Lands’ End, Inc. reported that Gross Merchandise Value (GMV) for the 2025 third quarter increased in low single-digits when compared to the third quarter of 2024. GMV is the total order value of all Lands’ End-branded merchandise sold to consumers through business-to-consumer and business-to-business channels, as well as the estimated retail value of the merchandise sold through third-party distribution channels.

Net revenue was $317.5 million for the third quarter of 2025, a decrease of 0.3 percent from $318.6 million in Q3 2024.

  • U.S. Digital Segment net revenue was $277.5 million for the third quarter, an increase of $4.0 million or 1.5 percent from $273.5 million in the 2024 third quarter.
  • U.S. E-commerce net revenue was $179.8 million, a decrease of 3.4 percent from $186.1 million in the third quarter of 2024. The decrease was attributed to improvements in promotional productivity and enhanced inventory efficiency, which drove gross margin expansion and improved profitability compared to the third quarter of 2024.
  • The outfitters’ net revenue was $78.8 million for the third quarter of 2025, a 7.4 percent increase from $73.4 million in Q3 last year.
    • The School Uniform channel saw significant growth due to a strong back-to-school season and new customers acquired from a competitor exiting the market.
    • Revenue from the Business Uniform channel was down year-over-year, driven by the timing of orders from select enterprise accounts.
  • Third-party net revenue was $18.9 million for the third quarter, a strong 34.0 percent increase from $14.1 million during the third quarter of 2024. The increase was attributed primarily to strength across nearly all of the company’s marketplace partners, with significant year-over-year gains at Amazon and Macy’s.
  • Europe E-commerce net revenue was $19.8 million in Q3, a 20.8 percent decrease from $25.0 million in the third quarter of 2024, reportedly due primarily to increased promotional activity and continued macroeconomic pressures impacting consumers.
  • Licensing and Retail net revenue was $20.2 million for the 2025 third quarter, an increase of 0.5 percent from $20.1 million during the third quarter of 2024. The revenue reportedly increased due to Licensing revenue increasing by over 30 percent and the performance of U.S. company-operated Retail stores, partially offset by the timing of wholesale transactions compared to last year.

Profitability and Expenses
Gross profit was $164.5 million for the third quarter of 2025, an increase of $3.4 million or 2.1 percent from $161.1 million during the third quarter of 2024. Gross margin increased approximately 120 basis points to 51.8 percent of net revenue in Q3, compared with 50.6 percent in the third quarter of 2024. The gross margin improvement was said to be primarily driven by continued strength across key categories at a higher average unit retail and the expansion of the licensing business, partially offset by tariffs.

Selling and administrative expenses decreased $2.3 million to $138.6 million, or 43.7 percent of net revenue, in the third quarter, compared with $140.9 million, or 44.2 percent, of net revenue in the 2024 third quarter. The approximately 50 basis point improvement was said to be primarily driven by operational efficiencies and strong cost controls across the entire business.

Net income amounted to $5.2 million, or 17 cents per diluted share, in the third quarter, compared to a net loss of $0.6 million, or a net loss of 2 cents per diluted share, in the third quarter of 2024.

Adjusted net income was $6.5 million and Adjusted diluted earnings per share was 21 cents in the third quarter of 2025, compared to Adjusted net income of $1.8 million and Adjusted diluted earnings per share of 6 cents in the third quarter of 2024.

Adjusted EBITDA was $25.9 million in the third quarter of 2025, an increase of 28 percent compared to $20.3 million in the third quarter of 2024.

Balance Sheet and Cash Flow Summary
Cash and cash equivalents were $36.3 million as of October 31, 2025, compared to $30.4 million as of November 1, 2024.

Inventories were $347.6 million at quarter-end, and $335.9 million as of November 1, 2024, representing a 3 percent year-over-year increase. This increase was attributed primarily to tariffs, partially offset by continued discipline in inventory management and by tariff mitigation strategies.

Net cash used in operating activities was $15.2 million for the 39 weeks ended October 31, 2025, compared to net cash used in operating activities of $12.2 million for the 39 weeks ended November 1, 2024. The increase in net cash used in operating activities was attributed primarily to tariffs, partially offset by operating income.

As of October 31, 2025, the company had $75.0 million of borrowings outstanding and $115.1 million of availability under its ABL Facility, compared to $60.0 million of borrowings and $90.3 million of availability as of November 1, 2024. Additionally, as of October 31, 2025, the company said it had $237.3 million of term loan debt outstanding, compared with $250.3 million as of November 1, 2024.

During the third quarter of 2025, the company did not repurchase any shares of its common stock. As of October 31, 2025, additional purchases of up to $8.8 million could be made under the current program through March 31, 2026.

Outlook
Company CFO Bernie McCracken said that, with a healthy balance sheet and diversified revenue base, the company is well-positioned to navigate tariff headwinds and maintain momentum.

For Fourth Quarter Fiscal 2025, Lands’ End expects:

  • Net revenue between $460.0 million and $490.0 million.
  • GMV to deliver mid- to high-single-digit growth.
  • Net income between $21.0 million and $25.0 million and diluted earnings per share between 68 cents and 81 cents.
  • Adjusted net income between $22.0 million and $26.0 million and Adjusted diluted earnings per share between 71 cents and 84 cents.
  • Adjusted EBITDA in the range of $49.0 million to $54.0 million.

For Fiscal 2025 Full Year, Lands’ End now expects:

  • Net revenue between $1.33 billion and $1.36 billion.
  • GMV to deliver low-single-digit growth.
  • Net income between $14.0 million and $18.0 million and diluted earnings per share between 45 cents and 58 cents.
  • Adjusted net income between $21.0 million and $25.0 million and Adjusted diluted earnings per share between 68 cents and 81 cents.
  • Adjusted EBITDA in the range of $99.0 million to $104.0 million.

For the full year, the company’s guidance includes approximately $28.0 million of capital expenditures.

Strategic Alternatives Process
On March 7, 2025, the company announced that its Board of Directors initiated a process to explore strategic alternatives, including a sale, merger or similar transaction involving the company to maximize shareholder value. This process remains ongoing. No assurances can be given as to the outcome or timing of the Board’s process. The company does not intend to make any further public comment regarding the process until it determines that disclosure is appropriate.

Image courtesy Lands’ End, Inc.