Lands’ End tops 3Q estimates despite losing retail space after Sears’ bankruptcy

Lands’ End Inc’s (NASDAQ:LE) strong direct sales segment carried it past analysts’ estimates in its third quarter, despite taking a hit after the bankruptcy of its partner Sears.

The specialty retailer reported earnings of $0.10 per share compared with earnings of $0.01 per share in the previous year’s third quarter.

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Quarterly revenue totaled $341.6 million, about a 5% increase compared with the $325.5 million reported last year.

The Wisconsin-based company beat Wall Street estimates of $0.10 EPS on revenue of $328.5 million.

Shares were up nearly 6% to $22.50 in Thursday pre-market trading.

Shoppers used to be able to browse Lands’ End Shops tucked inside Sears, but the iconic retailer’s bankruptcy led to the closure of 63 of those shops.

The shuttering of Sears cut into the retailer’s revenue, with retail segment revenue decreasing 21% to $27 million compared with $35.2 million a year ago.

Same-store sales were a bright spot in the quarterly report, seeing an increase of nearly 12%.

The retailer’s direct sales segment grew by 8%, driven by its strong e-commerce sales in the US.

“We are extremely pleased to see the momentum across our business continued through the Thanksgiving and Cyber Monday period. Our inventory position is very strong, and we have depth in key items to drive sales over the remainder of the holiday period,” said CEO Jerome S. Griffith in the company’s press release.

Lands’ End ended the quarter with $105.9 million in cash on-hand compared with $92.9 million a year ago.

The multi-channel retailer offers casual clothing, outerwear, accessories, shoes and home products.

Contact Lenore Fedow at [email protected]

Follow her on Twitter: @LenoreMariee

Story by ProactiveInvestors