Lands’ End is hiring two more key executives to help CEO Federica Marchionni continue to turn around the struggling apparel and accessories company.
It was a disappointing first quarter with direct marketing sales down substantially from the prior year because of ongoing tough business conditions in Europe and other pressures, Marchionni says. “Our first-quarter results reflect a challenging retail environment,” she says.
In its quarterly earnings report filed late last week with the U.S. Securities and Exchange Commission, Lands’ End says direct sales dropped primarily because of a $9 million decline in European direct sales. Direct sales also were affected by shipping problems tied to the ongoing West Coast port strike, but the company didn’t offer any details.
But even as Lands’ End, which was spun off from Sears Holdings and became its own public company in April 2014, struggles, the company has added executives.
Last week Lands’ End hired Joseph Boitano as executive vice president, chief merchandising and design officer, and Scott Hyatt as executive vice president and chief supply chain officer. Boitano, who most recently served as group senior vice president and general merchandise manager for Saks Fifth Avenue, will be in charge of all aspects of merchandising and design.
Hyatt, who was senior vice president of manufacturing and chief sourcing officer for J. Crew Group, will oversee supply chain operations.
Both Boitano and Hyatt will report to Marchionni. “The next 12 to 18 months will be an important transformational period where we will be focused on upgrading the product design and development process, enhancing our technology platform, fostering brand awareness, exploring new distribution opportunities, strengthening operations, and integrating new talent throughout the organization,” Marchionni says.
For the first quarter ended May 1, Lands’ End, No. 38 in the Internet Retailer 2015 Top 500 Guide, reported.
- Direct sales, which are virtually all online, declined 8.2% to $253.4 million from $276.0 million.
- Total sales decreased 9.4% to $299.4 million from $330.5 million in the first quarter of 2015.
- Retail sales declined 15.3% to $46.0 million from $54.3 million.
- Same-store sales declined 12%.
- Net income was $1.7 million compared with $10.9 million in the first quarter of 2014.