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Aug 01
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.
Lands' End
Lands' End
Lands' End Revenue by Segment
Lands' End Revenue by Geographic Location
Revenue by Segment
U.S. Digital Segment Revenue
CapyFin.comU.S. eCommerce Revenue
CapyFin.comOutfitters Revenue
CapyFin.comThird Party Revenue
CapyFin.comEurope eCommerce Revenue
CapyFin.comLicensing & Retail Revenue
CapyFin.comRevenue by Geographic Location
U.S. Revenue
CapyFin.comEurope Revenue
CapyFin.com 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