Lands' End Swings to Profit on Investment Gain

Revenue for the period ended May 1 slid 8.5% to $238.9 million, falling short of the $268.7 million analysts had projected. The company pointed to a botched rollout of a new warehouse-management system that forced a slowdown in shipments. Executives noted that without these distribution center disruptions, the business would have likely achieved low-single-digit revenue growth. Adjusted for one-off items, the firm posted a loss of 11 cents a share, outperforming the 20-cent loss anticipated by FactSet analysts.

Inventories ballooned by 14% by the quarter's close, a byproduct of the distribution slowdown and tariff impacts. Despite the operational hurdles, Chief Executive Andrew McLean highlighted positive underlying indicators, including double-digit growth in consumer traffic and a robust performance from the European division. Looking toward the second quarter, the company anticipates revenue between $290 million and $310 million, with a projected net loss of up to $5 million as it works to align inventory levels with its broader sales trajectory.