Lands’ End Announces Second Quarter Fiscal 2026 Results
LANDS' END, INC. (LE) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Lands’ End Announces Second Quarter Fiscal 2026 Results DODGEVILLE, Wis., September 3, 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, “
How this was made
The 30-second read
Why it matters
Earnings beat and raised guidance likely support the stock, while share repurchase adds further upside potential.
Market read
First‑report earnings release for a mid‑cap consumer retailer with positive surprise and updated guidance.
What to watch
Potential headwinds from tariff uncertainties and lingering warehouse system issues could affect execution.
Second-quarter net revenue increased 2.7% to $302.0 million, gross margin increased approximately 320 basis points to 52.0%, and GAAP net income was $3.5 million; Adjusted EBITDA decreased 25% to $11.3 million.
Revenue, gross profit, gross margin and GAAP earnings improved year over year, but Adjusted EBITDA declined 25%, selling and administrative expenses increased as a percentage of revenue, and operating cash flow for the first 26 weeks was negative.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenueGAAP | $302M | – | increase of $7.9 million or 2.7% |
| Gross profitGAAP | $157M | – | increase of $13.6 million or 9.5% |
| Gross marginGAAP | 52.0% | – | increased approximately 320 basis points |
| Selling and administrative expensesGAAP | $135.3 million or 44.8% of Net revenue | – | increased $5.9 million; approximately 80 basis point increase |
| Depreciation and amortizationGAAP | $ 6,147 | – | – |
| Equity method investment incomeGAAP | $ (4,243) | – | – |
| Other operating expense, netGAAP | $ 11,674 | – | – |
| Operating incomeGAAP | $ 8,187 | – | – |
| Interest expenseGAAP | $ 1,021 | – | – |
| Other income, netGAAP | $ (1,051) | – | – |
| Income before income taxesGAAP | $ 8,217 | – | – |
| Income tax expense (benefit)GAAP | $ 4,766 | – | – |
| Net income (loss)GAAP | $3.5M | – | – |
| Diluted earnings (loss) per shareGAAP | $0.11 | – | – |
| Basic earnings (loss) per common shareGAAP | $ 0.12 | – | – |
| Adjusted net income (loss)non-GAAP | $2.7M | – | – |
| Adjusted diluted earnings (loss) per sharenon-GAAP | $0.09 | – | – |
| Adjusted EBITDAnon-GAAP | $11.3M | – | decrease of 25% |
| Net revenue, 26 weeks ended July 31, 2026GAAP | $ 540,954 | – | – |
| Gross profit, 26 weeks ended July 31, 2026GAAP | $ 268,527 | – | – |
| Operating loss, 26 weeks ended July 31, 2026GAAP | $ (35,921) | – | – |
| Net income (loss), 26 weeks ended July 31, 2026GAAP | $ 334,144 | – | – |
| Diluted earnings (loss) per share, 26 weeks ended July 31, 2026GAAP | $ 10.96 | – | – |
| Adjusted net loss, 26 weeks ended July 31, 2026non-GAAP | $ (831) | – | – |
| Adjusted diluted loss per share, 26 weeks ended July 31, 2026non-GAAP | $ (0.03) | – | – |
| Adjusted EBITDA, 26 weeks ended July 31, 2026non-GAAP | $ 5,052 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| U.S. Digital SegmentU.S. eCommerce growth and Outfitters growth. | $268.9M | – | increase of $13.6 million or 5.3% from $255.3 million |
| U.S. eCommercePrimarily driven by carryover shipments from the temporary disruption associated with the rollout of the new warehouse management system in the first quarter of 2026. | $182.4M | – | increase of $15.1 million or 9.0% from $167.3 million |
| OutfittersEnterprise accounts more than offset warehouse management system challenges affecting processing of value-added service products in the school uniform business. | $69.3M | – | increase of $2.9 million or 4.4% from $66.4 million |
| Third PartyPrioritizing profitable high-quality sales and brand quality over lower-value promotional volume. | $17.2M | – | decrease of $4.4 million or 20.4% from $21.6 million |
| Europe eCommerceStrategic shift to a franchise-first assortment simplifying the business and improving product margins. | $19.7M | – | increase of $0.1 million or 0.5% from $19.6 million |
Third Quarter Fiscal 2026 and Fiscal 2026 outlook
- RevenueThird Quarter fiscal 2026: $300.0 million to $330.0 million; fiscal 2026: $1.30 billion to $1.35 billion.
