Lands' End Reports Q2 Earnings: Revenue Growth and Adjusted Net Income Improvement
Lands’ End reported second-quarter revenue of $302 million, a 2.7% increase driven by the recovery in U.S. eCommerce sales and growth from enterprise accounts. The company’s gross margin improved to 52%, largely due to IEEPA tariff refunds. However, adjusted EBITDA declined by 25% year-over-year to $11.3 million as operational inefficiencies offset some of these gains. Inventory levels rose by 13% compared to the prior year, attributed to a lean position held during earlier tariff uncertainties and ongoing challenges with new warehouse management systems. The company repurchased approximately 900,000 shares for $10.5 million in Q2 and reported an adjusted net income of $2.7 million or $0.09 per diluted share compared to a loss the previous year. Lands’ End raised its full-year revenue guidance to between $1.3 billion and $1.35 billion, with EBITDA expected to range from $62 million to $70 million. The company also announced a multiyear partnership with Delta Air Lines for uniforms and noted increased social media engagement following brand collaborations.
Topics: adjusted EBITDA gross margin inventory management revenue segment performance