Lands’ End Q2 2026 swings to profit, 52% margin
Lands’ End, Inc. (LE) reported second-quarter 2026 net revenue of $302.0 million, up 2.7% from $294.1 million a year earlier, driven mainly by U.S. eCommerce and Outfitters, while Third Party revenue declined.
Rhea-AI Filing Summary
Lands’ End, Inc. (LE) reported second-quarter 2026 net revenue of $302.0 million, up 2.7% from $294.1 million a year earlier, driven mainly by U.S. eCommerce and Outfitters, while Third Party revenue declined. Gross profit rose to $157.0 million, with gross margin expanding to 52.0% from 48.8%, largely due to IEEPA tariff refunds, partly offset by JV royalties and warehouse system costs.
Selling and administrative expense increased to $135.3 million or 44.8% of revenue, reflecting higher digital marketing and warehouse inefficiencies. The company generated net income of $3.5 million (diluted EPS $0.11) versus a $3.7 million loss last year, while Adjusted EBITDA fell 25% to $11.3 million. Year-to-date, net income of $334.1 million is dominated by a large gain on the WHP Global transaction; on an adjusted basis the business is near breakeven and Adjusted EBITDA is $5.1 million.
Lands’ End used $86.5 million of operating cash in the first 26 weeks, increased inventories by 13% year over year, repaid its term loan using $300 million of WHP proceeds, and ended the quarter with $60.0 million outstanding under its ABL Facility. The company repurchased $10.5 million of stock, about 3% of shares, and guides third-quarter revenue of $300–330 million and fiscal 2026 revenue of $1.30–1.35 billion, with full-year Adjusted EBITDA expected between $62–70 million.
Positive
- Net revenue grew 2.7% year over year to $302.0 million, with strong gains in U.S. eCommerce (up 9.0%) and Outfitters (up 4.4%).
- Gross margin expanded by 320 basis points to 52.0%, lifting gross profit by $13.6 million despite modest revenue growth.
- The company swung to Q2 net income of $3.5 million (diluted EPS $0.11) from a $3.7 million loss a year earlier.
- Term loan was fully repaid using $300 million of WHP Global transaction proceeds, leaving only $60.0 million drawn on the ABL Facility and materially reducing interest expense.
- Lands’ End repurchased $10.5 million of stock, about 3% of shares, with $89.2 million of authorization remaining through March 31, 2029.
- Fiscal 2026 guidance calls for $1.30–1.35 billion in net revenue and $62–70 million in Adjusted EBITDA, implying expectations for improved profitability versus year-to-date performance.
Negative
- Adjusted EBITDA declined 25% in Q2 to $11.3 million, and year-to-date Adjusted EBITDA dropped to $5.1 million from $24.6 million.
- Operating performance remains weak on an adjusted basis, with a year-to-date Adjusted net loss of $0.8 million despite large reported net income from the WHP Transaction gain.
- Operating cash flow was a $86.5 million use of cash in the first 26 weeks versus a slight inflow of $0.5 million a year earlier, reflecting WHP-related items and inventory build.
- Inventories increased 13% year over year to $342.0 million, raising execution risk around seasonal demand and working capital.
- The Third Party channel saw a 20.4% revenue decline to $17.2 million as the company reduced lower-value promotional volume.
- Results and margins in the quarter were meaningfully influenced by IEEPA tariff recoveries and other non-recurring items, complicating assessment of underlying earnings power.
Filing Explained
Lands’ End now reports a retained equity-method stake in the joint venture after selling WHP Global a 50% controlling interest.
This Form 8-K furnishes Lands’ End’s second-quarter results announced on
The company also records the completed WHP transaction: Lands’ End transferred its intellectual property to a joint venture and sold WHP Global a 50% controlling ownership stake for
The structural change is that Lands’ End now reports an equity-method investment in the joint venture, listed at
As of
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
equity method investment financial
WHP Transaction financial
International Emergency Economic Powers Act (IEEPA) regulatory
ABL Facility financial
loss on extinguishment of debt financial
Earnings Snapshot
For Q3 2026, the company expects net revenue of $300.0–330.0 million, net loss of $1.0 million to net income of $3.0 million, Adjusted net income of $2.0–6.0 million, Adjusted diluted EPS of $0.07–0.20, and Adjusted EBITDA of $14.0–18.0 million. For fiscal 2026, it guides to net revenue of $1.30–1.35 billion, net income of $317.0–325.0 million, Adjusted net income of $13.0–21.0 million, Adjusted diluted EPS of $0.44–0.72, Adjusted EBITDA of $62.0–70.0 million, and capital expenditures of approximately $40.0 million.
