Specialty retailer Lands’ End Inc. (LE, Financial) reported its second-quarter results before the opening bell on Aug. 31.
The Wisconsin-based retailer posted a loss of 12 cents per share, just shy of the expected loss of 9 cents per share. Revenue of $302.2 million beat estimates of $293 million and grew from $292 million in the prior-year quarter.
Shares were down more than 7% in the hours after the announcement.
Struggling to compete in an aggressive retail environment, Lands’ End’s revenue has steadily declined over the past five years. It split off Sears Holdings Corp. (SHLD, Financial) in 2014 after being owned by the company since 2002, but it still operates Lands’ End Shops in select Sears locations.
While the direct segment’s net revenue increased 5.5% to $259.9 million, the retail segment’s revenue declined 7.4% to $42.2 million due to fewer Lands’ End Shops. Same-store sales for the quarter grew 3.8%.
CEO Jerome Griffith said in a statement he is pleased with the company’s progress across a number of key metrics.
“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," Griffith said. “As we look ahead, 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.”
Among the gurus invested in Lands’ End, Edward Lampert (Trades, Portfolio) has the largest holding. Bruce Berkowitz (Trades, Portfolio) and Mario Gabelli (Trades, Portfolio) are also shareholders.
Disclosure: I do not own any stocks mentioned.
