Mar 27, 2015
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Lands’ End reports a 28% decrease in its latest quarter

Mar 27, 2015

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.

$1 = £0.67

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