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Image source: The Motley Fool. Thursday, Sept. 3, 2026 at 8:30 a.m. ET Senior Director of Financial Planning and Analysis - Tom Altholz Chief Executive Officer - Charlie Cole Chief Financial Officer - Bernard Louis McCracken Operator: And a member of our team will be happy to help you. Kelly and welcome everyone joining today's Land's End Second Quarter Fiscal 26 Earnings Call. At this time, all participants are in a listen-only mode. Peter, you will have the opportunity to ask questions during the question and answer session. Please note this call is being recorded. We are standing by if you should need any assistance. It is now my pleasure to turn the meeting over to Tom Altholz. Please go ahead. Tom Altholz: Good morning, And thank you for joining us for a discussion of our second quarter fiscal 26 results. Which we released this morning and can be found on our website, landsend.com. I am Tom Altholz, Lands' End's Senior Director of Financial Planning and Analysis. And I am pleased to join you today with Charlie Cole, our Chief Executive Officer; and Bernie McCracken, our Chief Financial Officer. After the prepared remarks, we will conduct a question and answer session. Please also note the information we are about to discuss includes forward looking statements. Such statements involve risks and uncertainties. The company's actual results could differ materially from those discussed on this call. Factors that could contribute to such differences include but are not limited to those items noted and included in the company's SEC filings. Including our annual report on Form 10-Ks and quarterly reports on Form 10-Q. The forward looking information that is provided by the company on this call represents the company's outlook as of today. We do not undertake any obligation to update forward looking statements made by us. Subsequent events and developments may cause the company's outlook to change. During this call, we will be referring to non GAAP measures. These non GAAP measures are not prepared in accordance with generally accepted accounting principles. Reconciliation of non GAAP financial measures to the most directly comparable GAAP measures can be found in our earnings release issued earlier today. A copy of which is posted in the Investor Relations section of our website at landsend.com. With that, I will turn the call over to Charlie. Charlie Cole: Thank you, Tom and good morning, everyone. I am honored to be joining you for my first earnings call as CEO of Lands' End. I have spent my career leading digital and e commerce companies through customer engagement and brand transformation. And I am excited to be utilizing that experience to help unlock the next phase of growth for this iconic American brand. As you know, I joined the company on July 13. And I spent the past several weeks getting to know the company. Since then, I have been meeting with teams across the company reviewing the business listening to customers to ensure a strong foundation to evaluate and execute on the right opportunities ahead. What I found reinforces my confidence in the strength of this brand loyalty of our customer base and a strong culture that remains a genuine competitive advantage. it is clear to me that the opportunity is significant and we have strong strategic direction. The work is now ensuring the infrastructure is in place to support. Put simply, Lands' End is a great business with tremendous opportunity ahead. With that, let me take you through the highlights of the quarter. Across the business, teams made deliberate decisions on marketing spend, on customer acquisition and on inventory which we believe position us well for the back half of the year. The product portfolio had clear bright spots this quarter, continuing to leverage product solutions through our key franchises. Women's and men's apparel especially knits, had a good quarter overall and bags performance led by our iconic 5 Pocket tote, was a meaningful driver of growth and new customer acquisition. Our swim business continued to execute on owning the weather with high single digit revenue growth in The U. S. E commerce business in the quarter. The areas generating real momentum are the ones I am most energized about. For example, totes remain 1 of our strongest new to brand acquisition tools and value added services like embroidery and personalization make the economics even more attractive. Our U. S. New to file customer count grew double digits largely driven by totes and swim. Demonstrating our continued ability to use accessories to reach new demographics. Fleet is a category we are excited to develop year round. And early indicators are positive. Initial reads on outerwear and Christmas stockings are also encouraging. Give us good initial visibility into Q3 and Q4. Beyond the product, our marketing activity in Q2 generated some real highlights. Our collaborations with TNT and Wawa and our presence in Nantucket each put Lands' End in front of new and younger audiences in a way that felt authentic to who we are. Driving real engagement across social platforms, building the kind of brand equity that compounds over time not just immediate conversion. We are especially pleased with our Wawa collaboration. Where our iconic tote drove over 2.6 billion impressions and more importantly sold out in hours. These types of activations are driving a step change in our social media following. Of note, traffic across our social channels including Instagram, increased over 30% year over year. While it is early in my tenure, I already see a meaningful opportunity to strengthen how we reach, engage, and convert customers. We have a strong data foundation and a loyal core customer base. The opportunity is to use that foundation more effectively including through more personalized marketing better customer targeting and greater efficiency in acquisition. We will pursue that work deliberately with the core Lands' End customer at the center of our strategy. Turning to inventory. Our inventory levels in the second quarter were higher than the prior year due to tariff uncertainty last year. Current year inventory is more representative of pre-25 levels. And is within our plan parameters which include increases due to continued tariff headwinds and challenges processing value added service orders, with our new warehouse management system. Our U. S. E commerce business increased 9% compared to Q2 25. Reflecting the recovery with the rollout of our new warehouse management system across our distribution centers in the first quarter. That issue has been addressed in our core U. S. E commerce business and we caught up with shipments by the end of the quarter. And our third party marketplace business, the standout was Nordstrom, The anniversary sale was a strong moment for the brand and our franchise categories outerwear and wanderweight in particular continue to resonate in that channel. Across our marketplaces, we continue to pursue a disciplined strategy that emphasizes quality and higher margin sales over volume. In our Europe business, we made several deliberate pivots, and the early results are encouraging. Revenue finished essentially flat but our product margin performance was strong. Reflecting the strategic choice to leverage key franchises to build the business for long term success. This paired with our successful efforts to reach new customers at lower cost and through more deliberately differentiated storytelling in our market, which give us confidence in the path ahead for our Europe business. In addition to the improvement in profitability this quarter, Amazon Germany went live in August. And we are excited to leverage our global experience in Amazon with an entirely new customer. Turning to Lands' End Outfitters. Our B2B business. Underlying demand was solid in the quarter though revenue performance does not fully reflect that. Challenges in our value added services, related to our new warehouse management system and concentrated in B2B customers carried into Q2. Which was not anticipated. And are reflected in our results. Revenue increased approximately 4% year over year with strength in national accounts partially offset by warehouse management system challenges that impacted the timing of school uniform shipments. Within national accounts, the story is positive. With the enterprise segment up year to date by more than 15% versus last year. Led by growth in our airline accounts. We entered a new multiyear partnership with Delta Air Lines in the second quarter of fiscal 25. And employee reception to the program was overwhelmingly positive. Today, Delta is in the wear testing phase of its distinctly Delta Uniform Collection with more than 1.4 thousand frontline employees participating across the system. Feedback and insights from the Wear test will be incorporated into final product refinements ahead of the planned second half 27 rollout. Our school uniform business was impacted by challenges within our new warehouse management system related to processing value added service products. As a result, shipments were delayed and backlog levels were significantly higher than the prior year. Reducing revenue recognition during the quarter. Improving operations at Lands' End Outfitters is a priority. We have and will continue to take action. Including working to increase output capacity improve efficiency in our production process, and prioritize shipment of orders to get ahead of customer timing dynamics. We continue to be encouraged by the early progress of our intellectual property joint venture with WHP Global. As previously disclosed, the JV amended several significant licensing agreements. That are expected to generate more than $150 million of long term guaranteed royalty value reinforcing our confidence in the long term growth opportunities created by the partnership. I will now turn it over to Bernie to discuss our second quarter financial performance in more detail. Bernard Louis McCracken: Thank you, Charlie. For the second quarter of 26, total revenue was $302 million an increase of 3% compared to the second quarter of last year. Our U. S. E commerce business saw a sales increase of 9% compared to the second quarter of 25. As Charlie discussed, the order backlog from the new warehouse management system challenges in the first quarter benefited Q2 and positively impacted results. We are confident that the warehouse management system issue has been addressed in our core U. S. E commerce business. Our third party marketplace business decreased approximately 20%. As we continue to prioritize profitable high quality sales and brand integrity over lower margin promotional volume. While we saw a decline in revenue, our like for like gross margin compared to last year improved by over 500 basis points year over year. Reflecting the benefits of our disciplined strategy by individual marketplace. Sales from Lands' End Outfitters increased 4%. From the second quarter of 25. The increase was driven by our enterprise accounts, which more than offset the impact of the warehouse management system challenges in our school uniform business