Lands’ End swings back to profit in Q2 as net revenue rises 2.7%
Mon, September 7, 2026 at 2:11 PM GMT+3 3 min read
In the quarter ended 31 July 2026, the company's gross profit was $157.0m compared with $143.4m in the same period last year.
Gross margin increased by approximately 320 basis points to 52.0%, primarily due to International Emergency Economic Powers Act (IEEPA) tariff refunds, partly offset by costs related to a new joint venture royalty structure and temporary expenses from the warehouse management system rollout.
During the quarter, Lands' End posted $302m in net revenue, marking a 2.7% increase year-on-year. Its US e-commerce segment saw the strongest growth, with revenues up 9.0% to $182.4m.
This rebound followed earlier disruption related to the implementation of a new warehouse management system, with carryover shipments contributing to the quarterly rise.
Revenue of Lands' End Outfitters business rose by 4.4% to $69.3m, led by enterprise accounts, which offset ongoing challenges in the school uniform business caused by service processing delays.
In Europe, e-commerce revenues increased marginally by 0.5% to $19.7m, attributed to the company's shift to a franchise-focused product mix.
Third-party sales fell 20.4% to $17.2m due to a strategic decision to cut back on lower-margin promotional sales, the company said.
Selling and administrative expenses increased to $135.3m, representing 44.8% of net revenue, due to stepped-up spending on digital advertising and operational inefficiencies linked to the warehouse transition.
During the quarter, Lands' End also repurchased around 3% of its outstanding shares. The company cited this as evidence of a "disciplined approach to capital allocation and our confidence in the long-term value of Lands' End," alongside its reduced debt and interest expenses.
Looking ahead, the company projected third quarter (Q3) net revenue to fall between $300m and $330m. It anticipates net loss of $1.0m to net income of $3.0m, with diluted earnings per share expected to be between a $0.03 loss and $0.10 per share.
Adjusted net income is forecasted to range from $2.0m to $6.0m, and adjusted diluted earnings per share is projected between $0.07 and $0.20.
For FY26, Lands' End projects net revenue to be between $1.30bn and $1.35bn and net income in the range of $317.0m to $325.0m. Adjusted net income is anticipated in the range of $13.0m to $21.0m.
The company expects diluted EPS between $10.87 and $11.14, with adjusted diluted earnings per share of $0.44 to $0.72.
Charlie Cole, who was appointed as Lands' End CEO in July this year, said: "Since joining Lands' End, I have been energised by what I see ahead for this iconic American company. What excites me most is the clear runway we have to utilise our stellar brand strength and deep customer loyalty to further strengthen our customer engagement, expand our digital capabilities, and more effectively reach and convert new customers.
"Our focus now is on excellence in execution to ensure we have the right infrastructure, technology, and customer acquisition capabilities in place as we head into the holiday season. I am confident we are well positioned, and I look forward to sharing more in the months ahead."
"Lands' End swings back to profit in Q2 as net revenue rises 2.7%" was originally created and published by Just Style, a GlobalData owned brand.
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