Lands’ End fails to reach expectations in second quarter

By

Obi Anyanwu

Published
Sep 3, 2015

Lands’ End, Inc. on Thursday announced its financial results for the second quarter of 2015, ended July 31, 2015, and they aren't exactly what the compay was hoping for.

Net revenue in the second quarter decreased 10% to $312.4 million from the second quarter of 2014, with the Direct segment decreasing 9.5% to $264.7 million and the Retail segment decreasing 12.9% to $47.6 million. Net income decreased to $7.5 million from $11.8 million in the second quarter of 2014, the adjusted EBITDA decreased to $19.6 million from $30.1 million and the company finished the quarter with $208.4 million in cash and cash equivalents.
 
The company’s net revenue was negatively impacted by the exchange rate by approximately $8 million.

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Federica Marchionni, President and Chief Executive Officer, commented, "The second quarter results were challenging and did not meet company expectations. However, we believe we have a firm understanding of the areas of weakness that led to the performance decline and are in the process of addressing them."

"While many of our initiatives are in early stages of implementation, we are taking specific actions intended to deliver a stronger product offering, a cohesive marketing proposition, an effective go-to-market strategy, and a state of the art operating platform to support our strategic growth plans for the future," she added.