- NoteThird Quarter fiscal 2026 net loss: $1.0 million to net income of $3.0 million.
- NoteThird Quarter fiscal 2026 diluted loss per share: $0.03 to diluted earnings per share of $0.10.
- NoteThird Quarter fiscal 2026 Adjusted net income: $2.0 million to $6.0 million.
- NoteThird Quarter fiscal 2026 Adjusted diluted earnings per share: $0.07 to $0.20.
- NoteThird Quarter fiscal 2026 Adjusted EBITDA: $14.0 million to $18.0 million.
- NoteFiscal 2026 net income: $317.0 million to $325.0 million.
- NoteFiscal 2026 diluted earnings per share: $10.87 to $11.14.
- NoteFiscal 2026 Adjusted net income: $13.0 million to $21.0 million.
- NoteFiscal 2026 Adjusted diluted earnings per share: $0.44 to $0.72.
- NoteFiscal 2026 Adjusted EBITDA: $62.0 million to $70.0 million.
- NoteFiscal 2026 capital expenditures: approximately $40.0 million.
- NoteGuidance reflects current conditions, including tariffs at currently implemented rates and prevailing macroeconomic factors.
Capital returns
- 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.
- Purchases and retirement of common stock, including excise tax paid, were $ (10,848) for the 26 weeks ended July 31, 2026.
What drove it
- Gross margin increased primarily because of IEEPA tariff refunds, partially offset by the new royalty structure associated with the JV and temporary costs associated with the new warehouse management system.
- Selling and administrative expense increased because of 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.
- The inventory increase primarily reflects levels consistent with the Company’s normal seasonal build and support for current revenue projections, compared with the intentionally lean inventory position a year ago amid tariff uncertainty.
- Management said core U.S. eCommerce operations normalized during the quarter and Outfitters returned to normal operating levels.
Concerns
- Adjusted EBITDA decreased 25% to $11.3 million despite net revenue growth and higher gross profit.
- Selling and administrative expenses increased to 44.8% of Net revenue from 44.0% of Net revenue.
- Third Party Net revenue decreased 20.4%.
- Net cash used in operating activities was $86.5 million for the first 26 weeks, driven primarily by the WHP Global transaction closing and seasonal inventory build.
- Warehouse management system disruption continued to affect processing of value-added service products in the school uniform business.
- The Company identified tariffs, global economic conditions, inflation, consumer discretionary spending, supply chain disruption and warehouse management system performance among its risks.
What to watch
- Third-quarter Net revenue guidance of $300.0 million to $330.0 million and Adjusted EBITDA guidance of $14.0 million to $18.0 million.
- Execution through the holiday season following normalization of core U.S. eCommerce and Outfitters operations.
- The seasonal inventory build, with inventories at $342.0 million as of July 31, 2026.
- Whether digital marketing investment focused on new customer acquisition translates into revenue while selling and administrative expenses remain elevated as a percentage of Net revenue.
- The effect of tariffs at currently implemented rates, the IEEPA tariff recovery, and the new royalty structure associated with the JV.
- Progress under the share repurchase program, which had up to $89.2 million available as of July 31, 2026.
Balance sheet and cash flow
- 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, compared to $301.8 million as of August 1, 2025, representing a 13% year over year increase.
- 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.
- The Company used the majority of the $300 million in cash proceeds from the WHP Global transaction to fully repay its term loan.
- 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.
- Purchases of property and equipment were $ (24,013) for the 26 weeks ended July 31, 2026, compared to $ (17,163) for the 26 weeks ended August 1, 2025.
- Proceeds from WHP Transaction were $ 300,000 for the 26 weeks ended July 31, 2026.
- Payments on term loan were $ (234,000) for the 26 weeks ended July 31, 2026.
