The struggles of Lands’ End continue, as the apparel company concedes that its efforts to increase its fashion cachet have fizzled, leading to lost sales. And it’s vowing to quite
literally stick to its knitting, focusing on sensible sweaters for middle-aged women, not fashionistas.
The Dodgeville, Wisc.-based company, which spun off from Sears several years
ago, says its third quarter sales sank to $311.5 million, compared to $334.4 million in the comparable period a year ago. Revenue from its direct segment fell 5.5% to $272.1 million, while results in
its retail stores plummeted15.6% to $39.3 million. And it posted a net loss of $7.2 million, down from net income of $10.7 million in the year-ago period.
The biggest problem is in
the Canvas by Lands' End division, a sub-brand the company had hoped would draw in a younger, more chic shopper. But the abrupt departure of CEO Federica Marchionni, whose resume included
international luxury companies like Dolce & Gabbana and Ferrari, back in October signaled trouble in Lands’ End’s makeover.
“We believe the assortment
strayed too far from our classic offering and ultimately confused our customers,” Lands’ End execs say in a conference call, according to Seeking Alpha’s transcript. While it
isn’t killing the collection, “the line will be significantly scaled back and be more consistent with our classic offering. We will focus on a number of key item categories presenting an
elevated and more aspirational offering, yet with price points that are still attainable for our customers.”
And yes, that means more sweaters. “As always, we will offer
our classic cotton sweater.”
There are sweaters aplenty in its holiday ads, and in their announcement,
company execs say they are looking forward to building momentum over the holiday season, including a refined marketing strategy, catalog enhancements and social media efforts: “Taken
together, we believe these initiatives will position us to better engage our customers, win back lapsed customers and attract new customers to Lands' End."
The company's core
customer is 52 years old.
Separately, the company announced a “Santa For A Day” campaign on social media. People can answer the brand’s daily Santa interview
question for the chance to win gift cards. Live events allow people to interview for Santa’s job in person. And the campaign video stars
kids from Big Brothers, Big Sisters, who weigh in on how they would handle the big guy’s duties if he ever needs backup.