Dodgeville, WI—As one analyst put it today, “Sears isn’t Lands’ End.” That’s for sure. The stock of Lands’ End rose in trading today as much as 12.5% upon the news of its second quarter earnings and a 4.9% increase in sales.
Since it was spun off from Sears Holdings, Lands’ End has seen a pick up in its shares and sales. The catalog retailer said today that its second quarter profit was $11.3 million, or 37 cents a share, up from $10.9 million, or 35 cents a share in the year-earlier period. And above consensus analyst estimate of 17 cents a share.
‘Positive Customer Response’
The latest quarterly report is just its second report as a public company. Sales were higher in both its direct and retail businesses.
Sales rose 5.4% to $347.2 million, ahead of analysts estimate for revenue of $333 million. Comparable store sales were up 2.8%.
Merchandise sales and services, net in the Direct segment rose 7.1% to $292.6 million in the quarter, while merchandise sales and services, net in the Retail segment fell 2.9% to $54.6 million.
The results were boosted by a 3.1 percentage point increase in gross margin to 48.5%. Operating income climbed 37.6% to $25.3 million, while adjusted EBITDA rose 26.6% to $30.1 million in the quarter. Selling and administrative expenses increased 9.8% to $138.3 million in the quarter.
Edgar Huber, Lands’ End’s president/chief executive, said, “We are pleased with our second quarter results and our progress towards growing the business and building Lands’ End into a global lifestyle brand. While the overall retail environment remained challenging, we continued to see positive customer response to our merchandising and marketing initiatives and remain focused on improving the contemporary relevance of the Lands’ End brand.”
On August 1, Lands’ End operated 247 Lands’ End Shops at Sears and 14 Lands’ End outlet stores.