Online sales slide for Lands’ End during Q2
September 15, 2015 10:29 AM
Direct sales, which consist of online and catalog orders, continued to head south for apparel retailer Lands’ End in the second quarter of fiscal 2015.
Lands’ End, No. 38 in the Internet Retailer 2015 Top 500 Guide, reported direct sales of $264.7 million during the quarter, down 9.5% from $292.6 million during the same time last year. It’s been a similar story through the first half of fiscal 2015, with Lands’ End reporting direct sales of $518.1 million, down 8.9% from $568.6 million during the same time last year.
CEO Federica Marchionni told analysts on Lands’ End’s Q2 2015 earnings call that it’s a priority to stem the online sales slide.
“Since our direct segment represents our largest revenue channel, we are focused on providing our loyal consumer and our new consumer a more compelling and simplified online experience to ultimately increase our conversion rate and average order value,” she said, according to a transcript from Seeking Alpha.
Marchionni said Lands’ End has made several improvements to its e-commerce site over the past few months. “We are looking to build site architecture, redesign the product page and integrate social media logins onto the website to further drive traffic conversion and ultimately sustained growth,” she said.
All planned e-commerce enhancements are expected to be completed early next year.
For the second quarter ended July 31, Lands’ End reported:
- Net revenue of $312.4 million, down 10.0% from $347.2 million during the same time last year.
- Retail sales of $47.6 million, down 12.8% from $54.6 million during the same time last year.
- Net income of $7.5 million, compared to $11.8 million this time last year.
For the first half of fiscal 2015, Lands’ End reported:
- Net revenue of $611.8 million, down 9.7% from $677.7 million during the same time last year.
- Retail sales of $93.6 million, down 14.2% from $109.1 million during the same time last year.
- Net income of $9.2 million, compared to $22.7 million this time last year.