processing value added service products. Sales in Europe increased 1% year over year. Primarily driven by a strategic shift to a franchise first assortment that simplified the business and drove improved product margins. Gross profit increased by $14 million or 10% compared to last year. Gross margin in the second quarter was 52% an approximately 23 basis point improvement from the second quarter of 25. The gross margin increase was primarily driven by the IEPA tariff refund. Partially offset by the new royalty structure associated with the JV and increased costs associated with our new warehouse management system. SG and A expenses increased by $6 million year over year. As a percentage of net revenue, SG and A increased by approximately 80 basis points. Primarily driven by investment in digital marketing and operational inefficiencies from the temporary disruption of the new warehouse management system. For the second quarter, we reported adjusted net income of $2.7 million or $0.09 per share. We delivered adjusted EBITDA of $11 million in the second quarter. Representing a year over year decrease of $4 million. The receipt of IEPA tariff refunds was offset by the new royalty structure associated with the JV and the challenges in our new warehouse management system. Processing value added service products for school uniforms. Moving to our balance sheet. Inventories at the end of the second quarter were $342 million, up 13% compared to last year. Inventory levels increased largely due to the intentionally lean inventory position we held a year ago amid tariff uncertainty. Inventory is more aligned with typical norms and our planned levels, including the impact of continued tariff headwinds. We remain confident in our holiday assortment and expect inventory to remain within typical levels. Turning to our debt. We ended the second quarter with $60 million in ABL borrowings, compared to $35 million last year. As discussed previously, we used the majority of the $300 million in cash proceeds from the WHP Global transaction to fully repay our term loan. Leaving us with enhanced liquidity and significantly reduced interest payments. The remainder of the transaction consideration was used for transaction related corporate expenses and taxes. As a reminder, in conjunction with the April 1 closing of the WHP global transaction, our Board authorized the repurchase of up to $100 million of common stock through March 31, 2029. During the second quarter, we repurchased approximately 900 thousand shares for approximately $11 million, bringing the remaining balance of the authorization to $89 million as of the end of the quarter. Now moving to guidance. Our guidance reflects the impacts of tariffs at current implemented rates we are continuing to execute mitigation measures to manage tariff headwinds for the remainder of fiscal 26. For the third quarter of 26, we expect net revenue of $300 million to $330 million adjusted net income of $2 million to $6 million and adjusted diluted earnings per share of $0.07 to $0.20 adjusted EBITDA in the range of $14 million to $18 million For fiscal 26, we now expect net revenue of $1.3 billion to $1.35 billion Adjusted net income of $13 million to $21 million and adjusted diluted earnings per share of $0.44 to $0.72 adjusted EBITDA in the range of $62 million to $70 million Full year guidance incorporates approximately $40 million in capital expenditures. Charlie Cole: With that, I will turn it back over to the operator. Thank you, Bernie. I want to close by saying how encouraged I am by what I am seeing across this business. The brand has tremendous strength, and we believe the opportunities to unlock its full potential are clear. I also want to take a moment to welcome Jim Ferraro, who recently joined us as Chief Digital and Technology Officer. Jim brings a proven track record of driving digital transformation and customer centric innovation across leading consumer brands. Most recently at Solaris Aviation, and prior to that at Singer and Maui Jim. His deep expertise in scaling e commerce capabilities and elevating the customer experience will be instrumental as we move into the next chapter of growth for Lands' End. Martin Christopher, our former Chief Technology Officer, now reports to Jim, bringing strong continuity to our technological transformation. Jim's arrival is well timed. The focus right now is on tactical excellence to ensure we have the right infrastructure technology and customer acquisition capabilities in place heading into the peak holiday selling season. That includes meeting customer expectations on shipping and fulfillment, and deepening personalization across our offerings. That work connects to something underappreciated about this business. Through decades of catalog and e commerce engagement, we have built a foundation of owned customer data that few retailers can match. As we apply AI powered capabilities across merchandising, marketing customer retention. Proprietary data combined with AI enabled execution bebecomes a competitive advantage that grows more valuable over time. I look forward to meeting many of you in the months ahead. What I can tell you is that my conviction in Lands' End and in this team is only growing. With that, we look forward to your questions. Thank you. Operator: We will take our first question from Dana Telsey with Telsey Group. Please go ahead. Your line is open. Dana Telsey: Hi, good morning everyone and welcome Charlie. Charlie, in your purview, as you think about the opportunities for Lands' End going forward and given your background, how do you see the enhanced execution, the involvement in technology, what happens with e commerce, how does this fit the different categories, whether it is the e commerce, international, outfitters, third party, and obviously the new relationship with WHP. what is your North Star going forward? And then I have a quick question on just the here and now. Charlie Cole: Dana, thank you so much for the welcome. I really appreciate that and thank you for the question. So, this question is so far reaching because it involves a lot of buzzwords, so I am I am going to try to decouple them. My long term vision for Lands' End is we are a modern AI engine that drives almost our entire customer experience. And so, I want to unpack that a little bit. A modern AI engine can simultaneously evaluate so many things. And so I will start with focusing on the e commerce side of things and I will get into Lands End Outfitters in Europe as well. It can evaluate a customer's purchase history, their browsing behavior, the weather, the geography, the search patterns, inventory availability, full price sell through targets, category affinity, it can evaluate all of these things at the same time. And so if you think about that just processing power, and where you would want to put that you start with e commerce front end CRM messaging marketing targeting including catalog segmentation and creative personalization. And so it is not an exaggeration, Dana, to say that I want an AI engine that sits at the center of our customer experience. And enables an experience that our customers have really never seen before. And if you wanted pragmatic examples, if somebody who has shopped at Land's End has exclusively shopped outerwear they should have a very different experience than someone who is exclusively shopped swim. That does not mean we do not show back and forth, but it does mean we give them a personalized experience to optimize not only conversion but lifetime value and, frankly, Net Promoter Score as well. that is equally applicable to Europe. With Europe, we have to be aware of the realities of sort of the different data regulations. And so we would be thoughtful of that as well. And then with Lands and Outfitters, it is actually the same answer. it is just with a different process because you think about our school business, that is fairly rhythmic. And so time becomes a very obvious kind of input where we have to reach out to customers at the right time with the right message based on their school schedule. And so that is a slight personalization that would allow us to give a much better experience. But it is not an exaggeration, Dana, to say, from a technology perspective, we are going to build an AI infrastructure that gives us an ecommerce platform that will rival the best in the industry. And that is the core goal. So I am happy to answer your follow-up question as well. Dana Telsey: Great. Thank you. Warehouse management system, I think, which the second quarter also had some impacts, Is that complete now? And is there anything on the shaping of third and fourth quarter and how you are seeing it whether from a margin perspective or a top line perspective? How it differs this year from last year? Charlie Cole: On the warehouse management system topic, we are now running at normal operations. And so it is caught up and are now caught up on throughput. We are still working through a backlog but operations are proceeding as normal at the same or higher levels than before warehouse management system issues. It is also worth noting that there is more efficiency to unlock where we can actually put other infrastructure in place but that will not happen until next year. But there is more efficiencies that will be unlocked as we can support the WMS with other software solutions as well. As it pertains to Q3 and Q4, we do not anticipate any effect on our guidance for the WMS with the exception of the catch up that will come out of the Lands' End Outfitters division. Got it. Dana Telsey: And then just the third quarter guide, anything to unpack there on the margin side and fourth quarter? And remainder of expectations for tariffs? Thank you. Bernard Louis McCracken: Yes. Dana, our guidance reflects the current levels of tariffs that are in place. And the rest of the there is not really any other year on year differences that we will be dealing with. We feel very good about guidance we gave and the expectations that we will hit that. Thank you. Thank you. Operator: Our next question comes from Eric Beder with Small Cap Research. Please go ahead. Your line is open. Eric Beder: Good morning, Just a few quick questions. Let's talk about international here. You know, what should we be thinking about I know prior people it was a kind of a fashion, a little bit more fashion forward, a little more of a driver of trend. Is that still how you look at that? And how does that fit in terms of the JV and the other international opportunities? Charlie Cole: For international, Eric, our focus is predominantly on our European e commerce business. And the focus there has been to--really, our Q2 focus was on margin above everything else. And so that is driving a less promotional business, which you could qualify as a bit more fashion forward and a bit more trend focused. We actually feel really good about where our European business is and there is some slight nuance to the trends obviously even within the continent between Germany The UK, etcetera. But the Lands' End value proposition is the same frankly internationally. Where we were fortunate enough in June 2026 