LandsEnd 2026 Q3 Earnings Profitability Surges 970.8% as Net Income Rebounds

Lands’ End (LE) reported Q3 2026 earnings on Dec. 9, 2025, delivering a non-GAAP EPS of $0.21, which beat estimates by $0.04. Total revenue fell slightly to $317.49 million, but GMV grew low single digits. The company reaffirmed its full-year guidance, projecting $1.33B–$1.36B in revenue and $0.68–$0.81 adjusted diluted EPS.

Revenue

Lands’ End’s Q3 revenue declined marginally by 0.4% to $317.49 million compared to the prior year. The U.S. eCommerce segment remained the largest contributor at $179.75 million, though it dipped 0.3% year-over-year. International operations, including Europe eCommerce, generated $19.83 million, while the Outfitters segment reported $78.79 million. Third-party sales, driven by Amazon and Macy’s, surged 34% to $18.91 million. Licensing and Retail added $20.20 million, rounding out the revenue mix.

Earnings/Net Income

The company returned to profitability with an EPS of $0.17, reversing a $0.02 loss in the prior-year period. Net income soared to $5.16 million, a 970.8% increase from a $593,000 net loss. This dramatic turnaround underscores improved gross margin expansion and cost discipline.

Post-Earnings Price Action Review

The strategy of buying LE when earnings beat and holding for 30 days delivered moderate returns but underperformed the benchmark. The strategy achieved a 44.50% return, while the benchmark returned 88.30%, resulting in an excess return of -43.80%. The Sharpe ratio was 0.12, indicating a reasonable risk-adjusted return, but the maximum drawdown was 0.00%, suggesting the strategy had no downside risk, which is not typical for a stock market strategy.

CEO Commentary

CEO Andrew McLean highlighted a 28% rise in adjusted EBITDA and record gross margins, driven by B2B partnerships like Delta Air Lines’ uniform contract. He emphasized growth in third-party marketplaces, 25% U.S. e-commerce traffic growth, and brand collaborations with Harris Tweed and Lulu Guinness.

Guidance

CFO Bernie McCracken reiterated full-year 2026 guidance: revenue of $1.33B–$1.36B, adjusted EBITDA of $99M–$104M, and adjusted diluted EPS of $0.68–$0.81. Fourth-quarter revenue is expected to range between $460M–$490M, with adjusted EBITDA of $49M–$54M.

Additional News

1. Strategic Alternatives: Lands’ End announced it is exploring potential sales or mergers to enhance shareholder value. The board is evaluating options, including a possible sale, with no timeline disclosed.

2. Leadership Promotions: Kym Maas was promoted to President of U.S. Consumer, retaining her role as Chief Creative Officer, while John DeFalco became President of Lands’ End Outfitters.

3. Marketplace Expansion: Third-party sales via Amazon and Macy’s grew 34% year-over-year, and the company launched a TikTok shop, boosting Instagram followers to 0.5 million.