Lands’ End reports a 7.5% increase in its fourth-quarter eCommerce sales
- Lands’ End reports a 7.5% increase in its fourth-quarter eCommerce sales.
- The clothing & home décor retailer's profit & sales come in lower than last year.
- Lands’ End shares were about 7% down in premarket trading on Wednesday.
Lands’ End Inc. (NASDAQ: LE) said on Wednesday that its profit in the fiscal fourth quarter came in lower than last year. The COVID-19 restrictions, the company added, also weighed on its quarterly sales due to higher logistics costs.
Lands’ End shares were reported about 7% down in premarket trading on Wednesday. Including the price action, the stock is now exchanging hands at £25.85 per share. In comparison, Lands’ End had started the year at a per-share price of a much lower £15.11. The price action should come in handy if you are interested in investing in the stock market.
Lands’ End financial results in the fourth quarter
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Lands’ End said that its net income in the fourth quarter printed at £14.32 million that translates to 43.18 pence per share. In the same quarter last year, its net income stood at a higher £18.35 million, or 56.14 pence per share.
The clothing and home décor retailer valued its revenue in Q4 at £387.51 million versus the year-ago figure of £395.50 million. Lands’ End said its eCommerce sales jumped 7.5% in the recent quarter. Digital sales were up 3.7% in the United States, while a much broader 38% annualised increase in online sales was seen in Europe.
According to the Dodgeville-based company, its gross margin slid to 39.5% in the fourth quarter from 39.8% in the comparable quarter of last year. The decline, Lands’ End added, was attributed to the higher shipping costs in recent months. Its improved promotional strategies, however, helped offset this decline.
In separate news on Wednesday, the China-based eCommerce company Pinduoduo said that its quarterly revenue jumped 146% as the ongoing health emergency continues to restrict people to their homes.
Lands’ End full-year financial results
For the full financial year, Lands’ End reported £1.03 billion of net revenue – a 1.6% decline from 2019. Its full-year adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at £62.62 million, compared to a lower £56.07 million last year.
Lands’ End’s earnings report comes only a day after the home construction company Lennar Corp published market-beating results for its fiscal first quarter.
Lands’ End performed largely upbeat in the stock market last year with an annual gain of close to 40%. At the time of writing, the Nasdaq-listed company has a market cap of £830 million and a price to earnings ratio of 70.27.