Lands’ End stock surges toward 2-year high after loss narrows, revenue rises above expectations
Shares of Lands’ End Inc. jumped 6.4% in premarket trade Tuesday, putting them on track to open at a two-year high, after the clothing, accessories and home products retailer reported a fiscal first-quarter loss that narrowed from a year ago and revenue that rose above expectations. The net loss for the quarter to May 4 was $2.6 million, or 8 cents a share, compared with a loss of $7.8 million, or 24 cents a share, in the same period a year ago. The average per-share loss estimate of two analysts surveyed by FactSet was 17 cents. Revenue rose 12% to $299.8 million, above the FactSet average estimate of $285.0 million. Retail segment revenue declined 34% to $26.5 million, primarily because of few Lands’ End Shops at Sears stores. Same-store sales declined 18.9%, while gross margin fell to 44.4% from 45.7%. The stock has run up 20.2% year to date through Monday, while the SPDR S&P Retail ETF has climbed 10.8% and the S&P 500 has gained 4.1%.