsin, Civil Action No. 3:19-cv-01066-JDP, complaint filed on December 31, 2019, on behalf of 521 named plaintiffs, later amended to include 1,089 named plaintiffs; and (3) Davis et al. v. Lands’ End, Inc. and Lands’ End Business Outfitters, Inc., United States District Court for the Western District of Wisconsin, Case No. 3:20-cv-00195, complaint filed on March 4, 2020. Plaintiffs in Gilbert, Andrews, and Davis seek nationwide class certification on behalf of similarly situated Delta employees.  

By order dated April 20, 2020, the Court consolidated the Gilbert and Andrews cases (the “Consolidated Wisconsin Action”) and stayed the Davis case.  

Plaintiffs in the Consolidated Wisconsin Action and Davis each assert that the damages sustained by the members of the proposed class exceed $5,000,000. Plaintiffs in each case seek damages for personal injuries, pain and suffering, severe emotional distress, financial or economic loss, including medical services and expenses, lost income and other compensable injuries. Plaintiffs in the Consolidated Wisconsin Action seek class certification with respect to performance of the uniforms and warranty claims and maintain individual claims for personal injury by numerous named plaintiffs.  

On August 18, 2021, the Court ruled on several pending motions in the Consolidated Wisconsin Action. The Court denied Plaintiffs’ motion for class certification with respect to performance of the uniforms and warranty claims. The Court denied Plaintiffs’ motion for partial summary judgment regarding crocking claims and granted Lands’ End’s motion for partial summary judgment related to certain warranty claims. In addition, giving effect to both the addition and voluntary dismissal of individual plaintiffs over the course of the litigation, the number of individual plaintiffs had been reduced from 1,089 to 603 as of August 18, 2021. On September 1, 2021, Plaintiffs filed a Rule 23(f) petition, seeking interlocutory review of the Court’s decision denying class certification. On September 22, 2021, the U.S. Court of Appeals for the Seventh Circuit denied plaintiffs’ petition.

The Consolidated Wisconsin Action continues to be in discovery. Lands’ End is vigorously defending these lawsuits and believes they are without merit. 

NOTE 10. SEGMENT REPORTING

The Company’s operating segments consist of: U.S. eCommerce, Europe eCommerce, Japan eCommerce, Outfitters, Third Party and Retail. The Company determined that each of the operating segments have similar economic and other qualitative characteristics thus the results of the operating segments are aggregated into one reportable external segment, consistent with the Company’s multi-channel business approach.  

Lands’ End identifies five separate distribution channels for revenue reporting purposes:

• U.S. eCommerce offers products through the Company’s eCommerce website.

• International offers products primarily to consumers located in Europe and Japan through eCommerce international websites and third-party affiliates.

• Outfitters sells uniform and logo apparel to businesses and their employees, as well as to student households through school relationships, located primarily in the U.S., through negotiated arrangements to make specific styles or customized products which are made available for purchase on the Company’s eCommerce websites.

• Third Party sells the same products as U.S. eCommerce but direct to consumers through third-party marketplace websites and through domestic wholesale customers.

• Retail sells products through Company Operated stores.

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Net revenue is presented by distribution channel in the following table:

	13 Weeks Ended				39 Weeks Ended
(in thousands)	October 29, 2021		October 30, 2020		October 29, 2021		October 30, 2020
Net revenue:
U.S. eCommerce	$	213,999	$	221,769	$	655,190	$	581,511
International		47,219		56,047		151,482		141,433
Outfitters		86,069		61,998		192,382		131,214
Third Party		19,308		11,983		50,210		18,597
Retail		9,248		8,185		31,985		16,318
Total net revenue	$	375,843	$	359,982	$	1,081,249	$	889,073

NOTE 11. REVENUE

Revenue includes sales of merchandise and delivery revenue related to merchandise sold. Substantially all of the Company’s revenue is recognized when control of product passes to customers, which for the U.S. eCommerce, International, Outfitters and Third Party distribution channels is when the merchandise is expected to be received by the customer and for the Retail distribution channel is at the time of sale in the store. The Company recognizes revenue, including shipping and handling fees billed to customers, in the amount expected to be received when control of the Company's products transfers to customers, and is presented net of various forms of promotions, which range from contractually-fixed percentage price reductions to sales returns, discounts, and other incentives that may vary in amount. Variable amounts are estimated based on an analysis of historical experience and adjusted as better estimates become available.

The Company’s revenue is disaggregated by distribution channel and geographic location. Revenue by distribution channel is presented in Note 10, Segment Reporting. Revenue by geographic location was:

	13 Weeks Ended				39 Weeks Ended
(in thousands)	October 29, 2021		October 30, 2020		October 29, 2021		October 30, 2020
Net revenue:
United States	$	322,773	$	297,609	$	914,069	$	734,515
Europe		39,277		45,879		124,183		108,630
Asia		8,663		10,909		29,212		34,562
Other		5,130		5,585		13,785		11,366
Total net revenue	$	375,843	$	359,982	$	1,081,249	$	889,073

Contract Liabilities

Contract liabilities consist of payments received in advance of the transfer of control to the customer. As products are delivered and control transfers, the Company recognizes the deferred revenue in Net revenue in the Condensed Consolidated Statements of Operations. The following table summarizes the deferred revenue associated with payments received in advance of the transfer of control to the customer, which is reported in Other current liabilities in the Condensed Consolidated Balance Sheets, as well as amounts recognized through Net revenue for each period presented. The majority of deferred revenue as of October 29, 2021 is expected to be recognized in Net revenue in the fiscal quarter ending January 28, 2022, as products are delivered to customers.

	13 Weeks Ended						39 Weeks Ended
(in thousands)	October 29, 2021			October 30, 2020			October 29, 2021			October 30, 2020
Deferred revenue beginning of period	$	18,355		$	11,901		$	17,187		$	8,096
Deferred revenue recognized in period		(18,141	)		(11,901	)		(16,973	)		(8,096	)
Revenue deferred in period		14,323			35,364			14,323			35,364
Deferred revenue end of period	$	14,537		$	35,364		$	14,537		$	35,364

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Revenue from gift cards is recognized when (i) the gift card is redeemed by the customer for merchandise, or (ii) as gift card breakage, an estimate of gift cards which will not be redeemed where the Company does not have a legal obligation to remit the value of the unredeemed gift cards to the relevant jurisdictions. Gift card breakage is recorded within Net revenue in the Condensed Consolidated Statements of Operations. Prior to their redemption, gift cards are recorded as a liability, included within Other current liabilities in the Condensed Consolidated Balance Sheets. The liability is estimated based on expected breakage that considers historical patterns of redemption. The following table provides the reconciliation of the contract liability related to gift cards:

	13 Weeks Ended						39 Weeks Ended
(in thousands)	October 29, 2021			October 30, 2020			October 29, 2021			October 30, 2020
Balance as of beginning of period	$	28,341		$	23,651		$	26,798		$	22,592
Gift cards sold		13,196			13,367			33,377			33,302
Gift cards redeemed		(10,934	)		(12,245	)		(29,334	)		(30,959	)
Gift card breakage		(130	)		(76	)		(368	)		(238	)
Balance as of end of period	$	30,473		$	24,697		$	30,473		$	24,697

Refund Liabilities

Refund liabilities, primarily associated with product sales returns and retrospective volume rebates, represent variable consideration and are estimated and recorded as a reduction to Net revenue based on historical experience. As of October 29, 2021, October 30, 2020 and January 29, 2021, $24.3 million, $23.6 million and $25.7 million, respectively, of refund liabilities, primarily associated with product returns, were reported in Other current liabilities in the Condensed Consolidated Balance Sheets. An asset for product returns is recorded in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion in conjunction with the Condensed Consolidated Financial Statements and accompanying notes included elsewhere in this Quarterly Report on Form 10-Q. This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements. The matters discussed in these forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those made, projected or implied in the forward-looking statements. See “Cautionary Statement Concerning Forward-Looking Statements” below, “Item 1A. Risk Factors” in our Annual Report filed on Form 10-K for the year ended January 29, 2021 and “Part II, Item 1A Risk Factors” of this Quarterly Report on Form 10-Q, for a discussion of the uncertainties, risks and assumptions associated with these statements.

As used in this Quarterly Report on Form 10-Q, references to the “Company”, “Lands’ End”, “we”, “us”, “our” and similar terms refer to Lands’ End, Inc. and its subsidiaries. Our fiscal year ends on the Friday preceding the Saturday closest to January 31. Other terms that are commonly used in this Quarterly Report on Form 10-Q are defined as follows:

• ABL Facility – Asset-based senior secured credit agreements, providing for a revolving facility, dated as of November 16, 2017, with Wells Fargo Bank, N.A. and certain other lenders, as amended to date

• CARES Act – The Coronavirus Aid, Relief and Economic Security Act signed into law on March 27, 2020

• Company Operated stores – Lands’ End retail stores in the Retail distribution channel

• Debt Facilities – Collectively, the Term Loan Facility and ABL Facility

• First Quarter 2020 – The 13 weeks ended May 1, 2020

• Fiscal 2022 – The 52 weeks ending January 27, 2023

• Fiscal 2021 – The 52 weeks ending January 28, 2022

• Fiscal 2020 – The 52 weeks ended January 29, 2021

• Fiscal 2019 – The 52 weeks ended January 31, 2020

• GAAP – Accounting principles generally accepted in the United States

• LIBOR – London inter-bank offered rate

• Second Quarter 2020 – The 13 weeks ended July 31, 2020

• Term Loan Facility – Term loan credit agreement, dated as of September 9, 2020, among the Company, Fortress Credit Corp., as Administrative Agent and Collateral Agent, and the lenders party thereto

• Third Quarter 2021 – The 13 weeks ended October 29, 2021

• Third Quarter 2020 – The 13 weeks ended October 30, 2020

• Year-to-Date 2021 – The 39 weeks ended October 29, 2021

• Year-to-Date 2020 – The 39 weeks ended October 30, 2020

• Year-to-Date 2019 – The 39 weeks ended November 1, 2019

Executive Overview

Description of the Company

Lands’ End is a leading uni-channel retailer of casual clothing, accessories, footwear and home products. Operating out of America’s heartland, we believe our vision and values make a strong connection with our core customers. We offer products online at www.landsend.com, on third-party online marketplaces and through our own Company Operated stores, as well as third-party retail

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locations. We are a classic American lifestyle brand with a passion for quality, legendary service and real value and seek to deliver timeless style for women, men, kids and the home.

Lands’ End was founded in 1963 by Gary Comer and his partners to sell sailboat hardware and equipment by catalog. While our product focus has shifted significantly over the years, we have continued to adhere to our founder’s motto as one of our guiding principles: “Take care of the customer, take care of the employee and the rest will take care of itself.”

We seek to provide a common customer experience regardless of whether our customers are interacting with us on our company websites, third-party marketplaces, at our Company Operated stores or other distribution channels.

We have one external reportable segment and identify our operating segments according to how our business activities are managed and evaluated. Our operating segments consist of: U.S. eCommerce, Europe eCommerce, Japan eCommerce, Outfitters, Third Party and Retail. We have determined that each of our operating segments share similar economic and other qualitative characteristics, and therefore the results of our operating segments are aggregated into one external reportable segment.

Distribution Channels

We identify five separate distribution channels for revenue reporting purposes:

• U.S. eCommerce offers products through our eCommerce website.

• International offers products primarily to consumers located in Europe and Japan through our eCommerce international websites and third-party affiliates.

• Outfitters sells uniform and logo apparel to businesses and their employees, as well as to school households through school relationships, located primarily in the U.S., through negotiated arrangements to make specific styles or customized products which are made available for purchase on the Company’s eCommerce websites.

• Third Party sells the same products as U.S. eCommerce but direct to consumers through third-party marketplace websites and through domestic wholesale customers.  

• Retail sells products through our Company Operated stores.

Impact of the COVID-19 Pandemic

COVID-19 surfaced in late 2019 and in March 2020, the World Health Organization declared COVID-19 a pandemic. The onset of the COVID-19 pandemic had a disruptive impact on our business operations and an unfavorable impact on our results of operations during the first half of Fiscal 2020. During the Second Quarter 2020, we began a significant recovery that continued to build on the momentum experienced before the COVID-19 pandemic. Our strong foundation and ongoing enhancements across the four strategic pillars of product, digital, uni-channel distribution and infrastructure and business processes supported us during this COVID-19 pandemic and continues to support our financial performance and encouraging customer metrics. The ultimate timing and impact of customer demand levels across all distribution channels will depend on the duration and scope of the COVID-19 pandemic, overall economic conditions and consumer preferences. The ongoing COVID-19 pandemic continued to adversely impact us in the Third Quarter 2021 by disrupting our supply chain, leading to shipping and inventory receipt delays, and remains a threat to the health and welfare of our workforce.

Health and Safety of our People and Consumers

From the beginning of the COVID-19 pandemic, our priority has been the safety of our employees and customers. On March 16, 2020, we temporarily closed our Company Operated stores. These stores reopened during Second Quarter 2020. Since the onset of the COVID-19 pandemic, we have taken extra precautions in our offices, distribution centers and Company Operated stores, which have varied from time to time based on the then current guidance from global, federal and state health authorities. These measures have included COVID-19 retail guidelines, work-from-home policies, social distancing, masking, thermal scanning and partitions in facilities. With the emergence of COVID-19 variants and periodic increases in the number of reported cases affecting different regions, we have been required to keep these measures in place longer than anticipated.

Supply Chain

The COVID-19 pandemic continues to cause supply chain disruptions across all industries, and we continually monitor our supply chain for manufacturing and transportation delays caused or exacerbated by the COVID-19 pandemic. During Fiscal 2021, the

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COVID-19 pandemic impacted our distribution centers, third-party manufacturing partners and logistics partners, including shipping delays and port congestion, and closure of certain third-party manufacturing facilities and production lines. These disruptions have resulted in later timing of Fiscal 2021 inventory receipts that have led, at times, to lower inventory positions and higher than normal back orders, as manufacturing, transport and receipt of inbound product is delayed. In addition, we have experienced higher freight and distribution costs.

We expect some of these supply chain disruptions and increases in costs to continue through the balance of Fiscal 2021 and into the first half of Fiscal 2022. As a result of these impacts, we have experienced later than expected inventory receipts and inventory availability for our distribution channels. These shipping delays and additional costs may impact our future net sales, gross margin and net earnings depending upon the ultimate timing of delivery and availability of product to sell.

Labor Shortage

Due to the seasonal nature of our business, we rely heavily on flexible part-time employees to staff our distribution centers in support of our peak seasons, including the back-to-school shopping season and fourth fiscal quarter holiday shopping season. We have experienced a labor shortage and have been unable to fill the flexible part-time peak staffing requirements at the distribution centers for both peak seasons. During the back-to-school season the labor shortage in monogramming and embroidery services caused delays in fulfilling customer orders. We have also been unable to attract as many seasonal part-time workers as was targeted to hire for the holiday shopping season. We have provided financial incentives to attract and retain the part-time staffing and have utilized our corporate employee workforce to provide additional assistance in our distribution centers. The labor shortage may adversely impact our future net sales and earnings if orders are not fulfilled on a timely basis, which could discourage orders or lead to cancelled orders.

