Dive Brief:
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Lands' End Inc. Thursday said Q1 sales fell an unexpected 9.4%. Q1 net sales decreased to $299.4 million from $330.5 million year-over-year.
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Q1 revenue from the company's direct sales (web and catalog) — which is most of its business —decreased 8.2% to $253.4 million, hurt by a weaker international economy, the strong dollar, and West Coast port delays, the company said.
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Retail-segment sales decreased 15.5% to $46 million, including a 12.1% drop in same-store sales.
Dive Insight:
At first, when Lands’ End separated from Sears last Spring, the retailer did fairly well on its own. But it may have suffered from its continuing association with that faltering retailer — as many of Lands’ End store remain within Sears stores.
Still, most of Lands’ End’s business comes from its catalog, true to its origins as a catalog-only retailer, and that should have some natural segue to e-commerce. The company has also gained praise for the quality and design of its apparel. The question now for Lands’ End is whether its strengths can help it weather its current headwinds.