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
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***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
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***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
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***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
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***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.
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***Slide
Two Major Growth Initiatives
1. Extended Sizes
2. Intimates
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***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.
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***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.
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***Slide
Key Initiatives
-- Continued Sourcing Improvements
-- "Never Out" Key Items
-- Great-Go-Together Selling
-- Separate Gender Books
-- Introduction of Extended Sizes and Intimates
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***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
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***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.
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***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.
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***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
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***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.
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***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 $1,466.1
Pretax income 55.0 76.2 49.5
Net income 34.7 48.0 31.2
Diluted EPS 1.14 1.56 1.01
Return on Equity 11 % 18 % 13 %
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***Slide
Recent Quarterly Performance
($ 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 %
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***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
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***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
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***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.
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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.
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Contact: Charlotte LaComb 608-935-4835