Shares of Lands' End Inc. LE, -0.55% soared 10.5% in premarket trading Tuesday, after the casual clothing and accessories retailer reported a fiscal third-quarter profit that rose from a year ago while revenue declined, as gross margin and same-store sales increased. Net income for the quarter to Nov. 1 grew to $3.6 million, or 11 cents a share, from $3.3 million, or 10 cents a share, in the year-ago period. Revenue fell 0.5% to $340.0 million, reflecting 89 fewer Lands' End Shops at Sears. Excluding the Sears effect, revenue would have increased 4.7%. The FactSet average estimate of two analysts was for EPS of 9 cents and revenue of $349.8 million. Same-store sales for U.S. company owned stores grew 8.3% and e-commerce revenue grew 7.4%. Gross margin increased to 45.3% from 44.2%, citing a more disciplined promotional strategy. The company expects fourth-quarter revenue of $545.0 million to $555.0 million. "While sales were burdened by unseasonably warm temperatures, our transitional product resonated with customers and sales trends improved as the colder weather arrived," said Chief Executive Jerome Griffith. The stock has run up 62.6% over the past three months through Monday but was still down 17.2% year to date, while the S&P 500 SPX, +1.59% has rallied 24.2% this year.