Boston, MA 09/11/2014 (wallstreetpr) – Lands’ End, Inc. (NASDAQ:LE) reported gross profit of $168.4 million in its second quarter results. It is a growth of 12.5% year-over-year. The gross margin jumped by 310 basis points to come at 48.5% in the second quarter. The growth of 49.2% in the Direct Segment boosted gross margins in the second quarter. The retails sector gross margin expanded by 200 basis points to come at 44.7%. The improvement of gross margins in both the segments was a result of a targeted promotional strategy adopted by Lands’ End. The redesigned structure of merchandise assortment architecture further added in margin expansions.
The financial highlights
Lands’ End, Inc. (NASDAQ:LE) reported a net increase of 5.4% in Merchandise sales and services. It came at $347.2 million as compared to $329.6 million in the 2Q2013. In the direct segment, merchandise sales and services came at $292.6 million, up 7.1% from 2Q2103. The higher demand in the current season merchandise resulted in higher sales in the direct segment. However, it showed a decline of 2.9% in the retail segment. Lands’ End Shops outlets at Sears declined in the second quarter. The operating stores at Sears were 247 in the second quarter.
The expenses, income and cash
S&GA expenses rose 9.8% to $138.3 million as compared to 2Q2013. The incentive compensation expenses amounted to $3.8 million whereas stand-alone public firm related expenses amounted to $2.9 million. The depreciation and amortization expense declined 9.7% to $4.8 million comparable to $5.3 million in 2Q2013. The operating income rose 37.6% to $25.3 million comparable to $18.4 million in 2Q2013. The net income came at $11.8 million comparable to $11.3 million in 2Q2013. Adjusted EBITDA came at $30.1 million as compared to $23.8 million in 2Q2013. Lands’ End, Inc. (NASDAQ:LE) had cash of $132.8 million in the second quarter as compared to $28.3 million. The better inventory management, increased operating income, and net effect of changes in settlement ways resulted in higher cash in the second quarter.
