Lands’ End Slowdown Is Part Of Retail MalaiseLands’ End said that first quarter 2022
sales fell 5.5% and blamed
“unprecedented inflation in food and fuel”, according to CEO Jerome Griffith.
“The customer was looking for comfortable, casual clothes a year ago since he was working at home.” That is true and created a spike in demand. However, that has now eased up and the current inflationary pressures have just
reinforced the shift in consumer shopping patterns.Walmart, Target, Ross Stores, and other retailers have all reported
inventory that is too high and out of sync with current customer preferences. More traditional workwear is becoming part of the routine again for many.
Lands' End
inventory rose about 11% compared with last year while revenues were dropping 5.5%.
Gross margin dropped 42.5% due to incremental costs in the supply chain of $14 million. The company is optimistic that its inventory flow will soon normalize and that the company will better meet customer’s needs.
