Lands' End (LE) Q2 2027 earnings summary

Executive summary

• Net revenue for Q2 2026 increased 2.7% year-over-year to $302 million, driven by strong U.S. e-commerce and Outfitters performance, while Third Party sales declined.

• Gross profit rose 9.5% to $157 million, with gross margin expanding 320 basis points to 52%, aided by IEEPA tariff refunds.

• Net income was $3.5 million (diluted EPS $0.11) versus a net loss of $3.7 million in Q2 2025; adjusted net income was $2.7 million (adj. EPS $0.09).

• The WHP Global JV transaction closed, generating a $491.6 million gain and $300 million in proceeds, which were used to fully repay the term loan.

• Leadership transition: CEO Andrew McLean departed, succeeded by Charlie Cole, with a focus on digital transformation and AI-driven customer experience.

Financial highlights

• Q2 2026 net revenue: $302 million (+2.7% YoY); gross profit: $157 million (+9.5% YoY); gross margin: 52% (+320 bps YoY).

• Adjusted net income was $2.7 million (adj. EPS $0.09); adjusted EBITDA was $11.3 million, down 25% year-over-year.

• SG&A expenses rose by $5.9 million to $135.3 million (44.8% of revenue), mainly due to digital marketing and warehouse inefficiencies.

• Inventory ended at $342 million, up 13% year-over-year, reflecting normalization after prior tariff-driven conservatism.

• Cash and cash equivalents were $16.1 million at quarter-end; ABL borrowings at $60 million, with $89.3 million available.

Outlook and guidance

• Q3 2026 guidance: net revenue $300–$330 million, adjusted net income $2–$6 million, adjusted EPS $0.07–$0.20, adjusted EBITDA $14–$18 million.

• FY 2026 guidance: net revenue $1.3–$1.35 billion, adjusted net income $13–$21 million, adjusted EPS $0.44–$0.72, adjusted EBITDA $62–$70 million.

• Guidance incorporates current tariff rates and $40 million in capital expenditures focused on technology and infrastructure.

• Management expects sufficient liquidity for at least the next 12 months, supported by cash, operations, and the ABL Facility.