Lands' End sales, earnings hit hard by supply chain woes
Lands' End announced on Thursday revenue for the first quarter fell by almost 6%, on the back of a dive in global e-commerce revenues, as the apparel company was hit hard by global supply chain issues.
The Dodgeville, Wisconsin-based company said total revenues for the first quarter ending April 29 totalled $303.7 million, down 5.5% on the same quarter last year.
By channel, global e-commerce revenue decreased 15.7% for the first quarter, as the company recorded a revenue drop of 14.1% in its U.S. e-commerce business, and a 21.7% plunge in its international e-commerce segment. The company said the loss was driven "by delayed receipts of key products due to global supply chain and macroeconomic challenges," according to a press release.
The company said its outfitters revenue increased 32.6%, driven by stronger demand within the company’s small and medium-sized business customers, national accounts and school uniform households.
Meanwhile, third party revenue increased 83.3% primarily attributed to expanding the number of Kohl’s stores in the third quarter 2021 to a total of 300 retail locations, growth in existing online marketplaces, and the on-air launch of select product at QVC.
“Despite revenue pressure from global supply chain issues and the impact of inflation on the consumer, we achieved our profit expectations. We continued to successfully execute on our strategic initiatives and are encouraged by the performance of our Outfitters business, which increased 33%, and by our expanding Third Party business, which increased 83%," said Jerome Griffith, chief executive officer.
"I am very proud of our team, whose performance, in light of these headwinds, has reinforced my confidence in our long-term strategy, as we continue to capitalize on our digitally-led business model to advance our four strategic pillars of growth.”
Lands' End fell into the red during the three months, recording a net loss of $2.4 million, or $0.07 loss per diluted share. The company recorded a net income of $2.6 million or $0.08 earnings per diluted share in the first quarter of fiscal 2021.
Looking ahead, the company said it expects fiscal 2022 revenue to be between $1.62 billion and $1.68 billion, while net income is forecast to fall between $20 million and $29 million, and diluted earnings per share to be between $0.60 and $0.88.
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