UPDATE: Lands' End Shares Surge On Upbeat Q2 Results

Shares of Lands' End LE jumped more than 4% in pre-market trading after the company reported better-than-expected fiscal second-quarter results. The Dodgeville, Wisconsin-based company posted a quarterly profit of $11.3 million, or $0.37 per share, versus a year-ago profit of $10.9 million, or $0.35 per share. Its sales climbed 5.4% to $347.2 million. However, analysts were expecting earnings of $0.17 per share on revenue of $333 million. Merchandise sales and services, net in the Direct segment rose 7.1% to $292.6 million in the quarter, while merchandise sales and services, net in the Retail segment fell 2.9% to $54.6 million. Its same-store sales rose 2.8% in the quarter. Gross margin widened 310 basis points to 48.5%. Operating income climbed 37.6% to $25.3 million, while adjusted EBITDA rose 26.6% to $30.1 million in the quarter. Selling and administrative expenses climbed 9.8% to $138.3 million in the quarter. On August 1, 2014, cash was $132.8 million versus $28.3 million on August 2, 2013. Inventory dropped 11.8% to $366.2 million on August 1, 2014, versus $415.2 million on August 2, 2013. On August 1, 2014, it operated 247 Lands' End Shops at Sears and 14 Lands' End Inlet stores. Edgar Huber, Lands' End's President and Chief Executive Officer, said, "We are pleased with our second quarter results and our progress towards growing the business and building Lands' End into a global lifestyle brand. While the overall retail environment remained challenging, we continued to see positive customer response to our merchandising and marketing initiatives and remain focused on improving the contemporary relevance of the Lands' End brand.” Lands' End shares climbed 4.23% to $34.75 in pre-market trading.