to be awarded with the highest rating from Forbes and their best brands for value report I directly think that spans borders. We are going to deliver value and durability and leverage our unique heritage in a way that will have international appeal There will be slight nuances from a merchandising perspective. Trends such as weather, is going to affect what people buy depending on where they live. And so we are certainly not naive to that But I believe that the Lands' End brand should have international appeal. And ultimately have the same foundation regardless of where it is distributed. And that would be true also by channel. Whether it is direct e commerce it is with our JV with WHP, whether it is with Amazon or other partners, So we are going to do everything we can to make sure the Lands' End brand is ubiquitous regardless of where it is in the world. Bernard Louis McCracken: And then Eric, just to add on a little bit, you will notice this in our comments in the script. The Europe business, while we still consider it to be forward and to drive some trends, We have pulled it back a little and have got them to be more into our franchises. Which is driving a higher profitability. Eric Beder: Okay. Let's talk about the WHP piece a little bit. When do you believe okay. So where are we in terms of adding new licenses? And when do you believe that those licenses will start to kick in and help drive the joint venture overall profitability, which you share in. Yes. Bernard Louis McCracken: Eric, our guidance reflects the royalties and licensing royalties that we will receive. For the remainder of this year. As you know, any kind of licensing agreement has a long tenure before it will benefit us going forward. there is product that needs to be made and outlets to be garnered. So right now, basics of our guidance reflects the licenses that we had in place and a few of the new smaller licenses that we had signed prior to WHP and that they have taken on into the next level. Eric Beder: Okay. You mentioned here about the potential next year for new software and some of the potential positive some of the potential rollouts, I think, potential efficiencies can we get from that How big should we think of that as an opportunity now in 2027 and going forward? Thank you. Charlie Cole: Thanks, Eric, for all your questions. Predominantly, it is going to be infrastructure across the warehouse. And you would see the opportunity basically in service levels. But beyond anything else. So I would not expect it to have any direct input to our guidance. But in a similar fashion to my answer to Dana on technological infrastructure, really it is around enabling a customer experience that will exceed expectations. So in a lot of ways, the benefits will be focused more from a lifetime value perspective but as opposed to direct guidance. Thank you. Operator: Our next question comes from Michael Kupinski with NOBLE Capital Markets. Please go ahead. Your line is open. Michael Kupinski: Thank you. And Charlie, welcome to 254.4% despite continued uniform processing challenges. And I was just wondering can you give us some color on how the order book is trending now? And what growth rate do you believe the business can sustain once operations are like fully normalized? Charlie Cole: Michael, thank you for the warm welcome. The Outfitters business also had a real bright spot with enterprise clients as well. Which we mentioned. And so with the growth rate is also already aligned in our guidance, but we are remarkably bullish on that business. And I would also say, as I referenced when I responded to Dana, there is also increased opportunity by improving their customer experience through that same commerce focus. So while we are very bullish on our guidance we are equally bullish on to improve the customer experience from a front end perspective, from a messaging perspective and from a marketing perspective. I am actually visiting with some Outfitters clients next week. Including Delta and American Airlines. So I am excited to kind of get deeper involved in that. Got you. Michael Kupinski: And in Q2, The U.S. e-commerce revenue increased 9%. And I think part of that was a carryover from the Q1 distribution disruption. What would have been the underlying e commerce growth excluding that catch up benefit? Bernard Louis McCracken: The U. S. Business on a year to date basis since the carryover was completed through the second quarter is flat for the year. Or flattish. Michael Kupinski: Okay. And obviously, inventory is up a little bit and it seems like you are saying that it is a little bit more normalized. Can you talk about specific inventory that you are leaning into this quarter as you kind of go into the holiday season here? Charlie Cole: Yes, Michael. I think 1 of the keys is comparing year on year is that last year, we were dealing with a lot of uncertainty around tariffs and where and what countries and what products were going to be tariffed at different rates. And so we were very conservative in the types of products that we brought in and where they were being produced. So I think you will find, especially when we talk about owning the weather, that our outerwear is going to have a broader assortment than it did last year where that was the place we were probably most conservative and that we really feel we will be able to leverage that in the back half of the year. Especially as the weather gets colder. But as we have talked about over the last couple of years, it is about layering for us, too. That owning the weather is not just for our heavy downcoats, it is about having fleece and sweaters and owning that transition period too. So we are very excited about this back half. Got it. that is all I have for now. Thank you. Bernard Louis McCracken: Thank you, Michael. Thanks, Michael. Operator: Thank you. This concludes our Q and A session. As well as our conference call. Thank you for your participation. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Lands' End (LE) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Download the Complete Report Here Key Takeaways: New CEO Charlie Cole used his first earnings call to sharpen LE’s growth agenda around customer engagement, digital execution and operating infrastructure, building on the existing franchise-led strategy. Cole joined in July and emphasized that the strategic direction remains intact, with the immediate priority on improving execution across fulfilment, technology and customer acquisition ahead of the holiday season. With more than 95% of the business conducted online, the opportunity is increasingly to improve how LE reaches, engages and converts customers while leveraging its existing brand, product franchises and first-party customer data more effectively. The agenda is therefore evolutionary rather than a strategic reset, but it establishes a clearer execution framework around customer experience, digital capabilities and more scalable growth. 2Q FY26 marked meaningful progress beyond the first-quarter fulfilment disruption, with revenue returning to growth and core U.S. eCommerce operations normalizing. Revenue increased 2.7% y/y to $302.0 million from $294.1 million, above the mid-point of guidance of $290-$310 million, while U.S. Digital revenue increased 5.3% to $268.9 million. U.S. eCommerce revenue increased 9.0% to $182.4 million, Outfitters grew 4.4% to $69.3 million and Europe increased 0.5% to $19.7 million, partially offset by a 20.4% decline in Third Party revenue to $17.2 million. Adjusted net income improved to $2.7 million, or $0.09 per share, from an adjusted loss of $1.1 million, or $0.04 per share, while adjusted EBITDA declined 25.2% y/y to $11.3 million from $15.1 million and margin compressed to 3.7% from 5.1%. We believe the quarter provides meaningful evidence that the core U.S. operational disruption is receding, shifting the investment focus toward demand conversion, post-JV margin recovery and cash generation. Product franchises are becoming increasingly important customer-acquisition vehicles, with totes and swim supporting both near-term demand and broader demographic reach. Women’s and men’s apparel, particularly knits, performed well during the quarter, while U.S. eCommerce swim revenue increased at a high-single-digit rate and bags, led by the iconic five-pocket tote, remained a meaningful growth contributor. Totes and swim drove much of the double-digit increase in new-to-file customers, while personalization and embroidery add higher-value services around the tote franchise. The Wawa collaboration generated more than 2.6 billion impressions and sold out within hours, complementing other activations including T&T and Nantucket that targeted new and younger audiences. LE is also developing sleep as a year-round category, with early indicators described as positive, while initial reads on outerwear and Christmas stockings provide early visibility into 3Q and 4Q. The broader opportunity is to use high-recognition franchises as acquisition products and then convert those customers into repeat and cross-category purchasing, improving lifetime value beyond the initial transaction. Core U.S. eCommerce fulfilment has normalized, setting up 3Q as a cleaner read on underlying demand after 2Q benefited from shipment catch-up. S. eCommerce revenue reached $182.4 million, up $15.1 million y/y, but first-half revenue of $335.7 million remained 0.7% below the $338.0 million generated in the comparable prior-year period after the shipment catch-up was completed. Operations are now running at normal throughput, at the same or higher levels than before the WMS disruption, and no incremental impact on 3Q or 4Q guidance is anticipated outside the remaining Outfitters catch-up. Additional supporting warehouse software is expected next year, with the primary opportunity centred on service levels and customer lifetime value rather than a quantified direct earnings contribution. This distinction is important: the WMS should no longer obscure underlying U.S. demand, making 3Q a cleaner test of whether product, acquisition and merchandising initiatives can drive a return to sustainable organic growth in the core eCommerce business. Outfitters remained operationally constrained in 2Q despite strong enterprise-account momentum. Outfitters revenue increased 4.4% y/y to $69.3 million in 2Q as enterprise growth more than offset continued delays in school-uniform value-added services, although 1H26 revenue remained 1.4% lower at $107.8 million versus $109.3 million. Enterprise revenue increased more than 15% year-to-date, led by airline accounts, while Delta is currently wear-testing its new uniform collection with more than 1,400 frontline employees ahead of a planned 2H27 rollout. School-uniform backlog remained elevated during 2Q because embroidery, personalization and other value-added orders were more difficult to process under the new WMS, delaying revenue recognition despite solid underlying demand. Throughput has since returned to normal levels, positioning Outfitters to work through the remaining backlog and allowing reported performance to more closely reflect the underlying enterprise