Lands’ End Posts Huge Gain in Quarterly Profit

Lands’ End Inc. surprised Wall Street by posting a significant rise in first-quarter profit and announcing it expects earnings to grow by at least 20% for the full year. The Dodgeville, Wis.-based catalog retailer, known for its preppie-style casual apparel, said net income for the quarter ended April 27 was $5.9 million, or 20 cents a share, substantially higher than analysts’ consensus estimate of 2 cents. Lands’ End posted a profit of $292,000, or 1 cent, in the year-earlier period. Sales rose 9% to $311.1 million.

The better-than-expected earnings and earnings projection sent Lands’ End shares surging $4.12, or 13.6%, to close at $34.31 on the NYSE.

Lands’ End said that although it continues to take a conservative approach to business in light of the lackluster U.S. economy, it still expects sales to increase in the single-digit range for the fiscal year ending January 2002 and expects earnings to grow by at least 20%.

Still, company executives reminded investors that the second quarter has traditionally been the weakest of the year and that, as with most retailers, the year’s success depends largely on results in the fourth quarter.