Lands’ End reported third‑quarter 2025 results with revenue of $317.5 million, falling about 4 % below the consensus estimate of $331–$334 million, while adjusted earnings per share rose to $0.21 from the consensus $0.17, a 24 % beat. Adjusted EBITDA for the quarter climbed 28 % to $25.9 million, a sharp correction from the previously reported $9.5 million, and gross margin expanded 120 basis points to 51.8 % from 50.8 % a year earlier.
The revenue miss was driven primarily by a 4 % decline in U.S. e‑commerce sales, reflecting broader softness in that channel. Growth in licensing, third‑party marketplace, and B2B revenue—particularly the Delta Air Lines partnership—offset some of the weakness, but not enough to meet expectations. Gross‑margin expansion was largely a result of lower promotional spend, a more favorable product mix, and disciplined cost management, while inventory levels rose 3 % year‑over‑year to $347.6 million due to tariff‑related cost pressures.
Segment‑level data show U.S. e‑commerce revenue fell 4 % YoY, licensing and marketplace revenue grew 8 %, B2B revenue increased 12 %, and international e‑commerce remained flat. These dynamics illustrate the company’s shift toward higher‑margin channels while confronting headwinds in its legacy retail business.
Management updated full‑year guidance, narrowing adjusted EBITDA to $99–$104 million from the prior $95–$107 million range and maintaining revenue guidance at $317–$322 million. The company projects Q4 adjusted EBITDA of $49–$54 million, signaling confidence in margin improvement but caution on top‑line growth.
CEO Andrew McLean highlighted the company’s focus on solutions, innovation, and higher‑margin channels, while CFO Bernie McCracken emphasized a gross margin near 52 % and inventory management amid tariff challenges, underscoring continued investment in technology and an asset‑light model.
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