and school demand profile. Europe and Third Party continue to shift toward higher-quality revenue, prioritizing product margin and brand positioning over promotional volume. Europe eCommerce revenue was broadly stable at $19.7 million in 2Q, but increased 7.5% to $40.3 million in 1H26 as the business moved toward a simplified franchise-first assortment and reduced promotional dependence. Customer acquisition in Europe also improved at a lower cost, while Amazon Germany went live in August and provides an incremental channel to reach new customers. Third Party revenue declined 20.4% to $17.2 million, and first-half revenue declined 14.3% to $30.5 million, reflecting a deliberate pullback from lower-value promotional sales; importantly, like-for-like gross margin improved by more than 500 bps y/y. Nordstrom was a bright spot, with outerwear and Wanderweight performing well during its anniversary sale. We do not view the Third-Party revenue decline as evidence of deterioration in the core business, because the strategy is explicitly sacrificing lower-margin volume to improve channel economics and protect brand integrity. The WHP JV is now contributing visible earnings and cash, although retained operations are absorbing the royalty burden before new licensing agreements fully mature. The JV generated $20.1 million of revenue and $8.5 million of net earnings in 2Q, with LE recognizing $4.2 million of equity-method income from its 50% interest. LE recognized $4.4 million of JV income during 1H26 and received $2.4 million of cash distributions, while retained operations incurred $15.4 million of royalty expense in 2Q and $18.9 million year-to-date. The license carries a $50 million annual guaranteed minimum royalty through contract year 11, making growth in third-party JV licensing income increasingly important to the longer-term post-JV earnings equation. The JV has amended several agreements expected to generate more than $150 million of long-term guaranteed royalty value, but newly originated licenses require product development, distribution and retail placement before contributing materially, leaving near-term FY26 economics weighted toward existing licenses and several smaller agreements already in place. The central post-JV thesis therefore remains unchanged: the royalty burden is immediate, while the value creation comes from LE retaining 50% of a growing, capital-light licensing profit pool as WHP expands the brand across new categories and geographies without requiring LE to fund the associated inventory or operating infrastructure. AI and personalization are emerging as important elements of LE’s digital strategy, with potential to improve conversion, retention and merchandising efficiency across channels. LE’s approximately 20-year average customer relationship and decades of catalogue and eCommerce engagement provide a substantial first-party data foundation, which the company plans to combine with purchase history, browsing behaviour, geography, weather, inventory availability and category affinity to create more individualized experiences across eCommerce, CRM, catalogue segmentation and marketing. The same approach can extend to Europe and Outfitters, including more targeted outreach around school-uniform purchasing cycles. The objective is to improve conversion, lifetime value and Net Promoter Score by making customer engagement more relevant and timely. LE also appointed Jimmy Ferolo as Chief Digital and Technology Officer, strengthening leadership around digital transformation while maintaining continuity within the existing technology organization. Customer-acquisition investment is beginning to produce measurable engagement gains without a material increase in marketing intensity, an encouraging signal for the new digital agenda. U.S. Digital marketing expense increased to $46.0 million from $43.3 million but represented 17.1% of segment revenue compared with 17.0% a year ago, meaning the company generated double-digit new-to-file growth and more than 30% social-traffic growth while marketing intensity remained broadly stable. SG&A increased $5.9 million to $135.3 million, or 44.8% of revenue versus 44.0% a year ago, reflecting higher digital-marketing investment and residual WMS inefficiencies. The next checkpoint is whether stronger engagement translates into higher repeat purchasing, better conversion and more productive full-price demand. Gross margin expanded sharply, while channel discipline improved underlying economics despite continued post-JV and WMS costs. Gross profit increased 9.5% to $157.0 million from $143.4 million, while gross margin expanded approximately 320 bps to 52.0% from 48.8%, primarily reflecting the $24.9 million IEEPA tariff recovery, partially offset by $5.1 million of unmitigated tariff costs, the new JV royalty structure and temporary WMS inefficiencies. U.S. Digital variable profit increased $14.7 million to $71.4 million, with margin expanding 440 bps to 26.6% from 22.2%, although the same tariff refund was a principal driver and was partly offset by higher marketing, WMS costs and royalties. Adjusted EBITDA, which removes the tariff recovery and other significant items, declined to $11.3 million from $15.1 million, indicating that underlying profitability remains below prior-year levels despite improved revenue and channel mix. Lower financial leverage is already improving earnings conversion under the post-WHP structure despite softer operating EBITDA. Interest expense declined ~89% to $1.0 million from $9.3 million y/y after LE used $234 million of the $300 million WHP transaction proceeds to repay its term loan. Operating income increased to $8.2 million from $4.0 million, while net income improved to $3.5 million, or $0.11 per diluted share, from a ($3.7) million loss, or ($0.12) per share. Adjusted net income similarly improved to $2.7 million from a $1.1 million loss despite the $3.8 million y/y decline in adjusted EBITDA. The earnings bridge demonstrates the benefit of the post-JV capital structure, with lower interest expense already improving equity earnings while further EBITDA recovery would provide the next leg of earnings growth. Inventory remains elevated heading into the holiday season, making sell-through and working-capital conversion critical alongside the broader operating recovery. Inventory reached $342.0 million at quarter-end, up 13% from $301.8 million a year ago and 27% from $268.8 million at FY25-end, reflecting a more normal seasonal build after last year’s deliberately lean tariff-driven position, continued tariff headwinds and residual value-added-service processing delays. The inventory build used $73.9 million of cash during the first half, contributing to operating cash flow of negative $86.5 million versus positive $0.5 million a year ago. The broader outerwear assortment creates a larger back-half revenue opportunity after last year’s conservative buys, but the quality of the inventory build will ultimately be measured by full-price sell-through and cash conversion rather than merchandise availability alone. Capital allocation became more active despite the seasonal working-capital build, reflecting the increased flexibility created by eliminating the term loan. LE ended 2Q with $16.1 million of cash, $60.0 million of ABL borrowings and $89.3 million of remaining ABL availability. The increase in revolver usage coincides with the seasonal inventory build and approximately $24.0 million of first-half capital expenditure, while the company continues to expect roughly $40 million of FY26 capex. LE repurchased approximately 910,000 shares for $10.5 million during 2Q, representing roughly 3% of outstanding shares, leaving $89.2 million under the $100 million authorization through March 2029. We view the repurchases as supportive at the current valuation, although the pace of future capital returns should remain balanced against working-capital needs, technology investment and sustainable free cash generation. 3Q should provide a cleaner read on underlying demand and margin recovery as fulfilment normalizes and temporary operating inefficiencies ease. Management guided 3Q revenue to $300-$330 million and adjusted EBITDA to $14-$18 million, while Street estimates sourced from TIKR sit at $319.3 million and $15.9 million, respectively. Importantly, the WMS is no longer expected to create an incremental headwind outside the remaining Outfitters catch-up, making the quarter a better test of whether recent customer-acquisition gains, franchise momentum and improved service levels are translating into underlying growth. The Street estimate implies a 5.0% EBITDA margin in 3Q versus 3.7% in 2Q, suggesting further margin normalization as temporary operating inefficiencies ease. With tariffs at currently implemented rates already reflected in guidance, execution around demand conversion, Outfitters backlog clearance and product margin should increasingly determine the near-term earnings trajectory. FY26 outlook continues to support post-JV earnings growth, while lower financial leverage is improving earnings conversion. Management guides FY26 revenue to $1.30-$1.35 billion, adjusted EBITDA to $62-$70 million and adjusted EPS to $0.44-$0.72. Street estimates sourced from TIKR indicate $1.33 billion in revenue, $68.3 million of EBITDA and $0.51 of normalized EPS, consistent with broadly stable revenue and progressive margin rebuilding under the post-JV structure. Importantly, the $68.3 million FY26 EBITDA estimate represents 21.8% growth from the comparable $56.1 million recast FY25 post-JV base, providing a more relevant measure of underlying earnings progression than reported FY25 results. Looking into FY27, Street estimates call for revenue growth of 4.1% to $1.39 billion and EBITDA growth of 7.1% to $73.2 million, supporting continued organic growth, better operating leverage and increasing benefits from the capital-light JV model. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. LE continues to trade at a meaningful discount to apparel peers despite an improving post-JV earnings profile and above-peer expected EBITDA growth. LE currently trades at a market capitalization of ~$323 million and enterprise value of ~$384 million. This translates to 5.62x FY26E EV/EBITDA and 0.24x FY26E P/S, compared with peer averages of 7.60x and 0.55x, respectively, representing discounts of approximately 26% and 56%. Street estimates sourced from TIKR call for FY26E EBITDA growth of 21.8% from the comparable $56.1 million recast FY25 base versus 1.4% average growth for peers. LE’s 5.1% FY26E EBITDA margin remains below the peer average of 8.9%, leaving meaningful earnings upside if the post-JV model closes part of the profitability gap. Applying the peer-based valuation framework continues to indicate meaningful illustrative upside. We believe the current discount can narrow as the benefits of the post-JV structure become more visible in earnings and cash flow. Fulfilment normalization, improving customer acquisition, Outfitters backlog conversion and service normalization, margin expansion, increasing JV income and distributions, and better working-capital conversion represent the principal rerating drivers. Cole’s focus on digital execution, personalization and customer lifetime value provides an additional medium-term lever, while the substantially reduced debt burden improves earnings conversion and strategic flexibility. With LE trading below peer multiples despite stronger expected EBITDA growth, continued execution should support scope for multiple expansion as the business demonstrates a more profitable, less leveraged and increasingly capital-light earnings profile. Read Exec Edge’s Initiation on Lands’ End Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post Lands’ End New CEO Agenda, Customer Growth – Quarterly Update Report appeared first on ExecEdge.