Lands’ End profit plummets in tough Q1

Dodgeville, Wis. – Profit plummeted in a difficult first quarter of fiscal 2015 for Lands’ End Inc. that also saw sales decline. Cost of sales and other expenses declined at a smaller rate than revenues, leading to net income of $1.72 million, down 84% from $10.86 million the same quarter a year earlier.



Net merchandise sales and services declined 9% to $299.39 million from $330.48 million. Same-store sales dropped 12.1%.



The decrease in net sales was driven by a $15 million decline in the international businesses which was principally driven by a $9 million negative impact from changes in currency exchange rates, and a modest decline in the U.S. direct businesses. This included an estimated $2 million negative impact from the West Coast Port delays.



“While our first quarter results reflect a challenging retail environment, I feel privileged to be leading Lands' End into the future and excited about our opportunities for growth,” said Federica Marchionni, CEO. “The next 12 to 18 months will be an important transformational period where we will be focused on upgrading the product design and development process, enhancing our technology platform, fostering brand awareness, exploring new distribution opportunities, strengthening operations and integrating new talent throughout the organization.”