RealTime IT News

Lands' End Triples Sales on Internet

Catalog retailer Lands' End Inc. reported this week that Internet sales more than triped in fiscal 1999 to $61 million in fiscal 1999 compared to $18 million a year ago.

Still, its fourth quarter profit fell by more than a third despite a 13 percent jump in sales fueled in part by the Internet.

The company, which had struggled with bulging inventories for much of 1998, according to Reuters, said fourth quarter earnings, including charges, fell 38 percent to $25.7 million, or 84 cents per share, from $41.3 million, or $1.32 per share, a year ago. Net sales jumped to $541 million from $480 million a year ago.

"One of the bright spots for us this year has been the Internet growth," said Lands' End Chief Executive Officer David Dyer.

He said Lands' End's strengths as a direct merchant will enable the company to position itself as a major electronic commerce player.

"Within three or four years, I would like to see a significant part of our sales coming via the Internet," he said.

For the year, the company's net sales totaled $1.4 billion, up from $1.3 billion in the prior year, driven mainly by more catalogs mailed, it said. Net income for the year fell 51 percent to $31.2 million from $64.2 million, including charges.