Evanston, IL – Chief Executive Officer and President of Lands’ End Inc., Jerome Griffith, announced last Tuesday that the uniform retailer plans to allow third-party sellers and brands to market their product offerings on their official website.
The announcement dropped shortly after the company’s first-quarter financial outcomes. Lands’ End (Nasdaq: LE) recorded $217 million in net sales, a 17.3% drop compared with the same time last year. The Dodgeville-based merchant said it ended the quarter with a net loss of $20.6 million, or 64 cents per share.
Griffith remarked that the “Lands’ End Marketplace” is the direct result of customer feedback to the company’s “let’s get comfy” marketing campaign and conversions on the Lands’ End website. It was also stated by Griffith that third-party products sold on the marketplace will align with the theme of “comfy.”
The process of onboarding sellers for the platform is well underway and it aims to feature 12 different sellers by the end of 2020. Despite netting a loss brought on by the Coronavirus pandemic, Lands’ End executives said they see the company’s lines of business rebounding at different rates throughout the remainder of the year. Lands’ End finished the quarter with $59.1 million in cash and cash equivalents.
In response to the COVID-19 global crisis, Lands’ End closed its stores in mid-March to comply with state and federal business regulations. They also implemented employee furloughs and reduced pay for executives and corporate staff amongst other measures.
As of June 2020, the retailer’s 26 stores have begun to reopen with expectations to be fully reopened by the end of June. Although Lands’ End had also planned to open five additional stores by August, all proposals for store explanations are temporarily paused as Griffith and his corporate leaders will be evaluating company strategy, monitoring customer buying behavior, and staying abreast of federal and state guidelines for COVID-19.
“We view these locations as extensions of our e-commerce business, as well as longer-term drivers of growth,” Griffith told analysts. “These stores allow us to provide convenience and personalized service to our customers.”
The business said net revenue in its global e-Commerce business is expected to grow in the second half of the year, and retail sales are expected to ramp up.
Lands’ End expects a slower recovery in its outfitters business because of pressure on its large national accounts, 60% of which are exposed to the travel industry. Its school uniforms business is anticipated to recover faster as schools reopen.
