Private equity firm Apollo Global Management will take Rackspace private in the all-cash deal.
In its first quarterly report since its spin-off from Sears, Lands’ End disclosed that nearly 84% of its sales came from the web and catalog sales. Direct sales increased 4.8% while in-store sales dropped 2.3% in the retailer’s fiscal first quarter.
Lands’ End is poised to be a major contender in next year’s Internet Retailer Top 500 Guide, as the merchant disclosed its quarterly sales figures for the first time since separating from former parent company Sears Holdings Corp.
Around 83.6% of its total sales in fiscal Q1 came from the direct channel, which includes e-commerce and catalog orders, Lands’ End says. The merchant did not disclose the exact dollar amount of its web sales, but a spokesman says online sales account for most direct revenue.
For the first fiscal quarter ended May 2, 2014, Lands’ End reported:
- Direct sales, which includes catalog and online orders, of $276.0 million, up 4.8% from $263.3 million in the first quarter of fiscal 2013.
- Total sales of $330.5 million, up 3.6% from $319.0 million.
- Sales from its retail component, which comprises 251 Lands’ End Shop at Sears locations and 14 independent stores, was $54.4 million, down 2.3% from $55.7 million.
- Net income increased approximately 48.3% to $10.87 million compared with $7.33 million last year.
“We are very pleased with our first quarter results and our progress towards growing the business and building Lands’ End into a global lifestyle brand,” says president and CEO Edgar Huber. ”Despite a very challenging retail apparel environment, we drove strong earnings growth through an improved merchandise assortment architecture, more targeted promotions, improved inventory management and continued expense controls. We are excited to be operating, once again, as an independent public company and believe we are well positioned to execute against our strategic initiatives to drive sales and earnings growth.”
Lands’ End separation from Sears was completed on April 4. Sears, No. 5 in the 2014 Internet Retailer Top 500, has been struggling in recent years under declining sales, and it has been closing stores and shedding assets. In May, the merchant announced plans to sell a 51% stake in Sears Canada, and it closed its flagship store on State Street in Chicago in early April.
Sears generated $4.9 billion in online sales last year, based on an Internet Retailer estimate. The initial Lands’ End report suggests it accounted for roughly 20% of those web sales. Without Lands’ End, Sears’ ranking in the Top 500 Guide is likely to fall next year.