Shares of clothing retailer Lands’ End took a major hit on Thursday as the company adjusted its financial targets for the year. This follows a larger loss in the latest quarter coupled with a decline in sales.
As of the morning, shares dropped by 19% and were valued at $8.35, resulting in a year-to-date decrease of 10%.
Lands’ End’s loss in the fiscal second quarter widened to $8 million, or 25 cents per share, compared to a loss of $2.2 million, or 7 cents per share, in the same period last year. The company had initially projected a loss between 14 cents and 6 cents per share for this quarter.
Revenue for the 13-week period ending on July 28 saw a decline of 7.9% to $323.4 million, which falls towards the lower end of Lands’ End’s target range of $320 million to $335 million.
Looking ahead to the full fiscal year, the company now anticipates a loss between $4.5 million, or 14 cents per share, and a profit of $1 million, or 3 cents per share. Revenue is expected to range from $1.5 billion to $1.55 billion. These projections differ from the company’s initial guidance provided in June, wherein revenue was forecasted between $1.56 billion and $1.62 billion. The earlier guidance also predicted a loss ranging from $4.5 million, or 13 cents per share, to a profit of $2.5 million, or 8 cents per share.