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by a recovery in U.S. e-commerce following the resolution of warehouse management system (WMS) issues that had previously disrupted shipments. Management prioritized high-margin sales and brand integrity over promotional volume in third-party marketplaces, resulting in a 500 basis point gross margin improvement despite lower revenue. New customer acquisition was fueled by 'iconic' franchises, specifically totes and swim, which served as entry points for younger demographics and new-to-brand shoppers. The Europe business pivoted toward a 'franchise-first' assortment to simplify operations and improve product margins, resulting in flat revenue but enhanced profitability. B2B Outfitters demand remained solid, particularly in national accounts like Delta Air Lines, though revenue recognition was hampered by ongoing WMS challenges in processing value-added services for school uniforms. Inventory levels increased 13% year-over-year, which management characterized as a return to pre-2025 norms following an intentionally lean position during prior tariff uncertainties. The new CEO's 'North Star' involves building a centralized AI engine to automate customer experiences, integrating browsing history, weather, and inventory data for personalized marketing. Guidance for the remainder of fiscal 2026 incorporates current tariff rates and assumes continued execution of mitigation measures to manage these headwinds. Management expects to unlock further warehouse efficiencies in 2027 by layering additional software solutions onto the newly implemented warehouse management system. The joint venture with WHP Global is expected to generate over $150 million in long-term guaranteed royalty value, though immediate impacts are limited by product lead times. Second half 2026 strategy relies on 'owning the weather' through a broader outerwear assortment and layering pieces like fleece, leveraging normalized inventory levels. The company completed a significant capital structure shift by using $300 million in proceeds from the WHP Global transaction to fully repay its term loan, reducing interest burdens. A $100 million stock repurchase program was authorized, with $11 million executed during the second quarter. Operational inefficiencies stemming from the WMS transition impacted SG&A expenses and delayed revenue recognition in the school uniform segment. Tariff headwinds remain a persistent factor, influencing both inventory planning and gross margin expectations for the fiscal year. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. CEO Charlie Cole intends to build an AI infrastructure that rivals top industry e-commerce platforms, focusing on real-time processing of customer behavior and environmental factors. The goal is to move beyond generic marketing to creative personalization that optimizes both conversion and long-term customer lifetime value. Management confirmed that WMS operations have returned to normal throughput levels, though they are still working through a remaining backlog in the Outfitters division. No further negative impacts from the WMS are anticipated in the Q3 or Q4 guidance, aside from the timing of the catch-up shipments. The European strategy has shifted to focus on core franchises to drive profitability rather than chasing trend-heavy or promotional volume. New licensing agreements under the WHP partnership are in place, but management noted a long lead time before these significantly impact revenue due to production cycles.

Lands' End (LE) came out with quarterly earnings of $0.09 per share, missing the Zacks Consensus Estimate of $0.1 per share. This compares to a loss of $0.06 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -10.00%. A quarter ago, it was expected that this clothing maker would post a loss of $0.21 per share when it actually produced a loss of $0.11, delivering a surprise of +47.62%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Lands' End, which belongs to the Zacks Retail - Catalog Shopping industry, posted revenues of $302.04 million for the quarter ended July 2026, surpassing the Zacks Consensus Estimate by 0.32%. This compares to year-ago revenues of $294.08 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Lands' End shares have lost about 22.4% since the beginning of the year versus the S&P 500's gain of 12%. While Lands' End has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Lands' End was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.23 on $326.42 million in revenues for the coming quarter and $0.49 on $1.34 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Catalog Shopping is currently in the top 40% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the broader Zacks Retail-Wholesale sector, 1-800-Flowers.com (FLWS), has yet to report results for the quarter ended June 2026. The results are expected to be released on September 10. This flower and gift retailer is expected to post quarterly loss of $0.72 per share in its upcoming report, which represents a year-over-year change of -4.4%. The consensus EPS estimate for the quarter has been revised 1.7% lower over the last 30 days to the current level. 1-800-Flowers.com's revenues are expected to be $293.6 million, down 12.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lands' End, Inc. (LE) : Free Stock Analysis Report 1-800 FLOWERS.COM, Inc. (FLWS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Revenue: $302 million, an increase of 3% compared to the second quarter of last year. U.S. E-commerce Revenue: Increased 9% compared to Q2 2025. Third-Party Marketplace Revenue: Decreased approximately 20% as the company prioritizes profitable, high-quality sales over lower-margin promotional volume. Lands' End Outfitters Revenue: Increased 4% from the second quarter of 2025, driven by enterprise accounts. Europe Revenue: Increased 1% year-over-year. Gross Profit: Increased by $14 million, or 10%, compared to last year. Gross Margin: 52%, an approximately 320 basis point improvement from the second quarter of 2025. SG&A Expenses: Increased by $6 million year-over-year; as a percentage of net revenue, increased by approximately 80 basis points. Adjusted Net Income: $2.7 million, or $0.09 per share. Adjusted EBITDA: $11 million, a year-over-year decrease of $4 million. Inventories: $342 million at the end of the second quarter, up 13% compared to last year. ABL Borrowings: $60 million, compared to $35 million last year. Share Repurchases: Repurchased approximately 900,000 shares for approximately $11 million during the quarter. Q3 2026 Guidance: Net revenue of $300 million-$330 million; adjusted net income of $2 million-$6 million; adjusted diluted EPS of $0.07-$0.20; adjusted EBITDA of $14 million-$18 million. Fiscal 2026 Guidance: Net revenue of $1.3 billion-$1.35 billion; adjusted net income of $13 million-$21 million; adjusted diluted EPS of $0.44-$0.72; adjusted EBITDA of $62 million-$70 million. Warning! GuruFocus has detected 3 Warning Sign with LE. Is LE fairly valued? Test your thesis with our free DCF calculator. Release Date: September 03, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. U.S. e-commerce revenue grew 9% in Q2, driven by recovery from warehouse management system issues and strong product categories like swim and totes. Gross margin improved by 320 basis points year-over-year to 52%, aided by tariff refunds and disciplined marketplace strategy. New-to-file customer count in the U.S. grew double digits, fueled by totes and swim, indicating successful customer acquisition. Lands' End Outfitters enterprise segment grew over 15% year-to-date, with new multi-year partnership with Delta Air Lines showing positive early results. IP joint venture with WHP Global is expected to generate over $150 million in long-term guaranteed royalty value, reinforcing growth prospects. Third-party marketplace revenue declined approximately 20% due to strategic focus on higher-margin sales over volume. Warehouse management system challenges persisted into Q2, causing shipment delays and higher backlog in school uniform business, impacting revenue recognition. Inventory levels increased 13% year-over-year, reflecting tariff headwinds and higher costs, which may pressure future margins. Adjusted EBITDA decreased by $4 million year-over-year to $11 million, impacted by JV royalty structure and WMS-related operational inefficiencies. SG&A expenses rose by $6 million, with increased digital marketing spend and temporary WMS disruptions affecting profitability. Q: What is your long-term vision for Lands' End, and how do you see technology and AI enhancing execution across e-commerce, Outfitters, and international?A: Charlie Cole (CEO): My long-term vision is to build a modern AI engine that drives almost our entire customer experience. This engine would simultaneously evaluate a customer's purchase history, browsing behavior, weather, geography, search patterns, inventory availability, and category affinity to create a personalized experience. For example, a customer who exclusively shops outerwear should have a very different experience than one who shops swim. This is equally applicable to Europe and Lands' End Outfitters, where we can use time-based personalization for the rhythmic school business. We are going to build an AI infrastructure that gives us an e-commerce platform that will rival the best in the industry. Q: Is the warehouse management system (WMS) issue completely resolved, and how will it impact the third and fourth quarters?A: Charlie Cole (CEO): We are now running at normal operations and are caught up on throughput. We are still working through a backlog, but operations are proceeding as normal at the same or higher levels than before the issues. There is more efficiency to unlock next year by supporting the WMS with other software solutions. As it pertains to Q3 and Q4, we don't anticipate any effect on our guidance for the WMS, with the exception of the catch-up that will come out of the Lands' End Outfitters division. Q: Can you provide color on how the Outfitters order book is trending and what growth rate the business can sustain once operations are fully normalized?A: Charlie Cole (CEO): The Outfitters business had a real bright spot with enterprise clients. The growth rate is already aligned in our guidance, but we are remarkably bullish on that business. There is increased opportunity by improving the customer experience through a commerce