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LANDS' END REPORTS SECOND QUARTER RESULTS

 LANDS' END REPORTS SECOND QUARTER RESULTS
 DODGEVILLE, Wis., Aug. 13 /PRNewswire/ -- Lands' End, Inc.


(NYSE: LE), the international direct merchant of casual clothing, today reported that net sales for the three months ended July 31, 1992, were $136.7 million, up 12.6 percent from sales of $121.4 million in the second quarter last year. Net income for the quarter just ended was $2.5 million, or 14 cents per share, compared with $1.1 million, or 6 cents per share, for the same period last year.
 For the six months just ended, net sales were $277.2 million, an increase of 11.8 percent from sales of $247.9 million during the first half of last year. Net income in the first half of fiscal 1993 was $6.8 million, or 37 cents per share, compared with $2.6 million, or 14 cents per share, for the similar period a year ago.
 During the quarter just ended, net sales improved primarily because of increased demand. Lost sales (orders received for products not currently in stock and not backordered), backorders and customer returns were relatively the same as the prior year.
 Gross profit in the quarter just ended equaled $56.3 million, or 41.2 percent of net sales, compared with $50.7 million, or 41.8 percent of net sales in the same quarter last year. The decline in gross profit margin was due primarily to steeper markdowns of liquidated merchandise, partially offset by a favorable LIFO provision. Liquidations of excess inventory totaled about 13 percent of net sales during the second quarter, about the same as in the prior year.
 Selling, general and administrative expenses increased to $52.1 million in the quarter just ended, compared with $48.7 million in the same period last year, mainly due to the increased sales volume.
 As a percentage of sales, SG&A was 38.1 percent in fiscal 1993, compared with 40.1 percent last year. The SG&A ratio benefitted from relatively lower variable costs, due primarily to greater efficiency in shipping and handling customer orders, and a reduction in overall catalog costs. This was somewhat offset by a relative increase in fixed expenses.
 Inventory at the end of the second quarter was $131.5 million, up 9 percent from $120.2 million at the same time last year when the company began to build inventory to improve its fulfillment and customer service.
 The company currently plans to change the timing of several catalog mailings during the second half of the year and expects that doing so will cause some sales which normally occur in the fourth quarter to fall instead into the third quarter of the current fiscal year. This shift in timing is not expected to have a material effect on overall sales for the year.
 Capital spending for fiscal 1993 is currently planned at about $10 million, compared with about $5 million in fiscal 1992. As of July 31, 1992, $3.3 million had been expended.
 LANDS' END, INC.
 PRELIMINARY AND UNAUDITED
 CONSOLIDATED STATEMENTS OF OPERATIONS
 (Amounts in thousands, except per share data)
 Three months ended Six months ended
 July 31, Aug. 2, July 31, Aug.2,
 1992 1991 1992 1991
 Net sales $136,671 $121,393 $277,152 $247,910
 Cost of sales 80,374 70,648 163,931 144,971
 Gross profit 56,297 50,745 113,221 102,939
 Selling, general and
 administrative expenses 52,056 48,684 101,805 98,069
 Income from operations 4,241 2,061 11,416 4,870
 Other income (expense):
 Interest expense (346) (230) (667) (351)
 Interest income 23 - 265
 Other 135 (10) 173 (443)
 Total other income
 (expense), net (211) (217) (494) (529)
 Income before income
 taxes 4,030 1,844 10,922 4,341
 Income tax provision 1,531 738 4,150 1,737
 Net income $ 2,499 $ 1,106 $ 6,772 $ 2,604
 Net income per share $ 0.14 $ 0.06 $ 0.37 $ 0.14
 Weighted average shares
 outstanding 18,215 18,927 18,330 19,022
 LANDS' END, INC.
 PRELIMINARY AND UNAUDITED
 CONSOLIDATED BALANCE SHEETS
 (Dollars in thousands)
 July 31, Aug. 2,
 1992 1991
 Assets
 Current assets:
 Cash and cash equivalents $ 969 $ 801
 Receivables 627 811
 Inventory 131,544 120,226
 Prepaid expenses 6,956 6,716
 Total current assets 140,096 128,554
 Property, plant and equipment, at cost:
 Land and buildings 53,517 52,830
 Fixtures and equipment 53,115 49,174
 Leasehold improvements 1,493 1,543
 Construction in progress 1,363 7
 Total property, plant and equipment 109,488 103,554
 Less - accumulated depreciation
 and amortization 35,561 28,166
 Property, plant and equipment, net 73,927 75,388
 Total assets $214,023 $203,942
 Liabilities and shareholders' investment
 Current liabilities:
 Lines of credit $ 39,000 $ 35,000
 Current maturities of long-term debt 1,682 1,682
 Accounts payable 30,604 34,974
 Advance payment on orders 274 183
 Accrued liabilities 15,243 13,435
 Accrued profit sharing 487 173
 Income taxes payable 560 28
 Total current liabilities 87,850 85,475
 Long-term debt, less current maturities 1,667 3,349
 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 (832) (953)
 Retained earnings 130,191 100,988
 Treasury stock, 2,000,240 and 1,344,940
 shares at cost, respectively (40,189) (21,751)
 Total shareholders' investment 121,553 110,667
 Total liabilities and
 shareholders' investment $214,023 $203,942
 -0- 8/13/92
 /CONTACT: Charlotte LaComb of Lands' End, 608-935-4835/
 (LE) CO: Lands' End, Inc. ST: Wisconsin IN: REA SU: ERN


DC -- NY017 -- 9530 08/13/92 10:32 EDT
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Date:Aug 13, 1992
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