Lands' End (LE) Q3 2025 earnings summary

Executive summary

• Net revenue for Q3 2024 was $318.6M–$319M, down about 2% year-over-year; excluding the transition of kids and footwear to licensing, revenue grew low single digits.

• Adjusted EBITDA reached $20.3M, up 17% year-over-year, reflecting a focus on profitability and balance sheet efficiency.

• Gross margin improved by 360 basis points to 50.6%–51%, the highest since IPO, driven by lower promotions and new product assortment.

• New customer acquisition increased 20% in Q3, with younger demographics attracted by targeted marketing and product innovation.

• The company is executing a solutions-based strategy, leveraging personalization and digital innovation to drive higher quality sales.

Financial highlights

• Net revenue: $318.6M–$319M for Q3 2024, down 1.9%–2% year-over-year.

• Adjusted EBITDA: $20.3M, up from $17.3M in Q3 2023.

• Gross profit increased 5.6% year-over-year; gross margin at 50.6%–51%, up 360 basis points.

• Net loss of $0.6M ($0.02/share); adjusted net income of $1.8M ($0.06/share).

• Inventory reduced by 20% year-over-year to $335.9M–$336M.

Outlook and guidance

• Q4 2024 net revenue expected between $440M–$480M; GMV growth low to mid-single digits.

• Q4 adjusted net income expected at $16M–$19M; adjusted EPS $0.51–$0.61; adjusted EBITDA $43M–$47M.

• Full-year 2024 net revenue guidance: $1.36B–$1.4B; adjusted net income $11M–$14M; adjusted EPS $0.35–$0.45; adjusted EBITDA $92M–$96M.

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

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