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LANDS' END REPORTS THIRD QUARTER EARNINGS

 LANDS' END REPORTS THIRD QUARTER EARNINGS
 DODGEVILLE, Wis., Nov. 12 /PRNewswire/ -- Lands' End, Inc.


(NYSE: LE), the national direct merchant of casual clothing, today reported that net sales for the three months ended Oct. 30, 1992, totaled $176.2 million, up 7 percent from sales of $164.0 million in the same period last year. Net income for the period just ended was $5.5 million, or 31 cents per share, versus net income of $5.8 million, or 31 cents per share, in the third quarter last year.
 The weighted average number of common shares outstanding was 18.0 million for the current quarter and 18.7 million for last year's third quarter.
 For the first nine months of fiscal 1993, net sales increased 10 percent to $453.4 million, from $411.9 million for the same period in fiscal 1992. Net income for the current nine-month period was $12.3 million, equal to 68 cents per share, compared with $8.4 million, or 44 cents per share, for the similar period a year ago.
 Gross profit in the quarter just ended was $74.7 million, or 42.4 percent of net sales, compared with $68.6 million, or 41.8 percent of net sales in last year's third quarter. The increase in gross profit margin is due primarily to lower markdowns of liquidated merchandise, as well as slightly higher markups on full-price catalog offerings.
 Selling, general and administrative expenses in the quarter just ended were $64.9 million, up 11 percent from $58.2 million in the third quarter of last year. As a percentage of sales, SG&A was 36.8 percent in fiscal 1993, compared with 35.5 percent in fiscal 1992. A lower response to the company's catalogs has resulted in higher catalog and fixed expense ratios.
 Inventory at the end of the third quarter was $175.4 million, down 4 percent from $183.3 million at the same time last year.
 The company had previously stated that it planned to change the timing of several catalog mailings during the second half of the year. Doing so caused approximately $5 million of fourth quarter sales to fall instead into the third quarter, which had a positive impact on third quarter sales. However, customer demand in response to catalogs mailed has been below management's expectations, especially for the regular monthly catalogs, including the first of the company's two holiday catalogs. Though it is too early to determine, management thinks that softness in sales may continue throughout the important holiday selling season.
 LANDS' END, INC. & SUBSIDIARY
 Preliminary Consolidated Statements of Operations
 (Unaudited, amounts in thousands, except per share data)
 Periods ended Three months Nine months
 10/30/92 11/1/91 10/30/92 11/1/91
 Net sales $176,243 $164,038 $453,396 $411,950
 Cost of sales 101,521 95,394 265,451 240,366
 Gross profit 74,722 68,644 187,945 171,584
 SG&A expenses 64,850 58,244 166,659 156,313
 Income from operations 9,872 10,400 21,286 15,271
 Other income (expense):
 Interest expense (494) (831) (1,161) (1,182)
 Interest income -- -- -- 265
 Other (435) 38 (262) (404)
 Total other income
 (expense) (929) (793) (1,423) (1,321)
 Income before income taxes 8,943 9,607 19,863 13,950
 Income tax provision 3,399 3,843 7,548 5,581
 Net income $ 5,544 $ 5,764 $ 12,315 $ 8,369
 Net income per share $ 0.31 $ 0.31 $ 0.68 $ 0.44
 Weighted average shares
 outstanding 17,991 18,733 18,217 18,925
 LANDS' END, INC. & SUBSIDIARY
 Consolidated Balance Sheets
 Preliminary and Unaudited
 (Dollars in thousands)
 10/30/92 11/1/91
 Assets
 Current assets:
 Cash and cash equivalents $ 1,175 $ 1,168
 Receivables 1,338 1,171
 Inventory 175,400 183,257
 Prepaid expenses 13,994 13,190
 Total current assets 191,907 198,786
 Property, plant and equipment, at cost:
 Land and buildings 55,255 53,244
 Fixtures and equipment 55,008 50,717
 Leasehold improvements 1,494 1,558
 Total property, plant and equipment 111,757 105,519
 Less - accumulated depreciation
 and amortization 37,374 30,156
 Property, plant and equipment, net 74,383 75,363
 Total assets $266,290 $274,149
 Liabilities and shareholders' investment
 Current liabilities:
 Lines of credit $ 55,000 $ 80,000
 Current maturities of long-term debt 1,682 1,682
 Accounts payable 61,698 51,753
 Advance payment on orders 1,167 364
 Accrued liabilities 18,252 17,893
 Accrued profit sharing 604 349
 Income taxes payable 3,543 3,412
 Total current liabilities 141,946 155,453
 Long-term debt, less current maturities -- 1,682
 Deferred income taxes 2,953 4,451
 Shareholders' investment:
 Common stock, 20,110,294 shares issued 201 201
 Donated capital 8,400 8,400
 Paid-in capital 23,782 23,782
 Deferred compensation (1,730) (914)
 Retained earnings 135,729 106,752
 Treasury stock, 2,167,140 shares and
 1,535,540 shares at cost, respectively (44,991) (25,658)
 Total shareholders' investment 121,391 112,563
 Total liabilities and
 shareholders' investment $266,290 $274,149
 -0- 11/12/92
 /CONTACT: Charlotte LaComb of Lands' End, 608-935-4835/
 (LE) CO: Lands' End ST: Wisconsin IN: TEX SU: ERN


TS -- NY011 -- 0004 11/12/92 08:18 EST
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Date:Nov 12, 1992
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