Analysis
Second-quarter Net revenue increased 2.7% to $302.0 million, led by a 9.0% increase in U.S. eCommerce and a 4.4% increase in Outfitters. U.S. eCommerce benefited primarily from carryover shipments following the first-quarter warehouse management system disruption. Outfitters growth from enterprise accounts more than offset processing challenges in value-added school-uniform products. Third Party revenue decreased 20.4% as the Company prioritized profitable high-quality sales and brand quality over lower-value promotional volume.
Gross profit increased 9.5% to $157.0 million and gross margin increased approximately 320 basis points to 52.0%. The Company attributed the margin expansion primarily to IEEPA tariff refunds, partly offset by the JV royalty structure and temporary warehouse management system costs. Selling and administrative expense rose to $135.3 million, or 44.8% of Net revenue, as digital marketing investment and operational inefficiencies more than offset leverage from revenue growth.
GAAP results improved to net income of $3.5 million and $0.11 per diluted share, compared with a net loss of $3.7 million and a $0.12 diluted loss per share. Adjusted net income was $2.7 million and Adjusted diluted earnings per share was $0.09. However, Adjusted EBITDA declined 25% to $11.3 million from $15.1 million. For the first 26 weeks, reported GAAP net income of $334,144 included the $ (491,622) Gain on WHP Transaction in the reconciliation, while Adjusted net loss was $ (831).
The balance-sheet and cash-flow picture reflects the WHP Global transaction, debt repayment, repurchases and the seasonal inventory build. The Company used the majority of $300 million of WHP proceeds to fully repay its term loan, had $60.0 million of ABL borrowings outstanding, and repurchased $10.5 million of common stock during the quarter. Cash and cash equivalents were $16.1 million, while inventories increased 13% year over year to $342.0 million. Net cash used in operating activities was $86.5 million for the first 26 weeks, primarily due to the transaction closing and inventory build.
Third-quarter guidance calls for Net revenue of $300.0 million to $330.0 million, Adjusted EBITDA of $14.0 million to $18.0 million, and Adjusted net income of $2.0 million to $6.0 million. Fiscal 2026 guidance calls for Net revenue of $1.30 billion to $1.35 billion, Adjusted EBITDA of $62.0 million to $70.0 million, and approximately $40.0 million of capital expenditures. Management stated that guidance reflects tariffs at currently implemented rates and prevailing macroeconomic factors.
Management, verbatim
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.
Charlie Cole, Chief Executive Officer
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.
Bernie McCracken, Chief Financial Officer
Not in the filing
stated, not guessed- Previous-release outlook was not provided; comparison of actual results with prior guidance is unavailable.
- Prior-quarter comparisons for reported second-quarter metrics were not provided.
- Second-quarter operating cash flow was not provided; cash flow was reported only for the 26 weeks ended July 31, 2026.
- Free cash flow was not reported.
- A total debt figure was not reported as a single line item.
- Dividend information was not reported.
- Third-quarter and fiscal 2026 guidance for gross margin, operating expenses and tax rate was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Lands' End filed an 8‑K announcing Q2 FY2026 results, including revenue, profit, margin improvements, and FY guidance.
Ticker impact
SEC 8‑K reports Q2 FY2026 results and updated FY2026 guidance for Lands' End, Inc.
Potential upside of 5‑10% on earnings beat and guidance raise, with further upside if holiday season sales meet expectations.
Revenue up 2.7% YoY, net income turned positive, gross margin improved, and FY guidance raised; combined with a $10.5M share buyback, investors may view this as a catalyst.
Market effects
Positive for apparel retail and e‑commerce sector as Lands' End shows recovery from warehouse disruptions.
U.S. consumer discretionary may see modest lift; European e‑commerce impact limited.
Limited to investors tracking U.S. consumer stocks; no broad macro effect.
Counterpoint
Guidance still modest and inventory buildup could pressure margins if holiday sales underperform.
Key entities
- ExecutiveCharlie Cole
Chief Executive Officer of Lands' End, provided commentary on results.
- ExecutiveBernie McCracken
Chief Financial Officer, discussed operational progress and share repurchase.
