LandsEnd 2026 Q3 Earnings Surges to Profitability with 970.8% Net Income Jump

Lands'End (LE) reported fiscal 2026 Q3 earnings on Dec 9, 2025, showing a 0.4% revenue decline to $317.49 million, with a notable turnaround in profitability. The company exceeded expectations with EPS of $0.17, reversing a 2025 Q3 loss, and announced full-year revenue guidance of $1.33B–$1.36B, reflecting confidence in its strategic initiatives.

Revenue

U.S. eCommerce led with $179.75 million, followed by Outfitters at $78.79 million, while Third Party and Europe eCommerce contributed $18.91 million and $19.83 million, respectively. The Licensing and Retail segment added $20.20 million, bringing the total net revenue to $317.49 million.

Earnings/Net Income

Lands'End returned to profitability with EPS of $0.17, a 950% improvement from a 2025 Q3 loss of $0.02. Net income surged to $5.16 million, a 970.8% positive swing from a $593,000 loss. The EPS turnaround underscores a strong operational recovery.

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 gross margin expansion, customer engagement growth, and B2B successes like the Delta Air Lines partnership. He emphasized distributed commerce, product innovation (e.g., weather-proofed outerwear), and collaborations in Europe, calling the momentum “exciting” and “sustainable.”

Guidance

CFO Bernard McCracken outlined Q4 2025 guidance: net revenue of $460–$490 million and GMV growth of mid- to high single digits. For fiscal 2025, the company expects $1.33B–$1.36B in revenue, with adjusted EBITDA of $99M–$104M.

Additional News

1. Strategic Alternatives: Lands’ End is exploring sales or mergers to enhance shareholder value, with no guarantees on outcomes.

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

3. Digital Expansion: The company opened a TikTok shop, saw Instagram followers reach 0.5 million, and launched a pop-up in NYC generating 5M social impressions.

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