Lands' End Feels Net Effect
In an announcement that sent its share price tumbling 30%, Lands' End Inc. predicted that its transition to e-commerce will dampen fourth-quarter sales. The company earlier disclosed plans to cut catalog circulation pages by 20% in the second half of its fiscal 2000 to eliminate unprofitable mailings and move more business to its Web site.
Third-quarter sales at landsend.com rose about two and a half times over last year's levels for the same period, continuing a trend seen all year. In the most recent fiscal year, the clothing retailer's Web sales totaled $61 million, about 4.5% of overall net sales. Overall Lands' End sales for the third quarter ended Oct. 29 stood at $326 million, up 1% from the same quarter last year. Net income for the quarter was $8.8 million, compared with $300,00 last year, the Dodgeville, Wis.-based company says.
