Lands' End sales take a $17.9M hit as it closes Sears shops
Lands' End reported Tuesday that its first-quarter net revenue fell 12.5% year over year to $262.4 million even as its U.S. same-store sales rose 12% and e-commerce sales went up 5.1%. Much of the sales decline came from the apparel brand's pullback from Sears. The company said in a press release that it had closed 120 Lands End shops inside Sears stores by the end of Q1, which accounted for a $17.9 million drop in revenue. Lands End's gross margins increased about 1.3%, but it's net loss widened by 160% to $6.8 million.
Lawsuit accuses Lands' End of 'negligence' in Delta Air Lines uniforms
Delta Air Lines introduced new Lands' End uniforms designed by Zac Posen in May 2018.
A lawsuit filed this month in New York claims Wisconsin retailer Lands’ End was negligent in handling the uniforms it supplied for Delta Air Lines Inc.
Dodgeville-based Lands’ End Inc. (Nasdaq: LE) rolled out the uniforms for 64,000 Delta employees one year ago. The uniforms quickly drew some complaints about possible symptomatic reactions.
At the time, a Delta (NYSE: DAL) spokeswoman said the airline had received “a few reports about potential chafing or skin irritation.”
“Just like the learnings we received from our thorough, three-year development process … we continue to listen and will resolve concerns on a case-by-case basis,” the spokeswoman said.
The lawsuit filed May 22 by two flight attendants alleges Delta employees have suffered from skin rashes, headaches, fatigue, breathing difficulties, hair loss, low white blood cell counts and nausea because of the uniforms designed by Zac Posen. Filed by employees Monica DeCrescentis and Gwyneth Gilbert, the complaint claims the uniforms also bleed, resulting in stains on the employees’ skin and possessions.
The plaintiffs accused Lands’ End of negligence in the design, manufacturing, marketing, labeling and selling of the uniforms. The lawsuit describes the uniforms as “defective and unreasonably dangerous.”
“The uniforms manufactured by Lands’ End … were not reasonably safe for their intended use and were defective as a matter of law with respect to their manufacture,” the complaint asserts.
The plaintiffs want the case treated as a class action and seek damages of at least $5 million for the class, among other forms of relief.
Lands’ End is named as a defendant; Delta is not. A spokeswoman for Lands’ End said the retailer does not comment on pending litigation.
The lawsuit comes as American Airlines awaits new uniforms from Lands’ End while complaints mount about the current uniforms supplied by Twin Hill. Similar to the complaints by Delta employees, American Airlines staff members claim their uniforms cause rashes, headaches, severe respiratory problems and other health issues.