Lands' End Surges on Swing to First-Quarter Profit

Lands' End swings to a first-quarter profit as the casual-apparel retailer's e-commerce revenue increases 44%. The shares are higher.
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Lands' End  (LE) - Get Report shares were reaching higher on Wednesday after the casual-apparel retailer swung to a first-quarter profit and shattered Wall Street's expectations.

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Shares of the Dodgeville, Wis., company at last check were 2.4% higher at $30.75.

For the quarter ended April 30, Lands' End reported net income of $2.6 million, or 8 cents a share, compared with a net loss of $20.6 million, or 64 cents a share, in the year-earlier quarter. The FactSet analyst consensus called for a loss of 29 cents a share in the latest quarter.

Revenue totaled $321.3 million, up 48% from a year earlier and surpassing the FactSet consensus of $280.3 million.

The outfitters unit, which supplies uniforms to schools as well as airlines and other companies, saw revenue increase nearly 28% from a year earlier. The rise came on the back of stronger demand within the company’s travel-related national accounts and school uniform customers.

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E-commerce revenue came to $260 million, a 44% increase from a year earlier. U.S. e-commerce increased 47% and international e-commerce grew 37%.

Third-party revenue, which includes sales on third-party marketplaces and U.S. wholesale revenue, was $11.8 million, up from $1.5 million. The company attributed the jump to the launch of Lands’ End product on and at 150 Kohl’s  (KSS) - Get Report retail locations in third-quarter 2020.

Looking ahead, the company now expects earnings of 5 cents to 12 cents a share, and revenue to range between $345 million and $355 million. 

FactSet is forecasting a loss of 16 cents a share and revenue of $321 million. 

For the full year, Lands End is calling for net income of 84 cents to $1.04 a share on revenue of $1.61 billion to $1.65 billion. FactSet is calling for full-year earnings of 45 cents a share and revenue of $1.58 billion.

"Our global e-commerce business is stronger than ever as we continued to execute our digitally led product and marketing strategies, while the recovery in outfitters is occurring at a faster pace than we expected," Chief Executive Jerome Griffith said in a statement.

Last week, clothing retailer American Eagle Outfitters  (AEO) - Get Report missed Wall Street's first-quarter expectations

In addition, Gap  (GPS) - Get Report topped analysts' fiscal-first-quarter estimates and two investment firms raised their price targets on the stock.