Lands’ End Q4 Profit Off 28%

Lands’ End Inc. finished its first year of separation from Sears Holdings Corp. with sharp declines in sales and earnings. The Dodgeville, Wisc.-based direct marketer and retailer of casual clothing and related products also reported a recall of children’s sleepwear products in the fourth quarter and the departure of Michele Donnan-Martin as its executive vice president and chief merchandising and design officer. Former Dolce & Gabbana executive Federica Marchionni succeeded Edgar Huber as chief executive officer on Feb. 17. In the fourth quarter ended Jan. 30, net income fell 28 percent to $33.1 million, or $1.03 a diluted share, from $45.9 million, or $1.44, in the prior-year quarter. Without the product recall, which involved 25 styles of children’s sleepwear that failed to meet federal flammability standards, EPS would have been $1.12. Revenues in the quarter slid 4.9 percent to $504.6 million from $530.4 million as direct sales were off 2.6 percent to $431.8 million. Retail sales, hampered by the operation of fewer shops within Sears stores and a 7.9 percent decline in same-store sales, were down 16.6 percent to $72.8 million. The separation from Sears, completed on April 4, also resulted in a decline in Shop Your Way redemption credits by Lands’ End. While top-line results

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