Expense Reduction

Beginning in First Quarter 2020, we took aggressive actions to reduce overall expenses as a response to decreased customer demand due to the COVID-19 pandemic. We reduced our operating expenses and structural costs by enacting employee furloughs, and temporary tiered salary reductions for the executive team and corporate staff. In addition, other discretionary operating expenses and planned capital expenditures for Fiscal 2020 were significantly reduced. As the COVID-19 pandemic continues and new variants emerge, we will continue to monitor the impact of the COVID-19 pandemic to manage overall expenses.

Basis of Presentation

The Condensed Consolidated Financial Statements have been prepared in accordance with GAAP and include the accounts of Lands’ End, Inc. and its subsidiaries. All intercompany transactions and balances have been eliminated. The COVID-19 pandemic had a material impact on our results for the 39 weeks ended October 30, 2020. As such, this interim period, as well as upcoming periods, may not be comparable to past performance or indicative of future performance.

Seasonality

We experience seasonal fluctuations in our net revenue and operating results and historically have realized a significant portion of our net revenue and earnings for the year during our fourth fiscal quarter. We generated 37.7% and 37.9% of our net revenue in the fourth fiscal quarter of Fiscal 2020 and Fiscal 2019 respectively. Thus, lower than expected fourth quarter net revenue could have an adverse impact on our annual operating results.

Working capital requirements typically increase during the second and third quarters of the fiscal year as inventory builds to support peak shipping/selling periods and, accordingly, typically decrease during the fourth quarter of the fiscal year as inventory is shipped/sold. Cash provided by operating activities is typically higher in the fourth quarter of the fiscal year due to reduced working capital requirements during that period.

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Results of Operations

The following table sets forth, for the periods indicated, selected income statement data:

	13 Weeks Ended
	October 29, 2021						October 30, 2020
(in thousands)	$’s			% of Net revenue			$’s			% of Net revenue
Net revenue	$	375,843			100.0	%	$	359,982			100.0	%
Cost of sales (excluding depreciation and amortization)		209,028			55.6	%		196,527			54.6	%
Gross profit		166,815			44.4	%		163,455			45.4	%
Selling and administrative		137,408			36.6	%		134,890			37.5	%
Depreciation and amortization		9,788			2.6	%		9,627			2.7	%
Other operating expense, net		140			0.0	%		255			0.1	%
Operating income		19,479			5.2	%		18,683			5.2	%
Interest expense		8,334			2.2	%		9,005			2.5	%
Other (income), net		(171	)		(0.0	)%		(250	)		(0.1	)%
Income before income taxes		11,316			3.0	%		9,928			2.8	%
Income tax expense		3,917			1.0	%		2,752			0.8	%
NET INCOME	$	7,399			2.0	%	$	7,176			2.0	%

	39 Weeks Ended
	October 29, 2021						October 30, 2020
(in thousands)	$’s			% of Net revenue			$’s			% of Net revenue
Net revenue	$	1,081,249			100.0	%	$	889,073			100.0	%
Cost of sales (excluding depreciation and amortization)		588,908			54.5	%		496,041			55.8	%
Gross profit		492,341			45.5	%		393,032			44.2	%
Selling and administrative		399,579			36.9	%		352,164			39.6	%
Depreciation and amortization		29,483			2.7	%		27,791			3.1	%
Other operating expense, net		583			0.1	%		7,913			0.9	%
Operating income		62,696			5.8	%		5,164			0.6	%
Interest expense		26,231			2.4	%		19,232			2.2	%
Other (income) expense, net		(461	)		(0.0	)%		910			0.1	%
Income (loss) before income taxes		36,926			3.4	%		(14,978	)		(1.7	)%
Income tax expense (benefit)		10,667			1.0	%		(5,887	)		(0.7	)%
NET INCOME (LOSS)	$	26,259			2.4	%	$	(9,091	)		(1.0	)%

Depreciation and amortization are not included in our cost of sales because we are a reseller of inventory and do not believe that including depreciation and amortization is meaningful. As a result, our gross margins may not be comparable to other entities that include depreciation and amortization related to the sale of their product in their gross margin measure.

Net Income and Adjusted EBITDA

We recorded Net income of $7.4 million in Third Quarter 2021 compared to Net income of $7.2 million in the Third Quarter 2020. In addition to our Net income (loss) determined in accordance with GAAP, for purposes of evaluating operating performance, we use an Adjusted EBITDA metric. Adjusted EBITDA is computed as Net income (loss) appearing on the Condensed Consolidated Statements of Operations net of Income tax expense/(benefit), Interest expense, Depreciation and amortization and certain significant items as set forth below. Our management uses Adjusted EBITDA to evaluate the operating performance of our business for comparable periods, and as a basis for an executive compensation metric. The methods used by us to calculate our non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies. Adjusted EBITDA should not be used by investors or other third parties as the sole basis for formulating investment decisions as it excludes a number of important cash and non-cash recurring items.

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While Adjusted EBITDA is a non-GAAP measurement, management believes that it is an important indicator of operating performance, and is useful to investors, because:

• EBITDA excludes the effects of financings, investing activities and tax structure by eliminating the effects of interest, depreciation and income tax.

• Other significant items, while periodically affecting our results, may vary significantly from period to period and have a disproportionate effect in a given period, which affects comparability of results. We have adjusted our results for these items to make our statements more comparable and therefore more useful to investors as the items are not representative of our ongoing operations.

• Corporate restructuring – corporate restructuring actions and activities including severance for the reduction in corporate positions for the 13 weeks and 39 weeks ended October 30, 2020.

• Goodwill and long-lived asset impairment – charges associated with the non-cash write down of goodwill and certain long-lived assets for the 39 weeks ended October 30, 2020.

• Other – amortization of transaction related costs associated with Third Party distribution channel for the 13 weeks and 39 weeks ended October 29, 2021 and October 30, 2020.

• Loss on disposal of property and equipment - management considers the gains or losses on asset valuation to result from investing decisions rather than ongoing operations for the 13 weeks and 39 weeks ended October 29, 2021 and October 30, 2020.

	13 Weeks Ended
	October 29, 2021						October 30, 2020
(in thousands)	$’s			% of Net revenue			$’s			% of Net revenue
Net income	$	7,399			2.0	%	$	7,176			2.0	%
Income tax expense		3,917			1.0	%		2,752			0.8	%
Other (income), net		(171	)		(0.0	)%		(250	)		(0.1	)%
Interest expense		8,334			2.2	%		9,005			2.5	%
Operating income		19,479			5.2	%		18,683			5.2	%
Depreciation and amortization		9,788			2.6	%		9,627			2.7	%
Corporate restructuring		—			—	%		16			0.0	%
Other		344			0.1	%		132			0.0	%
Loss on disposal of property and equipment		140			0.0	%		107			0.0	%
Adjusted EBITDA	$	29,751			7.9	%	$	28,565			7.9	%

	39 Weeks Ended
	October 29, 2021						October 30, 2020
(in thousands)	$’s			% of Net revenue			$’s			% of Net revenue
Net income (loss)	$	26,259			2.5	%	$	(9,091	)		(1.0	)%
Income tax expense (benefit)		10,667			0.9	%		(5,887	)		(0.7	)%
Other (income) expense, net		(461	)		(0.0	)%		910			0.1	%
Interest expense		26,231			2.4	%		19,232			2.2	%
Operating income		62,696			5.8	%		5,164			0.6	%
Depreciation and amortization		29,483			2.7	%		27,791			3.1	%
Corporate restructuring		—			—	%		2,941			0.3	%
Goodwill and long-lived asset impairment	—				—	%		3,844			0.4	%
Other		844			0.1	%		132			0.0	%
Loss on disposal of property and equipment		583			0.1	%		994			0.1	%
Adjusted EBITDA	$	93,606			8.7	%	$	40,866			4.6	%

In assessing the operational performance of our business, we consider a variety of financial measures. We operate in five separate distribution channels for revenue reporting purposes: U.S. eCommerce, International, Outfitters, Third Party and Retail. A

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key measure in the evaluation of our business is revenue performance by distribution channel. We also consider gross margin and Selling and administrative expenses in evaluating the performance of our business.

To evaluate revenue performance for the U.S. eCommerce, International, Outfitters and Third Party distribution channels, we use Net revenue. For our Retail distribution channel, we use Company Operated stores Same Store Sales as a key measure in evaluating performance. A store is included in Same Store Sales calculations when it has been open for at least 14 months and selling square footage has not changed by 15% or more within the past year. Online sales and sales generated through our in-store web portal are considered revenue in our U.S. eCommerce and International distribution channels and are excluded from Same Store Sales. Since First Quarter 2020, due to the COVID-19 pandemic, we temporarily ceased using Same Store Sales as a key measure in evaluating performance and instead evaluated our Company Operated stores on sales productivity which was a metric measuring sales traffic and customer conversion. Beginning with Third Quarter 2021, we reverted back to Same Store Sales as we believe there is now greater comparability of year-on-year store and economic dynamics.

Discussion and Analysis

Third Quarter 2021 compared with Third Quarter 2020

Due to the impact of the COVID-19 pandemic on our financial operating results during the Third Quarter 2020, we also have included select comparisons to Third Quarter 2019 as management believes such comparisons are relevant to our rate of recovery during the COVID-19 pandemic and performance of our business.

Net Revenue

Net revenue for Third Quarter 2021 was $375.8 million, an increase of $15.8 million or 4.4% compared to $360.0 million in the Third Quarter 2020, and an increase of $35.8 million or 10.5% compared to $340.0 million in the Third Quarter 2019.

U.S. eCommerce Net revenue was $214.0 million for Third Quarter 2021, a decrease of $7.8 million or 3.5%, from $221.8 million during the Third Quarter 2020, and an increase of $12.1 million or 6.0% from $201.9 million during the Third Quarter 2019.  Compared to Third Quarter 2020, the decrease in revenue in Third Quarter 2021 was attributed to delayed receipt of products due to the global supply chain challenges.

International eCommerce Net revenue was $47.2 million for Third Quarter 2021, a decrease of $8.8 million or 15.7%, from $56.0 million during the Third Quarter 2020, and an increase of $10.2 million or 27.6% from $37.0 million during the Third Quarter 2019. The decrease in revenue in Third Quarter 2021 was attributed to delayed receipt of products due to the global supply chain challenges.

Outfitters Net revenue was $86.1 million for Third Quarter 2021, an increase of $24.1 million or 38.9%, from $62.0 million during the Third Quarter 2020, and an increase of $2.8 million or 3.4% from $83.3 million during the Third Quarter 2019. Compared to the Third Quarter 2020, the increase was primarily attributed to stronger demand within our travel-related national accounts and school uniforms as households recovered to prior back-to-school shopping patterns, with a slower recovery in our small and medium-sized customers.

Third Party Net revenue was $19.3 million for Third Quarter 2021, an increase of $7.3 million or 60.8% from $12.0 million during the Third Quarter 2020. The increase was primarily attributed to a full quarter of revenue with Kohl’s, compared to the launch in Third Quarter 2020, as well as the impact of expanding our broader store assortment into an additional 150 Kohl’s retail locations, for a total of 300 retail locations, during Third Quarter 2021.

Retail Net revenue was $9.2 million for Third Quarter 2021, an increase of $1.0 million or 12.2% from $8.2 million during Third Quarter 2020, and a decrease of $5.2 million or 36.1% from $14.4 million during Third Quarter 2019. Our U.S. Company Operated stores experienced an increase of 5.7% in Same Store Sales as compared to Third Quarter 2020. On October 29, 2021 there were 30 U.S. Company Operated stores compared to 31 U.S. Company Operated stores on October 30, 2020 and 22 U.S. Company Operated stores on November 1, 2019.

Gross Profit

Gross profit was $166.8 million for Third Quarter 2021, an increase of $3.3 million or 2.1% from $163.5 million during the Third Quarter of 2020. Gross margin decreased to 44.4% in Third Quarter 2021, compared with 45.4% in Third Quarter 2020. Compared to Third Quarter 2020, gross margin decreased primarily due to increased shipping costs attributed to the global supply chain challenges.   

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Selling and Administrative Expenses

Selling and administrative expenses increased $2.5 million to $137.4 million or 36.6% of total Net revenue in Third Quarter 2021 compared with $134.9 million or 37.5% of Net revenue in Third Quarter 2020. The approximately 90 basis point decrease was driven by leverage on higher sales and continued expense controls slightly offset by continued investment in digital marketing. This was an approximately 300 basis point decrease compared to Third Quarter 2019.

Depreciation and Amortization

Depreciation and amortization expense was $9.8 million in Third Quarter 2021, an increase of $0.2 million compared with $9.6 million in Third Quarter 2020.

Other Operating Expense

Other operating expense, net was $0.1 million in Third Quarter 2021 compared to $0.3 million in Third Quarter 2020.

Operating Income

Operating income was $19.5 million in Third Quarter 2021 compared to $18.7 million in Third Quarter 2020. The $0.8 million increase was driven by the increase in Gross profit from the increased revenue partially offset by higher shipping costs attributed to the global supply chain challenges and higher selling and administrative expenses.

Interest Expense

Interest expense was $8.3 million in Third Quarter 2021 compared to $9.0 million in Third Quarter 2020. The $0.7 million decrease was primarily attributed to lower usage on the revolving ABL Facility at lower interest rates as a result of the Third Amendment to the ABL Facility.

Other Income

Other income was $0.2 million in Third Quarter 2021 compared to Other income of $0.3 million in Third Quarter 2020.  

Income Tax Expense

We recorded income tax expense at an overall effective tax rate of 34.6% and 27.7% for Third Quarter 2021 and Third Quarter 2020, respectively.

Net Income

As a result of the above factors, Net income was $7.4 million and diluted earnings per share was $0.22 in Third Quarter 2021 compared with a Net income of $7.2 million and diluted earnings per share of $0.22 in Third Quarter 2020.

Adjusted EBITDA

As a result of the above factors, Adjusted EBITDA was $29.8 million in Third Quarter 2021 compared to $28.6 million in Third Quarter 2020.

Year-to-Date 2021 compared with Year-to-Date 2020

Due to the impact of the COVID-19 pandemic on our financial operating results Year-to-Date 2020, we also have included select comparisons to Year-to-Date 2019 as management believes such comparisons are relevant to our rate of recovery during the COVID-19 pandemic and performance of our business.

Net Revenue

Net revenue for Year-to-Date 2021 was $1.1 billion, an increase of $192.0 million or 21.6% compared to $889.1 million during Year-to-Date 2020, and an increase of $180.5 million or 20.0% compared to $900.7 million during Year-to-Date 2019.

U.S. eCommerce Net revenue was $655.1 million for Year-to-Date 2021, an increase of $73.5 million or 12.6%, from $581.6 million during Year-to-Date 2020, and an increase of $111.8 million or 20.6% from $543.3 million during Year-to-Date 2019. These

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increases in revenue were primarily driven by stronger website traffic and a higher average order value as customers continue to react positively to the product assortments and digital capabilities, which drove a year over year increase in our new customers acquired and our overall customer file.

International eCommerce Net revenue was $151.5 million for Year-to-Date 2021, an increase of $10.1 million or 7.1%, from $141.4 million during Year-to-Date 2020, and an increase of $33.2 million or 28.1% from $118.3 million during Year-to-Date 2019. These increases in revenue were primarily driven by implementing U.S. eCommerce initiatives in Europe eCommerce which resulted in stronger demand as customers reacted positively to the product assortments and digital capabilities, which drove a year over year increase in our new customers acquired and overall customer file.

