Financial Reports: Lands’ End, Sport Supply Group

To paraphrase the AC/DC song, Lands’ End (NYSE: LE) is back in the black. The apparel and home goods mailer posted net income of $3.0 million for its second quarter ended July 27, compared with a net loss of $1.9 million for the second quarter of 2000. Total revenue increased 4%, to $285.8 million from $275.6. Web sales climbed 32%, to $51 million from $39 million.

Breaking it down by segment, Dodgeville, WI-based Lands’ End’s merchandise sales in the core business segment increased 6%, to $160 million, led by in its co-ed and women’s divisions. The specialty business segment, which includes its Kids, Coming Home, and Corporate Sales books, showed flat sales of $72 million, as the gains in the children’s and home businesses did not compensate for the decline in the Corporate Sales business.

Regarding its international businesses, Lands’ End says its U.K. and Germany divisions had increased sales in their local currencies compared to last year’s second quarter, while sales in Japan were down. When measured in U.S. dollars, however, the international business segment was down 7%, to $31 million from $33 million, due to the effect of the strong dollar against weaker foreign currencies.

The second quarter wasn’t so great for usiness-to–business sporting goods supplier Sport Supply Group (OTCBB: SSPY). The Dallas-based subsidiary of electronics conglomerate Emerson Radio Corp. reported a 9% decline in second-quarter sales and a 1% rise in its net loss for the same period. For the three months ended June 29, Sport Supply took a net loss of $333,000 on sales of $28.0 million. For the second quarter of 2000, it posted a net loss of $329,000 on $30.8 million in revenue. But it reduced its operating expenses $1.3 million, to $8.2 million for the quarter, the result of significant cost cutting implemented last year.

Sport Supply also announced that it has signed multiyear contracts with two not-for-profit organizations in which Sport Supply will customize Web pages for the groups. The Websites will be equipped with online ordering and pricing, certificate redemption, and customer reporting and tracking capabilities. The company expects these contracts to generate more than $2 million in annual revenue beginning in the second half of this fiscal year.