Lands’ End profits rise, but shares decline on revenue

Lands' End saw an increase in profitability for its fourth quarter, but its stock price fell due to lower-than-expected revenues. The company made a net income of $18.5 million for the quarter ending January 31, 2025, compared to a loss of $8.6 million a year earlier. However, net revenues dropped by 14.2% to $441.7 million, which disappointed investors. CEO Andrew McLean attributed the profit increase to better inventory management and an effort to attract younger customers. Despite the revenue decline, the company improved its gross profit and margins throughout 2024. Lands' End reported $1.36 billion in revenues for the entire year, down from $1.47 billion in 2023, but returned to profitability. The company highlighted successful licensing initiatives as a major growth area. McLean noted that the firm doubled its Instagram followers in a year and effectively used social media to reach younger audiences. Additionally, a recent product launch with Andie Swim gained traction on social media. Despite these successes, Lands' End struggled in Europe and is seeking ways to improve its international business. This led to the hiring of a new executive to enhance their brand identity overseas. Following the disappointing revenue report, Lands' End's stock dropped by 12% to $10.02. The company expects revenues in the first quarter of 2025 to range between $260 million and $290 million. While anticipating some revenue growth, they also expect a net loss in the first quarter. As part of a strategic review, Lands' End is exploring options like a sale or merger to boost shareholder value. This decision follows pressure from a major investor who owns over 53% of the company’s shares. Lands' End, once part of Sears, became a standalone company in 2014 after its parent struggled financially.