Lands’ End reports a 28% decrease in its latest quarter
American clothing retailer Lands’ End published its fourth quarter 2014 financial report on Wednesday. The company saw an increase in gross margin and a decrease in several sectors of the business.
Merchandise sales and services decreased 4.9% to $504.6 million in the fourth quarter, down from the $530.4 million in the year prior. The company increased expenses due to a product recall. The operating expense increased to $3.2 million from $3.0 million due to this.
The alarming figure is the 28% decrease in net income, which decreased to $33.1 million from $45.9 million in the previous year.
The company estimates that the product recall negatively affected sales and net income by $3.4 million and $2.8 million in the fourth quarter. Though there may have been additional costs related to the product recall, Lands’ End does not believe that the costs will be material.
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