FAQ
How did Lands’ End (LE) perform financially in Q2 2026?
What were the key margin and segment trends for LE in Q2 2026?
What is Lands’ End’s 2026 full-year guidance?
How is Lands’ End’s balance sheet and debt position after the WHP Global transaction?
What does Lands’ End expect for Q3 2026 results?
How did cash flow from operations trend for LE in the first half of 2026?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On September 3, 2026, Lands’ End, Inc. (the “Company”) announced its financial results for its second quarter ended July 31, 2026. A copy of the Company’s press release containing this information is being furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information contained herein and in the accompanying Exhibit 99.1 shall not be incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference to such filing. The information in this Item 2.02, including Exhibit 99.1 hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit Number |
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Description |
99.1 |
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Press Release of Lands’ End, Inc. dated September 3, 2026 |
104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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LANDS’ END, INC. |
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Date: |
September 3, 2026 |
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By: |
/s/ Bernard McCracken |
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Name: |
Bernard McCracken |
Exhibit 99.1
Lands’ End Announces Second Quarter Fiscal 2026 Results
DODGEVILLE, Wis., September 3, 2026 (GLOBE NEWSWIRE) – Lands’ End, Inc. (NASDAQ: LE) today announced financial results for the second quarter ended July 31, 2026.
Charlie Cole, Chief Executive Officer, stated, “Since joining Lands’ End, I have been energized by what I see ahead for this iconic American company. What excites me most is the clear runway we have to utilize our stellar brand strength and deep customer loyalty to further strengthen our customer engagement, expand our digital capabilities, and more effectively reach and convert new customers. Our focus now is on excellence in execution to ensure we have the right infrastructure, technology, and customer acquisition capabilities in place as we head into the holiday season. I am confident we are well positioned, and I look forward to sharing more in the months ahead.”
Second Quarter Financial Highlights
Balance Sheet and Cash Flow Highlights
Cash and cash equivalents were $16.1 million as of July 31, 2026, compared to $21.3 million as of August 1, 2025.
Inventories were $342.0 million as of July 31, 2026, and $301.8 million as of August 1, 2025, representing a 13% year over year increase. That increase primarily reflects inventory levels consistent with the Company’s normal seasonal build and support its current revenue projections compared to the intentionally lean inventory position the Company held a year ago amid tariff uncertainty.
Net cash used in operating activities was $86.5 million for the 26 weeks ended July 31, 2026, compared to net cash provided by operating activities of $0.5 million for the 26 weeks ended August 1, 2025. The increase in net cash used in operating activities was primarily due to the impact of the closing of the WHP Global transaction and the seasonal build of inventory to support the fall and holiday selling seasons.
As previously announced, the Company used the majority of the $300 million in cash proceeds from the WHP Global transaction to fully repay its term loan.
As of July 31, 2026, the Company had $60.0 million of borrowings outstanding and $89.3 million of availability under its ABL Facility, compared to $35.0 million of borrowings and $87.6 million of availability as of August 1, 2025.
During the second quarter of 2026, the Company repurchased $10.5 million of the Company’s common stock under the share repurchase program announced on April 1, 2026. As of July 31, 2026, additional purchases of up to $89.2 million could be made under the current program through March 31, 2029.
Outlook
Bernie McCracken, Chief Financial Officer, stated, "We made meaningful progress during the second quarter, moving beyond the distribution center challenges that affected our operations earlier in the year. Our core U.S. eCommerce operations normalized during the quarter and Outfitters has now returned to normal operating levels. We also repurchased approximately 3% of our outstanding shares, reflecting our disciplined approach to capital allocation and our confidence in the long-term value of Lands’ End. Combined with our significantly reduced debt and interest expense, these developments provide a stronger foundation for executing through the holiday season and creating long-term value."
The Company’s guidance reflects current conditions, including tariffs at currently implemented rates and prevailing macroeconomic factors.
For Third Quarter fiscal 2026 the Company expects:
For fiscal 2026 the Company now expects:
For the full year, the Company’s guidance includes approximately $40.0 million of capital expenditures.
Conference Call
The Company will host a conference call on Thursday, September 3, 2026, at 8:30 a.m. ET to review its second quarter financial results. The call may be accessed through the Investor Relations section of the Company’s website at http://investors.landsend.com.
