-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, A7BVH9GJ1UTW6JdYQWcExlQAmIGQzgeN20wktSblwZeRAbdH3zwVnXxOXtHE/eZO CN2Ck1pe7N4bLgO8EO4BAg== 0000799288-01-500049.txt : 20010518 0000799288-01-500049.hdr.sgml : 20010518 ACCESSION NUMBER: 0000799288-01-500049 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010517 ITEM INFORMATION: FILED AS OF DATE: 20010517 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LANDS END INC CENTRAL INDEX KEY: 0000799288 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-CATALOG & MAIL-ORDER HOUSES [5961] IRS NUMBER: 362512786 STATE OF INCORPORATION: DE FISCAL YEAR END: 0131 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-09769 FILM NUMBER: 1642687 BUSINESS ADDRESS: STREET 1: ONE LANDS END LN CITY: DODGEVILLE STATE: WI ZIP: 53595 BUSINESS PHONE: 6089359341 MAIL ADDRESS: STREET 1: ONE LANDS END LANE STREET 2: ONE LANDS END LANE CITY: DODGEVILLE STATE: WI ZIP: 53595 8-K 1 nymtgmay17.txt 8-K ON ANALYST MEETING ON MAY 17 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report(Date of earliest event reported) May 17, 2001 LANDS' END, INC. (exact name of registrant as specified in its charter) DELAWARE 1-9769 36-2512786 (State or other (Commission (I.R.S. Employer jurisdiction File Number Identification of incorporation Number) Lands' End Lane, Dodgeville, Wisconsin 53595 (Address of principal executive offices) (Zip Code) Registrant's telephone number 608-935-9341 including area code INFORMATION INCLUDED IN THIS REPORT Item 5. Other Events. Attached as Exhibit 99 to this report are excerpted slides from a Lands' End meeting with members of the financial community in New York, New York, on Thursday, May 17, 2001. An audio broadcast of the meeting was simulcast on the Internet and will be archived there one week. SIGNATURES Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, its duly authorized officer and chief financial officer. LANDS' END, INC. May 17, 2001 By: /S/ DONALD R. HUGHES Donald R. Hughes Senior Vice President & Chief Financial Officer EXHIBIT 99 ***Slide Lands' End Has Shown 15 Years of Solid Growth U.S. Merchandise Sales Fiscal Year (in millions) 1985 $ 171.6 1986 226.6 1987 264.9 1988 335.7 1989 454.6 1990 544.9 1991 602.0 1992 682.4 1993 724.4 1994 853.3 1995 953.9 1996 957.9 1997 1,023.0 1998 1,131.8 1999 1,225.5 2000 1,176.6 2001 1,221.8 - ------------------------------------------------------------------------- ***Slide Vital Signs: FY 99 to FY 01 Change from FY 99 to FY 01 Consolidated Inventory - $ 31 M Total Risk Inventory - $ 23 M # SKU's - 18 K % New Products + 18.8% Consolidated Peak Borrowing - $ 184 M 12 Month Buyers + 725 K Annual Issues (U.S.) - 16 Internet Merchandise Sales + $ 157 M EPS + $ 0.13 - ------------------------------------------------------------------------ ***Slide Vital Signs Corporate Sales Growth ($ in millions) Corporate Sales Fiscal Year Merchandise Sales 1994 $ 8.8 1995 17.9 1996 29.2 1997 48.4 1998 78.3 1999 114.7 2000 145.9 2001 173.1 - ------------------------------------------------------------------------- ***Slide Vital Signs Internet Growth ($ in millions) Internet Fiscal Year Merchandise Sales 1997 $ 3.4 1998 18.0 1999 61.0 2000 138.0 2001 218.0 - ------------------------------------------------------------------------- ***Slide To Sum Up: Our Five-Year Opportunities 1. Grow the U.S. Consumer Business -- Extend our merchandise lines in defined, focused ways. -- Exploit new channels of marketing and customer service, enjoying greater efficiencies. -- Expand our universe of customers. 2. Grow Corporate Sales and International -- Advance these businesses from their beach-head positions to true leadership positions. 