Outfitters Net revenue was $192.4 million for Year-to-Date 2021, an increase of $61.2 million or 46.6%, from $131.2 million during Year-to-Date 2020, and an increase of $0.5 million or 0.3% from $191.9 million during Year-to-Date 2019. Compared to the Year-to-Date 2020, the increase was primarily attributed to stronger demand within our travel-related national accounts and school uniforms as households recovered to prior back-to-school shopping patterns, with a slower recovery in our small and medium-sized customers.

Third Party Net revenue was $50.2 million for Year-to-Date 2021, an increase of $31.6 million from $18.6 million during Year-to-Date 2020. The increase was primarily attributed to year-to-date revenue growth with Kohl’s compared to the launch in the Third Quarter 2020, as well as the impact of expanding our broader store assortment into an additional 150 Kohl’s retail locations, for a total of 300 retail locations, during Third Quarter 2021.

Retail Net revenue was $32.0 million for Year-to-Date 2021, an increase of $15.7 million or 96.3% from $16.3 million during Year-to-Date 2020, and a decrease of $6.9 million or 17.7% from $38.9 million during Year-to-Date 2019. On October 29, 2021 there were 30 U.S. Company Operated stores compared to 31 U.S. Company Operated stores on October 30, 2020 and 22 U.S. Company Operated stores on November 1, 2019.

Gross Profit

Gross profit was $492.3 million for Year-to-Date 2021, an increase of $99.3 million or 25.3% from $393.0 million during Year-to-Date of 2020. Gross margin increased to 45.5% in Year-to-Date 2021, compared with 44.2% in Year-to-Date 2020. Compared to Year-to-Date 2020, gross margin increased due to merchandise margin expansion in the U.S. eCommerce distribution channel driven by enhanced promotional strategies and continued use of analytics for both our pricing and inventory management, offset by increased shipping costs attributed to the global supply chain challenges as well as higher sales mix from the lower-margin Third Party distribution channel.  

Selling and Administrative Expenses

Selling and administrative expenses increased $47.4 million to $399.6 million or 37.0% of total Net revenue in Year-to-Date 2021 compared with $352.2 million or 39.6% of Net revenue in Year-to-Date 2020. The approximately 260 basis point decrease was driven by improved leverage from higher sales and continued expense controls slightly offset by increased digital marketing expenses and expense reductions taken at the onset of the COVID-19 pandemic. This was also an approximately 460 basis point decrease compared to Year-to-Date 2019.

Depreciation and Amortization

Depreciation and amortization expense was $29.5 million in Year-to-Date 2021, an increase of $1.7 million compared with $27.8 million in Year-to-Date 2020. The increase was primarily attributable to depreciation associated with our continued investment in our digital information technology infrastructure.

Other Operating Expense

Other operating expense, net was $0.6 million in Year-to-Date 2021 and $7.9 million in Year-to-Date 2020. The decrease of $7.3 million was primarily attributed to the $3.3 million impairment charge of goodwill allocated to our Japan eCommerce reporting unit and $3.0 million of restructuring costs in Year-to-Date 2020.

Operating Income

Operating income was $62.7 million in Year-to-Date 2021 compared to Operating income of $5.2 million in Year-to-Date 2020. The increase was driven by the increase in Gross profit from the increased revenue and improved margins over Year-to-Date 2020 partially offset by higher selling and administrative expenses.

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Interest Expense

Interest expense was $26.2 million in Year-to-Date 2021 compared to $19.2 million in Year-to-Date 2020. The $7.0 million increase was primarily attributed to higher interest rates associated with the Term Loan Facility.

Other (Income) Expense

Other income was $0.5 million in Year-to-Date 2021 compared to Other expense of $0.9 million in Year-to-Date 2020. The increase in income and decrease in expense is primarily attributed to a final payment in Second Quarter 2020 associated with the transitioning of a sourcing office.

Income Tax Expense (Benefit)

We recorded income tax expense at an overall effective tax rate of 28.9% for Year-to-Date 2021 and an income tax benefit of 39.3% for Year-to-Date 2020. The Year-to-Date 2021 rate is lower than Year-to-Date 2020 primarily due to the generation of pretax income in 2021 compared to a pretax loss in 2020 in addition to the estimated tax benefits recorded as a result of the CARES Act in 2020.

Net Income (Loss)

As a result of the above factors, Net income was $26.3 million and diluted earnings per share was $0.78 in Year-to-Date 2021 compared with a Net loss of $9.1 million and diluted loss per share of $0.28 in Year-to-Date 2020.

Adjusted EBITDA

As a result of the above factors, Adjusted EBITDA was $93.6 million in Year-to-Date 2021 compared to $40.9 million in Year-to-Date 2020.

Liquidity and Capital Resources

Our primary need for liquidity is to fund working capital requirements of our business, capital expenditures, debt service and for general corporate purposes. Our cash and cash equivalents and the ABL Facility serve as sources of liquidity for short-term working capital needs and general corporate purposes. The ABL Facility had a balance outstanding of $70.0 million on October 29, 2021 other than letters of credit. Cash generated from our net revenue and profitability, and to a lesser extent our changes in working capital, are driven by the seasonality of our business, with a significant amount of net revenue and operating cash flows generally occurring in the fourth fiscal quarter of each year. We expect that our cash on hand and cash flows from operations, along with revolving on the ABL Facility, will be adequate to meet our capital requirements and operational needs for at least the next 12 months.

Description of Material Indebtedness

Debt Arrangements

Our $275.0 million revolving ABL Facility includes a $70.0 million sublimit for letters of credit and is available for working capital and other general corporate liquidity needs. The balance outstanding was $70.0 million and $155.0 million on October 29, 2021 and October 30, 2020, respectively. The balance of outstanding letters of credit was $21.4 million and $15.3 million on October 29, 2021 and October 30, 2020, respectively.

During Fiscal 2020, we exercised the “accordion” feature under the ABL Facility increasing the maximum borrowings available under the facility from $175.0 million to $275.0 million, subject to a borrowing base (the “Loan Cap”). This was completed in two separate transactions. The first was a $25.0 million increase effective March 19, 2020 and the second was a $75.0 million increase effective September 9, 2020. The latter was completed through the Second Amendment to the ABL Facility executed on August 12, 2020.

On July 29, 2021, we executed the Third Amendment to the ABL Facility resulting in favorable financial terms compared to the Second Amendment to the ABL Facility and extension of the maturity date of the ABL Facility, as discussed below.

On September 9, 2020, we entered into the Term Loan Facility which provided borrowings of $275.0 million. Origination costs, including an Original Issue Discount (OID) of 3% and $5.1 million in debt origination fees were paid upon entering into the Term Loan Facility.

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Interest; Fees

The Third Amendment to the ABL Facility lowered the interest rates applicable to borrowings under the ABL Facility.  For LIBOR loans, commencing July 31, 2021 the borrowing margin is, where the average daily total loans outstanding for the previous quarter are (i) less than $ 95.0 million, 1.25%, (ii) equal to or greater than $95.0 million but less than $180.0 million, 1.50%, and (iii) greater than or equal to $180.0 million, 1.75%. For Base Rate loans, the borrowing margin is, where the average daily total loans outstanding for the previous quarter are (i) less than $95.0 million for the previous quarter, 0.50%, (ii) equal to or greater than $95.0 million but less than $180.0 million, 0.75%, and (iii) greater than or equal to $180.0 million, 1.00%. The Third Amendment to the ABL Facility replaced the 0.75% LIBOR floor with a 0.0% LIBOR floor.

The interest rates per annum applicable to the loans under the Term Loan Facility are based on a fluctuating rate of interest measured by reference to, at the borrower’s election, either (1) an adjusted LIBOR (with a minimum rate of 1.00%) plus 9.75% or (2) an alternative base rate (which is the greater of (i) the prime rate published in the Wall Street Journal, (ii) the federal funds rate, which shall be no lower than 0.00% plus ½ of 1.00%, or (iii) the one month LIBOR rate plus 1.00% per annum) plus 8.75%.  

Effective with the Third Amendment to the ABL Facility, the ABL Facility fees include (i) commitment fees of 0.25% based upon the average daily unused commitment (aggregate commitment less loans and letter of credit outstanding) under the ABL Facility for the preceding fiscal quarter and (ii) customary letter of credit fees. As of the end of Third Quarter 2021, we had borrowings of $70.0 million on the ABL Facility.

Customary agency fees are payable in respect of the Debt Facilities.

Maturity; Amortization and Prepayments

The Third Amendment to the ABL Facility extended the maturity from November 16, 2022 to the earlier of (a) July 29, 2026 and (b) June 9, 2025 if, on or prior to such date, the Term Loan Facility has not been refinanced, extended or repaid in full in accordance with the terms thereof and not replaced with other indebtedness.

The Term Loan Facility matures on September 9, 2025 and amortizes at a rate equal to 1.25% per quarter. It is subject to mandatory prepayments in an amount equal to a percentage of the borrower’s excess cash flows in each fiscal year, ranging from 0% to 75% depending on our total leverage ratio, and with the proceeds of certain asset sales, casualty events and extraordinary receipts. The loan may not be voluntarily prepaid during the first two years of its term, without significant penalties. A prepayment premium is applicable to voluntary prepayments and certain mandatory prepayments made prior to the fourth anniversary of the closing date of the Term Loan Facility.

Guarantees; Security

All obligations under the Debt Facilities are unconditionally guaranteed by Lands’ End, Inc. and, subject to certain exceptions, each of its existing and future direct and indirect subsidiaries. The ABL Facility is secured by a first priority security interest in certain working capital of the borrowers and guarantors consisting primarily of accounts receivable and inventory. The Term Loan Facility is secured by a second priority security interest in the same collateral, with certain exceptions.

The Term Loan Facility is secured by a first priority security interest in certain property and assets of the borrowers and guarantors, including certain fixed assets such as real estate, stock of the subsidiaries and intellectual property, in each case, subject to certain exceptions. The ABL Facility is secured by a second priority interest in the same collateral, with certain exceptions.

Representations and Warranties; Covenants

Subject to specified exceptions, the Debt Facilities contain various representations and warranties and restrictive covenants that, among other things, restrict Lands’ End, Inc.’s and its subsidiaries’ ability to incur indebtedness (including guarantees), grant liens, make investments, make dividends or distributions with respect to capital stock, make prepayments on other indebtedness, engage in mergers or change the nature of their business.

The Term Loan Facility contains certain financial covenants, including a quarterly maximum total leverage ratio test, a weekly minimum liquidity test and an annual maximum capital expenditure amount.

Under the ABL Facility, if excess availability falls below the greater of 10% of the Loan Cap amount or $15.0 million, we will be required to comply with a minimum fixed charge coverage ratio of 1.0 to 1.0.

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The Debt Facilities contain certain affirmative covenants, including reporting requirements such as delivery of financial statements, certificates and notices of certain events, maintaining insurance and providing additional guarantees and collateral in certain circumstances.

As of October 29, 2021, we were in compliance with all of our covenants in the Debt Facilities.

Events of Default

The Debt Facilities include customary events of default including non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations or warranties, cross defaults related to certain other material indebtedness, bankruptcy and insolvency events, invalidity or impairment of guarantees or security interests and material judgments and change of control.

Cash Flows from Operating Activities

Net cash used in operating activities decreased to $6.4 million Year-to-Date 2021 from $26.1 million Year-to-Date 2020. The $19.7 million decrease in cash used in operating activities was driven by an increase in year over year net income and decrease in net working capital partially offset by a decrease in deferred revenue and other accruals.

Cash Flows from Investing Activities

Net cash used in investing activities was $18.7 million and $25.6 million Year-to-Date 2021 and Year-to-Date 2020, respectively. Cash used in investing activities for both periods was primarily used for investments to update our digital information technology infrastructure.

For Fiscal 2021, we plan to invest approximately $26 million in capital expenditures for strategic investments and infrastructure, primarily in technology and general corporate needs.

Cash Flows from Financing Activities

Net cash provided by financing activities was $28.4 million and $30.8 million Year-to-Date 2021 and Year-to-Date 2020, respectively. Year-to-Date 2021 activity consisted of required principal payments of $10.3 million on the Term Loan Facility and net borrowings of $45.0 million on the ABL Facility. Year-to-Date 2020 activity consisted of new debt of $275.0 million with the Term Loan Facility and net borrowings of $155.0 million on the ABL Facility.

Contractual Obligations and Off-Balance-Sheet Arrangements

There have been no material changes to our contractual obligations and off-balance-sheet arrangements as discussed in our Annual Report on Form 10-K for the fiscal year ended January 29, 2021, except for the Third Amendment to the ABL Facility for which the maturity date was extended from November 16, 2022 to the earlier of (a) July 29, 2026 and (b) June 9, 2025 if, on or prior to such date, the Term Loan Facility has not been refinanced, extended or repaid in full in accordance with the terms thereof and not replaced with other indebtedness.

Financial Instruments with Off-Balance-Sheet Risk

The $275.0 million ABL Facility includes a $70.0 million sublimit for letters of credit and the Third Amendment to the ABL Facility extended the maturity from November 16, 2022 to the earlier of (a) July 29, 2026 and (b) June 9, 2025 if, on or prior to such date, the Term Loan Facility has not been refinanced, extended or repaid in full in accordance with the terms thereof and not replaced with other indebtedness. The ABL Facility is available for working capital and other general corporate liquidity needs. The balance outstanding on October 29, 2021 and October 30, 2020 was $70.0 million and $155.0 million, respectively. The balance of outstanding letters of credit was $21.4 million and $15.3 million on October 29, 2021 and October 30, 2020, respectively.

Application of Critical Accounting Policies and Estimates

We believe that the assumptions and estimates associated with revenue, inventory valuation, goodwill and intangible asset impairment assessments and income taxes have the greatest potential impact on our financial statements. Therefore, we consider these to be our critical accounting policies and estimates.

For a complete discussion of our critical accounting policies, please refer to our Annual Report on Form 10-K for the year ended January 29, 2021. There have been no significant changes in our critical accounting policies or their application since January 29, 2021.

27

Recent Accounting Pronouncements

See Part I, Item 1, Note 2, Recent Accounting Pronouncements, of the Condensed Consolidated Financial Statements (unaudited) included in this Quarterly Report on Form 10-Q for information regarding recent accounting pronouncements.

28

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This document contains forward-looking statements. Forward-looking statements reflect our current views with respect to, among other things, future events and performance. These statements may discuss, among other things, our net sales, gross margin, operating expenses, operating income, net income, adjusted EBITDA, cash flow, financial condition, financings, impairments, expenditures, growth, strategies, plans, achievements, dividends, capital structure, organizational structure, future store openings, market opportunities and general market and industry conditions. We generally identify forward-looking statements by words such as “anticipate,” “estimate,” “expect,” “intend,” “project,” “plan,” “predict,” “believe,” “seek,” “continue,” “outlook,” “may,” “might,” “will,” “should,” “can have,” “likely,” “targeting” or the negative version of these words or comparable words. Forward-looking statements are based on beliefs and assumptions made by management using currently available information. These statements are only predictions and are not guarantees of future performance, actions or events. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management’s underlying beliefs and assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. These risks and uncertainties include those risks, uncertainties and factors discussed in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended January 29, 2021 and “Part II, Item 1A Risk Factors” of this Quarterly Report on Form 10-Q. Forward-looking statements speak only as of the date on which they are made. We expressly disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable securities laws and regulations.

