Lands’ End still trying to turn itself around
Steve’s breakdown: They might want to give the advertising a second look. I mean, check out the featured video to see their holiday campaign. Yikes!
DODGEVILLE, WI: The CEO of Lands End says the challenging retail environment and unseasonably warm weather did not help the company’s turnaround plan in the third quarter.
The online apparel retailer said that for the period ended Oct. 31, net revenue was $334.4 million, compared to $373.1 million in the third quarter last year. Net income was $10.7 million, compared to $18 million in the third quarter last year.
“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’s CEO. “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. We revamped the product presentation and messaging in our core catalog, expanded our e-commerce business with site enhancements and a fully shoppable digital catalog, debuted a spectacular campaign with renowned photographer Bruce Weber, and opened our first ever pop-up stores on New York’s Fifth Avenue and in Boston’s Copley Square.”
This is the fourth straight disappointing earnings report for Lands’ End, which is trying to turn around its business with efforts to attract younger, more fashion-conscious customers while retaining its tradition-minded base.
“Looking ahead, we remain intently focused on the continued execution of our strategic initiatives, particularly around marketing and branding, as well as in our ecommerce and catalog businesses. We remain committed to our brand strategy which is grounded in bringing the quality, value and service that Lands’ End is known for, to a broader customer base,” Marchionni said.