About Lands’ End, Inc.
Lands’ End, Inc. (NASDAQ:LE) is a leading digital retailer of solution-based apparel, swimwear, outerwear, accessories, footwear, home products and uniforms. Lands’ End offers products online at www.landsend.com, through third-party distribution channels and our own Company Operated stores. Lands’ End also offers products to businesses and schools, for their employees and students, through the Outfitters distribution channel. Lands’ End is a classic American lifestyle brand that creates solutions for life’s every journey.
Forward-Looking Statements
This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding the future of the Company, brand strength, customer loyalty, customer engagement, digital capabilities and new customers; ensuring the right infrastructure, technology and customer acquisition capabilities, and the Company’s positioning; expectations regarding inventory, revenue and tariffs; the share repurchase program and its anticipated scale and impact; distribution center operations; confidence in the long-term value of the Company; execution through the holiday season and long-term value creation; and the Company’s Q3 and full fiscal year 2026 outlook and expectations as to Net revenue, Net income (loss), Adjusted net income, diluted earnings (loss) per share, Adjusted EBITDA and capital expenditures. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: the stock repurchase program may not be executed to the full extent within its duration, due to business or market conditions; risks associated with the Company’s license agreement relating to the Lands’ End brand; failure to protect or preserve the image of the Company’s brands, reputation or intellectual property rights; the ability of the Company’s principal stockholders to exert substantial influence over the Company; risks associated with the implementation, stabilization and performance of the Company's warehouse management system and distribution center operations; the Company’s results may be materially impacted if tariffs on imports to the United States increase and it is unable to offset the increased costs from current or future tariffs through pricing negotiations with its vendor base, moving production out of countries impacted by the tariffs, passing through a portion of the cost increases to the customer, or other savings opportunities; global supply chain challenges and their impact on inbound transportation costs and delays in receiving product; disruption in the Company’s supply chain, including with respect to its distribution centers, third-party manufacturing partners and logistics partners, caused by limits in freight capacity, increases in transportation costs, port congestion, other logistics constraints, and closure of certain manufacturing facilities and production lines due to public health crises and other global economic conditions; the impact of global economic conditions, including inflation, on consumer discretionary spending; the impact of public health crises on operations, customer demand and the Company’s supply chain, as well as its consolidated results of operation, financial position and cash flows; the Company’s ability to offer merchandise and services that customers want to purchase; changes in customer preference from the Company’s branded merchandise; customers’ use of the Company’s digital platform, including customer acceptance of its efforts to enhance its eCommerce websites, including the Outfitters website; customer response to the Company’s marketing efforts across all types of media; the Company’s maintenance of a robust customer list; the Company’s retail store strategy may be unsuccessful; the Company’s Third Party channel may not develop as planned or have its desired impact; the Company’s dependence on information technology; failure of information technology systems, including with respect to its eCommerce operations, or an inability to upgrade or adapt its systems; failure to adequately protect against cybersecurity threats or maintain the security and privacy of customer, employee or company information and the impact of cybersecurity events on the Company; fluctuations and increases in costs of raw materials as well as fluctuations in other production and distribution-related costs; impairment of the Company’s relationships with its vendors; the Company’s failure to compete effectively in the apparel industry; legal, regulatory, economic and political risks associated with international trade and those markets in which the Company conducts business and sources its merchandise; increases in postage, paper and printing costs; failure by third parties who provide the Company with services in connection with certain aspects of its business to perform their obligations; the Company’s failure to timely and effectively obtain shipments of products from its vendors and deliver merchandise to its customers; reliance on promotions and markdowns to encourage customer purchases; the Company’s failure to efficiently manage inventory levels; unseasonal or severe weather conditions; natural disasters, political crises or other catastrophic events; the adverse effect on the Company’s reputation if its independent vendors or licensees do not use ethical business practices or comply with contractual obligations, applicable laws and regulations; assessments for additional state taxes; incurrence of charges due to impairment of other intangible assets and long-lived assets; the impact on the Company’s business of adverse worldwide economic and market conditions, including inflation and other economic factors that negatively impact consumer spending on discretionary items; global economic, political, legislative, regulatory and market conditions (including competitive pressures), evolving legal, regulatory and tax regimes, including the effects of tariffs, inflation and foreign currency exchange rate fluctuations around the world, the challenging consumer retail market in the United States and around the world and the impact of war and other conflicts around the world; and other risks, uncertainties and factors discussed in the “Risk Factors” sections of the Company’s Annual Report on Form 10-K for the fiscal year ended January 30, 2026 as updated by the Company’s Quarterly Reports on Form 10-Q. The Company intends the forward-looking statements to speak only as of the time made and does not undertake to update or revise them as more information becomes available, except as required by law.