29

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The market risk inherent in our financial instruments represents the potential loss arising from adverse changes in currency rates. A significant portion of our business is transacted in U.S. dollars, and is expected to continue to be transacted in U.S. dollars or U.S. dollar-based currencies. As of October 29, 2021, we had $7.9 million of cash denominated in foreign currencies, principally in Pound sterling, Euro and Japanese yen. We do not enter into financial instruments for trading purposes or hedging and have not used any derivative financial instruments. We do not consider our foreign earnings to be permanently reinvested.

We are subject to interest rate risk with the Term Loan Facility and the ABL Facility, as both require the Company to pay interest on outstanding borrowings at variable rates. Each one percentage point change in interest rates (above the 1.00% LIBOR floor) associated with the Term Loan Facility would result in a $2.6 million change in our annual cash interest expenses. Assuming our ABL Facility was fully drawn to a principal amount equal to $275.0 million, each one percentage point change in interest rates would result in a $2.8 million change in our annual cash interest expense.

30

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Based on their evaluation for the period covered by this Quarterly Report on Form 10-Q, Lands’ End’s Chief Executive Officer and President and Chief Financial Officer have concluded that, as of October 29, 2021, the Company’s disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended) are effective.

Changes in Internal Control over Financial Reporting

There have been no changes in the Company's internal controls over financial reporting identified in connection with the evaluation required by Rules 13a-15 under the Exchange Act during the Third Fiscal Quarter Ended October 29, 2021 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

31

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is party to various claims, legal proceedings and investigations arising in the ordinary course of business. Some of these actions involve complex factual and legal issues and are subject to uncertainties. At this time, the Company is not able to either predict the outcome of these legal proceedings or reasonably estimate a potential range of loss with respect to the proceedings. While it is not feasible to predict the outcome of pending claims, proceedings and investigations with certainty, management is of the opinion that their ultimate resolution should not have a material adverse effect on our results of operations, cash flows or financial position taken as a whole.

For a description of our legal proceedings, see Note 9, Commitments and Contingencies in Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q, which description of legal proceedings is incorporated by reference herein.

ITEM 1A. RISK FACTORS

There have been no material changes to the risk factors disclosed in the Company’s Annual Report on Form 10-K for the year ended January 29, 2021, filed with the SEC on March 25, 2021.  

32

Index of Exhibits

ITEM 6. EXHIBITS

The following documents are filed as exhibits to this report:

3.1	Amended and Restated Certificate of Incorporation of Lands’ End, Inc. (incorporated by reference to Exhibit 3.1 of the Current Report on Form 8-K filed by Lands’ End, Inc. on March 20, 2014 (File No. 001-09769)).
3.2	Amended and Restated Bylaws of Lands’ End, Inc. (incorporated by reference to Exhibit 3.1 to the Current Report on Form 8-K filed by Lands’ End, Inc. on April 8, 2014 (File No. 001-09769)).
31.1	Certification of Principal Executive Officer Required Under Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended.*
31.2	Certification of Principal Financial Officer Required Under Rule 13a-14(a) and 15d-14(a) of the Securities Exchange Act of 1934, as amended.*
32.1	Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.**
101.INS	XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document*
101.SCH	Inline XBRL Taxonomy Extension Schema Document*
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEF	Inline XBRL Taxonomy Extension Definition Document*
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document*
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document*
104	Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit 101)*

* Filed herewith.

** Furnished herewith.

33

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Lands’ End, Inc.

(Registrant)

Dated: December 2, 2021

By:	/s/ James Gooch
	James Gooch
	President and Chief Financial Officer (Principal Financial Officer)

34

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Jerome Griffith, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Lands’ End, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: December 2, 2021

/s/ Jerome Griffith

Jerome Griffith

Chief Executive Officer

(Principal Executive Officer)

Lands' End, Inc.

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, James Gooch, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Lands’ End, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: December 2, 2021

/s/ James Gooch

James Gooch

President and Chief Financial Officer

(Principal Financial Officer)

Lands' End, Inc.

EX-32.1

EXHIBIT 32.1

CERTIFICATION

Pursuant to 18 U.S.C. 1350 as adopted by Section 906 of the Sarbanes-Oxley Act of 2002

Each of the undersigned, Jerome Griffith, Chief Executive Officer of Lands’ End, Inc. (the “Company”) and James Gooch, President and Chief Financial Officer of the Company, has executed this certification in connection with the filing with the Securities and Exchange Commission of the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended October 29, 2021 (the “Report”).

Each of the undersigned hereby certifies that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: December 2, 2021

/s/ Jerome Griffith

Jerome Griffith

Chief Executive Officer

(Principal Executive Officer)

Date: December 2, 2021

/s/ James Gooch

James Gooch

President and Chief Financial Officer

(Principal Financial Officer)

XML

Document And Entity Information - shares	9 Months Ended
	Oct. 29, 2021	Nov. 29, 2021
Cover [Abstract]
Entity Registrant Name	Lands’ End, Inc.
Document Type	10-Q
Trading Symbol	LE
Current Fiscal Year End Date	--01-28
Entity Common Stock, Shares Outstanding		32,983,349
Amendment Flag	false
Entity Central Index Key	0000799288
Entity Filer Category	Accelerated Filer
Document Period End Date	Oct. 29, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Small Business	false
Entity Emerging Growth Company	false
Security Exchange Name	NASDAQ
Entity File Number	001-09769
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-2512786
Entity Address, Address Line One	1 Lands’ End Lane
Entity Address, City or Town	Dodgeville
Entity Address, State or Province	WI
Entity Address, Postal Zip Code	53595
City Area Code	608
Local Phone Number	935-9341
Document Quarterly Report	true
Document Transition Report	false
Title of 12(b) Security	Common Stock, par value $0.01 per share

XML

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 29, 2021	Oct. 30, 2020	Oct. 29, 2021	Oct. 30, 2020
Income Statement [Abstract]
Net revenue	$ 375,843	$ 359,982	$ 1,081,249	$ 889,073
Cost of sales (excluding depreciation and amortization)	209,028	196,527	588,908	496,041
Gross profit	166,815	163,455	492,341	393,032
Selling and administrative	137,408	134,890	399,579	352,164
Depreciation and amortization	9,788	9,627	29,483	27,791
Other operating expense, net	140	255	583	7,913
Operating income	19,479	18,683	62,696	5,164
Interest expense	8,334	9,005	26,231	19,232
Other (income) expense, net	(171)	(250)	(461)	910
Income (loss) before income taxes	11,316	9,928	36,926	(14,978)
Income tax expense (benefit)	3,917	2,752	10,667	(5,887)
NET INCOME (LOSS)	$ 7,399	$ 7,176	$ 26,259	$ (9,091)
NET INCOME (LOSS) PER COMMON SHARE
Basic:	$ 0.22	$ 0.22	$ 0.80	$ (0.28)
Diluted:	$ 0.22	$ 0.22	$ 0.78	$ (0.28)
Basic weighted average common shares outstanding	32,981	32,605	32,910	32,551
Diluted weighted average common shares outstanding	33,698	33,248	33,708	32,551

XML

Condensed Consolidated Statements of Comprehensive Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 29, 2021	Oct. 30, 2020	Oct. 29, 2021	Oct. 30, 2020
Statement Of Income And Comprehensive Income [Abstract]
NET INCOME (LOSS)	$ 7,399	$ 7,176	$ 26,259	$ (9,091)
Other comprehensive (loss), net of tax, foreign currency translation adjustments	(670)	(794)	(395)	(671)
COMPREHENSIVE INCOME (LOSS)	$ 6,729	$ 6,382	$ 25,864	$ (9,762)

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 29, 2021	Jan. 29, 2021	Oct. 30, 2020
Current assets
Cash and cash equivalents	$ 37,926	$ 33,933	$ 56,137
Restricted cash	1,983	1,861	2,135
Accounts receivable, net	44,078	37,574	34,238
Inventories, net	479,793	382,106	499,759
Prepaid expenses and other current assets	41,418	40,356	52,731
Total current assets	605,198	495,830	645,000
Property and equipment, net	133,572	145,288	149,342
Operating lease right-of-use asset	32,782	35,475	36,699
Goodwill	106,700	106,700	106,700
Intangible asset, net	257,000	257,000	257,000
Other assets	4,512	5,215	5,413
TOTAL ASSETS	1,139,764	1,045,508	1,200,154
Current liabilities
Current portion of long-term debt	13,750	13,750	13,750
Accounts payable	184,569	134,007	174,061
Lease liability - current	5,609	5,183	5,359
Other current liabilities	142,828	161,982	147,903
Total current liabilities	346,756	314,922	341,073
Long-term borrowings on ABL Facility	70,000	25,000	155,000
Long-term debt, net	237,245	245,632	248,700
Lease liability - long-term	34,092	37,811	39,169
Deferred tax liabilities	47,325	47,346	65,800
Other liabilities	5,834	5,094	5,487
TOTAL LIABILITIES	741,252	675,805	855,229
Commitments and contingencies
STOCKHOLDERS’ EQUITY
Common stock, par value $0.01 authorized: 480,000 shares; issued and outstanding: 32,983, 32,608 and 32,614, respectively	330	326	326
Additional paid-in capital	372,313	369,372	366,959
Retained earnings (accumulated deficit)	37,485	11,226	(8,701)
Accumulated other comprehensive (loss)	(11,616)	(11,221)	(13,659)
TOTAL STOCKHOLDERS' EQUITY	398,512	369,703	344,925
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,139,764	$ 1,045,508	$ 1,200,154

XML

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Oct. 29, 2021	Jan. 29, 2021	Oct. 30, 2020
Statement Of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	480,000,000	480,000,000	480,000,000
Common stock, shares issued	32,983,000	32,614,000	32,608,000
Common stock, shares outstanding	32,983,000	32,614,000	32,608,000

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Oct. 29, 2021	Oct. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 26,259	$ (9,091)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation and amortization	29,483	27,791
Amortization of debt issuance costs	2,358	2,291
Loss on disposal of property and equipment	583	994
Stock-based compensation	8,043	6,743
Deferred income taxes	80	7,979
Goodwill impairment		3,300
Other	(1,097)	326
Change in operating assets and liabilities:
Accounts receivable, net	(7,219)	17,289
Inventories, net	(98,391)	(123,811)
Accounts payable	51,152	20,104
Other operating assets	95	(16,151)
Other operating liabilities	(17,700)	36,172
Net cash used in operating activities	(6,354)	(26,064)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment	(18,739)	(25,638)
Net cash used in investing activities	(18,739)	(25,638)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings under ABL Facility	140,000	230,000
Payments of borrowings under ABL Facility	(95,000)	(75,000)
Proceeds from issuance of long term debt, net		266,750
Principal payments on long-term debt, net	(10,313)	(385,388)
Payments for taxes related to net share settlement of equity awards	(5,098)	(438)
Payment of debt-issuance costs	(1,161)	(5,080)
Net cash provided by financing activities	28,428	30,844
Effects of exchange rate changes on cash, cash equivalents and restricted cash	780	(167)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	4,115	(21,025)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF PERIOD	35,794	79,297
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD	39,909	58,272
SUPPLEMENTAL CASH FLOW DATA
Unpaid liability to acquire property and equipment	2,836	2,620
Income taxes paid, net of refunds	23,570	257
Interest paid	23,972	11,334
Lease liabilities arising from obtaining operating lease right-of-use assets	$ 1,161	$ 3,525

XML

Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock Issued	Additional Paid-In Capital	Retained Earnings/ (Accumulated Deficit)	Accumulated Other Comprehensive (Loss)
Balance at Jan. 31, 2020	$ 348,382	$ 324	$ 360,656	$ 390	$ (12,988)
Balance, shares at Jan. 31, 2020		32,382,000
NET INCOME (LOSS)	(20,643)			(20,643)
Cumulative translation adjustment, net of tax	(1,259)				(1,259)
Stock-based compensation expense	1,828		1,828
Vesting of restricted shares		$ 2	(2)
Vesting of restricted shares, shares		275,000
Common stock withheld related to net share settlement of equity awards	(410)		(410)
Common stock withheld related to net share settlement of equity awards, shares		(61,000)
Balance at May. 01, 2020	327,898	$ 326	362,072	(20,253)	(14,247)
Balance, shares at May. 01, 2020		32,596,000
Balance at Jan. 31, 2020	348,382	$ 324	360,656	390	(12,988)
Balance, shares at Jan. 31, 2020		32,382,000
NET INCOME (LOSS)	(9,091)
Cumulative translation adjustment, net of tax	(671)
Balance at Oct. 30, 2020	344,925	$ 326	366,959	(8,701)	(13,659)
Balance, shares at Oct. 30, 2020		32,608,000
Balance at May. 01, 2020	327,898	$ 326	362,072	(20,253)	(14,247)
Balance, shares at May. 01, 2020		32,596,000
NET INCOME (LOSS)	4,376			4,376
Cumulative translation adjustment, net of tax	1,382				1,382
Stock-based compensation expense	2,714		2,714
Vesting of restricted shares, shares		10,000
Common stock withheld related to net share settlement of equity awards	(13)		(13)
Common stock withheld related to net share settlement of equity awards, shares		(2,000)
Balance at Jul. 31, 2020	336,357	$ 326	364,773	(15,877)	(12,865)
Balance, shares at Jul. 31, 2020		32,604,000
NET INCOME (LOSS)	7,176			7,176
Cumulative translation adjustment, net of tax	(794)				(794)
Stock-based compensation expense	2,201		2,201
Vesting of restricted shares, shares		5,000
Common stock withheld related to net share settlement of equity awards	(15)		(15)
Common stock withheld related to net share settlement of equity awards, shares		(1,000)
Balance at Oct. 30, 2020	344,925	$ 326	366,959	(8,701)	(13,659)
Balance, shares at Oct. 30, 2020		32,608,000
Balance at Jan. 29, 2021	369,703	$ 326	369,372	11,226	(11,221)
Balance, shares at Jan. 29, 2021		32,614,000
NET INCOME (LOSS)	2,639			2,639
Cumulative translation adjustment, net of tax	311				311
Stock-based compensation expense	2,513		2,513
Vesting of restricted shares		$ 4	(4)
Vesting of restricted shares, shares		553,000
Common stock withheld related to net share settlement of equity awards	(5,013)		(5,013)
Common stock withheld related to net share settlement of equity awards, shares		(190,000)
Balance at Apr. 30, 2021	370,153	$ 330	366,868	13,865	(10,910)
Balance, shares at Apr. 30, 2021		32,977,000
Balance at Jan. 29, 2021	369,703	$ 326	369,372	11,226	(11,221)
Balance, shares at Jan. 29, 2021		32,614,000
NET INCOME (LOSS)	26,259
Cumulative translation adjustment, net of tax	(395)
Balance at Oct. 29, 2021	398,512	$ 330	372,313	37,485	(11,616)
Balance, shares at Oct. 29, 2021		32,983,000
Balance at Apr. 30, 2021	370,153	$ 330	366,868	13,865	(10,910)
Balance, shares at Apr. 30, 2021		32,977,000
NET INCOME (LOSS)	16,221			16,221
Cumulative translation adjustment, net of tax	(36)				(36)
Stock-based compensation expense	3,556		3,556
Vesting of restricted shares, shares		7,000
Common stock withheld related to net share settlement of equity awards	(71)		(71)
Common stock withheld related to net share settlement of equity awards, shares		(3,000)
Balance at Jul. 30, 2021	389,823	$ 330	370,353	30,086	(10,946)
Balance, shares at Jul. 30, 2021		32,981,000
NET INCOME (LOSS)	7,399			7,399
Cumulative translation adjustment, net of tax	(670)				(670)
Stock-based compensation expense	1,974		1,974
Vesting of restricted shares, shares		3,000
Common stock withheld related to net share settlement of equity awards	(14)		(14)
Common stock withheld related to net share settlement of equity awards, shares		(1,000)
Balance at Oct. 29, 2021	$ 398,512	$ 330	$ 372,313	$ 37,485	$ (11,616)
Balance, shares at Oct. 29, 2021		32,983,000

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Background and Basis of Presentation

9 Months Ended

Oct. 29, 2021

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Background and Basis of Presentation

NOTE 1. BACKGROUND AND BASIS OF PRESENTATION

Description of Business

Lands’ End, Inc. (“Lands’ End” or the “Company”) is a leading uni-channel retailer of casual clothing, accessories, footwear and home products. Lands’ End offers products online at www.landsend.com, on third-party online marketplaces and through its own Company Operated stores, as well as third-party retail locations. Lands’ End is a classic American lifestyle brand with a passion for quality, legendary service and real value and seeks to deliver timeless style for women, men, kids and home.