3. Grow Earnings at Least 3 Ways -- Leverage existing expense structure. -- Leverage existing capacity in Dodgeville and around the world. -- Extend and improve recent strong margin gains. - ------------------------------------------------------------------------- ***Slide Two Major Growth Initiatives 1. Extended Sizes 2. Intimates - ------------------------------------------------------------------------- ***Slide 1. Extended Sizes Extended Sizes Is a $15.5B Market Market Dollar Year Sales in billions 1996 $ 12.1 1997 12.8 1998 13.0 1999 14.2 2000 15.5 Lands' End Strategic Steps -- Develop Specialty Catalog to maximize growth potential. -- Develop an additional 20% styles to support growth. -- Hire experienced talent to drive business. - ------------------------------------------------------------------------- ***Slide 2. Intimates Women's Intimate Apparel Is a $8.2B Market Market Dollar Year Sales in billions 1996 $ 6.6 1997 7.0 1998 7.4 1999 7.8 2000 8.2 Lands' End Strategic Steps -- Leverage our established fit position in Swim. -- Maximize trend in Sleepwear separates. -- Explore new ways to market our strong Intimates, Sleepwear and Spa products. - ------------------------------------------------------------------------ ***Slide Key Initiatives - -- Continued Sourcing Improvements - -- "Never Out" Key Items - -- Great-Go-Together Selling - -- Separate Gender Books - -- Introduction of Extended Sizes and Intimates - ------------------------------------------------------------------------- ***Slide Lands' End Customer From FY90 to FY01 our customer file has grown at a CAGR of 8.6%, from 10.9 million to 27 million households. Our 12 month buyer file grew to 5.9 million in FY01, a 9.5% rise over FY00. FY01 was the largest customer acquisition year in our history. We acquired 1.3 million new buyers, a 17% increase over FY 00. U.S. Consumer Business Fiscal Pages Circulated Number of Households Year (in billions) (in millions) 1990 11.4 10.9 1995 20.1 19.8 2000 20.8 25.9 2001 24.5 27.0 - ------------------------------------------------------------------------- ***Slide Operations/Facilities Key statistics in FY 2001 for U.S. Consumer Business 24.5 Billion Catalog Pages Circulated 17.0 Million Orders Shipped 15.8 Million Sales/Service Contacts 70.0 Million Minutes of Customer Talk Time 4.5 Million Embroidered Units 1.9 Million Monogrammed Units Distribution Center Square Footage Fiscal Year Square Footage 1990 717,000 1995 1,150,000 2000 1,736,000 2002 1,896,000 Significant capacity exists to meet future sales growth without facility expansion. - ------------------------------------------------------------------------ ***Slide Leveraging the Internet Percentage of Internet Sales vs Merchandise Sales 1997 .3% 1998 1.4% 1999 4.4% 2000 10.5% 2001 16.1% Opportunity to decrease catalog page circulation and reduce minutes of customer talk time. A huge opportunity exists to reduce selling, general and administrative expenses by shifting more customer interactions to the Internet. - ------------------------------------------------------------------------- ***Slide Systems Development For Emerging Strategic Goals 1. 1993 - 1999 Industrial Strength Enhanced functionality on core processes Call Center Systems Warehouse/Pick and ship 2. 1999 - 2001 Internet Platform Successfully integrated Internet with core processes Developed customer focused applications- Personalization 3. 2001 - 2004 Smart Systems Superior Customer Relationship Management Business Intelligence Advanced Supply Chain Management - ------------------------------------------------------------------------- ***Slide Introducing the Lands' End Alumni Collection An upcoming/new marketing opportunity that will focus on college graduates to supply sportswear embroidered with university logos. Sizable sales opportunity with nominal investment in infrastructure. - ------------------------------------------------------------------------- ***Slide Fiscal year results Lands' End, Inc. & Subsidiaries (dollars in millions, except EPS) Fiscal Fiscal Fiscal 2001 2000 1999 Total Revenue $ 1,462.3 $1,416.9 $1,466.1 Pretax income 55.0 76.2 49.5 Net income 34.7 48.0 31.2 Diluted EPS 1.14 1.56 1.01 Return on Equity 11 % 18 % 13 % - ------------------------------------------------------------------------- ***Slide Recent Quarterly Performance ($ in millions,except EPS) Q4 01 vs PY Q1 