focus, from front-end, messaging, and marketing perspectives. I am visiting with Outfitters clients next week, including Delta Air Lines and American Airlines, to get deeper involved in that business. Q: What would have been the underlying U.S. e-commerce growth excluding the carryover benefit from the Q1 distribution disruption?A: Bernard McCracken (CFO): The U.S. business on a year-to-date basis, since the carryover was completed through the second quarter, is flat for the year or flattish. Q: How should we think about the international business, and does it remain fashion-forward and trend-driven?A: Charlie Cole (CEO): For international, our focus is predominantly on our European e-commerce business. In Q2, the focus was on margin above everything else, driving a less promotional business. The Lands' End value proposition is the same internationally, delivering value and durability. There will be slight nuances from a merchandising perspective based on weather and location, but the brand should have international appeal with the same foundation regardless of where it is distributed. Bernard McCracken (CFO) added that while Europe is still considered fashion-forward, they have pulled it back to focus more on core franchises, which is driving higher profitability. Q: Where are we in terms of adding new licenses through the WHP Global joint venture, and when will they start to drive overall profitability?A: Bernard McCracken (CFO): Our guidance reflects the royalties we will receive for the remainder of this year. Any kind of licensing agreement has a long lead time before it benefits us going forward, as product needs to be made and outlets garnered. The basics of our guidance reflect the licenses we had in place and a few new smaller licenses signed prior to WHP that they have taken to the next level. Q: How significant is the opportunity for new software and efficiencies in 2027 and going forward?A: Charlie Cole (CEO): Predominantly, it's going to be infrastructure across the warehouse, and the opportunity will be seen in service levels. I wouldn't expect it to have any direct input to our guidance. Similar to our technological infrastructure, it's about enabling a customer experience that will exceed expectations. The benefits will be focused more from a lifetime value perspective rather than direct guidance. Q: Can you talk about the specific inventory you are leaning into as you head into the holiday season?A: Bernard McCracken (CFO): Last year we were dealing with uncertainty around tariffs and were very conservative in the types of products we brought in. This year, especially regarding owning the weather, our outerwear will have a broader assortment than last year, which we feel we can leverage in the back half of the year as the weather gets colder. It's about layering, owning the transition period with fleece and sweaters, not just heavy down coats. We are very excited about this back half. Q: What is your North Star regarding the enhanced execution and involvement of technology across the different business segments?A: Charlie Cole (CEO): My long-term vision is a modern AI engine that drives almost our entire customer experience. It can evaluate a customer's purchase history, browsing behavior, weather, geography, search patterns, inventory availability, and category affinity simultaneously. We will start with the e-commerce front-end, CRM messaging, and marketing targeting. For example, a customer who has exclusively shopped outerwear should have a very different experience than someone who has exclusively shopped swim. This is equally applicable to Europe and Outfitters, where we can use time as an input for the rhythmic school business. We are going to build an AI infrastructure that gives us an e-commerce platform that will rival the best in the industry. Q: Are there any other year-on-year differences or tariff expectations to unpack in the third and fourth quarter guidance?A: Bernard McCracken (CFO): Our guidance reflects the current levels of tariffs that are in place. There isn't really any other year-on-year differences that we'll be dealing with. We feel very good about the guidance we gave and the expectations that we will hit that. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

DODGEVILLE, Wis., Sept. 03, 2026 (GLOBE NEWSWIRE) -- Lands’ End, Inc. (NASDAQ: LE) today announced financial results for the second quarter ended July 31, 2026. Charlie Cole, Chief Executive Officer, stated, “Since joining Lands’ End, I have been energized by what I see ahead for this iconic American company. What excites me most is the clear runway we have to utilize our stellar brand strength and deep customer loyalty to further strengthen our customer engagement, expand our digital capabilities, and more effectively reach and convert new customers. Our focus now is on excellence in execution to ensure we have the right infrastructure, technology, and customer acquisition capabilities in place as we head into the holiday season. I am confident we are well positioned, and I look forward to sharing more in the months ahead.” Second Quarter Financial Highlights Net revenue was $302.0 million for the second quarter of 2026, an increase of $7.9 million or 2.7% from $294.1 million during the second quarter of 2025. Gross profit was $157.0 million for the second quarter of 2026, an increase of $13.6 million or 9.5% from $143.4 million during the second quarter of 2025. Gross margin increased approximately 320 basis points to 52.0% in the second quarter of 2026, compared with 48.8% in the second quarter of 2025. The gross margin increase was primarily driven by the IEEPA tariff refunds, partially offset by the new royalty structure associated with the JV, and temporary costs associated with our new warehouse management system. Selling and administrative expenses increased $5.9 million to $135.3 million or 44.8% of Net revenue in the second quarter of 2026, compared with $129.4 million or 44.0% of Net revenue in the second quarter of 2025. The approximately 80 basis point increase was driven by investment in digital marketing focused on new customer acquisition and operational inefficiencies from the temporary disruption of the new warehouse management system partially offset by leverage from higher net revenue. Net income was $3.5 million, and $0.11 earnings per diluted share in the second quarter of 2026 compared to Net loss of $3.7 million and $0.12 loss per diluted share in the second quarter of 2025. Adjusted net income was $2.7 million and Adjusted diluted earnings per share was $0.09 in the second quarter of 2026, compared to Adjusted net loss of $1.1 million and Adjusted diluted loss per share of $0.04 in the second quarter of 2025. Adjusted EBITDA was $11.3 million in the second quarter of 2026, a decrease of 25% compared to $15.1 million in the second quarter of 2025. Balance Sheet and Cash Flow Highlights Cash and cash equivalents were $16.1 million as of July 31, 2026, compared to $21.3 million as of August 1, 2025. Inventories were $342.0 million as of July 31, 2026, and $301.8 million as of August 1, 2025, representing a 13% year over year increase. That increase primarily reflects inventory levels consistent with the Company’s normal seasonal build and support its current revenue projections compared to the intentionally lean inventory position the Company held a year ago amid tariff uncertainty. Net cash used in operating activities was $86.5 million for the 26 weeks ended July 31, 2026, compared to net cash provided by operating activities of $0.5 million for the 26 weeks ended August 1, 2025. The increase in net cash used in operating activities was primarily due to the impact of the closing of the WHP Global transaction and the seasonal build of inventory to support the fall and holiday selling seasons. As previously announced, the Company used the majority of the $300 million in cash proceeds from the WHP Global transaction to fully repay its term loan. As of July 31, 2026, the Company had $60.0 million of borrowings outstanding and $89.3 million of availability under its ABL Facility, compared to $35.0 million of borrowings and $87.6 million of availability as of August 1, 2025. During the second quarter of 2026, the Company repurchased $10.5 million of the Company’s common stock under the share repurchase program announced on April 1, 2026. As of July 31, 2026, additional purchases of up to $89.2 million could be made under the current program through March 31, 2029. Outlook Bernie McCracken, Chief Financial Officer, stated, "We made meaningful progress during the second quarter, moving beyond the distribution center challenges that affected our operations earlier in the year. Our core U.S. eCommerce operations normalized during the quarter and Outfitters has now returned to normal operating levels. We also repurchased approximately 3% of our outstanding shares, reflecting our disciplined approach to capital allocation and our confidence in the long-term value of Lands’ End. Combined with our significantly reduced debt and interest expense, these developments provide a stronger foundation for executing through the holiday season and creating long-term value." The Company’s guidance reflects current conditions, including tariffs at currently implemented rates and prevailing macroeconomic factors. For Third Quarter fiscal 2026 the Company expects: Net revenue to be between $300.0 million and $330.0 million. Net loss to be between $1.0 million and net income of $3.0 million and diluted loss per share to be between $0.03 and diluted earnings per share of $0.10. Adjusted net income to be between $2.0 million and $6.0 million and Adjusted diluted earnings per share to be between $0.07 and $0.20. Adjusted EBITDA in the range of $14.0 million to $18.0 million. For fiscal 2026 the Company now expects: Net revenue to be between $1.30 billion and $1.35 billion. Net income to be between $317.0 million and $325.0 million and diluted earnings per share to be between $10.87 and $11.14. Adjusted net income to be between $13.0 million and $21.0 million and Adjusted diluted earnings per share to be between $0.44 and $0.72. Adjusted EBITDA in the range of $62.0 million to $70.0 million. For the full year, the Company’s guidance includes approximately $40.0 million of capital expenditures. Conference Call The Company will host a conference call on Thursday, September 3, 2026, at 8:30 a.m. ET to review its second quarter financial results. The call may be accessed through the Investor Relations section of the Company’s website at http://investors.landsend.com. About Lands’ End, Inc. Lands’ End, Inc. (NASDAQ:LE) is a leading digital retailer of solution-based apparel, swimwear, outerwear, accessories, footwear, home products and uniforms. Lands’ End offers products online at www.landsend.com, through third-party distribution channels and our own Company Operated stores. Lands’ End also offers products to businesses and schools, for their employees and students, through the Outfitters distribution channel. Lands’ End is a classic American lifestyle brand that creates solutions for life’s every journey. Forward-Looking Statements This