CONTACTS
Lands’ End, Inc.
Bernard McCracken
Chief Financial Officer
(608) 935-4100
Investor Relations:
ICR, Inc.
Tom Filandro
(646) 277-1235
Tom.Filandro@icrinc.com
-Financial Tables Follow-
LANDS’ END, INC.
Condensed Consolidated Balance Sheets
(Unaudited)
(in thousands, except per share data) |
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July 31, 2026 |
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August 1, 2025 |
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January 30, |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
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$ |
16,113 |
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$ |
21,255 |
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$ |
17,694 |
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Restricted cash |
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590 |
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2,291 |
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589 |
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Accounts receivable, net |
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38,329 |
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39,028 |
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41,265 |
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Inventories |
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342,040 |
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301,797 |
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268,803 |
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Prepaid expenses |
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30,243 |
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30,400 |
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27,856 |
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Other current assets |
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452 |
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10,291 |
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4,798 |
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Total current assets |
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427,767 |
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405,062 |
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361,005 |
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Property and equipment, net |
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128,576 |
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117,205 |
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115,701 |
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Operating lease right-of-use asset |
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13,995 |
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18,856 |
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15,680 |
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Equity method investment |
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377,589 |
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— |
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— |
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Intangible asset |
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— |
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257,000 |
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— |
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Asset held for sale |
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— |
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— |
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257,000 |
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Other assets |
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1,639 |
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2,518 |
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1,680 |
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TOTAL ASSETS |
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$ |
949,566 |
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$ |
800,641 |
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$ |
751,066 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities |
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Current portion of long-term debt |
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$ |
— |
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$ |
13,000 |
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$ |
13,000 |
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Accounts payable |
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162,346 |
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147,846 |
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115,436 |
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Lease liability – current |
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4,540 |
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4,609 |
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4,434 |
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Accrued expenses and other current liabilities |
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103,985 |
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85,084 |
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91,068 |
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Total current liabilities |
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270,871 |
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250,539 |
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223,938 |
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Long-term borrowings under ABL Facility |
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60,000 |
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35,000 |
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— |
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Long-term debt, net |
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— |
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219,550 |
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214,211 |
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Lease liability – long-term |
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12,128 |
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17,986 |
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14,264 |
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Deferred tax liabilities |
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109,339 |
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50,319 |
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52,392 |
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Other liabilities |
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4,358 |
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2,123 |
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1,966 |
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TOTAL LIABILITIES |
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456,696 |
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575,517 |
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506,771 |
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STOCKHOLDERS’ EQUITY |
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Common stock, par value $0.01 authorized: 480,000 shares; |
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301 |
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306 |
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306 |
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Additional paid-in capital |
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338,876 |
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346,841 |
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349,429 |
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Retained earnings (accumulated deficit) |
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170,095 |
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(106,287 |
) |
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(88,850 |
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Accumulated other comprehensive loss |
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(16,402 |
) |
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(15,736 |
) |
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(16,590 |
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TOTAL STOCKHOLDERS’ EQUITY |
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492,870 |
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225,124 |
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244,295 |
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TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |
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$ |
949,566 |
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$ |
800,641 |
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$ |
751,066 |
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* Derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 30, 2026.
LANDS’ END, INC.
