It was clear sailing for Lands’ End in its first quarter since being spun off by Sears Holdings Corp. and going public in April.
Merchandise improvements, targeted marketing and better inventory and expense controls drove the net up 48.1 percent to $10.9 million compared with $7.3 million in the year-ago period.
Investors were impressed and pushed the stock up 8.2 percent, or $2.18, to $28.81 on the Nasdaq.
“We were very pleased with the results, especially in the U.S. We see the strong trend continuing,” Edgar Huber, president and chief executive officer of the Dodgeville, Wis.-based brand, told WWD.
Huber said there was a “positive customer response to our merchandising and marketing strategies” and the company remains focused on “improving the contemporary relevance of the Lands’ End brand.”
Huber’s strategy revolves around growing Lands’ End into a global “lifestyle” brand and some steps have been taken. In February, the Lands’ End Coastal Living body-care line, including hand creams, body lotions and shower gels, was launched. Huber said it was too early to reach a verdict on Coastal Living. Nevertheless, it’s expected that within the next few months, Lands’ End will reveal additional brand extensions to further project a lifestyle approach. The company has also expanded its range of sizes and fits in several categories.
Adjusted earnings before interest, taxes, depreciation and amortization increased 35.2 percent to $23.8 million in the quarter ended May 2, compared with $17.6 million in the year-ago period. Merchandise sales and services increased 3.6 percent to $330.5 million from $319 million a year ago. The direct segment rose 4.8 percent to $276 million while the retail segment slipped 2.3 percent to $54.4 million. Same-store sales increased 3.4 percent.
Huber suggested that Lands’ End was able to transcend the generally poor retail climate because it sells more products direct-to-consumer, rather than through brick-and-mortar, which was impacted by the harsh winter in the first quarter. He said Lands’ End, with its lower dependence on brick-and-mortar, doesn’t have the floor set constraints of most retailers and the company was able to sell fall-winter products longer than other retailers. Lands’ End continues to be sold inside Sears stores. Sears store closings had an impact on Lands’ End’s total sales, though Huber noted there were comparable-store sales gains. Lands’ End manages its shops-in-shop at Sears.
Swim, dresses and boys and girls products were the strongest categories last quarter, specifically Beach Living swim products, girls dresses and boys graphic T-shirts.
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye