Lands' End Revenue, Income Rise
Net income in the quarter was $16.5 million, up from $5.9 million.
Gross profit was $157 million, or 46 percent of total revenue, compared with $132 million, or 42.4 percent of total revenue, a year ago.
Merchandise gross profit margin increased because of higher initial margins from improved sourcing and lower levels of liquidations and lower provisions for inventory reserves. Lower liquidations of excess inventory resulted from a change in timing of the company's post-holiday clearance catalog that shifted revenue into the fourth quarter of last year.
Selling, general and administrative expenses in the quarter totaled $131 million, up 8 percent from $121 million in the previous year. As a percentage of total revenue, SG&A was 38.5 percent, compared with 39 percent in the previous year.
This month Sears, Roebuck and Co. said it will buy Lands' End for $62 per share.