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Aug 01, 2025
Lands' End Q2 2025 Earnings Report
Lands' End reported a narrower net loss in Q2 2025 despite lower revenue, driven by improved gross margin and strong performance in Outfitters and Third-Party channels.
Key Takeaways
The company delivered margin improvement and continued inventory discipline in a soft consumer environment, showing positive trends in key segments despite top-line pressure.
Net revenue decreased by 7.3% to $294.1 million compared to the second quarter of 2024.
Gross margin increased by 90 basis points to 48.8%, driven by improved promotional productivity and licensing business expansion.
Net loss improved to $3.7 million, or $0.12 loss per diluted share, from $5.3 million, or $0.17 loss per diluted share, in the prior year.
Inventory was reduced by 3% year-over-year to $301.8 million, marking the ninth consecutive quarter of inventory reduction.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Lands’ End expects revenue and profitability improvements in Q3 FY25, with a focus on tariff mitigation and improved operational execution.
Positive Outlook
- Q3 revenue expected between $320M and $350M
- Q3 Adjusted EBITDA guidance of $24M to $28M
- Q3 Adjusted EPS guidance between $0.10 and $0.22
- Improved GMV expected in mid to high-single digits
- Full-year Adjusted EBITDA guidance between $98M and $107M
Challenges Ahead
- Tariff headwinds expected to continue in H2
- Europe eCommerce down 14.8% YoY in Q2
- Licensing & Retail revenue down 19.7% YoY
- Adjusted EBITDA declined YoY in Q2
- Inventory reduction signals slower sales velocity in some categories
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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