Lands’ End revenue slides in 3Q

Freeman Staff

Dec. 3, 2015

DODGEVILLE —Net revenue for Lands’ End dropped to $334.4 million during the third quarter of 2015 compared to $373.1 million during the same quarter in 2014, according to a Thursday financial report.

Revenue in the direct segment was $287.8 million and retail segment revenue was $46.6 million, according to the Dodgeville-based retailer.

The gross margin during the third quarter for the company was 48.6 percent as compared to 49.1 percent in the third quarter last year, which it attributed mostly to the impact of foreign currency. Lands’ End also reported its net income was $10.7 during the third quarter compared to $18 million during the third quarter last year. The company said its recent net income was positively affected by $0.6 million after tax related to the product recall. 

“While our third quarter financial results did not meet our expectations, which we attribute to both external and internal factors, we made important progress on a number of initiatives that we believe will position the company for the future,” said Federica Marchionni, Lands’ End CEO, in a statement. “Sales in the third quarter were impacted by the challenging retail environment, as well as unseasonably warm weather which negatively affected the performance of our cold weather categories. Our sales performance was also the result of a pullback in promotions to focus on higher margin sales, reduced catalog circulation to lapsed and less profitable customers, and a lack of product acceptance.”