FINANCE

Lands’ End starts year on strong note

BY Marianne Wilson

Specialty lifestyle retailer Lands’ End showed momentum in its first quarter, narrowing its loss and posting sales above expectations.

Lands’ End reported a net loss of $2.6 million, or 8 cents a share, for the period ended May 4, compared with a loss of $7.8 million, or 24 cents a share, in the year-ago period. The average per-share loss estimate of analysts was 17 cents.

Revenue rose 12% to $299.8 million, above the estimate of $285.0 million. Retail segment revenue declined 34% to $26.5 million, primarily due to there being few Lands’ End in-store shops at Sears stores. Same-store sales declined 18.9%.

In May, Lands’ End unveiled its updated store format, the first of four to six new locations the retailer is 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 first quarter results represent the fourth straight quarter of top line growth and third quarter of profitability growth, demonstrating the continued progress we have made across our strategic initiatives,” said Jerome S. Griffith, CEO and president. “We saw excellent growth in our uniform business with the successful launch of our Delta Airline business.”

Looking ahead, Griffith said, data analytics will remain “the driving force behind everything we do as a customer-centric organization.”

“As we further refine our product assortment, advance our digitally driven efforts, enhance our distribution network, and further elevate our infrastructure to support the business, we remain well positioned to achieve our long-term objectives,” he said.

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