Lands’ End Inc., Dodgeville, WI, had second quarter sales of $255.5 million, up only slightly from second-quarter 1999 levels of $254.6 million. But the company also had a net loss of $1.9 million for the quarter just ended, compared with net earnings of $4.5 million. The quarter ended July 28.
Lands’ End partly attributed its loss to liquidation sales, primarily in Japan, as well as increases in catalog advertising expenses. The company increased its page and catalog circulation during second quarter 2000, especially to inactive buyers. This resulted in a drop in revenue realized per page mailed.
The company also recorded national advertising expenses $3 million higher than in the previous year’s quarter, as well as an additional $4 million of fixed expenses in information technology.
The company plans to aggressively increase fourth-quarter catalog mailing, increasing total page circulation by 20%.
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