DODGEVILLE, Wis. - Lands' End, Inc. (NASDAQ:LE), a prominent digital retailer, has announced a new share repurchase program authorized by its Board of Directors, allowing for the buyback of up to $25 million of the company's common stock. This new program, effective immediately, is set to continue through March 31, 2026.
The previous repurchase program, which concluded on February 2, 2024, saw the company repurchase 2.3 million shares for a total of $20.3 million beginning in June 2022. The repurchases under the new plan may occur in the open market, through privately negotiated transactions, or by other means as permitted under federal securities laws. However, these transactions are subject to the company's Term Loan credit agreement, which imposes an annual limit on share repurchases.
Bernard McCracken, Chief Financial Officer of Lands' End, expressed the company's optimism, stating:
"This new share repurchase authorization demonstrates the Board and management team's confidence in Lands' End's strategy and commitment to shareholder value creation."
He highlighted the company's focus on driving profitable sales and its ability to invest in strategic growth while returning capital to shareholders, following last year's debt refinancing.
The funding for the repurchase program is expected to come from a combination of existing cash on hand, cash generated from operations, and potential borrowings under its asset-based senior secured credit facility. The timing and volume of share repurchases will be contingent upon market conditions and share price, among other factors. The company may also employ a Rule 10b5-1 plan, which allows for share repurchases at times when the company might otherwise be restricted due to insider trading laws.
Lands' End cautions that the repurchase program may be modified or suspended at any time, and the extent to which it is executed will depend on a variety of factors, including business and market conditions and limitations imposed by the company's credit facilities.
This initiative is part of Lands' End's broader strategy as a leading retailer offering a range of products from casual clothing to home goods, primarily through its digital platforms, company-operated stores, and third-party distribution channels. The announcement is based on a press release statement from Lands' End, Inc.
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