press release contains forward-looking statements that involve risks and uncertainties, including statements regarding the future of the Company, brand strength, customer loyalty, customer engagement, digital capabilities and new customers; ensuring the right infrastructure, technology and customer acquisition capabilities, and the Company’s positioning; expectations regarding inventory, revenue and tariffs; the share repurchase program and its anticipated scale and impact; distribution center operations; confidence in the long-term value of the Company; execution through the holiday season and long-term value creation; and the Company’s Q3 and full fiscal year 2026 outlook and expectations as to Net revenue, Net income (loss), Adjusted net income, diluted earnings (loss) per share, Adjusted EBITDA and capital expenditures. The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in these forward-looking statements: the stock repurchase program may not be executed to the full extent within its duration, due to business or market conditions; risks associated with the Company’s license agreement relating to the Lands’ End brand; failure to protect or preserve the image of the Company’s brands, reputation or intellectual property rights; the ability of the Company’s principal stockholders to exert substantial influence over the Company; risks associated with the implementation, stabilization and performance of the Company's warehouse management system and distribution center operations; the Company’s results may be materially impacted if tariffs on imports to the United States increase and it is unable to offset the increased costs from current or future tariffs through pricing negotiations with its vendor base, moving production out of countries impacted by the tariffs, passing through a portion of the cost increases to the customer, or other savings opportunities; global supply chain challenges and their impact on inbound transportation costs and delays in receiving product; disruption in the Company’s supply chain, including with respect to its distribution centers, third-party manufacturing partners and logistics partners, caused by limits in freight capacity, increases in transportation costs, port congestion, other logistics constraints, and closure of certain manufacturing facilities and production lines due to public health crises and other global economic conditions; the impact of global economic conditions, including inflation, on consumer discretionary spending; the impact of public health crises on operations, customer demand and the Company’s supply chain, as well as its consolidated results of operation, financial position and cash flows; the Company’s ability to offer merchandise and services that customers want to purchase; changes in customer preference from the Company’s branded merchandise; customers’ use of the Company’s digital platform, including customer acceptance of its efforts to enhance its eCommerce websites, including the Outfitters website; customer response to the Company’s marketing efforts across all types of media; the Company’s maintenance of a robust customer list; the Company’s retail store strategy may be unsuccessful; the Company’s Third Party channel may not develop as planned or have its desired impact; the Company’s dependence on information technology; failure of information technology systems, including with respect to its eCommerce operations, or an inability to upgrade or adapt its systems; failure to adequately protect against cybersecurity threats or maintain the security and privacy of customer, employee or company information and the impact of cybersecurity events on the Company; fluctuations and increases in costs of raw materials as well as fluctuations in other production and distribution-related costs; impairment of the Company’s relationships with its vendors; the Company’s failure to compete effectively in the apparel industry; legal, regulatory, economic and political risks associated with international trade and those markets in which the Company conducts business and sources its merchandise; increases in postage, paper and printing costs; failure by third parties who provide the Company with services in connection with certain aspects of its business to perform their obligations; the Company’s failure to timely and effectively obtain shipments of products from its vendors and deliver merchandise to its customers; reliance on promotions and markdowns to encourage customer purchases; the Company’s failure to efficiently manage inventory levels; unseasonal or severe weather conditions; natural disasters, political crises or other catastrophic events; the adverse effect on the Company’s reputation if its independent vendors or licensees do not use ethical business practices or comply with contractual obligations, applicable laws and regulations; assessments for additional state taxes; incurrence of charges due to impairment of other intangible assets and long-lived assets; the impact on the Company’s business of adverse worldwide economic and market conditions, including inflation and other economic factors that negatively impact consumer spending on discretionary items; global economic, political, legislative, regulatory and market conditions (including competitive pressures), evolving legal, regulatory and tax regimes, including the effects of tariffs, inflation and foreign currency exchange rate fluctuations around the world, the challenging consumer retail market in the United States and around the world and the impact of war and other conflicts around the world; and other risks, uncertainties and factors discussed in the “Risk Factors” sections of the Company’s Annual Report on Form 10-K for the fiscal year ended January 30, 2026 as updated by the Company’s Quarterly Reports on Form 10-Q. The Company intends the forward-looking statements to speak only as of the time made and does not undertake to update or revise them as more information becomes available, except as required by law. CONTACTS Lands’ End, Inc.Bernard McCrackenChief Financial Officer(608) 935-4100 Investor Relations:ICR, Inc.Tom Filandro(646) [email protected] -Financial Tables Follow- * Derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 30, 2026. Definitions, Reconciliations and Uses of Non-GAAP Financial Measures In addition to our Net income (loss) determined in accordance with GAAP, for purposes of evaluating operating performance, we report the following non-GAAP measures: Adjusted net income (loss) and Adjusted EBITDA. Adjusted net income (loss) is also expressed on a diluted per share basis. We believe presenting non-GAAP financial measures provides useful information to investors, allowing them to assess how the business performed excluding the effects of significant non-recurring or non-operational amounts. We believe the use of the non-GAAP financial measures facilitates comparing the results being reported against past and future results by eliminating amounts that we believe are not comparable between periods and assists investors in evaluating the effectiveness of our operations and underlying business trends in a manner that is consistent with management’s own methods for evaluating business performance. Our management uses Adjusted net income (loss) and Adjusted EBITDA to evaluate the operating performance of our business for comparable periods and to discuss our business with our Board of Directors, institutional investors and other market participants. Adjusted EBITDA is also used as the basis for a performance measure used in executive incentive compensation. The methods we use to calculate our non-GAAP financial measures may differ significantly from methods other companies use to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies. Adjusted net income (loss) and Adjusted EBITDA should not be used by investors or other third parties as the sole basis for formulating investment decisions as these measures may exclude a number of important cash and non-cash recurring items. Adjusted net income (loss) is defined as net income (loss) excluding significant non-recurring or non-operational items as set forth below. Adjusted net income (loss) is also presented on a diluted per share basis. While Adjusted net income (loss) is a non-GAAP measurement, management believes that it is an important indicator of operating performance and useful to investors. Other significant non-recurring or non-operational items, while periodically affecting our results, may vary significantly from period to period and have a disproportionate effect in a given period, which affects comparability of results and are described below: The following table sets forth, for the periods indicated, a reconciliation of Net income (loss) to Adjusted net income (loss) and Adjusted diluted earnings (loss) per share: (1)   Beginning in Fourth Quarter 2025, the Company adjusts for unmitigated tariff costs. Prior-period amounts have been recast on a comparable basis to reflect this adjustment.(2)   The tax impact of adjustments is calculated at the applicable U.S. and non-U.S. Federal and State statutory rates. (1)   Beginning in Fourth Quarter 2025, the Company adjusts for unmitigated tariff costs. Prior-period amounts have been recast on a comparable basis to reflect this adjustment.(2)   The tax impact of adjustments is calculated at the applicable U.S. and non-U.S. Federal and State statutory rates. While Adjusted EBITDA is a non-GAAP measurement, management believes that it is an important indicator of operating performance, and is useful to investors, because EBITDA excludes the effects of financings, investing activities and tax structure by eliminating the effects of interest, depreciation and income tax. Other significant items, while periodically affecting our results, may vary significantly from period to period and have a disproportionate effect in a given period, which affects comparability of results and are described below: The following table sets forth, for the periods indicated, selected income statement data, both in dollars and as a percentage of Net revenue and a reconciliation of Net income (loss) to Adjusted EBITDA: (1)    Beginning in Fourth Quarter 2025, the Company adjusts for unmitigated tariff costs. Prior-period amounts have been recast on a comparable basis to reflect this adjustment. (1)    Beginning in Fourth Quarter 2025, the Company adjusts for unmitigated tariff costs. Prior-period amounts have been recast on a comparable basis to reflect this adjustment.