Lands' End (LE) Q3 2026 earnings summary

Executive summary

• Achieved record gross margin of 51.8% in Q3 2025, up 120 basis points year-over-year, with Adjusted EBITDA rising 28% to $25.9 million and a return to EPS profitability.

• Net income improved to $5.2 million from a $0.6 million loss in Q3 2024, with adjusted net income at $6.5 million ($0.21 per share).

• Sustained positive momentum driven by customer engagement, brand awareness, and asset-light operations, with significant new customer acquisition and digital channel growth.

• Secured a long-term partnership with Delta Air Lines for uniform design and manufacturing, and executed successful collaborations and pop-up events to boost brand relevance.

• Restructuring included a 6% reduction in corporate office positions and ongoing strategic review costs.

Financial highlights

• Q3 total revenue was $317.5 million, down 0.3% year-over-year; gross profit increased 2.1% to $164.5 million.

• U.S. e-commerce revenue was $179.8 million, down 3.4% year-over-year, offset by 34% growth in third-party marketplace sales.

• Adjusted EBITDA was $25.9 million, up 28% year-over-year; adjusted net income was $6.5 million ($0.21 per share).

• Gross margin reached 51.8%, up 120 basis points from prior year, supported by higher average unit retail and licensing growth.

• SG&A expenses decreased by $2.3 million, with SG&A as a percentage of net revenue down 50 basis points.

Outlook and guidance

• Q4 net revenue expected between $460 million-$490 million; adjusted net income $21 million-$26 million; adjusted EPS $0.71-$0.84; adjusted EBITDA $49 million-$54 million.

• Full-year net revenue guidance of $1.33 billion-$1.36 billion; adjusted net income $21 million-$25 million; adjusted EPS $0.68-$0.81; adjusted EBITDA $99 million-$104 million; $28 million in capital expenditures.

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