Lands' End (LE) Q1 2025 earnings summary

Executive summary

• Achieved strong Q1 2024 results with gross margin expanding 410 bps to 48.7% and GMV returning to growth, driven by brand building, innovation, and digital transformation.

• Net revenue for Q1 2024 was $285.5M, down 7.8% year-over-year; excluding the Delta Air Lines contract, revenue increased 1.0%.

• Net loss was $6.4M ($0.20/share); adjusted net loss was $6.2M, both better than guidance.

• Adjusted EBITDA was $11.6M, down from $19.5M, but up 68.1% excluding Delta.

• Enhanced customer acquisition through social media and new digital experiences.

Financial highlights

• Gross profit rose to $139.0M, up 0.8% year-over-year, with gross margin at 48.7%, up 410 bps.

• Q1 net revenue was $285.5M, down 8% year-over-year, but up 1% excluding the $27M Delta impact.

• Adjusted EBITDA reached $12M, up over 60% year-over-year excluding Delta.

• Inventory reduced by 23% year-over-year to $288.6M.

• Selling and administrative expenses increased to $127.4M (44.6% of revenue), reflecting higher digital marketing and deleveraging.

Outlook and guidance

• Q2 net revenue expected between $290M–$320M; GMV growth mid to high single digits; adjusted EBITDA $14M–$17M.

• Q2 adjusted net loss expected between $4.5M–$2M.

• Full-year net revenue guidance raised to $1.36–$1.45B; adjusted EBITDA $88M–$97M.

• Full-year adjusted net income $5.5M–$13M; adjusted EPS $0.18–$0.41.

• Capital expenditures for the year expected at ~$30M.