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. U.S. e-commerce growth of 9% was significantly aided by the recovery of order backlogs following warehouse management system (WMS) disruptions in the first quarter. Management is pivoting the brand toward a 'franchise-first' assortment, prioritizing high-margin core categories like outerwear and swim over promotional volume to protect brand integrity. The 20% decline in third-party marketplace revenue reflects a deliberate strategic choice to exit lower-margin sales, resulting in a 500 basis point improvement in like-for-like gross margins. New customer acquisition is being driven by 'gateway' products, specifically iconic totes and swim, which are successfully reaching younger demographics through authentic social media collaborations. The Lands' End Outfitters segment saw 15% year-to-date growth in enterprise accounts, led by airline partnerships, despite ongoing WMS challenges affecting school uniform shipments. Inventory levels increased 13% year-over-year, which management characterizes as a return to normalized pre-2025 levels following an intentionally lean position during prior tariff uncertainties. The company is building a centralized AI engine designed to integrate purchase history, browsing behavior, and weather data to drive personalized marketing and merchandising. Full-year guidance assumes the continuation of current tariff rates and incorporates approximately $40 million in capital expenditures for infrastructure and technology. Management expects the intellectual property joint venture with WHP Global to generate over $150 million in long-term guaranteed royalty value through amended licensing agreements. Operational focus for the second half of fiscal 2026 is centered on 'tactical excellence' to ensure fulfillment infrastructure is stable for the peak holiday selling season. The Delta Airlines uniform partnership is currently in a wear-testing phase with 1,400 employees, with a full-scale rollout planned for the second half of 2027. Warehouse management system (WMS) inefficiencies caused temporary disruption in SG&A and delayed revenue recognition in the school uniform business due to value-added service backlogs. Gross margin improvements were primarily driven by an IEEPA tariff refund, though this was partially offset by new royalty costs associated with the WHP Global joint venture. The company used the majority of the $300 million in cash proceeds from the WHP Global transaction to fully repay its term loan, with the remaining funds used for transaction-related corporate expenses and taxes., significantly reducing interest expense and enhancing liquidity. A $100 million stock repurchase program is active through March 2029, with $89 million remaining in authorization at the end of the second quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. CEO Charlie Cole intends to transform Lands' End into a 'modern AI engine' that personalizes the customer experience based on geography, weather, and browsing behavior. The goal is to create a platform that rivals the best in the industry by leveraging decades of proprietary customer data to optimize lifetime value and conversion. Operations have returned to normal throughput levels, though the company is still working through a remaining backlog in the Outfitters division. Additional software solutions will be implemented in 2027 to unlock further warehouse efficiencies and improve service levels beyond current WMS capabilities. Europe is moving away from a purely fashion-forward approach to focus on key franchises, which has already resulted in improved product margins despite flat revenue. The company launched Amazon Germany in August to leverage its global marketplace experience with a new customer base.

Interested in Lands' End, Inc.? Here are five stocks we like better. Revenue rose 3% to $302 million in fiscal Q2 2026, supported by a 9% increase in U.S. e-commerce and 4% growth in Outfitters, while third-party marketplace sales fell 20%. Adjusted EBITDA declined to $11 million despite gross-margin expansion to 52%. Warehouse management system disruptions were largely resolved in core U.S. e-commerce, but school uniform shipment delays continued to weigh on Outfitters. The company is working to clear backlogs and increase production capacity. Lands’ End maintained its fiscal 2026 outlook of $1.3 billion-$1.35 billion in revenue and $62 million-$70 million in adjusted EBITDA, while investing in customer acquisition, digital capabilities and AI-driven personalization. CPI Data Sparks Rally in Biotech Stocks Lands' End (NASDAQ:LE) reported second-quarter fiscal 2026 revenue of $302 million, up 3% from a year earlier, as growth in U.S. e-commerce and the Outfitters business offset a decline in third-party marketplace sales. The company said its results reflected both recovery from earlier warehouse management system disruptions and continued investments in marketing, customer acquisition and digital capabilities. Adjusted net income was $2.7 million, or $0.09 per share, while adjusted EBITDA totaled $11 million, down $4 million year over year. Gross profit increased $14 million, or 10%, and gross margin expanded about 320 basis points to 52%. → Boarding Call: EHang Secures First-Mover Altitude Are Blue Chip Stocks a Good Investment? Chief Executive Officer Charlie Cole, who joined the company on July 13, said he sees opportunities to strengthen customer engagement, personalization and operational infrastructure as the retailer heads into its peak holiday season. U.S. e-commerce sales rose 9% from the second quarter of fiscal 2025. Chief Financial Officer Bernie McCracken said the increase benefited from shipments that carried over from warehouse management system issues during the first quarter. On a year-to-date basis, excluding the completed catch-up effect, the U.S. e-commerce business was “flat or flattish,” McCracken said in response to an analyst question. → Medtronic’s Stars Are Aligning for a Price Recovery Why Legend Biotech Stock Is Having Its Best Month Yet Cole said the company had resolved the warehouse management system issue in its core U.S. e-commerce operations and caught up on shipments by the end of the quarter. He said operations are now running at normal throughput levels, though the company continues to work through a backlog in other areas. Product categories that performed well included women’s and men’s apparel, particularly knits, as well as bags. Cole said the company’s five-pocket tote was a meaningful contributor to growth and new customer acquisition. U.S. new-to-file customer counts increased by double digits, largely driven by totes and swim. → Dutch Bros Sell-Off Creates a Growth Opportunity The U.S. swim business posted high-single-digit revenue growth in e-commerce during the quarter. Cole also cited positive early results in sleepwear, outerwear and Christmas stockings heading into the third and fourth quarters. Marketing initiatives with TNT and Wawa, along with the company’s presence in Nantucket, helped Lands’ End reach younger audiences, according to Cole. He said the Wawa collaboration generated more than 2.6 billion impressions and sold out in hours. Traffic across social channels, including Instagram, increased more than 30% year over year. The company attributed its gross-margin expansion primarily to an IEEPA tariff refund. That benefit was partially offset by the new royalty structure associated with its joint venture with WHP Global and by increased costs tied to the warehouse management system rollout. Selling, general and administrative expenses increased $6 million from a year earlier and rose about 80 basis points as a percentage of net revenue. Lands’ End said the increase reflected digital marketing investments and operational inefficiencies caused by temporary warehouse disruption. Third-party marketplace revenue declined about 20% as the company emphasized higher-margin sales and brand integrity rather than lower-margin promotional volume. Despite the sales decline, McCracken said comparable gross margin in the marketplace business improved by more than 500 basis points year over year. In Europe, sales increased 1% from a year earlier. The company said it shifted toward a franchise-first assortment, which simplified the business and improved product margins. Cole said the European business is focusing on profitability and less promotional selling while retaining some market-specific merchandising differences. Lands’ End also launched Amazon Germany in August. Lands’ End Outfitters, the company’s business-to-business unit, increased sales about 4% from the prior-year quarter. Growth in enterprise accounts more than offset continuing warehouse management system challenges affecting value-added service products in the school uniform business. School uniform shipments were delayed, leaving backlog levels significantly above the prior year and reducing revenue recognized during the quarter. Cole said the company is seeking to increase output capacity, improve production efficiency and prioritize shipments to address customer timing needs. The enterprise segment was up more than 15% year to date, led by airline accounts. Cole said Delta Air Lines is conducting wear testing for its Distinctly Delta uniform collection, with more than 1,400 frontline employees participating. Feedback from the testing is expected to inform final refinements ahead of a planned second-half 2027 rollout. Ending inventory was $342 million, up 13% from a year earlier. McCracken said inventory was closer to typical and planned levels after the company maintained an intentionally lean position a year earlier amid tariff uncertainty. He said the company expects inventory to remain within typical levels and highlighted a broader outerwear assortment for the holiday season, along with fleece and sweaters. The company ended the quarter with $60 million in asset-based lending borrowings, compared with $35 million a year earlier. Lands’ End previously used most of the $300 million in cash proceeds from its WHP Global transaction to repay its term loan. During the quarter, it repurchased roughly 900,000 shares for approximately $11 million, leaving $89 million under its authorized repurchase program. For the third quarter, Lands’ End expects revenue of $300 million to $330 million, adjusted net income of $2 million to $6 million, adjusted diluted earnings per share of $0.07 to $0.20, and adjusted EBITDA of $14 million to $18 million. For fiscal 2026, the company forecast revenue of $1.3 billion to $1.35 billion, adjusted net income of $13 million to $21 million, adjusted diluted earnings per share of $0.44 to $0.72, and adjusted EBITDA of $62 million to $70 million. The outlook incorporates tariffs at currently implemented rates and approximately $40 million of capital expenditures. Cole said the company intends to build greater personalization across e-commerce, marketing and customer retention using its customer data and AI-powered capabilities. “We are going to build an AI infrastructure that gives us an e-commerce platform that will rival the best in the industry,” he said. Lands' End, Inc (NASDAQ: LE) is an American retailer specializing in casual apparel, accessories and home goods. Headquartered in Dodgeville, Wisconsin, the company sells its products through a combination of direct-to-consumer channels including e-commerce, catalogues and a network of outlet stores. Lands' End is known for its nautical-inspired designs, functional outerwear and commitment to quality fabrics. Founded in 1963 by Gary Comer as a mail-order sailing supply business, Lands' End rapidly expanded its product offering beyond marine gear. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Lands' End Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.