Lands’ End, Inc., Dodgeville, WI, reported fiscal year 1999 sales from its Web site of $61 million, up from $18 million in fiscal year 1998. The announcement marks the first time sales from the Internet have been broken out in its financial figures.
For the year, the company had $1.37 billion in sales, up 8.5% from $1.26 billion in 1998. Lands’ End attributed the increase to an increase in catalogs and pages mailed. During the past two years, the company has increased its catalog circulation by 22%, and its page circulation by 38%. Net income for the year, however, fell 51%, from $64.2 million to $31.2 million.
For the fourth quarter, the company had sales of $541 million, up 12.6% from fourth-quarter 1998 levels of $480 million. Net income fell 38%, from $41.3 million to $25.7 million.
As part of the increased focus on its e-commerce activities, and in recognition of changing demographics on the Internet, Lands’ End launched a merchandising and creative push to attract more women to its site. As a result, for the first time in the history of the site, women’s products sold equal to men’s products during December. A “significant portion” of the site’s total FY 1999 sales occurred in the fourth quarter. According to the company, 20% of the Internet customers during the year were new to Lands’ End.
Lands’ End is a direct marketer of casual wear for the family, products for bed and bath, shoes, and accessories, which are offered through its catalogs and the Internet.
