Lands’ End’s first-quarter loss widened and revenue dropped for the 11th straight quarter but the struggling apparel retailer pointed to positive same-store sales as a sign of a turnaround.
For the quarter ended April 28, Lands’ End posted a net loss of $7.8 million, or $0.24 per share, compared with a net loss of $5.8 million, or $0.18 per share, during the same period last year.
Net revenue fell $268.4 million from $273.4 million in the first quarter last year but same-store sales, a key metric for retailers, increased 2.1%. Analysts had expected a loss of $0.22 per share on revenue of $270 million.
“First-quarter results were in line with our expectations, as we continued to make progress across a number of key areas,” Lands’ End CEO Jerome Griffith said in a news release. “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.”
The company said net revenue from its direct segment, including catalog and e-commerce, decreased 1.7% to $228.3 million, while retail segment net revenue declined 2.8% to $40.0 million, primarily due to fewer Lands’ End Shops at Sears.
“Lands’ End continues to suffer from its association with Sears, which … spun off the apparel retailer in 2013,” RetailDive reported.
Griffith said Lands’ End is focused on “leveraging our strong brand and loyal customer base, as we concentrate on several key initiatives over the remainder of the year. These include developing a brand appropriate product assortment that represents the Lands’ End brand and is relevant to our customer.”
According to the Milwaukee Journal Sentinel, that comment appeared to refer to former CEO Federica Marchionni and her short-lived effort to give a more fashion-forward spin to Lands’ End with the Canvas line of slimmer-fitting, more stylish and pricier apparel. Last quarter, the retailer wrote down $6.7 million of prior-season Canvas inventory.