Condensed Consolidated Statements of Operations
(Unaudited)
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13 Weeks Ended |
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26 Weeks Ended |
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(in thousands, except per share data) |
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July 31, |
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August 1, |
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July 31, |
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August 1, 2025 |
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Net revenue |
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$ |
302,038 |
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$ |
294,079 |
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$ |
540,954 |
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$ |
555,287 |
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Cost of sales (exclusive of depreciation and amortization) |
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145,023 |
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150,661 |
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272,427 |
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279,143 |
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Gross profit |
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157,015 |
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143,418 |
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268,527 |
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276,144 |
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Selling and administrative |
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135,250 |
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129,356 |
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261,702 |
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252,818 |
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Depreciation and amortization |
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6,147 |
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|
7,656 |
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12,247 |
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15,947 |
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Equity method investment income |
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(4,243 |
) |
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— |
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(4,439 |
) |
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— |
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Other operating expense, net |
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11,674 |
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2,423 |
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34,938 |
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5,766 |
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Operating income (loss) |
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8,187 |
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|
3,983 |
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(35,921 |
) |
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1,613 |
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Interest expense |
|
|
1,021 |
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|
9,262 |
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6,535 |
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18,527 |
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Gain on WHP Transaction |
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— |
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— |
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(491,622 |
) |
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— |
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Loss on extinguishment of debt |
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— |
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— |
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9,172 |
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— |
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Other income, net |
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(1,051 |
) |
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(3 |
) |
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(915 |
) |
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(14 |
) |
Income (loss) before income taxes |
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8,217 |
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(5,276 |
) |
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440,909 |
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(16,900 |
) |
Income tax expense (benefit) |
|
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4,766 |
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(1,609 |
) |
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106,765 |
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(4,971 |
) |
NET INCOME (LOSS) |
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$ |
3,451 |
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$ |
(3,667 |
) |
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$ |
334,144 |
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$ |
(11,929 |
) |
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Earnings (loss) per common share |
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Basic |
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$ |
0.12 |
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$ |
(0.12 |
) |
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$ |
11.12 |
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$ |
(0.39 |
) |
Diluted |
|
$ |
0.11 |
|
|
$ |
(0.12 |
) |
|
$ |
10.96 |
|
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$ |
(0.39 |
) |
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Weighted average common shares outstanding |
|
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||||
Basic |
|
|
29,902 |
|
|
|
30,743 |
|
|
|
30,052 |
|
|
|
30,721 |
|
Diluted |
|
|
30,108 |
|
|
|
30,743 |
|
|
|
30,498 |
|
|
|
30,721 |
|
Definitions, Reconciliations and Uses of Non-GAAP Financial Measures
In addition to our Net income (loss) determined in accordance with GAAP, for purposes of evaluating operating performance, we report the following non-GAAP measures: Adjusted net income (loss) and Adjusted EBITDA. Adjusted net income (loss) is also expressed on a diluted per share basis.
We believe presenting non-GAAP financial measures provides useful information to investors, allowing them to assess how the business performed excluding the effects of significant non-recurring or non-operational amounts. We believe the use of the non-GAAP financial measures facilitates comparing the results being reported against past and future results by eliminating amounts that we believe are not comparable between periods and assists investors in evaluating the effectiveness of our operations and underlying business trends in a manner that is consistent with management’s own methods for evaluating business performance.
Our management uses Adjusted net income (loss) and Adjusted EBITDA to evaluate the operating performance of our business for comparable periods and to discuss our business with our Board of Directors, institutional investors and other market participants. Adjusted EBITDA is also used as the basis for a performance measure used in executive incentive compensation.
The methods we use to calculate our non-GAAP financial measures may differ significantly from methods other companies use to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies. Adjusted net income (loss) and Adjusted EBITDA should not be used by investors or other third parties as the sole basis for formulating investment decisions as these measures may exclude a number of important cash and non-cash recurring items.
Adjusted net income (loss) is defined as net income (loss) excluding significant non-recurring or non-operational items as set forth below. Adjusted net income (loss) is also presented on a diluted per share basis. While Adjusted net income (loss) is a non-GAAP measurement, management believes that it is an important indicator of operating performance and useful to investors.
The following table sets forth, for the periods indicated, a reconciliation of Net income (loss) to Adjusted net income (loss) and Adjusted diluted earnings (loss) per share:
Unaudited |
|
13 Weeks Ended |
|
|||||
(in thousands, except per share amounts) |
|
July 31, 2026 |
|
|
August 1, 2025 |
|
||
Net income (loss) |
|
$ |
3,451 |
|
|
$ |
(3,667 |
) |
Corporate restructuring and other |
|
|
11,677 |
|
|
|
2,434 |
|
Unmitigated tariff costs (1) |
|
|
5,100 |
|
|
|
1,000 |
|
JV intangible asset amortization |
|
|
5,090 |
|
|
|
— |
|
Unmitigated tariff recovery |
|
|
(24,900 |
) |
|
|
— |
|
Tax effects on adjustments (2) |
|
|
2,261 |
|
|
|
(873 |
) |
ADJUSTED NET INCOME (LOSS) |
|
$ |
2,679 |
|
|
$ |
(1,106 |
) |
ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE |
|
$ |
0.09 |
|
|
$ |
(0.04 |
) |
|
|
|
|
|
|
|
||
Diluted weighted average common shares outstanding |
|
|
30,108 |
|
|
|
30,743 |
|
(1) Beginning in Fourth Quarter 2025, the Company adjusts for unmitigated tariff costs. Prior-period amounts have been recast on a comparable basis to reflect this adjustment.
