Lands’ End can’t run out of Sears stores fast enough.
Shares of the preppy clothing brand soared on Tuesday — closing up 27 percent to $29.90 — after the company said it continues to close shops in the failing department store and opening its own stores.
Lands’ End same-store sales fell 18.9 percent in the most recent quarter, dragged down by the declining customer traffic at Sears.
“We had a disappointing start to the year with our Lands’ End shops at Sears,” said chief financial officer James Gooch on an earnings call.
Of the 200-plus Lands’ End locations, 159 are in Sears stores. But by early November, management expects to close 20 Sears stores. By 2023, Lands’ End is eyeing 60 stand-alone stores.
“Landsend.com is the backbone of the business and so much more important to the company than the stores,” said Craig-Hallum analyst Alex Fuhrman, who estimates that brick-and-mortar accounts for just 10 percent of annual sales.
Online sales rose 19.7 percent in the second quarter, outpacing the overall increase of 11.7 percent, to $299.8 million.


