Lands' End (LE) Q2 2025 earnings summary

Executive summary

• Q2 2024 net revenue was $317.2 million, down 1.9% year-over-year, with gross profit up 8.8% to $151.9 million and gross margin improving by 470 basis points to 47.9% due to lower promotions and improved inventory management.

• Adjusted EBITDA rose to $17.1 million, up 8% year-over-year, reflecting improved profitability despite lower revenue.

• Net loss for Q2 2024 was $5.3 million ($0.17/share); adjusted net loss was $0.7 million ($0.02/share), both narrowing significantly from last year.

• Focus on innovation, speed to market, and brand elevation attracted younger customers and improved inventory efficiency.

• Full-year profit guidance was raised, reflecting confidence in ongoing operational improvements.

Financial highlights

• U.S. eCommerce revenue declined 3.9% in Q2 2024 to $188.3 million, but excluding the transition of kids and footwear to licensing, revenue increased mid-single digits year-over-year.

• International eCommerce revenue grew 0.9% to $23.0 million, driven by more full-price sales and higher margins.

• Outfitters revenue fell 7.1% to $63.2 million, with school uniforms up mid-single digits and business uniforms down.

• Third Party revenue increased 23.4% to $30.1 million, mainly from licensing and wholesale arrangements.

• Retail revenue rose 3.3% to $12.6 million, with same store sales up 11.7% despite fewer stores.

Outlook and guidance

• Q3 2024 net revenue expected between $300–$340 million; adjusted EBITDA $19–$23 million.

• Full-year 2024 net revenue guidance raised to $1.35–$1.43 billion; adjusted net income $9–$15 million; adjusted EPS $0.29–$0.48; adjusted EBITDA $90–$98 million.

• Q3 adjusted net income projected at $0–$3 million; adjusted EPS $0.00–$0.10.

• Capital expenditures for the year expected at $35 million, focused on technology and infrastructure.

• Management expects cash on hand, operations, and ABL Facility to be adequate for at least the next 12 months.