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Lands' End Stock Drops; Q3 Report Notes Supply-Chain Challenges

Retailer Lands' End says inventories recovered heading into the Cyber Monday week.

Shares of Lands' End  (LE) - Get Lands' End, Inc. Report fell on Thursday after the retailer reported fiscal-third-quarter results and noted supply-chain "challenges."

For the third quarter ended Oct. 29 Lands' End reported earnings of $7.4 million, or 22 cents a share, 3% higher than the $7.2 million, or 22 cents a share, of the year-earlier quarter. 

Revenue rose 4.4% to $375.8 million from $360 million in the year-earlier period.

Shares of the Dodgeville, Wis., company at last check fell 10% to $19.73. They've traded on Thursday off as much as 17% at $18.13.

Land's End is a multichannel retailer of casual clothing, accessories, and footwear, as well as home products. 

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"We delivered encouraging results in the third quarter, given the challenging environment," President and Chief Financial Officer Jim Gooch said in a statement.

"We have taken numerous actions to expedite receipts, and despite supply chain delays, which negatively impacted our in-stock position and sales early in the fourth quarter, we recovered our in-stock position to historical levels heading into Cyber Week." 

“Our third quarter performance reflects the long-term strength and resiliency of our digitally led business model, as we navigated the dynamic global supply chain challenges while still delivering on our adjusted Ebitda expectations," Chief Executive Jerome Griffith said in a statement.

"For Cyber Week, which just concluded, our sales increased high single digits as a result of strong demand online and in store and our improved in-stock positions," Griffith added.

For the fourth quarter, Lands' End expects revenue to increase 4% to 7%, to between $560 million and $575 million.

The company expects fiscal fourth-quarter net income  per share of 27 cents to 36 cents.