(2) The tax impact of adjustments is calculated at the applicable U.S. and non-U.S. Federal and State statutory rates.
Unaudited |
|
26 Weeks Ended |
|
|||||
(in thousands, except per share amounts) |
|
July 31, 2026 |
|
|
August 1, 2025 |
|
||
Net income (loss) |
|
$ |
334,144 |
|
|
$ |
(11,929 |
) |
Corporate restructuring and other |
|
|
34,967 |
|
|
|
5,766 |
|
Unmitigated tariff costs (1) |
|
|
11,900 |
|
|
|
1,000 |
|
Loss on extinguishment of debt |
|
|
9,172 |
|
|
|
— |
|
JV intangible asset amortization |
|
|
6,787 |
|
|
|
— |
|
Unmitigated tariff recovery |
|
|
(24,900 |
) |
|
|
— |
|
Gain on WHP Transaction |
|
|
(491,622 |
) |
|
|
— |
|
Exit costs |
|
|
— |
|
|
|
257 |
|
Tax effects on adjustments (2) |
|
|
118,721 |
|
|
|
(1,619 |
) |
ADJUSTED NET LOSS |
|
$ |
(831 |
) |
|
$ |
(6,525 |
) |
ADJUSTED DILUTED LOSS PER SHARE |
|
$ |
(0.03 |
) |
|
$ |
(0.21 |
) |
|
|
|
|
|
|
|
||
Diluted weighted average common shares outstanding |
|
|
30,498 |
|
|
|
30,721 |
|
(1) Beginning in Fourth Quarter 2025, the Company adjusts for unmitigated tariff costs. Prior-period amounts have been recast on a comparable basis to reflect this adjustment.
(2) The tax impact of adjustments is calculated at the applicable U.S. and non-U.S. Federal and State statutory rates.
While Adjusted EBITDA is a non-GAAP measurement, management believes that it is an important indicator of operating performance, and is useful to investors, because EBITDA excludes the effects of financings, investing activities and tax structure by eliminating the effects of interest, depreciation and income tax.
The following table sets forth, for the periods indicated, selected income statement data, both in dollars and as a percentage of Net revenue and a reconciliation of Net income (loss) to Adjusted EBITDA:
Unaudited |
|
13 Weeks Ended |
|
|||||||||||||
(in thousands) |
|
July 31, 2026 |
|
|
August 1, 2025 |
|
||||||||||
Net income (loss) |
|
$ |
3,451 |
|
|
|
1.1 |
% |
|
$ |
(3,667 |
) |
|
|
(1.2 |
)% |
Income tax expense (benefit) |
|
|
4,766 |
|
|
|
1.6 |
% |
|
|
(1,609 |
) |
|
|
(0.5 |
)% |
Interest expense |
|
|
1,021 |
|
|
|
0.3 |
% |
|
|
9,262 |
|
|
|
3.1 |
% |
Other income, net |
|
|
(1,051 |
) |
|
|
(0.3 |
)% |
|
|
(3 |
) |
|
|
(0.0 |
)% |
Operating income |
|
|
8,187 |
|
|
|
2.7 |
% |
|
|
3,983 |
|
|
|
1.4 |
% |
Depreciation and amortization |
|
|
6,147 |
|
|
|
2.0 |
% |
|
|
7,656 |
|
|
|
2.6 |
% |
Corporate restructuring and other |
|
|
11,677 |
|
|
|
3.9 |
% |
|
|
2,434 |
|
|
|
0.8 |
% |
Unmitigated tariff costs (1) |
|
|
5,100 |
|
|
|
1.7 |
% |
|
|
1,000 |
|
|
|
0.3 |
% |
JV intangible asset amortization |
|
|
5,090 |
|
|
|
1.7 |
% |
|
|
— |
|
|
|
— |
% |
Unmitigated tariff recovery |
|
|
(24,900 |
) |
|
|
(8.2 |
)% |
|
|
— |
|
|
|
— |
% |
Gain on disposal of property and equipment |
|
|
(3 |
) |
|
|
(0.0 |
)% |
|
|
(11 |
) |
|
|
(0.0 |
)% |
Adjusted EBITDA |
|
$ |
11,298 |
|
|
|
3.7 |
% |
|
$ |
15,062 |
|
|
|
5.1 |
% |
Unaudited |
|
26 Weeks Ended |
|
|||||||||||||
