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Lands” End Shows Progress Despite Sales Decline business, fashion, fashion news
Lands” End Incorporated has reported a narrowing of losses in its second quarter, despite ongoing challenges resulting in slightly lower sales figures. The heritage retailer announced on Thursday that net sales for the three months ending August 2nd reached $317.2 million, down from $323.3 million during the same period last year.
While overall sales dipped, the company highlighted several positive developments. Notably, Lands” End successfully narrowed its net loss to $5.3 million, or $0.17 per diluted share, compared to a net loss of $8.0 million, or $0.25 per diluted share, in the second quarter of fiscal 2023.
This improvement was attributed to strategic shifts within the company’s operations. The transition of kids and footwear products from direct sales to a licensing model, coupled with reduced promotional activity, contributed to the decline in U.S. e‑commerce revenue by 3.9% to $188.3 million. However, this strategic move allowed Lands” End to focus on higher-margin sales channels.
International e‑commerce revenue showed resilience, increasing by 0.9%, primarily driven by a rise in full-price sales and a decrease in promotional discounts.
Further diversification of revenue streams proved beneficial. Outfitters net revenue contracted by 7.1% to $63.2 million, but third-party revenue surged by 23.4% to $30.1 million, fueled by licensing and wholesale agreements.
Andrew McLean, CEO of Lands” End, expressed confidence in the company’s strategic direction, stating: «Our robust second quarter results continue to prove our solutions-based strategy is working. A focus on innovation across our business is evolving the Lands’ End brand and assortment, attracting new customers and further improving our supply chain and inventory position.»
Looking ahead, Lands” End projects revenue for fiscal 2024 to range between $1.35 billion and $1.43 billion, with net income estimated between $5.0 million and $11.0 million. This translates to diluted earnings per share projected between $0.16 and $0.35.
While the company acknowledges the ongoing challenges in the retail landscape, its commitment to strategic adjustments and a focus on innovation positions Lands” End for continued progress in the coming year.