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In the wake of declining sales, Lands’ End will focus on new digital technologies such as generative AI to better identify trends in buyer behavior, says CEO Andrew McClean.

Apparel retailer Lands’ End, an iconic name in B2C and B2B ecommerce, is counting on new technology such as generative AI to boost sagging online sales.

But any boost will not be now, as quarterly total and ecommerce sales decreased yet again for Lands’ End. For the second quarter ended July 28, revenue decreased 7.9%. That’s down to $323.3 million compared with $351.2 million in the second quarter of fiscal 2022. Net loss was $8.0 million compared with a net loss of $2.2 million in the second quarter of fiscal 2022.

Lands’ End ranks No. 79 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest North American online retailers.

Lands’ End ecommerce

Global Lands’ End ecommerce net revenue was $218.7 million. That’s an 8.7% decrease from $239.7 million in the second quarter of fiscal 2022. Lands’ End U.S. ecommerce sales decreased 3.6% to $22.8 million from $36.4 million in the prior year. That was primarily driven by continued promotional productivity within swim and adjacent product categories more than being offset by lower markdown inventory sales, the retailer says.

U.S. ecommerce accounted for 7.1 of all Lands’ End sales compared with 10.6% of revenue in Q2 fiscal 2022.

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In the wake of declining sales, Lands’ End will focus on new digital technologies such as artificial intelligence and analytics to identify better trends in buyer behavior, says CEO Andrew McClean.

“As a digitally native company, we are prioritizing our focus on innovation to improve execution across the enterprise, including taking advantage of emerging technologies, like generative AI,” he says. “Whether in customer service and engagement, data analytics, decision-making or go-to-market strategies, our increasing use of these technologies is driving efficiency and effectiveness in our work.”

One new application is a mobile app with integrated AI capability, the retailer says.

“We have developed an internal app for our merchants and designers that uses ChatGPT to analyze our customer data to identify gaps in our assortment to improve buying decisions. We also made progress this quarter on our efforts to place the customer at the center of our decisions,” McClean says.

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Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports.

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