The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
DODGEVILLE, United States — Lands' End Inc. investors may be warming back up to the retailer as it further breaks free from former parent Sears Holdings Corp. by shuttering more in-store shops in favor of smaller standalone locations.
The American apparel company spiked as much as 27 percent Tuesday to its highest intraday level since May 2015. Shares are up about 45 percent this year.
The one-time Sears unit has been phasing out its sites situated inside the struggling chain, halving its number of in-Sears shops since the 2014 split. It’s planning to drop that number to about 100 by the end of the year from about 159 at the end of the first quarter.
As Lands' End pulls out of stores, it's investing in new retail concepts.
“Some people have an affinity for Sears and some people don’t,” Chief Executive Officer Jerome Griffith said in a telephone interview before first-quarter results were released.
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Its move to further distance itself comes as once-dominant Sears announces plans to close 63 more Sears or Kmart locations in early September. As Lands’ End pulls out of stores, it’s investing in new retail concepts that are about a third of the size of current company-operated stores. It plans to add four to six this year and expects an additional 40 to 60 new locations over the next five years.
The Dodgeville, Wisconsin-based retailer saw same-store sales — a key retail metric — at its Sears shops sink more than 20 percent in the latest quarter, outpacing the 9.9 percent drop at company-operated locations.
Designer brands including Gucci and Anya Hindmarch have been left millions of pounds out of pocket and some customers will not get refunds after the online fashion site collapsed owing more than £210m last month.
Antitrust enforcers said Tapestry’s acquisition of Capri would raise prices on handbags and accessories in the affordable luxury sector, harming consumers.
As a push to maximise sales of its popular Samba model starts to weigh on its desirability, the German sportswear giant is betting on other retro sneaker styles to tap surging demand for the 1980s ‘Terrace’ look. But fashion cycles come and go, cautions Andrea Felsted.
The rental platform saw its stock soar last week after predicting it would hit a key profitability metric this year. A new marketing push and more robust inventory are the key to unlocking elusive growth, CEO Jenn Hyman tells BoF.