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LANDS' END REPORTS SECOND QUARTER RESULTS

 DODGEVILLE, Wis., Aug. 12 /PRNewswire/ -- Lands' End, Inc. (NYSE: LE), the international direct merchant of casual clothing, today reported that net sales for the three months ended July 30, 1993, were $151.1 million, up 9.4 percent from sales of $138.1 million in the second quarter last year. Net income for the quarter just ended was $3.6 million, or 20 cents per share, compared with $2.5 million, or 14 cents per share, for the same period last year.
 For the six months just ended, net sales were $307.3 million, an increase of 10 percent from sales of $279.5 million during the first half of last year. Before the cumulative effect of an accounting change, net income in the first half of fiscal 1994 was $7.8 million, or 43 cents per share, compared with $6.8 million, or 37 cents per share, for the similar period a year ago. During the first quarter of fiscal 1994, the company adopted Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes," which added approximately $1.3 million of income, or 7 cents per share.
 Management believes that net sales for the quarter rose primarily because of stronger customer reaction to its primary books and increased circulation of its specialty books. This was somewhat offset by a later mailing of the spring/summer clearance catalog and a higher percentage of lost sales (orders received for merchandise not in stock and not backordered).
 Gross profit in the quarter just ended equaled $62.7 million, or 41.5 percent of net sales, compared with $56.2 million, or 40.7 percent of net sales in the same quarter last year. Gross profit margin in the period just ended benefited from a higher proportion of sales of full price merchandise, mainly because the later mailing of the spring/summer clearance catalog shifted a substantial portion of lower margin sales from the second quarter to the third. Liquidations of excess inventory totaled about 9 percent of net sales during the second quarter, compared to approximately 13 percent in the prior year.
 Selling, general and administrative expenses increased to $56.8 million in the quarter just ended, compared with $52.0 million in the same period last year, principally due to the increased sales volume.
 As a percentage of sales, SG&A was 37.6 percent for the quarter, about the same as in the similar period last year. The SG&A ratio benefited primarily from continued economies in the cost of producing and printing catalogs and relatively greater demand. However, this was offset by relative increases in variable expenses, primarily due to increased package delivery costs, and fixed expenses.
 Inventory at the end of the second quarter was $134.6 million, slightly above last year's $131.5 million.
 LANDS' END, INC. & SUBSIDIARIES
 Consolidated Statements Of Operations
 Preliminary And Unaudited
 (Amounts in thousands, except per share data)
 Three months Six months
 Period ended 7/30/93 7/31/92 7/30/93 7/31/92
 Net sales $151,076 $138,075 $307,333 $279,488
 Cost of sales 88,412 81,858 180,509 166,425
 Gross profit 62,664 56,217 126,824 113,063
 SG&A expenses 56,819 51,976 114,343 101,647
 Income from operations 5,845 4,241 12,481 11,416
 Other income (expense):
 Interest expense (19) (346) (38) (667)
 Interest income 40 --- 128 ---
 Other 61 135 219 173
 Total other income
 (expense), net 82 (211) 309 (494)
 Income before income taxes and
 cumulative effect of change
 in accounting 5,927 4,030 12,790 10,922
 Income tax provision 2,373 1,531 4,993 4,150
 Net income before cumulative
 effect of change in
 accounting 3,554 2,499 7,797 6,772
 Cumulative effect of
 change in accounting
 for income taxes --- --- 1,300 ---
 Net income $ 3,554 $ 2,499 $ 9,097 $ 6,772
 Net income per share before
 cumulative effect of change
 in accounting $ 0.20 $ 0.14 $ 0.43 $ 0.37
 Cumulative effect of change
 in accounting --- --- 0.07 ---
 Net income per share $ 0.20 $ 0.14 $ 0.50 $ 0.37
 Weighted average shares
 outstanding 17,962 18,215 17,983 18,330
 Consolidated Balance Sheets
 Preliminary And Unaudited
 (Dollars in thousands)
 7/30/93 7/31/92
 Assets
 Current assets:
 Cash and cash equivalents $ 301 $ 969
 Receivables 2,288 627
 Inventory 134,639 131,544
 Prepaid expenses 8,898 6,956
 Income taxes receivable 636 ---
 Total current assets 146,762 140,096
 Property, plant and equipment, at cost:
 Land and buildings 55,457 53,517
 Fixtures and equipment 54,853 53,072
 Leasehold improvements 1,239 1,493
 Construction in progress 2,741 1,363
 Total property, plant and equipment 114,290 109,445
 Less - accumulated depreciation 39,077 35,561
 Property, plant and equipment, net 75,213 73,884
 Intangibles, net 1,908 43
 Total assets $223,883 $214,023
 Liabilities and shareholders' investment
 Current liabilities:
 Lines of credit $ 10,000 $ 39,000
 Current maturities of long-term debt --- 1,682
 Accounts payable 45,898 30,604
 Reserve for returns 2,321 2,510
 Advance payment on orders 386 274
 Accrued liabilities 16,634 12,733
 Accrued profit sharing 409 487
 Income taxes payable --- 560
 Total current liabilities 75,648 87,850
 Long-term liabilities 224 ---
 Long-term debt, less current maturities --- 1,667
 Deferred income taxes 1,296 2,953
 Shareholders' investment:
 Common stock, 20,110,294 shares issued 201 201
 Donated capital 8,400 8,400
 Paid-in capital 24,857 23,782
 Deferred compensation (1,569) (832)
 Retained earnings 162,421 130,191
 Treasury stock, 2,148,235 and 2,000,240
 shares at cost, respectively (47,595) (40,189)
 Total shareholders' investment 146,715 121,553
 Total liabilities and
 shareholders' investment $223,883 $214,023
 -0- 8/12/93
 /CONTACT: Charlotte LaComb of Lands' End, 608-935-4835/
 (LE)


CO: Lands' End, Inc. ST: Wisconsin IN: TEX SU: ERN

MP -- NY021 -- 2056 08/12/93 10:34 EDT
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Publication:PR Newswire
Date:Aug 12, 1993
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