02 vs PY Revenue $ 538.6 11.5 % $ 311.1 8.8 % Gross Profit 235.4 13.8 % 131.9 10.2 % SG&A 181.9 12.8 % 121.4 2.5 % EPS $ 1.07 16.3 % $ 0.20 1900.0 % - ------------------------------------------------------------------------- ***Slide Merchandise Sales and Earnings Growth ($ in millions) Fiscal Year Merchandise Sales Net Income 1986 $ 227 $ 11.3 1991 602 14.7 1996 1,032 30.6 2001 1,355 34.7 - ------------------------------------------------------------------------- ***Slide Financial Flexibility to Achieve Growth Balance Sheet As of 1/26/01 Item ($ in millions) Cash $ 75.4 Working Capital 142.8 Total Assets 507.6 Total Debt 16.9 Total Liabilities 193.4 -- Strong Balance Sheet -- No long term debt -- Flexibility to pursue many strategic avenues - ------------------------------------------------------------------------- ***Slide Investment Highlights - -- Lands' End is a unique, highly admired, and trusted brand destined to be high growth, high performance company. - -- A wealth of promising merchandising ideas on the drawing board. US Consumer Business to Business International Internet - -- Financial flexibility and significant free cash strategic investments. - -- The drive and talent of a seasoned management team. - ------------------------------------------------------------------------- STATEMENT REGARDING FORWARD-LOOKING INFORMATION Statements in this document that are not historical, including, without limitation, statements regarding our plans, expectations, assumptions, and estimations for fiscal 2002, gross profit margin, and earnings, as well as anticipated sales trends and future development of our business strategy, are considered forward-looking and speak only as of today's date. As such, these statements are subject to a number of risks and uncertainties. Future results may be materially different from those expressed or implied by these statements due to a number of factors. Currently, we believe that the principal factors that create uncertainty about our future results are the following: customer response to our merchandise offerings, circulation changes and other initiatives; the mix of our sales between full price and liquidation merchandise; overall consumer confidence and general economic conditions, both domestic and foreign; effects of shifting patterns of e- commerce versus catalog purchases; costs associated with printing and mailing catalogs and fulfilling orders; dependence on consumer seasonal buying patterns; fluctuations in foreign currency exchange rates; and changes that may have different effects on the various sectors in which we operate (e.g., rather than individual consumers, the Corporate Sales Division, included in the specialty segment, sells to numerous corporations, and certain of these sales are for their corporate promotional activities). Our future results could, of course, be affected by other factors as well. More information about these risks and uncertainties may be found in the company's 10-K filings with the S.E.C. The company does not undertake to publicly update or revise its forward- looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized. WEBCAST ANNOUNCEMENT There was a live, audio webcast of a meeting with company management and the financial community discussing future marketing and product initiatives on Thursday, May 17, 2001 at 8:30am eastern time. A playback will be available for one week at "videonewswire.com/LANDSEND/051701/". This meeting and webcast consist of copyrighted material that may not be recorded, reproduced, retransmitted, rebroadcast, stored or forwarded without Lands' End's express written permission. The meeting was recorded by Lands' End, and participants in this meeting did so under the express condition that their participation constituted their consent to (i) the copyright terms set forth above, and (ii) having any comments or statements made appear in any transcript or broadcast of this meeting. - - 0 - Contact: Charlotte LaComb 608-935-4835 -----END PRIVACY-ENHANCED MESSAGE-----