# Lands’ End (LE) Q2 2025 Financial Results Summary
Lands’ End, Inc. (NASDAQ: LE) released its financial results for the second quarter ending August 1, 2025, on September 9, 2025. The company reported various metrics regarding net revenue, gross profit, and losses compared to the previous year, reflecting a mixed quarter performance.
## Second Quarter Financial Highlights
– **Gross Merchandise Value (GMV):**
– Approximately flat compared to Q2 2024.
– **Net Revenue:**
– Totaled **$294.1 million**, down **$23.1 million** or **7.3%** from **$317.2 million** in Q2 2024.
– **U.S. Digital Segment Revenue:**
– **$255.3 million**, a decline of **$15.1 million** or **5.6%** from **$270.4 million** in Q2 2024.
– **U.S. eCommerce Revenue:**
– Reported at **$167.3 million**, down **$21.0 million** or **11.2%** from **$188.3 million** in Q2 2024, attributed to a slower start in seasonal swim products.
– **Outfitters Revenue:**
– Increased to **$66.4 million**, up **$3.2 million** or **5.1%** from **$63.2 million** in Q2 2024 driven by new customer acquisition and business uniform growth.
– **Third Party Revenue:**
– Rose to **$21.6 million**, up **$2.7 million** or **14.3%** from **$18.9 million** in Q2 2024 due to strength in curated product assortments.
– **Europe eCommerce Revenue:**
– Decreased to **$19.6 million**, down **$3.4 million** or **14.8%** from **$23.0 million** in Q2 2024, impacted by supply chain challenges.
– **Licensing and Retail Revenue:**
– Decreased to **$19.2 million**, down **$4.7 million** or **19.7%** from **$23.9 million** in Q2 2024. U.S. store performances were weak, though licensing revenue increased by **19%**.
– **Gross Profit:**
– Totaled **$143.4 million**, a decrease of **$8.5 million** or **5.6%** from **$151.9 million** in Q2 2024.
– **Gross Margin:**
– Increased by **approximately 90 basis points** to **48.8%** in Q2 2025 from **47.9%** in Q2 2024, driven by improved promotional productivity and licensing business expansion.
– **Selling and Administrative Expenses:**
– Declined by **$6.1 million** to **$129.4 million**, representing **44.0%** of net revenue compared to **42.7%** in Q2 2024.
– **Net Loss:**
– Reported at **$3.7 million**, or a **$0.12** loss per diluted share, an improvement from a net loss of **$5.3 million** or **$0.17** loss per diluted share in Q2 2024.
– **Adjusted Net Loss:**
– Recorded at **$1.9 million**, or an adjusted diluted loss per share of **$0.06**, compared to an adjusted net loss of **$0.7 million** or **$0.02** in Q2 2024.
– **Adjusted EBITDA:**
– Amounted to **$14.1 million** compared to **$17.1 million** in Q2 2024.
## Balance Sheet and Cash Flow Highlights
– **Cash and Equivalents:**
– Totaled **$21.3 million** as of August 1, 2025, down from **$25.6 million** as of August 2, 2024.
– **Inventories:**
– Decreased to **$301.8 million**, down **3%** year over year from **$312.0 million** as of August 2, 2024.
– **Net Cash Provided by Operating Activities:**
– Increased to **$0.5 million** for the 26 weeks ending August 1, 2025, down from **$4.9 million** for the same period in 2024.
– **Overall Borrowings:**
– **$35.0 million** of long-term borrowings outstanding alongside **$87.6 million** availability under its ABL facility.
## Share Repurchase and Dividends
– During Q2 2025, Lands’ End repurchased **$1.7 million** of its common stock as part of its repurchase program initiated on March 15, 2024. An additional **$8.8 million** remains available for purchase under this program through March 31, 2026.
– No quarterly dividend was declared during this period.
## Strategic Outlook
– Lands’ End remains committed to enhancing its inventory management and operational efficiency amid anticipated market challenges, including tariff impacts.
– For Q3 2025, the company expects net revenue between **$320 million and $350 million**, with a guidance of adjusted EBITDA between **$24 million and $28 million**.
