Shares of apparel retailer Lands' End (NASDAQ:LE) took a hit on Thursday, falling as much as 22%. Shares were down 14.9% at 11:15 a.m. EDT.
The stock's decline follows the company's second-quarter earnings release on Thursday. The pullback was likely due to the company's weak revenue growth, its decline in same-store sales, and a loss that was wider than in the year-ago quarter.
For its second quarter, revenue increased 1.9% to $307.9 million, missing a consensus analyst estimate for revenue of $322.2 million. The weaker-than-expected revenue was primarily due to a 6.7% decline in same-store sales at Lands' End Shops at Sears locations and a 0.6% decline in same-store sales at company-operated stores.
Lands' End reported a net loss of $5.3 million, translating to a $0.16 loss per share. This compares to a net loss of $3.9 million, or a loss of $0.12 per share, in the year-ago quarter. Contrasting from its earnings beat last quarter, Lands' End's loss per share was wider than a consensus analyst estimate for a loss of $0.04.
In a press release about Lands' End's second quarter, CEO Jerome Griffith seemed pleased with the quarter, noting it represented the company's fifth quarter in a row of year-over-year revenue growth and its fourth consecutive quarter of adjusted EBITDA growth.
Overall, we continue to see evidence that our strategic initiatives are taking hold with product and marketing efforts both resonating with our customer. Looking ahead, we will remain intently focused on our four key focus areas of product, digitization, uni-channel distribution and infrastructure.