Terms that are commonly used in the Company’s Notes to Condensed Consolidated Financial Statements are defined as follows:

• ABL Facility – Asset-based senior secured credit agreements, providing for a revolving facility, dated as of November 16, 2017, with Wells Fargo Bank, N.A. and certain other lenders, as amended to date

• Adjusted EBITDA – Net income (loss) appearing on the Condensed Consolidated Statements of Operations net of Income tax expense/(benefit), Interest expense, Depreciation and amortization and certain significant items

• ASC – Financial Accounting Standards Board Accounting Standards Codification, which serves as the source for authoritative GAAP, as supplemented by rules and interpretive releases by the SEC which are also sources of authoritative GAAP for SEC registrants

• ASU – Financial Accounting Standards Board Accounting Standards Update

• CARES Act – The Coronavirus Aid, Relief and Economic Security Act signed into law on March 27, 2020

• Company Operated stores – Lands’ End retail stores in the Retail distribution channel

• Debt Facilities – Collectively, the Term Loan Facility and ABL Facility

• Deferred Awards – Time vesting stock awards

• EPS – Earnings per share

• FASB – Financial Accounting Standards Board

• First Quarter 2021 – The 13 weeks ended April 30, 2021

• First Quarter 2020 – The 13 weeks ended May 1, 2020

• Fiscal 2022 – The 52 weeks ending January 27, 2023

• Fiscal 2021 – The 52 weeks ending January 28, 2022

• Fiscal 2020 – The 52 weeks ended January 29, 2021

• GAAP – Accounting principles generally accepted in the United States

• LIBOR – London inter-bank offered rate

• Option Awards – Stock option awards

• Performance Awards – Performance-based stock awards

• SEC – United States Securities and Exchange Commission

• Second Quarter 2020 – The 13 weeks ended July 31, 2020

• Term Loan Facility – Term loan credit agreement, dated as of September 9, 2020, among the Company, Fortress Credit Corp., as Administrative Agent and Collateral Agent, and the lenders party thereto

• Third Quarter 2021 – The 13 weeks ended October 29, 2021

• Third Quarter 2020 – The 13 weeks ended October 30, 2020

• Year-to-Date 2021 – The 39 weeks ended October 29, 2021

• Year-to-Date 2020 – The 39 weeks ended October 30, 2020

Basis of Presentation

The Condensed Consolidated Financial Statements include the accounts of Lands’ End, Inc., and its subsidiaries. All intercompany transactions and balances have been eliminated.

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all material adjustments which are of a normal and recurring nature necessary for a fair presentation of the results for the periods presented have been reflected. Dollar amounts are reported in thousands, except per share data, unless otherwise noted. Interim results are not necessarily indicative of results for a full year. The information included in this Form 10-Q should be read in conjunction with information included in the Lands’ End Annual Report on Form 10-K filed with the SEC on March 25, 2021.

Impact of the COVID-19 Pandemic

COVID-19 surfaced in late 2019 and in March 2020, the World Health Organization declared COVID-19 a pandemic. The onset of the COVID-19 pandemic had a disruptive impact on the Company’s business operations and an unfavorable impact on the Company’s results of operations during the first half of Fiscal 2020. During the Second Quarter 2020, the Company began a significant recovery that continued to build on the momentum experienced before the COVID-19 pandemic. The Company’s strong foundation and ongoing enhancements across the four strategic pillars of product, digital, uni-channel distribution and infrastructure and business processes supported the Company during this COVID-19 pandemic and continues to support the Company’s financial performance and encouraging customer metrics. The ultimate timing and impact of customer demand levels across all distribution channels will depend on the duration and scope of the COVID-19 pandemic, overall economic conditions and consumer preferences. The ongoing COVID-19 pandemic continued to adversely impact the Company in the Third Quarter 2021 by disrupting its supply chain, leading to shipping and inventory receipt delays, and remains a threat to the health and welfare of the Company’s workforce.

Health and Safety of Employees and Consumers

From the beginning of the COVID-19 pandemic, the Company’s priority has been the safety of employees and customers. On March 16, 2020, the Company temporarily closed its Company Operated stores. These stores reopened during Second Quarter 2020. Since the onset of the COVID-19 pandemic, the Company has taken extra precautions in its offices, distribution centers and Company Operated stores which have varied from time to time based on the then current guidance from global, federal and state health authorities. These measures have included COVID-19 retail guidelines, work-from-home policies, social distancing, masking, thermal scanning and partitions in facilities. With the emergence of COVID-19 variants and periodic increases in number of reported cases affecting different regions, the Company has been required to keep these measures in place longer than anticipated.

Supply Chain

The COVID-19 pandemic continues to cause supply chain disruptions across all industries, and the Company continually monitors its supply chain for manufacturing and transportation delays caused or exacerbated by the COVID-19 pandemic. During Fiscal 2021, the COVID-19 pandemic impacted the Company’s distribution centers, third-party manufacturing partners and logistics partners, including shipping delays and port congestion, and closure of certain third-party manufacturing facilities and production lines. These disruptions have resulted in later timing of Fiscal 2021 inventory receipts that have led, at times, to lower inventory positions and higher than normal back orders, as manufacturing, transport and receipt of inbound product is delayed. In addition, the Company has experienced higher freight and distribution costs.

The Company expects some of these supply chain disruptions and increases in costs to continue through the balance of Fiscal 2021 and into the first half of Fiscal 2022. As a result of these impacts, the Company has experienced later than expected inventory receipts and inventory availability for the Company’s distribution channels. These shipping delays and additional costs may impact the Company’s future net sales, gross margin and net earnings depending upon the ultimate timing of delivery and availability of product to sell.

Labor Shortages

Due to the seasonal nature of the business, the Company relies heavily on flexible part-time employees to staff the distribution centers in support of its peak seasons, including the back-to-school shopping season and fourth fiscal quarter holiday shopping season. The Company has experienced a labor shortage and has been unable to fill the flexible part-time peak staffing requirements at the distribution centers for both peak seasons. During the back-to-school season the labor shortage in monogramming and embroidery services caused delays in fulfilling customer orders. The Company has also been unable to attract as many seasonal part-time workers as was targeted to hire for the holiday shopping season. The Company provided financial incentives to attract and retain the part-time staffing and has utilized the Company’s corporate employee workforce to provide additional assistance in the distribution centers. The labor shortage may adversely impact the Company’s future net sales and earnings if orders are not fulfilled on a timely basis, which could discourage orders or lead to cancelled orders.

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Recent Accounting Pronouncements

9 Months Ended

Oct. 29, 2021

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

NOTE 2. RECENT ACCOUNTING PRONOUNCEMENTS

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): “Simplifying the Accounting for Income Taxes”, which is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and by clarifying and amending existing guidance to improve consistent application. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Certain amendments within this ASU are required to be applied on a retrospective basis, certain other amendments are required to be applied on a modified retrospective basis and all other amendments on a prospective basis. The Company adopted this standard in First Quarter 2021 and the adoption did not have a material impact on the Company’s Condensed Consolidated Financial Statements and related disclosures.

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Earnings (Loss) Per Share

9 Months Ended

Oct. 29, 2021

Earnings Per Share Basic And Diluted [Abstract]

Earnings (Loss) Per Share

NOTE 3. EARNINGS (LOSS) PER SHARE

The numerator for both basic and diluted EPS is net income (loss). The denominator for basic EPS is based upon the number of weighted average shares of Lands’ End common stock outstanding during the reporting periods. The denominator for diluted EPS is based upon the number of weighted average shares of Lands’ End common stock and common stock equivalents outstanding during the reporting periods using the treasury stock method in accordance with GAAP. Potentially dilutive securities for the diluted EPS calculations consist of non-vested equity shares of common stock and in-the-money outstanding options where the current stock price exceeds the option strike price.

The following table summarizes the components of basic and diluted EPS:

	13 Weeks Ended				39 Weeks Ended
(in thousands, except per share amounts)	October 29, 2021		October 30, 2020		October 29, 2021		October 30, 2020
Net income (loss)	$	7,399	$	7,176	$	26,259	$	(9,091	)
Basic weighted average common shares outstanding		32,981		32,605		32,910		32,551
Dilutive effect of stock awards		717		643		798		—
Diluted weighted average common shares outstanding		33,698		33,248		33,708		32,551
Basic earnings (loss) per share	$	0.22	$	0.22	$	0.80	$	(0.28	)
Diluted earnings (loss) per share	$	0.22	$	0.22	$	0.78	$	(0.28	)

Stock awards are considered anti-dilutive based on the application of the treasury stock method or in the event of a net loss. Anti-dilutive shares excluded from the diluted weighted average shares outstanding were 142 anti-dilutive shares in the 13 weeks ended October 29, 2021, 570,364 anti-dilutive shares in the 13 weeks ended October 30, 2020, 77 anti-dilutive shares in the 39 weeks ended October 29, 2021 and 1,213,317 anti-dilutive shares in the 39 weeks ended October 30, 2020.

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Other Comprehensive (Loss)

9 Months Ended

Oct. 29, 2021

Equity [Abstract]

Other Comprehensive (Loss)

NOTE 4. OTHER COMPREHENSIVE (LOSS)

Other comprehensive (loss) encompasses all changes in equity other than those arising from transactions with stockholders and is comprised solely of foreign currency translation adjustments.

	13 Weeks Ended						39 Weeks Ended
(in thousands)	October 29, 2021			October 30, 2020			October 29, 2021			October 30, 2020
Beginning balance: Accumulated other       comprehensive (loss) (net of tax of $2,910,       $3,420, $2,987 and $3,453, respectively)	$	(10,946	)	$	(12,865	)	$	(11,221	)	$	(12,988	)
Other comprehensive (loss):
Foreign currency translation adjustments (net of tax of $178, $(138), $101 and $(171), respectively)		(670	)		(794	)		(395	)		(671	)
Ending balance: Accumulated other       comprehensive (loss) (net of tax of $3,088,       $3,282, $3,088 and $3,282, respectively)	$	(11,616	)	$	(13,659	)	$	(11,616	)	$	(13,659	)

No amounts were reclassified out of Accumulated other comprehensive (loss) during any of the periods presented.

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Debt

9 Months Ended

Oct. 29, 2021

Debt Disclosure [Abstract]

Debt

NOTE 5. DEBT

ABL Facility

The Company’s $275.0 million revolving ABL Facility includes a $70.0 million sublimit for letters of credit and is available for working capital and other general corporate liquidity needs. The balance outstanding was $70.0 million and $155.0 million on October 29, 2021 and October 30, 2020, respectively. The balance of outstanding letters of credit was $21.4 million and $15.3 million on October 29, 2021 and October 30, 2020, respectively.

During Fiscal 2020, the Company exercised the “accordion” feature under the ABL Facility increasing the maximum borrowings available under the facility from $175.0 million to $275.0 million, subject to a borrowing base (the “Loan Cap”). This was completed in two separate transactions. The first was a $25.0 million increase effective March 19, 2020 and the second was a $75.0 million increase effective September 9, 2020. The latter was completed through the Second Amendment to the ABL Facility executed on August 12, 2020.

On July 29, 2021, the Company executed the Third Amendment to the ABL Facility resulting in favorable financial terms compared to the Second Amendment to the ABL Facility and extension of the maturity date of the ABL Facility, as discussed below.

The following table summarizes the Company’s borrowing availability under the ABL Facility:

	October 29, 2021			October 30, 2020			January 29, 2021
(in thousands)	Amount		Interest Rate	Amount		Interest Rate	Amount		Interest Rate
ABL Facility maximum borrowing	$	275,000		$	275,000		$	275,000
Less: Outstanding borrowings		70,000	1.34%		155,000	2.27%		25,000	3.00%
Less: Outstanding letters of credit		21,400			15,265			27,131
Borrowing availability under ABL Facility	$	183,600		$	104,735		$	222,869

Long-Term Debt

On September 9, 2020, the Company entered into the Term Loan Facility which provided borrowings of $275.0 million.  Origination costs, including an Original Issue Discount (“OID”) of 3% and $5.1 million in debt origination fees, were paid upon entering into the Term Loan Facility. The OID and the debt origination fees are presented as a direct deduction from the carrying value of the Term Loan Facility and are amortized over the term of the loan to Interest expense in the Condensed Consolidated Statements of Operations.

The Company’s long-term debt consisted of the following:

	October 29, 2021			October 30, 2020			January 29, 2021
(in thousands)	Amount		Interest Rate	Amount		Interest Rate	Amount		Interest Rate
Term Loan Facility	$	261,250	10.75%	$	275,000	10.75%	$	271,563	10.75%
Less: Current portion of long-term debt		13,750			13,750			13,750
Less: Unamortized debt issuance costs		10,255			12,550			12,181
Long-term debt, net	$	237,245		$	248,700		$	245,632

Interest; Fees

  The Third Amendment to the ABL Facility lowered the interest rates applicable to borrowings under the ABL Facility. For LIBOR loans, commencing July 31, 2021 the borrowing margin is, where the average daily total loans outstanding for the previous quarter are (i) less than $95.0 million, 1.25%, (ii) equal to or greater than $95.0 million but less than $180.0 million, 1.50%, and (iii) greater than or equal to $180.0 million, 1.75%.  For Base Rate loans, the borrowing margin is, where the average daily total loans outstanding for the previous quarter are (i) less than $95.0 million for the previous quarter, 0.50%, (ii) equal to or greater than $95.0 million but less than $180.0 million, 0.75%, and (iii) greater than or equal to $180.0 million, 1.00%. The Third Amendment to the ABL Facility replaced the 0.75% LIBOR floor with a 0.00% LIBOR floor.

The interest rates per annum applicable to the loans under the Term Loan Facility are based on a fluctuating rate of interest measured by reference to, at the borrowers’ election, either (1) an adjusted LIBOR rate (with a minimum rate of 1.00%) plus 9.75%, or (2) an alternative base rate (which is the greater of (i) the prime rate published in the Wall Street Journal, (ii) the federal funds rate, which shall be no lower than 0.00% plus ½ of 1.00%, or (iii) the one month LIBOR rate plus 1.00% per annum) plus 8.75%.

