A Recovering Lands’ End Prepays Some Debt

Lands’ End Inc. says its business has stabilized and that it’s paying down debt. On Tuesday, the Dodgeville, Wisc.-based company said it prepaid $100 million of its term loan facility, and that it has excess cash on hand. That leaves $389 million left on the loan, which matures April 4, 2021. The prepayment of debt is expected to generate estimated interest savings of $3 million to $4 million on an annualized basis. “Over the past two years our business has stabilized, and we’ve demonstrated the ability to achieve consistent revenue and profitability growth,” said Jim Gooch, executive vice president, chief operating officer and chief financial officer. “This progress gives us confidence in our strategy and the execution of our strategic initiatives. We believe that reducing our long-term debt through the partial prepayment of our term-loan facility will result in a meaningful reduction in interest expense and is in the best interest of our shareholders.” In 2018, Lands’ End’s volume rose 3.2 percent to $1.45 billion compared with $1.41 billion the year before. Excluding the sales from the 53rd week and $48.7 million from closed Sears stores, revenues would have increased 9 percent in 2018. Net income for 2018 was $11.6 million, compared to $28.2 million

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