In summary, while Lands’ End faced challenges with lower revenues and operational losses in Q2 2025 compared to the same quarter a year ago, strategic improvements and growth in specific business segments, namely Outfitters and Third-Party revenues, indicate ongoing opportunities for recovery.
| August 1, 2025 | August 2, 2024 | August 1, 2025 | August 2, 2024 | |
|---|---|---|---|---|
| Net revenue | $294,079 | $317,173 | $555,287 | $602,644 |
| Cost of sales (exclusive of depreciation and amortization) | $150,661 | $165,288 | $279,143 | $311,779 |
| Gross profit | $143,418 | $151,885 | $276,144 | $290,865 |
| Selling and administrative | $129,356 | $135,510 | $252,818 | $262,911 |
| Depreciation and amortization | $7,656 | $8,692 | $15,947 | $17,697 |
| Other operating expense, net | $2,423 | $5,197 | $5,766 | $5,538 |
| Operating income | $3,983 | $2,486 | $1,613 | $4,719 |
| Interest expense | $9,262 | $10,447 | $18,527 | $20,783 |
| Other (income), net | $(3) | $(84) | $(14) | $(172) |
| Loss before income taxes | $(5,276) | $(7,877) | $(16,900) | $(15,892) |
| Income tax benefit | $(1,609) | $(2,626) | $(4,971) | $(4,199) |
| NET LOSS | $(3,667) | $(5,251) | $(11,929) | $(11,693) |
| Loss per common share | ||||
| Basic | $(0.12) | $(0.17) | $(0.39) | $(0.37) |
| Diluted | $(0.12) | $(0.17) | $(0.39) | $(0.37) |
| Weighted average common shares outstanding | 30,743 | 31,376 | 30,721 | 31,407 |
| August 1, 2025 | August 2, 2024 | January 31, 2025 | |
|---|---|---|---|
| ASSETS | |||
| Current assets | |||
| Cash and cash equivalents | $21,255 | $25,648 | $16,180 |
| Restricted cash | $2,291 | $2,239 | $2,632 |
| Accounts receivable, net | $39,028 | $27,420 | $47,839 |
| Inventories | $301,797 | $312,014 | $265,132 |
| Prepaid expenses | $30,400 | $34,864 | $33,258 |
| Other current assets | $10,291 | $12,579 | $5,439 |
| Total current assets | $405,062 | $414,764 | $370,480 |
| Property and equipment, net | $117,205 | $106,758 | $115,618 |
| Operating lease right-of-use asset | $18,856 | $21,182 | $20,373 |
| Intangible asset | $257,000 | $257,000 | $257,000 |
| Other assets | $2,518 | $2,812 | $2,010 |
| TOTAL ASSETS | $800,641 | $802,516 | $765,481 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
| Current liabilities | |||
| Current portion of long-term debt | $13,000 | $13,000 | $13,000 |
| Accounts payable | $147,846 | $143,886 | $111,353 |
| Lease liability – current | $4,609 | $5,351 | $4,534 |
| Accrued expenses and other current liabilities | $85,084 | $91,190 | $98,736 |
| Total current liabilities | $250,539 | $253,427 | $227,623 |
| Long-term borrowings under ABL Facility | $35,000 | $20,000 | $— |
| Long-term debt, net | $219,550 | $230,227 | $224,888 |
| Lease liability – long-term | $17,986 | $20,843 | $20,007 |
| Deferred tax liabilities | $50,319 | $48,631 | $51,450 |
| Other liabilities | $2,123 | $2,874 | $2,291 |
| TOTAL LIABILITIES | $575,517 | $576,002 | $526,259 |
| STOCKHOLDERS’ EQUITY | |||
| Common stock, par value $0.01 authorized: 480,000 shares; issued and outstanding: 30,517, 31,256 and 30,843, respectively | $306 | $313 | $309 |
| Additional paid-in capital | $346,841 | $354,768 | $349,940 |
| Accumulated deficit | $(106,287) | $(112,284) | $(94,358) |
| Accumulated other comprehensive loss | $(15,736) | $(16,283) | $(16,669) |
| TOTAL STOCKHOLDERS’ EQUITY | $225,124 | $226,514 | $239,222 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $800,641 | $802,516 | $765,481 |
