March 19, 2026 - Lands' End, Inc. (NASDAQ: LE) has announced its financial results for the fourth quarter and full year of fiscal 2025, marking a crucial turning point in its business trajectory. The company reported a return to topline growth, driven by significant advancements in its core businesses and a strategic partnership aimed at enhancing long-term value creation.

1. Key Highlights from the Fourth Quarter

Andrew McLean, Chief Executive Officer of Lands' End, emphasized the significance of the fourth quarter, stating, “The fourth quarter was a turning point for Lands’ End as we returned to topline growth.” This shift is underscored by the following financial metrics:

Gross Merchandise Value (GMV) saw a mid-single-digit increase compared to the same period last year.

Net Revenue reached $462.4 million, reflecting a $20.7 million or 4.7% increase from $441.7 million in Q4 FY2024.

U.S. Digital Segment Net Revenue stood at $402.3 million, up 5.3% year-over-year, driven by strong eCommerce performance.

U.S. eCommerce Net Revenue rose to $312.0 million, a 4.8% increase, fueled by higher average unit retails and robust demand for solution-based products.

Outfitters Segment Net Revenue increased by 9.6% to $53.7 million, reflecting strong growth in the school uniform business and enterprise accounts.

Third Party Net Revenue grew by 4.3% to $36.6 million, bolstered by robust sales on platforms like Amazon.

Europe eCommerce Net Revenue increased by 9.3% to $32.9 million, reversing a trend of declining performance in prior quarters.

Despite these positive results, Licensing and Retail Net Revenue decreased by 8.4%, a planned transition reflecting the shift of certain wholesale accounts to a licensing arrangement.

Profitability Metrics

Gross Profit increased by 4.1% to $209.6 million, although gross margin slightly decreased to 45.3% from 45.6% due to tariffs. Excluding tariff impacts, gross margin would have risen to 47.0%.

Selling and Administrative Expenses increased by $11.7 million, primarily due to higher digital marketing expenditures and incentive accruals.

Net Income for the quarter was $12.3 million, down from $18.5 million in Q4 FY2024, but Adjusted Net Income rose significantly by 33.3% to $23.6 million.

2. Full Year Financial Overview

For fiscal 2025, Lands' End reported a net revenue of $1.34 billion, a decrease of 2.0% from the previous fiscal year. Notable performance across segments included:

U.S. Digital Segment Net Revenue of $1.16 billion, a slight increase of 0.7%.

Outfitters Segment Net Revenue grew to $241.8 million, up 6.0% from fiscal 2024.

Third Party Net Revenue increased by 9.2% to $91.2 million.

Despite overall revenue declines, gross profit remained stable at $650.2 million, with an improved gross margin of 48.7%. The company also reported a 10% increase in Adjusted EBITDA, reaching $102 million for the year.

3. Strategic Partnership with WHP Global

A critical highlight from the announcement was the formation of a joint venture with WHP Global, aimed at monetizing Lands' End's intellectual property. This partnership will provide the company with $300 million in cash and enable the full repayment of its term loan debt. McLean expressed optimism about the venture, stating it would accelerate brand licensing growth and enhance strategic flexibility.

The joint venture will be 50% owned by both Lands' End and WHP Global, with WHP leading the global licensing strategy. This transformative partnership is expected to unlock new growth opportunities, including potential equity stakes in WHP Global during future monetization events.

4. Balance Sheet and Cash Flow

As of January 30, 2026, Lands' End maintained cash and cash equivalents of $18.3 million, with net inventory at $268.8 million. The company reported no outstanding borrowings and $122.6 million available under its ABL Facility.

Overall, the balance sheet reflects a reduction in term loan debt from $247 million to $234 million, positioning the company favorably post-transaction.

5. Outlook

Due to the pending joint venture with WHP Global, Lands' End has opted not to provide financial guidance at this moment. The company plans to release further guidance following the completion of the deal, expected by the end of the first quarter of fiscal 2026.

6. Conclusion

Lands' End is navigating a transformative phase marked by strategic partnerships and a focus on sustainable growth. With a strong foundation established in fiscal 2025, the company is poised to leverage its new joint venture with WHP Global to enhance its market presence and deliver long-term value to shareholders.

For further details, Lands' End will host a conference call on March 19, 2026, at 8:30 a.m. ET to discuss these financial results and future strategies.

Original press release