Lands' End same-store sales increase 3.8%, net loss expands to $3.9 million
Lands’ End continues its fiscal year turnaround in its second quarter. The multichannel retailer reported a revenue decline in its first quarter and on Thursday reported an increase in net revenues and same-store sales.
Net revenues were $302.2 million compared to $292.0 million in the previous year, and direct segment net revenue increased 5.5% to $259.9 million, but retail segment net revenue decreased 7.4% to $42.2 million due to a reduction in Lands’ End stores at Sears. Also, same store sales increased 3.8%. "We are pleased with the continued progress that we made during the second quarter, as we once again drove positive results across a number of key metrics,” said CEO Jerome Griffith. “Performance in our U.S. consumer business improved, with double digit increases in our U.S. e-commerce sales, growth in our customer files and positive same store sales in our retail segment.” Net loss in the quarter expanded to $3.9 million, or $0.12 per diluted share, from a loss of $2.0 million, or $0.06 per diluted share, in the prior year. Gross margin was 44.4% versus 46.6 in the previous year and adjusted EBITDA was $6.8 million compared to $7.3 million in the second quarter of 2016. “As we look ahead,” continued Griffith, “we are focused on further enhancing our assortment, ensuring that we are delivering the comfort, fit, fashion, and function that our customers are looking for, all at a great value. In addition, we are working to better leverage and analyze our customer data to ensure that we are best engaging with our consumers through both our merchandise and marketing initiatives, as well as through a reimagined and enhanced omni-channel shopping experience.”