Lands’ End loss widens in Q2
The reduction of Lands' End in-store shops at Sears locations and declining same-store sales took a toll on the specialty lifestyle retailer’s second quarter earnings.
Lands’ End reported a net loss of $5.3 million, or 16 cents a share, for the period ended Aug. 3, compared with a loss of $$3.9 million, or 12 cents a share, in the year-ago period. The average per-share loss estimate of analysts was 4 cents.
Revenue rose 1.9% to $307.9 million, up from $302.2 million in the second quarter last year. Retail segment net revenue decreased 25.8% to $31.3 million, due to the reduction of 57 Lands' End Shops at Sears locations, as well as a same store sales decline of 5.8%. Same store sales in Lands' End Shops at Sears locations declined 6.7% for the quarter, while same store sales in company-operated stores declined 0.6%.
The company continues to open new stores with its updated store format. The retailer has already opened the doors to its third of four to six new stores that were scheduled to open in 2018. The company, which has said it is not relying on Sears for future growth, reportedly plans to open between 40 to 60 locations during the next five years.
"Our second quarter results reflect our fifth consecutive quarter of revenue growth and our fourth straight quarter of adjusted EBITDA growth,” said Jerome S. Griffith, CEO and president.
“Overall, we continue to see evidence that our strategic initiatives are taking hold with product and marketing efforts both resonating with our customer,” he added. “Looking ahead, we will remain intently focused on our four key focus areas of product, digitization, uni-channel distribution and infrastructure."
Lands’ End reported a net loss of $5.3 million, or 16 cents a share, for the period ended Aug. 3, compared with a loss of $$3.9 million, or 12 cents a share, in the year-ago period. The average per-share loss estimate of analysts was 4 cents.
Revenue rose 1.9% to $307.9 million, up from $302.2 million in the second quarter last year. Retail segment net revenue decreased 25.8% to $31.3 million, due to the reduction of 57 Lands' End Shops at Sears locations, as well as a same store sales decline of 5.8%. Same store sales in Lands' End Shops at Sears locations declined 6.7% for the quarter, while same store sales in company-operated stores declined 0.6%.
The company continues to open new stores with its updated store format. The retailer has already opened the doors to its third of four to six new stores that were scheduled to open in 2018. The company, which has said it is not relying on Sears for future growth, reportedly plans to open between 40 to 60 locations during the next five years.
"Our second quarter results reflect our fifth consecutive quarter of revenue growth and our fourth straight quarter of adjusted EBITDA growth,” said Jerome S. Griffith, CEO and president.
“Overall, we continue to see evidence that our strategic initiatives are taking hold with product and marketing efforts both resonating with our customer,” he added. “Looking ahead, we will remain intently focused on our four key focus areas of product, digitization, uni-channel distribution and infrastructure."