Lands' End Tops Estimates by a Penny

Lands' End (LE Quote - Cramer on LE - Stock Picks) reported fourth-quarter earnings this morning that beat Wall Street's slightly lowered estimates by a penny, but offered "conservative" guidance because of the economic uncertainty.

For the fourth quarter ended Jan. 26, Lands' End earned $31.8 million, or $1.07 a share, up from $28.3 million, or 92 cents a share, in the year-ago period. Eight analysts surveyed by First Call/Thomson Financial expected the company, which is based in Dodgeville, Wis., to earn $1.06 a share.

Lands' End posted fourth-quarter revenue of $538.6 million, up 11.5% from $483.1 million in the same period one year ago.

The casual wear retailer said total revenue is up about 19% in the first five weeks of the current first quarter as a result the shift in the timing of the end-of-season clearance catalog.

"We are taking a conservative approach to our business in light of the uncertainty in the U.S. economy, particularly in the retail environment," the company said.

For fiscal 2002, Lands' End expects sales to increase in the single-digit range. As a result, the company estimates an increase in diluted earnings per share of at least 20% for the year as a whole, up from 2001's earnings of $1.14 a share. Nine analysts surveyed by First Call expect the company to earn $1.52 a share in 2002.

Shares of Lands' End gained $3.52 a share, or 15.2%, to $26.75 in recent New York Stock Exchange trading.