Lands’ End swings to Q2 loss, lowers FY outlook

US fashion retailer Lands’ End has lowered its full-year guidance amid supply chain disruption.

It comes as the company swung to a second-quarter loss and posted a decrease in revenue, though both results were better than expected.

In the three months to July 29, Lands’ End reported an 8.6 percent drop in revenue to 351.2 million dollars.

Global e-commerce revenue dropped 16 percent in the quarter, with the company citing delayed receipts of key products owing to global supply chain disruption and macroeconomic challenges.

On a brighter note, Outfitters net revenue was up 7.7 percent, which it said was “attributed to stronger demand within school uniform households and national accounts”.

Meanwhile, Third Party net revenue increased 42.9 percent thanks to growth in the Kohl’s online marketplace, as well as in other new and existing online marketplaces.

Lands’ End in the red

The company swung to a net loss of 2.2 million dollars from a profit of 16.2 million dollars the prior year.

CEO Jerome Griffith told investors: “We are very pleased with our performance this quarter, exceeding our revenue and profit expectations.

“Despite global supply chain and consumer challenges, our teams continue to successfully navigate these challenges.”

Based on its Q2 results, Lands’ End cut its full-year guidance. The company now expects net revenue of between 1.6 billion dollars and 1.64 billion dollars compared to previous guidance of between 1.62 billion dollars and 1.68 billion dollars.

It expects net income of between 16.5 million dollars and 23.5 million dollars compared to previous guidance of between 20 million dollars and 29 million dollars.

Culled from Fashion United.