Lands' End NASDAQ: LE CEO Charlie Cole outlined a strategy centered on artificial intelligence, personalization, digital modernization and customer acquisition, saying the apparel retailer’s decades of direct-to-consumer and catalog data could provide an advantage as it updates its technology and marketing capabilities.
Speaking alongside Chief Financial Officer Bernie McCracken, Cole said Lands’ End has roughly 60 years of customer data that it can use to build a more personalized shopping experience across its website, stores and customer relationship management efforts.
“Lands’ End has to be the most progressive digital company in the world,” Cole said, describing the goal as combining a creatively driven brand with modern digital capabilities.
AI-Powered Personalization Efforts
Cole said the company recently launched an AI-driven email “concierge” pilot that uses customer purchase history, browsing behavior and engagement data to select offers and generate tailored text-based messages. He said the initiative, launched six days before the presentation, had produced email open rates approximately four times those of a typical email.
He described an example in which a customer who had previously purchased a blue Squall outerwear jacket could receive an individualized message offering a discount on the product. Cole said the company sees potential to apply similar personalization to creative marketing, website experiences and product description pages.
While emphasizing digital tools, Cole said technology must support, rather than replace, the company’s product focus. He said Lands’ End intends to keep product development creatively led while using customer feedback and analytical data to refine fabrics, fit and other product attributes.
McCracken said the company’s “solutions” positioning remains important across seasonal apparel categories, including swimwear, outerwear, rainwear and fleece. He also highlighted the Outfitters uniform business, saying Lands’ End can offer quality and product solutions that differentiate it in the uniform market. McCracken cited Delta’s return as a customer, though no additional details were provided.
WHP Relationship and Brand Expansion
Cole discussed Lands’ End’s relationship with WHP, saying the companies now operate as separate businesses: an operating company, where Cole and McCracken work, and an intellectual-property company in which they are 50% shareholders. He said WHP is focused on expanding the Lands’ End brand geographically and into additional product categories.
Among the initiatives discussed were licensing launches in luggage and pet products. Cole said WHP has helped stabilize existing licensing relationships and is now working to expand the brand more aggressively. He also cited a preliminary discussion about a possible Lands’ End Kids pop-up inside Toys “R” Us, while stressing that it was too early to commit to the idea.
McCracken said WHP brings established relationships and expertise that could enable faster geographic expansion than Lands’ End could achieve on its own. He added that the operating company could support WHP as it develops the intellectual-property business.
Customer Acquisition and Digital Modernization
Cole said his initial focus after joining Lands’ End on July 13 was on the consumer business, including landsend.com, Europe and third-party channels, because the company had already passed the back-to-school peak for its uniform business. He said the company was pleased with the recently completed Prime Day period and has concentrated marketing efforts on CRM, performance marketing and site conversion-rate optimization.
The company is also pursuing opportunities in airline uniforms. Cole said he attended his first airline uniform conference and spoke with a Southwest Airlines flight attendant about the importance of uniforms, adding that Lands’ End has a meeting planned with Southwest. He noted that airline purchasing cycles can run two to three years.
McCracken characterized Lands’ End’s consumer base as older, wealthier and loyal, saying those qualities have helped the company during difficult consumer periods. At the same time, he said the business must attract new customers without alienating its core shoppers.
Cole said the median age of Lands’ End’s core customer is 61, while the median age of customers new to the company’s files is 47. He said the company’s longer-term “dream” would be to lower that figure to around 40, while maintaining its established customer base.
Management said customer-acquisition trends improved in the prior quarter and had continued to show positive momentum in the current quarter. Cole said growth in new-customer acquisition in the mid-teens to mid-20% range year over year would be “really, really exciting,” though he did not provide a forecast.
Technology Investment and Operating Goals
Cole said Lands’ End is working to address technology debt and modernize its platform before implementing some larger initiatives. He pointed to changes in digital advertising platforms, including Meta and Google, that have increased the importance of compelling creative assets.
According to Cole, Lands’ End had no partnership-ad assets when he joined, but expects to have 300 such assets in the current month. Partnership ads use content from creators’ social-media accounts rather than brand-generated advertising alone.
Cole also highlighted the recent hiring of Jimi Ferolo, formerly chief digital officer at Maui Jim, to lead digital technology efforts. McCracken said Ferolo had moved quickly to establish structure and address past technology issues, while Cole said the company was also upgrading talent across the digital and technology organization.
Looking ahead a year, Cole said he wants Lands’ End to generate greater consumer conversation around the brand, supported by more creators discussing its products, stronger new-customer acquisition and a younger customer mix. McCracken said his measure of success would be new customers making second and third purchases, describing repeat purchasing as a historic strength for the company.
About Lands' End (NASDAQ:LE)
Lands' End, Inc is a direct-to-consumer lifestyle apparel and home products company. It offers clothing for women, men and children, including outerwear, swimwear, activewear, casual apparel and accessories. The company also sells home furnishings and décor, as well as products for its business, school and corporate uniform programs.
Lands' End primarily reaches customers through its e-commerce websites, catalogs and company-operated stores, with additional distribution through select third-party channels.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider Lands' End, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Lands' End wasn't on the list.
While Lands' End currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Looking to profit from the electric vehicle mega-trend? Click the link to see our list of which EV stocks show the most long-term potential.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
