Dodgeville, WI-based Lands’ End Inc. has reported that net sales for the eight weeks ended Dec. 24, 1999 totaled $352 million, down 14.6 percent from sales of $412 million during the eight weeks ended Dec. 25, 1998.
As planned, during the holiday period this year, about 25 percent fewer catalog pages were mailed than last year.
“This has clearly been an unexpectedly disappointing holiday season for us,” David F. Dyer, president and CEO, said in a statement. “We cut page circulation to reduce unprofitable mailings and improve profitability, but as a result, I believe we did not make sufficient contact with our customers in the holiday period.” He added that these moves were taken in anticipation of “significant” new product introduction in the spring and said he believes the strategy is correct, although adjustments will be made in the strategy.
Net income for the eight-week period just ended was $33.4 million, up 32.8 percent from the $25.1 million earned in the similar holiday period in 1998. The prior year’s holiday period includes a non-recurring charge of $11.1 million. Excluding that charge, net income for the eight-week period ended Dec. 25, 1998 was $32.1 million.