(in thousands) |
|
July 31, 2026 |
|
|
August 1, 2025 |
|
||||||||||
Net income (loss) |
|
$ |
334,144 |
|
|
|
61.8 |
% |
|
$ |
(11,929 |
) |
|
|
(2.1 |
)% |
Income tax expense (benefit) |
|
|
106,765 |
|
|
|
19.7 |
% |
|
|
(4,971 |
) |
|
|
(0.9 |
)% |
Interest expense |
|
|
6,535 |
|
|
|
1.2 |
% |
|
|
18,527 |
|
|
|
3.3 |
% |
Loss on extinguishment of debt |
|
|
9,172 |
|
|
|
1.7 |
% |
|
|
— |
|
|
|
— |
% |
Gain on WHP Transaction |
|
|
(491,622 |
) |
|
|
(90.9 |
)% |
|
|
— |
|
|
|
— |
% |
Other income, net |
|
|
(915 |
) |
|
|
(0.2 |
)% |
|
|
(14 |
) |
|
|
(0.0 |
)% |
Operating (loss) income |
|
|
(35,921 |
) |
|
|
(6.6 |
)% |
|
|
1,613 |
|
|
|
0.3 |
% |
Depreciation and amortization |
|
|
12,247 |
|
|
|
2.3 |
% |
|
|
15,947 |
|
|
|
2.9 |
% |
Corporate restructuring and other |
|
|
34,967 |
|
|
|
6.5 |
% |
|
|
5,766 |
|
|
|
1.0 |
% |
Unmitigated tariff costs (1) |
|
|
11,900 |
|
|
|
2.2 |
% |
|
|
1,000 |
|
|
|
0.2 |
% |
JV intangible asset amortization |
|
|
6,787 |
|
|
|
1.3 |
% |
|
|
— |
|
|
|
— |
% |
Unmitigated tariff recovery |
|
|
(24,900 |
) |
|
|
(4.6 |
)% |
|
|
— |
|
|
|
— |
% |
Exit costs |
|
|
— |
|
|
|
— |
% |
|
|
257 |
|
|
|
0.0 |
% |
Gain on disposal of property and equipment |
|
|
(28 |
) |
|
|
(0.0 |
)% |
|
|
— |
|
|
|
— |
% |
Adjusted EBITDA |
|
$ |
5,052 |
|
|
|
0.9 |
% |
|
$ |
24,583 |
|
|
|
4.4 |
% |
Third Quarter Fiscal 2026 Guidance Adjusted EBITDA |
|
13 Weeks Ended |
|
|||||
(in millions) |
|
October 30, 2026 |
|
|||||
Net (loss) income |
|
$ |
(1.0 |
) |
— |
$ |
3.0 |
|
Depreciation, interest, other income, taxes and other significant items |
|
|
15.0 |
|
— |
|
15.0 |
|
Adjusted EBITDA |
|
$ |
14.0 |
|
— |
$ |
18.0 |
|
Third Quarter Fiscal 2026 Guidance Adjusted Net Income and Adjusted Diluted Earnings per Share |
|
13 Weeks Ended |
|
|||||
(in millions) |
|
October 30, 2026 |
|
|||||
Net (loss) income |
|
$ |
(1.0 |
) |
— |
$ |
3.0 |
|
Restructuring and other significant items |
|
|
3.0 |
|
— |
|
3.0 |
|
Adjusted net income |
|
$ |
2.0 |
|
— |
$ |
6.0 |
|
|
|
|
|
|
|
|
||
Adjusted diluted earnings per share |
|
$ |
0.07 |
|
— |
$ |
0.20 |
|
Fiscal 2026 Guidance Adjusted EBITDA |
|
52 Weeks Ended |
|
|||||
(in millions) |
|
January 29, 2027 |
|
|||||
Net income |
|
$ |
317.0 |
|
— |
$ |
325.0 |
|
Depreciation, interest, other income, taxes and other significant items |
|
|
(255.0 |
) |
— |
|
(255.0 |
) |
Adjusted EBITDA |
|
$ |
62.0 |
|
— |
$ |
70.0 |
|
Fiscal 2026 Guidance Adjusted Net Income and Adjusted Diluted Earnings per Share |
|
52 Weeks Ended |
|
|||||
(in millions) |
|
January 29, 2027 |
|
|||||
Net income |
|
$ |
317.0 |
|
— |
$ |
325.0 |
|
Restructuring and other significant items |
|
|
(304.0 |
) |
— |
|
(304.0 |
) |
Adjusted net income |
|
$ |
13.0 |
|
— |
$ |
21.0 |
|
|
|
|
|
|
|
|
||
Adjusted diluted earnings per share |
|
$ |
0.44 |
|
— |
$ |
0.72 |
|
LANDS’ END, INC.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
|
26 Weeks Ended |
|
|||||
(in thousands) |
|
July 31, 2026 |
|
|
August 1, 2025 |
