Lands' End CEO Federica Marchionni Steps Down

Lands' End Inc. Chief Executive Federica Marchionni has resigned from her post, making her the second CEO to leave the struggling apparel maker since its split from Sears Holdings Corp. two years ago.

The company's chief operating and financial officer, James Gooch, and its chief merchandising and design officer, Joseph Boitano, will take over as co-interim CEOs, effective immediately.

Ms. Marchionni, a former Ferrari and Dolce & Gabbana executive, came to Land's End in February 2015. She has sought to transform the company, known for its outdoorsy clothes, into more of a fashion brand by adding slimmer-fitting clothes, stiletto heels and a new line of athletic wear. So far her efforts haven't resonated with Lands' End's core catalog shoppers.

Lands' End swung to a loss in its latest quarter and its revenue declined due to less discounting. The company's stock, inactive in premarket trading Monday, has fallen 33% from a year ago.

Ms. Marchionni, in a press release, said she and the board "agreed it is time for others to bring Lands' End into the future." She will also step down from the company's board.

Chains targeting Middle America, including Lands' End, J.C. Penney Co. and the Gap Inc., have been squeezed on the higher end by brands such as Michael Kors Holdings Ltd. and Coach Inc., which sell a luxurious image at relatively affordable prices. On the lower end, fast-fashion retailers including H&M operator Hennes & Mauritz AB are churning out inexpensive, runway-inspired styles.

The search for a permanent replacement will include both internal and external candidates.

Write to Joshua Jamerson at [e-mail]

(END) Dow Jones Newswires

September 26, 2016 08:25 ET (12:25 GMT)

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