Lands’ End shares jump after earnings beat and better-than-expected outlook

Business

A woman shops for Lands End brand sweaters in Niles, Illinois.
Tim Boyle | Getty Images

Land’s End shares jumped nearly 7% in premarket trading Wednesday after the apparel and home-goods retailer reported fourth-quarter earnings and sales that topped analysts’ estimates.

It also offered a better-than-expected outlook for the current quarter, and anticipates sales and profits to grow for the full year.

Here’s how Land’s End did for the quarter ended Jan. 29 compared with what analysts were anticipating, using a poll by Refinitiv:

  • Earnings per share: 60 cents vs. 56 cents expected
  • Revenue: $538.4 million vs. $530.9 million expected

Net income for the period fell to $19.9 million, or 60 cents per share, compared with $25.5 million or 78 per share, a year earlier. That came in better than the 56 cents per share expected by analysts.

Revenue declined about 2% to $538.4 million from $549.5 million in the year-ago period. That also came in better than the $530.9 million forecast by analysts.

Land’s End said its online sales globally rose 7.5%, including a 38% increase in e-commerce sales in Europe, and a 3.7% increase in the United States.

“We were well positioned to capitalize on the accelerated shift to online as a digitally-led company,” Chief Executive Jerome Smith said in a statement.

The company expects its 2021 revenue to be within $1.52 billion and $1.57 billion, with earnings per share of 34 cents to 58 cents. In fiscal 2020, the company’s revenue was $1.43 billion, with earnings of 33 cents a share.

It’s calling for first-quarter revenue of $275 million to $285 million, with a loss of 25 cents to 32 cents per share. Analysts had forecast the company’s revenue amounting to $240.6 million, on a loss of 47 cents per share, according to Refinitiv.

Land’s End shares are up more than 670% over the past 12 months. The company has a market cap of $1.15 billion.

Find the full press release from Land’s End here.

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