|
||
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
||
Net income (loss) |
|
$ |
334,144 |
|
|
$ |
(11,929 |
) |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
12,247 |
|
|
|
15,947 |
|
Amortization of debt issuance costs |
|
|
424 |
|
|
|
1,391 |
|
Gain on disposal of property and equipment |
|
|
(28 |
) |
|
|
— |
|
Equity method investment income |
|
|
(4,439 |
) |
|
|
— |
|
Distributions received from equity method investment |
|
|
2,411 |
|
|
|
— |
|
Gain on WHP Transaction |
|
|
(491,622 |
) |
|
|
— |
|
Loss on extinguishment of debt |
|
|
9,172 |
|
|
|
— |
|
Stock-based compensation |
|
|
2,867 |
|
|
|
2,250 |
|
Deferred income taxes |
|
|
57,073 |
|
|
|
(1,182 |
) |
Other |
|
|
(346 |
) |
|
|
(422 |
) |
Change in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable, net |
|
|
2,745 |
|
|
|
9,363 |
|
Inventories |
|
|
(73,930 |
) |
|
|
(35,420 |
) |
Accounts payable |
|
|
45,790 |
|
|
|
36,250 |
|
Other operating assets |
|
|
3,387 |
|
|
|
(1,343 |
) |
Other operating liabilities |
|
|
13,624 |
|
|
|
(14,436 |
) |
Net cash (used in) provided by operating activities |
|
|
(86,481 |
) |
|
|
469 |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
||
Sales of property and equipment |
|
|
43 |
|
|
|
11 |
|
Proceeds from WHP Transaction |
|
|
300,000 |
|
|
|
— |
|
Cash contribution to JV |
|
|
(1,250 |
) |
|
|
— |
|
Purchases of property and equipment |
|
|
(24,013 |
) |
|
|
(17,163 |
) |
Net cash provided by (used in) investing activities |
|
|
274,780 |
|
|
|
(17,152 |
) |
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
||
Proceeds from borrowings under ABL Facility |
|
|
142,000 |
|
|
|
68,000 |
|
Payments of borrowings under ABL Facility |
|
|
(82,000 |
) |
|
|
(33,000 |
) |
Payments on term loan |
|
|
(234,000 |
) |
|
|
(6,500 |
) |
Payments on debt extinguishment |
|
|
(2,437 |
) |
|
|
— |
|
Payments of debt issuance costs |
|
|
— |
|
|
|
(1,103 |
) |
Proceeds from exercise of stock options |
|
|
908 |
|
|
|
— |
|
Payments for taxes related to net share settlement of equity awards |
|
|
(4,313 |
) |
|
|
(810 |
) |
Purchases and retirement of common stock, including excise tax paid |
|
|
(10,848 |
) |
|
|
(4,513 |
) |
Net cash (used in) provided by financing activities |
|
|
(190,690 |
) |
|
|
22,074 |
|
Effects of exchange rate changes on cash, cash equivalents and restricted cash |
|
|
811 |
|
|
|
(657 |
) |
NET (DECREASE) INCREASE IN CASH, CASH EQUIVALENTS AND |
|
|
(1,580 |
) |
|
|
4,734 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, |
|
|
18,283 |
|
|
|
18,812 |
|
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF PERIOD |
|
$ |
16,703 |
|
|
$ |
23,546 |
|
SUPPLEMENTAL CASH FLOW DATA |
|
|
|
|
|
|
||
Unpaid liability to acquire property and equipment |
|
$ |
4,085 |
|
|
$ |
1,725 |
|
Income taxes paid (refunded) |
|
|
25,988 |
|
|
|
(153 |
) |
Interest paid |
|
|
6,710 |
|
|
|
17,172 |
|
Operating lease right-of-use-assets obtained in exchange for lease liabilities |
|
|
148 |
|
|
|
386 |
|