The ABL Facility fees include (i) commitment fees of 0.25% based upon the average daily unused commitment (aggregate commitment less loans and letter of credit outstanding) under the ABL Facility for the preceding fiscal quarter and (ii) customary letter of credit fees. As of the end of Third Quarter 2021, the Company had borrowings of $70.0 million on the ABL Facility.

Customary agency fees are payable in respect of the Debt Facilities.  

Maturity; Amortization and Prepayments

The Third Amendment to the ABL Facility extended the maturity from November 16, 2022 to the earlier of (a) July 29, 2026 and (b) June 9, 2025 if, on or prior to such date, the Term Loan Facility has not been refinanced, extended or repaid in full in accordance with the terms thereof and not replaced with other indebtedness.

The Term Loan Facility matures on September 9, 2025 and amortizes at a rate equal to 1.25% per quarter. It is subject to mandatory prepayments in an amount equal to a percentage of the borrower’s excess cash flows in each fiscal year, ranging from 0% to 75% depending on the Company’s total leverage ratio, and with the proceeds of certain asset sales, casualty events and extraordinary receipts. The loan may not be voluntarily prepaid during the first two years of its term, without significant penalties. A prepayment premium is applicable to voluntary prepayments and certain mandatory prepayments made prior to the fourth anniversary of the closing date of the Term Loan Facility.

Guarantees; Security

All obligations under the Debt Facilities are unconditionally guaranteed by Lands’ End, Inc. and, subject to certain exceptions, each of its existing and future direct and indirect subsidiaries. The ABL Facility is secured by a first priority security interest in certain working capital of the borrowers and guarantors consisting primarily of accounts receivable and inventory. The Term Loan Facility is secured by a second priority security interest in the same collateral with certain exceptions.

The Term Loan Facility is secured by a first priority security interest in certain property and assets of the borrowers and guarantors, including certain fixed assets such as real estate, stock of the subsidiaries and intellectual property, in each case, subject to certain exceptions. The ABL Facility is secured by a second priority interest in the same collateral, with certain exceptions.

Representations and Warranties; Covenants

Subject to specified exceptions, the Debt Facilities contain various representations and warranties, and restrictive covenants that, among other things and subject to specified exceptions, restrict Lands’ End, Inc.’s and its subsidiaries’ ability to incur indebtedness (including guarantees), grant liens, make investments, make dividends or distributions with respect to capital stock, make prepayments on other indebtedness, engage in mergers or change the nature of their business.

The Term Loan Facility is subject to certain financial covenants, including a quarterly maximum total leverage ratio test, a weekly minimum liquidity test and an annual maximum capital expenditure amount.  

Under the ABL Facility, if excess availability falls below the greater of 10% of the Loan Cap amount or $15.0 million, the Company will be required to comply with a minimum fixed charge coverage ratio of 1.0 to 1.0.

 The Debt Facilities contain certain affirmative covenants, including reporting requirements such as delivery of financial statements, certificates and notices of certain events, maintaining insurance, and providing additional guarantees and collateral in certain circumstances.

As of October 29, 2021, the Company was in compliance with all of its covenants in the Debt Facilities.

Events of Default

The Debt Facilities include customary events of default including non-payment of principal, interest or fees, violation of covenants, inaccuracy of representations or warranties, cross defaults related to certain other material indebtedness, bankruptcy and insolvency events, invalidity or impairment of guarantees or security interests, and material judgments and change of control.

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Stock-Based Compensation

9 Months Ended

Oct. 29, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation

NOTE 6. STOCK-BASED COMPENSATION

The Company expenses the fair value of all stock awards over their respective vesting periods, ensuring that, the amount of cumulative compensation cost recognized at any date is at least equal to the portion of the grant-date fair value of the award that is vested at that date. The Company has elected to adjust compensation expense for an estimated forfeiture rate for those shares not expected to vest and to recognize compensation cost on a straight-line basis for awards that only have a service requirement with multiple vest dates.

The Company has granted the following types of stock awards to employees at management levels and above, each of which are granted under the Company’s stockholder approved stock plans, other than March 6, 2017 grants to the Company’s Chief Executive Officer which were made as inducement grants outside of the Company’s stockholder approved stock plans in accordance with NASDAQ Listing Rule 5635(c)(4):

i. Time vesting stock awards (“Deferred Awards”) are in the form of restricted stock units and only require each recipient to complete a service period for the award to be earned. Deferred Awards generally vest over three years. The fair value of Deferred Awards is based on the closing price of the Company's common stock on the grant date and is reduced for estimated forfeitures of those awards not expected to vest due to employee turnover.

ii. Performance-based stock awards (“Performance Awards”) are in the form of restricted stock units and have, in addition to a service requirement, performance criteria that must be achieved for the awards to be earned. For Performance Awards the Target Shares earned can range from 50% to 200% once minimum thresholds have been reached and depend on the achievement of Adjusted EBITDA and revenue performance measures for the cumulative three-fiscal year performance period beginning with the fiscal year of the grant date. The applicable percentage of the Target Shares, as determined by performance, vest after the completion of the applicable three-year performance period and upon determination of achievement of the performance measures by the Compensation Committee of the Board of Directors, and unearned Target Shares are forfeited. The fair value of the Performance Awards is based on the closing price of the Company’s common stock on the grant date. Stock based compensation expense is recognized ratably over the related service period, reduced for estimated forfeitures of those awards not expected to vest due to employee turnover, and adjusted based on the Company’s estimate of the percentage of the aggregate Target Shares expected to be earned. The 2018 Performance Awards vested on

March 25, 2021 at 111%. The compensation expense associated with the 2021 Performance Awards and 2019 Performance Awards is accrued at 193% and 129% of Target Shares, respectively.  

iii. Stock option awards (“Option Awards”) provide the recipient with the option to purchase a set number of shares at a stated exercise price over the term of the contract, which is ten years for all Option Awards currently outstanding. Options are granted with a strike price equal to the stock price on the date of grant and vest ratably over a four-year period. The fair value of each Option Award is estimated on the grant date using the Black-Scholes option pricing model.

The following table provides a summary of the Company’s stock-based compensation expense, which is included in Selling and administrative expense in the Condensed Consolidated Statements of Operations:

	13 Weeks Ended				39 Weeks Ended
(in thousands)	October 29, 2021		October 30, 2020		October 29, 2021		October 30, 2020
Deferred awards	$	1,381	$	1,442	$	4,226	$	4,466
Performance awards		593		572		3,714		1,716
Option awards	—			187		103		561
Total stock-based compensation expense	$	1,974	$	2,201	$	8,043	$	6,743

The following table provides a summary of the Deferred Awards activity for Year-to-Date 2021:

	Deferred Awards
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested as of January 29, 2021		1,093		$	10.86
Granted		246			29.94
Vested		(397	)		13.86
Forfeited or expired		(25	)		12.86
Unvested as of October 29, 2021		917			14.62

Total unrecognized stock-based compensation expense related to unvested Deferred Awards was approximately $9.0 million as of October 29, 2021, which is expected to be recognized ratably over a weighted average period of 2.0 years. Deferred Awards granted to employees during Fiscal 2021 vest ratably over a period of three years.

The following table provides a summary of the Performance Awards activity for Year-to-Date 2021:

	Performance Awards
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested as of January 29, 2021		393		$	18.32
Granted (1)		166			29.95
Vested		(165	)		21.90
Forfeited or expired		—			—
Unvested as of October 29, 2021		394			21.72

⁽¹⁾ Performance shares granted assume achievement performance at 100% of target.

Total unrecognized stock-based compensation expense related to unvested Performance Awards was approximately $8.6 million as of October 29, 2021, which is expected to be recognized ratably over a weighted average period of 2.3 years. Performance Awards granted to employees during Fiscal 2021 and Fiscal 2019 vest, if earned, after completion of the applicable three-year performance period.

The following table provides a summary of the Options Award activity for Year-to-Date 2021:

	Option Awards
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested as of January 29, 2021		85		$	8.73
Granted		—			—
Vested		(85	)		8.73
Forfeited or expired		—			—
Unvested as of October 29, 2021		—		—

As of October 29, 2021, there were no unvested Option Awards. The Option Awards have a contractual term of ten years and vested ratably over the first four years. As of October 29, 2021, 343,135 shares related to Option Awards were exercisable and no options have been exercised.

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Fair Value Measurements of Financial Assets and Liabilities

9 Months Ended

Oct. 29, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements of Financial Assets and Liabilities

NOTE 7. FAIR VALUE MEASUREMENTS OF FINANCIAL ASSETS AND LIABILITIES

Restricted cash is reflected on the Condensed Consolidated Balance Sheets at fair value. The fair value of restricted cash was $2.0 million, $2.1 million and $1.9 million as of October 29, 2021, October 30, 2020 and January 29, 2021, respectively based on Level 1 inputs. Restricted cash amounts are valued based upon statements received from financial institutions.

Carrying values and fair values of long-term debt, including current portion, in the Condensed Consolidated Balance Sheets are as follows:

	October 29, 2021				October 30, 2020				January 29, 2021
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion	$	261,250	$	261,396	$	275,000	$	275,000	$	271,563	$	277,265

Long-term debt, including current portion, was valued utilizing Level 3 valuation techniques based on a third-party analysis on October 29, 2021, October 30, 2020 and January 29, 2021. There were no nonfinancial assets or nonfinancial liabilities recognized at fair value on a nonrecurring basis as of October 29, 2021, October 30, 2020, and January 29, 2021.

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Income Taxes

9 Months Ended

Oct. 29, 2021

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 8. INCOME TAXES

Provision for Income Taxes

At the end of each quarter, the Company estimates its effective income tax rate pursuant to ASC 740. The rate for the period consists of the tax rate expected to be applied for the full year to ordinary income adjusted for any discrete items recorded in the period.  

The Company recorded a tax expense at an overall effective tax rate of 34.6% and 27.7% for the Third Quarter 2021 and 2020, respectively. The Company recorded a tax expense at an overall effective tax rate of 28.9% for Year-to-Date 2021 and a tax benefit of 39.3% for Year-to-Date 2020. The Year-to-Date 2021 rate is lower than Year-to-Date 2020 primarily due to the generation of pretax income in 2021 compared to a pretax loss in 2020 in addition to the estimated tax benefits recorded as a result of the CARES Act in 2020.

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Commitments and Contingencies

9 Months Ended

Oct. 29, 2021

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

NOTE 9. COMMITMENTS AND CONTINGENCIES

Legal Proceedings

The Company is party to various claims, legal proceedings and investigations arising in the ordinary course of business. Some of these actions involve complex factual and legal issues and are subject to uncertainties. At this time, the Company is not able to either predict the outcome of these legal proceedings or reasonably estimate a potential range of loss with respect to the proceedings. While it is not feasible to predict the outcome of such pending claims, proceedings and investigations with certainty,

management is of the opinion that their ultimate resolution should not have a material adverse effect on results of operations, cash flows or financial position taken as a whole.

As disclosed in the Company’s Annual Report on Form 10-K for the year ended January 29, 2021, the Company is the defendant in three separate lawsuits, each of which allege adverse health events and personal property damage as a result of wearing uniforms manufactured by Lands’ End: (1) Gilbert et al. v. Lands’ End, Inc., United States District Court for the Western District of Wisconsin, Civil Action No. 3:19-cv-00823-JDP, complaint filed October 3, 2019; (2) Andrews et al. v. Lands’ End, Inc., United States District Court for the Western District of Wisconsin, Civil Action No. 3:19-cv-01066-JDP, complaint filed on December 31, 2019, on behalf of 521 named plaintiffs, later amended to include 1,089 named plaintiffs; and (3) Davis et al. v. Lands’ End, Inc. and Lands’ End Business Outfitters, Inc., United States District Court for the Western District of Wisconsin, Case No. 3:20-cv-00195, complaint filed on March 4, 2020. Plaintiffs in Gilbert, Andrews, and Davis seek nationwide class certification on behalf of similarly situated Delta employees.  

By order dated April 20, 2020, the Court consolidated the Gilbert and Andrews cases (the “Consolidated Wisconsin Action”) and stayed the Davis case.  

Plaintiffs in the Consolidated Wisconsin Action and Davis each assert that the damages sustained by the members of the proposed class exceed $5,000,000. Plaintiffs in each case seek damages for personal injuries, pain and suffering, severe emotional distress, financial or economic loss, including medical services and expenses, lost income and other compensable injuries. Plaintiffs in the Consolidated Wisconsin Action seek class certification with respect to performance of the uniforms and warranty claims and maintain individual claims for personal injury by numerous named plaintiffs.  

On August 18, 2021, the Court ruled on several pending motions in the Consolidated Wisconsin Action. The Court denied Plaintiffs’ motion for class certification with respect to performance of the uniforms and warranty claims. The Court denied Plaintiffs’ motion for partial summary judgment regarding crocking claims and granted Lands’ End’s motion for partial summary judgment related to certain warranty claims. In addition, giving effect to both the addition and voluntary dismissal of individual plaintiffs over the course of the litigation, the number of individual plaintiffs had been reduced from 1,089 to 603 as of August 18, 2021. On September 1, 2021, Plaintiffs filed a Rule 23(f) petition, seeking interlocutory review of the Court’s decision denying class certification. On September 22, 2021, the U.S. Court of Appeals for the Seventh Circuit denied plaintiffs’ petition.

The Consolidated Wisconsin Action continues to be in discovery. Lands’ End is vigorously defending these lawsuits and believes they are without merit. 

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Segment Reporting

9 Months Ended

Oct. 29, 2021

Segment Reporting [Abstract]

Segment Reporting

NOTE 10. SEGMENT REPORTING

The Company’s operating segments consist of: U.S. eCommerce, Europe eCommerce, Japan eCommerce, Outfitters, Third Party and Retail. The Company determined that each of the operating segments have similar economic and other qualitative characteristics thus the results of the operating segments are aggregated into one reportable external segment, consistent with the Company’s multi-channel business approach.  

Lands’ End identifies five separate distribution channels for revenue reporting purposes:

• U.S. eCommerce offers products through the Company’s eCommerce website.

• International offers products primarily to consumers located in Europe and Japan through eCommerce international websites and third-party affiliates.

• Outfitters sells uniform and logo apparel to businesses and their employees, as well as to student households through school relationships, located primarily in the U.S., through negotiated arrangements to make specific styles or customized products which are made available for purchase on the Company’s eCommerce websites.

• Third Party sells the same products as U.S. eCommerce but direct to consumers through third-party marketplace websites and through domestic wholesale customers.

• Retail sells products through Company Operated stores.

Net revenue is presented by distribution channel in the following table:

	13 Weeks Ended				39 Weeks Ended
(in thousands)	October 29, 2021		October 30, 2020		October 29, 2021		October 30, 2020
Net revenue:
U.S. eCommerce	$	213,999	$	221,769	$	655,190	$	581,511
International		47,219		56,047		151,482		141,433
Outfitters		86,069		61,998		192,382		131,214
Third Party		19,308		11,983		50,210		18,597
Retail		9,248		8,185		31,985		16,318
Total net revenue	$	375,843	$	359,982	$	1,081,249	$	889,073

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Revenue

9 Months Ended

Oct. 29, 2021

Revenue From Contract With Customer [Abstract]

Revenue

NOTE 11. REVENUE

Revenue includes sales of merchandise and delivery revenue related to merchandise sold. Substantially all of the Company’s revenue is recognized when control of product passes to customers, which for the U.S. eCommerce, International, Outfitters and Third Party distribution channels is when the merchandise is expected to be received by the customer and for the Retail distribution channel is at the time of sale in the store. The Company recognizes revenue, including shipping and handling fees billed to customers, in the amount expected to be received when control of the Company's products transfers to customers, and is presented net of various forms of promotions, which range from contractually-fixed percentage price reductions to sales returns, discounts, and other incentives that may vary in amount. Variable amounts are estimated based on an analysis of historical experience and adjusted as better estimates become available.

