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Oct 31, 2025
Lands' End Q3 2025 Earnings Report
Lands' End reported a return to profitability in Q3 2025, with a net income of $5.2 million, improved gross margin, and strong growth in adjusted EBITDA.
Key Takeaways
Lands' End posted a modest revenue decline in Q3 2025, but achieved significant margin expansion and swung to a net profit, driven by growth in Outfitters and Third Party channels.
Net income reached $5.2 million, reversing a $0.6 million loss from Q3 2024.
Adjusted EBITDA rose 28% year-over-year to $25.9 million.
Gross margin improved by 120 basis points to 51.8%, aided by higher unit retail and licensing gains.
U.S. Digital and Outfitters segments showed revenue growth, offsetting declines in Europe eCommerce.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Lands' End expects strong Q4 performance with revenue up to $490 million and further growth in adjusted EBITDA and EPS, despite ongoing tariff pressures.
Positive Outlook
- Q4 net income expected between $21M–$25M.
- Q4 adjusted EPS guided between $0.71–$0.84.
- Full-year adjusted EBITDA guidance raised to $99M–$104M.
- Strong licensing momentum continuing into Q4.
- Gross Merchandise Value expected to grow mid-to-high single digits.
Challenges Ahead
- Tariffs remain a headwind to margins.
- Europe eCommerce remains pressured by macro conditions.
- Business uniform revenue impacted by order timing.
- Free cash flow remains negative YTD.
- No Q3 share repurchases, despite authorized buyback capacity.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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