Lands' End Q2 in the red on e-comm sales drop
Lands' End on Thursday announced revenues for the second quarter fell by almost 9%, on the back of double-digit declines in online sales, particularly internationally.
The Dodgeville, Wisconsin-based company said net revenues for the second quarter ending July 29, decreased 8.6% to $351.2 million compared to $384.1 million.
U.S. online sales fell 14.4%, while international online revenues decreased 23.9%, "both driven by delayed receipts of key products due to global supply chain and continued macroeconomic challenges," the company said.
Outfitters net revenue for the quarter increased 7.7%, attributed to stronger demand within school uniform households and national accounts.
Third party net revenue increased 42.9%, primarily attributed to growth in the Kohl’s online marketplace, and growth in other new and existing online marketplaces, the company added.
For the second quarter, net loss was $2.2 million, or $0.07 loss per diluted share, compared to net income of $16.2 million or $0.48 earnings per diluted share.
“We are very pleased with our performance this quarter, exceeding our revenue and profit expectations," said Jerome Griffith, chief executive officer.
"Despite global supply chain and consumer challenges, our teams continue to successfully navigate these challenges. Our performance this quarter across our four strategic growth pillars – product, digital, uni-channel distribution, and infrastructure – gives us confidence in the long-term opportunity ahead.”
Looking ahead, the company said it expects fiscal 2022 net revenue to be between $1.6 billion and $1.64 billion. Full-year net income is forecast to be between $16.5 million and $23.5 million, and diluted earnings per share to be between $0.49 and $0.70.
“We are pleased to have delivered profitability ahead of our expectations despite continued supply chain challenges and macroeconomic factors impacting our customer," said Jim Gooch, president and chief financial officer.
"Despite these ongoing industry-wide challenges, we remain confident in our digitally-led business model and our ability to execute on our strategic initiatives.”
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