Shares of apparel retailer/catalog company Land’s End (NYSE: LE) plummeted nearly 33 percent on Thursday, tumbling 27-3/16 to56-1/8 after the company warned that fourth-quarter sales could be lower than expected. Land’s End plans to reduce catalog circulation and size, which could result in lower revenues. Meanwhile, the company is putting more of its focus on e-commerce sales. Thursday’s sell off of Land’s End stock might have been overdone, and even after the carnage, Land’s End has been a stellar performer on Wall Street this year. In fact, Land’s End stock is still up 200 percent from its 52-week low of 18-1/4.
Investors should also note that Land’s End announced third-quarter earnings of $326 million and net income of $8.8 million on Thursday. These are big numbers compared to many still-bleeding online retailers. In addition, the company’s Internet sales were up about 250 percent compared to the third quarter of last year. Things might not be as bad as they seem for Land’s End.
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