Dive Brief:
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In its second earnings report since being spun off from struggling parent Sears, apparel retailer Lands’ End reported sales increases in e-commerce and brick-and-mortar.
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Internet and catalog sales saw a 7% sales increase to $292.6 million. Net merchandise sales fell 3% to $54.6 million due to the closing of Lands’ End stores that were within Sears stores.
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Lands’ End has made improvements to its product lines and inventory management and has been able to cut costs, the company said.
Dive Insight:
Before being acquired by Sears in 2002, Lands’ End was mostly a catalog company, and catalog and e-commerce remains the bulk of the company’s sales. While the spinoff this past April faced skepticism from many quarters, the apparel company has risen to the challenge, smoothing out many of its logistics. One of the more important reasons for Lands' End's success may be that it is offering clothing people want to buy.