Landslide for Lands’ End

Dodgeville, Wis. – The second quarter was nothing short of a fiscal landslide for Lands’ End as the specialty retailer posted its third straight disappointing quarter. Revenue fell 10% and profit was down by more than a third.



“The results that we are sharing today do not represent the true potential of our company,” Federica Marchionni, president and CEO, told analysts during a conference call.



Net income fell 37% to $7.46 million, from $11.84 million in the year-ago period. Cost of sales and selling, general and administrative (SG&A) expenses declined, but not enough to fully offset a decrease in sales.



Net revenue decreased 10% to $312.4 million, from $347.2 million. Revenue declined across all Lands’ End markets and major product categories, with foreign currency fluctuations doing further damage.



Same-store sales in the retail segment decreased 7.5%, driven by lower sales in the company's Lands' End Shops at Sears.



“The second quarter results were challenging and did not meet company expectations,” stated Marchionni. “However, we believe we have a firm understanding of the areas of weakness that led to the performance decline and are in the process of addressing them. While many of our initiatives are in early stages of implementation, we are taking specific actions intended to deliver a stronger product offering, a cohesive marketing proposition, an effective go-to-market strategy, and a state of the art operating platform to support our strategic growth plans for the future."