The Company’s revenue is disaggregated by distribution channel and geographic location. Revenue by distribution channel is presented in Note 10, Segment Reporting. Revenue by geographic location was:

	13 Weeks Ended				39 Weeks Ended
(in thousands)	October 29, 2021		October 30, 2020		October 29, 2021		October 30, 2020
Net revenue:
United States	$	322,773	$	297,609	$	914,069	$	734,515
Europe		39,277		45,879		124,183		108,630
Asia		8,663		10,909		29,212		34,562
Other		5,130		5,585		13,785		11,366
Total net revenue	$	375,843	$	359,982	$	1,081,249	$	889,073

Contract Liabilities

Contract liabilities consist of payments received in advance of the transfer of control to the customer. As products are delivered and control transfers, the Company recognizes the deferred revenue in Net revenue in the Condensed Consolidated Statements of Operations. The following table summarizes the deferred revenue associated with payments received in advance of the transfer of control to the customer, which is reported in Other current liabilities in the Condensed Consolidated Balance Sheets, as well as amounts recognized through Net revenue for each period presented. The majority of deferred revenue as of October 29, 2021 is expected to be recognized in Net revenue in the fiscal quarter ending January 28, 2022, as products are delivered to customers.

	13 Weeks Ended						39 Weeks Ended
(in thousands)	October 29, 2021			October 30, 2020			October 29, 2021			October 30, 2020
Deferred revenue beginning of period	$	18,355		$	11,901		$	17,187		$	8,096
Deferred revenue recognized in period		(18,141	)		(11,901	)		(16,973	)		(8,096	)
Revenue deferred in period		14,323			35,364			14,323			35,364
Deferred revenue end of period	$	14,537		$	35,364		$	14,537		$	35,364

Revenue from gift cards is recognized when (i) the gift card is redeemed by the customer for merchandise, or (ii) as gift card breakage, an estimate of gift cards which will not be redeemed where the Company does not have a legal obligation to remit the value of the unredeemed gift cards to the relevant jurisdictions. Gift card breakage is recorded within Net revenue in the Condensed Consolidated Statements of Operations. Prior to their redemption, gift cards are recorded as a liability, included within Other current liabilities in the Condensed Consolidated Balance Sheets. The liability is estimated based on expected breakage that considers historical patterns of redemption. The following table provides the reconciliation of the contract liability related to gift cards:

	13 Weeks Ended						39 Weeks Ended
(in thousands)	October 29, 2021			October 30, 2020			October 29, 2021			October 30, 2020
Balance as of beginning of period	$	28,341		$	23,651		$	26,798		$	22,592
Gift cards sold		13,196			13,367			33,377			33,302
Gift cards redeemed		(10,934	)		(12,245	)		(29,334	)		(30,959	)
Gift card breakage		(130	)		(76	)		(368	)		(238	)
Balance as of end of period	$	30,473		$	24,697		$	30,473		$	24,697

Refund Liabilities

Refund liabilities, primarily associated with product sales returns and retrospective volume rebates, represent variable consideration and are estimated and recorded as a reduction to Net revenue based on historical experience. As of October 29, 2021, October 30, 2020 and January 29, 2021, $24.3 million, $23.6 million and $25.7 million, respectively, of refund liabilities, primarily associated with product returns, were reported in Other current liabilities in the Condensed Consolidated Balance Sheets. An asset for product returns is recorded in Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets.

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Recent Accounting Pronouncements (Policies)

9 Months Ended

Oct. 29, 2021

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): “Simplifying the Accounting for Income Taxes”, which is intended to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740 and by clarifying and amending existing guidance to improve consistent application. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Certain amendments within this ASU are required to be applied on a retrospective basis, certain other amendments are required to be applied on a modified retrospective basis and all other amendments on a prospective basis. The Company adopted this standard in First Quarter 2021 and the adoption did not have a material impact on the Company’s Condensed Consolidated Financial Statements and related disclosures.

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Earnings (Loss) Per Share (Tables)

9 Months Ended

Oct. 29, 2021

Earnings Per Share Basic And Diluted [Abstract]

Schedule of Components of Basic and Diluted EPS

The following table summarizes the components of basic and diluted EPS:

	13 Weeks Ended				39 Weeks Ended
(in thousands, except per share amounts)	October 29, 2021		October 30, 2020		October 29, 2021		October 30, 2020
Net income (loss)	$	7,399	$	7,176	$	26,259	$	(9,091	)
Basic weighted average common shares outstanding		32,981		32,605		32,910		32,551
Dilutive effect of stock awards		717		643		798		—
Diluted weighted average common shares outstanding		33,698		33,248		33,708		32,551
Basic earnings (loss) per share	$	0.22	$	0.22	$	0.80	$	(0.28	)
Diluted earnings (loss) per share	$	0.22	$	0.22	$	0.78	$	(0.28	)

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Other Comprehensive (Loss) (Tables)

9 Months Ended

Oct. 29, 2021

Equity [Abstract]

Schedule of Other Comprehensive (Loss)

Other comprehensive (loss) encompasses all changes in equity other than those arising from transactions with stockholders and is comprised solely of foreign currency translation adjustments.

	13 Weeks Ended						39 Weeks Ended
(in thousands)	October 29, 2021			October 30, 2020			October 29, 2021			October 30, 2020
Beginning balance: Accumulated other       comprehensive (loss) (net of tax of $2,910,       $3,420, $2,987 and $3,453, respectively)	$	(10,946	)	$	(12,865	)	$	(11,221	)	$	(12,988	)
Other comprehensive (loss):
Foreign currency translation adjustments (net of tax of $178, $(138), $101 and $(171), respectively)		(670	)		(794	)		(395	)		(671	)
Ending balance: Accumulated other       comprehensive (loss) (net of tax of $3,088,       $3,282, $3,088 and $3,282, respectively)	$	(11,616	)	$	(13,659	)	$	(11,616	)	$	(13,659	)

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Debt (Tables)

9 Months Ended

Oct. 29, 2021

Debt Disclosure [Abstract]

Summary of Company's Borrowing Availability Under ABL Facility

The following table summarizes the Company’s borrowing availability under the ABL Facility:

	October 29, 2021			October 30, 2020			January 29, 2021
(in thousands)	Amount		Interest Rate	Amount		Interest Rate	Amount		Interest Rate
ABL Facility maximum borrowing	$	275,000		$	275,000		$	275,000
Less: Outstanding borrowings		70,000	1.34%		155,000	2.27%		25,000	3.00%
Less: Outstanding letters of credit		21,400			15,265			27,131
Borrowing availability under ABL Facility	$	183,600		$	104,735		$	222,869

Schedule of Company's Long Term Debt

The Company’s long-term debt consisted of the following:

	October 29, 2021			October 30, 2020			January 29, 2021
(in thousands)	Amount		Interest Rate	Amount		Interest Rate	Amount		Interest Rate
Term Loan Facility	$	261,250	10.75%	$	275,000	10.75%	$	271,563	10.75%
Less: Current portion of long-term debt		13,750			13,750			13,750
Less: Unamortized debt issuance costs		10,255			12,550			12,181
Long-term debt, net	$	237,245		$	248,700		$	245,632

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Stock-Based Compensation (Tables)

9 Months Ended

Oct. 29, 2021

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Summary of Stock-Based Compensation Expense

The following table provides a summary of the Company’s stock-based compensation expense, which is included in Selling and administrative expense in the Condensed Consolidated Statements of Operations:

	13 Weeks Ended				39 Weeks Ended
(in thousands)	October 29, 2021		October 30, 2020		October 29, 2021		October 30, 2020
Deferred awards	$	1,381	$	1,442	$	4,226	$	4,466
Performance awards		593		572		3,714		1,716
Option awards	—			187		103		561
Total stock-based compensation expense	$	1,974	$	2,201	$	8,043	$	6,743

Summary of Deferred Awards Activity

The following table provides a summary of the Deferred Awards activity for Year-to-Date 2021:

	Deferred Awards
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested as of January 29, 2021		1,093		$	10.86
Granted		246			29.94
Vested		(397	)		13.86
Forfeited or expired		(25	)		12.86
Unvested as of October 29, 2021		917			14.62

Summary of Performance Awards Activity

The following table provides a summary of the Performance Awards activity for Year-to-Date 2021:

	Performance Awards
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested as of January 29, 2021		393		$	18.32
Granted (1)		166			29.95
Vested		(165	)		21.90
Forfeited or expired		—			—
Unvested as of October 29, 2021		394			21.72

⁽¹⁾ Performance shares granted assume achievement performance at 100% of target.

Summary of Options Award Activity

The following table provides a summary of the Options Award activity for Year-to-Date 2021:

	Option Awards
(in thousands, except per share amounts)	Number of Shares			Weighted Average Grant Date Fair Value per Share
Unvested as of January 29, 2021		85		$	8.73
Granted		—			—
Vested		(85	)		8.73
Forfeited or expired		—			—
Unvested as of October 29, 2021		—		—

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Fair Value Measurements of Financial Assets and Liabilities (Tables)

9 Months Ended

Oct. 29, 2021

Fair Value Disclosures [Abstract]

Schedule of Carrying Values and Fair Values of Long-term Debt, Including Current Portion

Carrying values and fair values of long-term debt, including current portion, in the Condensed Consolidated Balance Sheets are as follows:

	October 29, 2021				October 30, 2020				January 29, 2021
(in thousands)	Carrying Amount		Fair Value		Carrying Amount		Fair Value		Carrying Amount		Fair Value
Long-term debt, including current portion	$	261,250	$	261,396	$	275,000	$	275,000	$	271,563	$	277,265

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Segment Reporting (Tables)

9 Months Ended

Oct. 29, 2021

Segment Reporting [Abstract]

Summary of Net Revenue by Distribution Channel

Net revenue is presented by distribution channel in the following table:

	13 Weeks Ended				39 Weeks Ended
(in thousands)	October 29, 2021		October 30, 2020		October 29, 2021		October 30, 2020
Net revenue:
U.S. eCommerce	$	213,999	$	221,769	$	655,190	$	581,511
International		47,219		56,047		151,482		141,433
Outfitters		86,069		61,998		192,382		131,214
Third Party		19,308		11,983		50,210		18,597
Retail		9,248		8,185		31,985		16,318
Total net revenue	$	375,843	$	359,982	$	1,081,249	$	889,073

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Revenue (Tables)

9 Months Ended

Oct. 29, 2021

Revenue From Contract With Customer [Abstract]

Disaggregated of Revenue by Geographic Location

The Company’s revenue is disaggregated by distribution channel and geographic location. Revenue by distribution channel is presented in Note 10, Segment Reporting. Revenue by geographic location was:

	13 Weeks Ended				39 Weeks Ended
(in thousands)	October 29, 2021		October 30, 2020		October 29, 2021		October 30, 2020
Net revenue:
United States	$	322,773	$	297,609	$	914,069	$	734,515
Europe		39,277		45,879		124,183		108,630
Asia		8,663		10,909		29,212		34,562
Other		5,130		5,585		13,785		11,366
Total net revenue	$	375,843	$	359,982	$	1,081,249	$	889,073

Summary of Deferred Revenue

The following table summarizes the deferred revenue associated with payments received in advance of the transfer of control to the customer, which is reported in Other current liabilities in the Condensed Consolidated Balance Sheets, as well as amounts recognized through Net revenue for each period presented. The majority of deferred revenue as of October 29, 2021 is expected to be recognized in Net revenue in the fiscal quarter ending January 28, 2022, as products are delivered to customers.

	13 Weeks Ended						39 Weeks Ended
(in thousands)	October 29, 2021			October 30, 2020			October 29, 2021			October 30, 2020
Deferred revenue beginning of period	$	18,355		$	11,901		$	17,187		$	8,096
Deferred revenue recognized in period		(18,141	)		(11,901	)		(16,973	)		(8,096	)
Revenue deferred in period		14,323			35,364			14,323			35,364
Deferred revenue end of period	$	14,537		$	35,364		$	14,537		$	35,364

Reconciliation of Gift Card Contract Liability

The following table provides the reconciliation of the contract liability related to gift cards:

	13 Weeks Ended						39 Weeks Ended
(in thousands)	October 29, 2021			October 30, 2020			October 29, 2021			October 30, 2020
Balance as of beginning of period	$	28,341		$	23,651		$	26,798		$	22,592
Gift cards sold		13,196			13,367			33,377			33,302
Gift cards redeemed		(10,934	)		(12,245	)		(29,334	)		(30,959	)
Gift card breakage		(130	)		(76	)		(368	)		(238	)
Balance as of end of period	$	30,473		$	24,697		$	30,473		$	24,697

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Recent Accounting Pronouncements - Additional Information (Details) - ASU 2019-12	Oct. 29, 2021
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Change in Accounting Principle, Accounting Standards Update, Adopted	true
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect	true

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Earnings (Loss) Per Share - Schedule of Components of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Oct. 29, 2021	Jul. 30, 2021	Apr. 30, 2021	Oct. 30, 2020	Jul. 31, 2020	May 01, 2020	Oct. 29, 2021	Oct. 30, 2020
Earnings Per Share Basic And Diluted [Abstract]
NET INCOME (LOSS)	$ 7,399	$ 16,221	$ 2,639	$ 7,176	$ 4,376	$ (20,643)	$ 26,259	$ (9,091)
Basic weighted average common shares outstanding	32,981			32,605			32,910	32,551
Dilutive effect of stock awards	717			643			798
Diluted weighted average common shares outstanding	33,698			33,248			33,708	32,551
Basic:	$ 0.22			$ 0.22			$ 0.80	$ (0.28)
Diluted:	$ 0.22			$ 0.22			$ 0.78	$ (0.28)

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Earnings (Loss) Per Share - Additional Information (Details) - shares	3 Months Ended		9 Months Ended
	Oct. 29, 2021	Oct. 30, 2020	Oct. 29, 2021	Oct. 30, 2020
Earnings Per Share Basic And Diluted [Abstract]
Anti-dilutive shares excluded from diluted weighted average shares outstanding	142	570,364	77	1,213,317

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Other Comprehensive (Loss) - Schedule of Other Comprehensive (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended						9 Months Ended
	Oct. 29, 2021	Jul. 30, 2021	Apr. 30, 2021	Oct. 30, 2020	Jul. 31, 2020	May 01, 2020	Oct. 29, 2021	Oct. 30, 2020
Equity [Abstract]
Beginning balance: Accumulated other comprehensive (loss) (net of tax of $2,910, $3,420, $2,987 and $3,453, respectively)	$ (10,946)		$ (11,221)	$ (12,865)		$ (12,988)	$ (11,221)	$ (12,988)
Other comprehensive (loss):
Other comprehensive (loss), net of tax, foreign currency translation adjustments	(670)	$ (36)	$ 311	(794)	$ 1,382	$ (1,259)	(395)	(671)
Ending balance: Accumulated other comprehensive (loss) (net of tax of $3,088, $3,282, $3,088 and $3,282, respectively)	$ (11,616)	$ (10,946)		$ (13,659)	$ (12,865)		$ (11,616)	$ (13,659)

