Lands' End meets Q1 expectations with net loss expansion, revenue decline
Lands’ End reported on Tuesday its first quarter results that met expectations despite decreasing from the prior year.
The Wisconsin-based retailer posted revenue decreases in fiscal year 2016 due to the closing of several Sears stores, and the net loss for the year expanded to $109.8 million from $19.5 million. The reduction of Lands’ End Shops at Sears led to a 2.8% decrease in first quarter retail segment net revenue.
First quarter net revenue decreased to $268.4 million and net loss was $7.8 million, or $0.24 per diluted share, compared to $5.8 million, or $0.18 per diluted share, in the prior year. Same store sales increased 2.1%.
In addition, gross margin was 45.7% compared to 47.4% in the prior year, and adjusted EBITDA was $1.3 million versus $0.6 million in the previous year.
"First quarter results were in line with our expectations, as we continued to make progress across a number of key areas,” said CEO Jerome S. Griffith, who joined Lands’ End from Tumi in March.
“We are pleased to have achieved growth in our buyer files, improved product sell-through, and driven positive same store sales, all of which are encouraging signs that we are making the right decisions as we work to drive the business forward. Looking ahead, we are focused on building on this momentum and leveraging our strong brand and loyal customer base, as we concentrate on several key initiatives over the remainder of the year.”
Griffith also said that Lands’ End is in the process of aligning its marketing strategies and leveraging its e-commerce platform and omnichannel capabilities to create a seamless shopping experience.
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