It was a rough quarter for Lands' End as the specialty apparel retailer reported a 10 percent drop in revenue and an income falling from $11.8 million to $7.5 million from the same time last year.
Specifically, the company's direct sales segment saw a 9.5 percent decline in revenue while retail revenue dropped 12.9 percent.
Federica Marchionni, president and CEO of Lands' End, called the second quarter results "challenging" and "did not meet company expectations." However, she seemed optimistic that performance issues were being addressed.
"While many of our initiatives are in early stages of implementation, we are taking specific actions intended to deliver a stronger product offering, a cohesive marketing proposition, an effective go-to-market strategy, and a state of the art operating platform to support our strategic growth plans for the future," Marchionni said.
The 7.5 percent decline in the retail segment's same-store sales was a result of lower sales in the Lands' End shops within Sears stores. The company operates 229 shops within Sears, 14 global Lands' End Inlet stores and four international shop-in-shops.
Lands' End is in the midst of a turnaround plan since the split from struggling Sears Holdings last year and naming Marchionni CEO in February. The company lost $8 million in revenue from currency exchange rates and overall profit fell 14.2 percent, the Milwaukee Business Journal reported.
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