Newly separated from Sears Holdings, Lands' End reported respectable sales growth during a first quarter that saw it vow to become a global lifestyle brand.
Lands' End completed its separation from Sears on April 4 and for the quarter ended May 2 said its sales increased 3.6% to $330.5 million, driven by a 4.8% increase in the direct segment offset by a 2.3% decrease in the retail segment. Profits increased 48.1% to $10.9 million, or 34 cents a share, compared to $7.3 million, or 23 cents a year the prior year.
"We are very pleased with our first quarter results and our progress towards growing the business and building Lands' End into a global lifestyle brand,” said Edgar Huber, Lands' End president and CEO. “We are encouraged by the positive customer response to our merchandising and marketing strategies and remain focused on improving the contemporary relevance of the Lands' End brand. Despite a very challenging retail apparel environment, we drove strong earnings growth through an improved merchandise assortment architecture, more targeted promotions, improved inventory management and continued expense controls.
Huber said the company was excited to be operating again as an independent public company and asserted that Lands' End is well positioned to execute against its strategic initiatives to drive sales and earnings growth.
Lands' End may be separated from Sears, but the brand can thank the retailer for contributing to overall results as the 251 Land’s End shops inside Sears stores contributed to a 3.4% same store sales increase in the retail segment.