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Other Comprehensive (Loss) - Schedule of Other Comprehensive (Loss) (Parenthetical) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 29, 2021	Oct. 30, 2020	Oct. 29, 2021	Oct. 30, 2020	Jul. 30, 2021	Jan. 29, 2021	Jul. 31, 2020	Jan. 31, 2020
Equity [Abstract]
Accumulated other comprehensive loss, tax	$ 3,088	$ 3,282	$ 3,088	$ 3,282	$ 2,910	$ 2,987	$ 3,420	$ 3,453
Foreign currency translations adjustment, tax expense (benefit)	$ 178	$ (138)	$ 101	$ (171)

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Other Comprehensive (Loss) - Additional Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Oct. 29, 2021	Oct. 30, 2020	Oct. 29, 2021	Oct. 30, 2020
Equity [Abstract]
Amounts reclassified from accumulated other comprehensive (loss)	$ 0	$ 0	$ 0	$ 0

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Debt - Additional Information (Details)				9 Months Ended
	Jul. 29, 2021	Jul. 28, 2021	Sep. 09, 2020 USD ($)	Oct. 29, 2021 USD ($)	Jan. 29, 2021 USD ($)	Oct. 30, 2020 USD ($)	Mar. 19, 2020 USD ($)	Nov. 16, 2017 USD ($)
ABL Facility
Line Of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity				$ 275,000,000	$ 275,000,000.0	$ 275,000,000		$ 175,000,000.0
Line of credit				70,000,000	25,000,000	155,000,000
Letter of credit outstanding amount				21,400,000	27,131,000	15,265,000
Line of credit facility, increase in maximum borrowing capacity			$ 75,000,000.0				$ 25,000,000.0
Line of credit facility, maturity date	Nov. 16, 2022
ABL Facility | Minimum
Line Of Credit Facility [Line Items]
Line of credit facility, maturity date	Jun. 09, 2025
ABL Facility | Maximum
Line Of Credit Facility [Line Items]
Line of credit facility, maturity date	Jul. 29, 2026
ABL Facility | Letter of Credit
Line Of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity				70,000,000.0
ABL Facility | Secured Debt
Line Of Credit Facility [Line Items]
Line of credit				$ 70,000,000.0
Line of credit facility, commencement date	Jul. 31, 2021
Line of credit facility, unused commitment fee percentage	0.25%
Line of credit facility, covenant terms, minimum percentage of loan cap amount				10.00%
Line of credit facility, covenant terms, minimum excess credit availability				$ 15,000,000.0
Line of credit facility, covenant terms, minimum fixed charge coverage ratio				1.0
ABL Facility | Secured Debt | LIBOR
Line Of Credit Facility [Line Items]
Variable rate spread on outstanding loans less than $95 million	1.25%
Variable rate spread on outstanding loans equal to or greater than $95 million but less than $180 million	1.50%
Variable rate spread on outstanding loans greater than or equal to $180 million	1.75%
Spread on variable rate	0.00%	0.75%
ABL Facility | Secured Debt | Base Rate
Line Of Credit Facility [Line Items]
Variable rate spread on outstanding loans less than $95 million	0.50%
Variable rate spread on outstanding loans equal to or greater than $95 million but less than $180 million	0.75%
Variable rate spread on outstanding loans greater than or equal to $180 million	1.00%
Term Loan Facility
Line Of Credit Facility [Line Items]
Secured debt			275,000,000.0	$ 261,250,000	$ 271,563,000	$ 275,000,000
Debt origination fees			$ 5,100,000
Percentage of original issue discount			3.00%
Term Loan Facility | Fortress Credit Corp
Line Of Credit Facility [Line Items]
Line of credit facility, amortization rate			1.25%
Term Loan Facility | Secured Debt | Minimum
Line Of Credit Facility [Line Items]
Federal funds rate				0.00%
Term Loan Facility | Secured Debt | Minimum | Fortress Credit Corp
Line Of Credit Facility [Line Items]
Mandatory prepayment terms, amount equal to borrowers' excess cash flows, percentage			0.00%
Term Loan Facility | Secured Debt | Maximum | Fortress Credit Corp
Line Of Credit Facility [Line Items]
Mandatory prepayment terms, amount equal to borrowers' excess cash flows, percentage			75.00%
Term Loan Facility | Secured Debt | Adjusted LIBOR
Line Of Credit Facility [Line Items]
Spread on variable rate				9.75%
Minimum LIBOR rate				1.00%
Term Loan Facility | Secured Debt | Alternate Base Rate
Line Of Credit Facility [Line Items]
Spread on variable rate				8.75%
Term Loan Facility | Secured Debt | Federal Funds Rate
Line Of Credit Facility [Line Items]
Spread on variable rate				0.50%
Term Loan Facility | Secured Debt | One Month LIBOR
Line Of Credit Facility [Line Items]
Spread on variable rate				1.00%

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Debt - Summary of Company's Borrowing Availability Under ABL Facility (Details) - ABL Facility - USD ($)	9 Months Ended		12 Months Ended
	Oct. 29, 2021	Oct. 30, 2020	Jan. 29, 2021	Nov. 16, 2017
Line Of Credit Facility [Line Items]
ABL Facility maximum borrowing	$ 275,000,000	$ 275,000,000	$ 275,000,000.0	$ 175,000,000.0
Less: Outstanding borrowings	70,000,000	155,000,000	25,000,000
Less: Outstanding letters of credit	21,400,000	15,265,000	27,131,000
Borrowing availability under ABL Facility	$ 183,600,000	$ 104,735,000	$ 222,869,000
Interest Rate	1.34%	2.27%	3.00%

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Debt - Schedule of Company's Long Term Debt (Details) - USD ($) $ in Thousands	Oct. 29, 2021	Jan. 29, 2021	Oct. 30, 2020	Sep. 09, 2020
Line Of Credit Facility [Line Items]
Less: Current portion of long-term debt	$ 13,750	$ 13,750	$ 13,750
Less: Unamortized debt issuance costs	10,255	12,181	12,550
Long-term debt, net	237,245	245,632	248,700
Term Loan Facility
Line Of Credit Facility [Line Items]
Secured debt	$ 261,250	$ 271,563	$ 275,000	$ 275,000
Debt instrument, interest rate, stated percentage	10.75%	10.75%	10.75%

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Stock-Based Compensation - Additional Information (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Oct. 29, 2021	Jan. 31, 2020	Jan. 29, 2021
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Target shares earned	193.00%	129.00%
Performance Awards vested	Mar. 25, 2021
Performance Awards vested percentage	111.00%
Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Target shares earned	50.00%
Maximum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Target shares earned	200.00%
Deferred Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period	3 years
Compensation expense not yet recognized	$ 9.0
Compensation expense not yet recognized, recognition period	2 years
Performance Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period	3 years
Compensation expense not yet recognized	$ 8.6
Compensation expense not yet recognized, recognition period	2 years 3 months 18 days
Performance awards period considered	3 years
Option Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period	4 years
Options awards expiration period	10 years
Unvested option awards	0		85,000
Options awards exercisable	343,135
Options exercised	0

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Stock-Based Compensation - Summary of Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 29, 2021	Oct. 30, 2020	Oct. 29, 2021	Oct. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation	$ 1,974	$ 2,201	$ 8,043	$ 6,743
Deferred Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation	1,381	1,442	4,226	4,466
Performance Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation	$ 593	572	3,714	1,716
Option Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation		$ 187	$ 103	$ 561

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Stock-Based Compensation - Summary of Deferred Awards Activity (Details) - Deferred Awards	9 Months Ended
	Oct. 29, 2021 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Unvested awards at beginning of year | shares	1,093,000
Number of Shares, Granted | shares	246,000
Number of Shares, Vested | shares	(397,000)
Number of Shares, Forfeited | shares	(25,000)
Number of Shares, Unvested awards at end of year | shares	917,000
Weighted Average Grant Date Fair Value, Unvested awards at beginning of year | $ / shares	$ 10.86
Weighted Average Grant Date Fair Value, Granted | $ / shares	29.94
Weighted Average Grant Date Fair Value, Vested | $ / shares	13.86
Weighted Average Grant Date Fair Value, Forfeited | $ / shares	12.86
Weighted Average Grant Date Fair Value, Unvested awards at end of year | $ / shares	$ 14.62

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Stock-Based Compensation - Summary of Performance Awards Activity (Details) - Performance Awards	9 Months Ended
	Oct. 29, 2021 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Unvested awards at beginning of year | shares	393,000
Number of Shares, Granted | shares	166,000
Number of Shares, Vested | shares	(165,000)
Number of Shares, Forfeited | shares	0
Number of Shares, Unvested awards at end of year | shares	394,000
Weighted Average Grant Date Fair Value, Unvested awards at beginning of year | $ / shares	$ 18.32
Weighted Average Grant Date Fair Value, Granted | $ / shares	29.95
Weighted Average Grant Date Fair Value, Vested | $ / shares	21.90
Weighted Average Grant Date Fair Value, Forfeited | $ / shares	0
Weighted Average Grant Date Fair Value, Unvested awards at end of year | $ / shares	$ 21.72

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Stock-Based Compensation - Summary of Performance Awards Activity (Parenthetical) (Details)	9 Months Ended
	Oct. 29, 2021
Performance Awards
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Performance shares target percentage	100.00%

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Stock-Based Compensation - Summary of Options Award Activity (Details) - Option Awards	9 Months Ended
	Oct. 29, 2021 $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of Shares, Unvested option awards at beginning of year	85,000
Number of Shares, Granted	0
Number of Shares, Vested	(85,000)
Number of Shares, Forfeited	0
Number of Shares, Unvested option awards at end of year	0
Weighted Average Grant Date Fair Value, Unvested option awards at beginning of year | $ / shares	$ 8.73
Weighted Average Grant Date Fair Value, Granted | $ / shares	0
Weighted Average Grant Date Fair Value, Vested | $ / shares	8.73
Weighted Average Grant Date Fair Value, Forfeited | $ / shares	$ 0

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Fair Value Measurements of Financial Assets and Liabilities - Additional Information (Details) - USD ($)	Oct. 29, 2021	Jan. 29, 2021	Oct. 30, 2020
Nonrecurring
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Nonfinancial assets fair value disclosure	$ 0	$ 0	$ 0
Nonfinancial liabilities fair value disclosure	0	0	0
Fair Value | Level 1
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Restricted cash fair value	$ 2,000,000.0	$ 1,900,000	$ 2,100,000

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Fair Value Measurements of Financial Assets and Liabilities - Schedule of Carrying Values and Fair Values of Long-term Debt, Including Current Portion (Details) - USD ($) $ in Thousands	Oct. 29, 2021	Jan. 29, 2021	Oct. 30, 2020
Carrying Amount
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term debt			$ 275,000
Long-term debt, including current portion	$ 261,250	$ 271,563
Fair Value | Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Short-term debt			$ 275,000
Fair Value | Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Long-term debt, including current portion	$ 261,396	$ 277,265

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Income Taxes - Additional Information (Details)	3 Months Ended		9 Months Ended
	Oct. 29, 2021	Oct. 30, 2020	Oct. 29, 2021	Oct. 30, 2020
Income Tax Disclosure [Abstract]
Effective income tax expense (benefit), percentage	34.60%	27.70%	28.90%	(39.30%)

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Commitments and Contingencies - Additional Information (Details) $ in Thousands	9 Months Ended
	Oct. 29, 2021 USD ($) Lawsuit	Aug. 18, 2021 Plaintiff	Mar. 04, 2020 Plaintiff	Dec. 31, 2019 Plaintiff
Loss Contingencies [Line Items]
Number of lawsuits | Lawsuit	3
Number of plaintiffs | Plaintiff		603	1,089	521
Minimum
Loss Contingencies [Line Items]
Damages sustained by proposed members | $	$ 5,000,000

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Segment Reporting - Additional Information (Details)	9 Months Ended
	Oct. 29, 2021 Segment Channel
Segment Reporting [Abstract]
Number of reportable segments | Segment	1
Number of distribution channels for revenue reporting purposes | Channel	5

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Segment Reporting - Summary of Net Revenue by Distribution Channel (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 29, 2021	Oct. 30, 2020	Oct. 29, 2021	Oct. 30, 2020
Segment Reporting Information [Line Items]
Net revenue	$ 375,843	$ 359,982	$ 1,081,249	$ 889,073
US eCommerce
Segment Reporting Information [Line Items]
Net revenue	213,999	221,769	655,190	581,511
International
Segment Reporting Information [Line Items]
Net revenue	47,219	56,047	151,482	141,433
Outfitters
Segment Reporting Information [Line Items]
Net revenue	86,069	61,998	192,382	131,214
Retail
Segment Reporting Information [Line Items]
Net revenue	9,248	8,185	31,985	16,318
Third Party
Segment Reporting Information [Line Items]
Net revenue	$ 19,308	$ 11,983	$ 50,210	$ 18,597

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Revenue - Disaggregated of Revenue by Geographic Location (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 29, 2021	Oct. 30, 2020	Oct. 29, 2021	Oct. 30, 2020
Disaggregation of Revenue [Line Items]
Net revenue	$ 375,843	$ 359,982	$ 1,081,249	$ 889,073
United States
Disaggregation of Revenue [Line Items]
Net revenue	322,773	297,609	914,069	734,515
Europe
Disaggregation of Revenue [Line Items]
Net revenue	39,277	45,879	124,183	108,630
Asia
Disaggregation of Revenue [Line Items]
Net revenue	8,663	10,909	29,212	34,562
Other Geographical Location
Disaggregation of Revenue [Line Items]
Net revenue	$ 5,130	$ 5,585	$ 13,785	$ 11,366

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Revenue - Summary of Deferred Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 29, 2021	Oct. 30, 2020	Oct. 29, 2021	Oct. 30, 2020
Revenue From Contract With Customer [Abstract]
Deferred revenue beginning of period	$ 18,355	$ 11,901	$ 17,187	$ 8,096
Deferred revenue recognized in period	(18,141)	(11,901)	(16,973)	(8,096)
Revenue deferred in period	14,323	35,364	14,323	35,364
Deferred revenue end of period	$ 14,537	$ 35,364	$ 14,537	$ 35,364

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Revenue - Reconciliation of Gift Card Contract Liability (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 29, 2021	Oct. 30, 2020	Oct. 29, 2021	Oct. 30, 2020
Revenue From Contract With Customer [Abstract]
Balance as of beginning of period	$ 28,341	$ 23,651	$ 26,798	$ 22,592
Gift cards sold	13,196	13,367	33,377	33,302
Gift cards redeemed	(10,934)	(12,245)	(29,334)	(30,959)
Gift card breakage	(130)	(76)	(368)	(238)
Balance as of end of period	$ 30,473	$ 24,697	$ 30,473	$ 24,697

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Revenue - Additional Information (Details) - USD ($) $ in Millions	Oct. 29, 2021	Jan. 29, 2021	Oct. 30, 2020
Other Current Liabilities
Deferred Revenue Arrangement [Line Items]
Refund liability	$ 24.3	$ 25.7	$ 23.6