LandsEnd 2026 Q3 Earnings Strong Earnings Recovery Driven by 970.8% Net Income Surge

Lands'End reported fiscal 2026 Q3 earnings on Dec 9, 2025, with non-GAAP EPS of $0.17, exceeding expectations by $0.04. Revenue declined 0.3% to $317.5 million but outperformed adjusted EBITDA guidance by 28%. The company raised full-year revenue guidance to $1.33B–$1.36B and projected Q4 net revenue of $460M–$490M.

Revenue

Lands'End’s Q3 revenue fell 0.3% to $317.5 million, with U.S. eCommerce accounting for 56.6% of total revenue at $179.75 million. Outfitters revenue reached $78.79 million, while international operations, including Europe eCommerce ($19.83 million) and licensing/retail ($20.20 million), contributed 12.4% of total revenue. Third-party sales, including Amazon and Macy’s, totaled $18.91 million, reflecting a 34% year-over-year increase in key partnerships.

Earnings/Net Income

The company returned to profitability with EPS of $0.17, reversing a $0.02 loss in 2025 Q3. Net income surged 970.8% to $5.16 million, up from a $593,000 loss, driven by gross margin expansion to 52% and disciplined cost management. This marked a significant turnaround in profitability.

Post-Earnings Price Action Review

The strategy of buying LE after a Q3 earnings beat underperformed the benchmark, delivering 44.50% returns versus 88.30%. Despite a Sharpe ratio of 0.12, the strategy showed no downside risk with a 0.00% maximum drawdown, an anomaly in equity markets.

Additional News

Lands’ End secured a long-term partnership with Delta Air Lines as the exclusive uniform provider for 60,000+ employees, signaling B2B growth. CEO Andrew McLean announced leadership promotions: Kym Maas to President of U.S. Consumer and John DeFalco to President of Outfitters. The company also explored strategic alternatives, including potential sales or mergers, to enhance shareholder value.