\n
![](\"https:\/\/static.fibre2fashion.com\/Newsresource\/images\/313\/shutterstock-1937491498_324874.jpg\")
<\/p>\n
\n<\/p>\n
The company’s strategic focus on digital customer engagement and operational execution supported a return to profitability, even as it navigated ongoing supply chain and cost challenges.<\/p>\n
Lands’ End returned to Q2 FY26 profit, with net income of $3.5 million as revenue rose 2.7 per cent to $302.0 million.
\nUS e-commerce led growth, rising 9.0 per cent to $182.4 million; Outfitters gained, while third-party sales dropped 20.4 per cent.
\nLands’ End reaffirmed FY26 guidance, with inventory up 13 per cent for seasonal build as operations normalised before the holiday season.<\/p>\n
For the quarter ended July 31, 2026, net revenue increased 2.7 per cent year on year (YoY) to $302.0 million, compared with $294.1 million in Q2 FY25. Net income reached $3.5 million, reversing a net loss of $3.7 million in the same period last year, according to Lands’ End’s latest financial results.<\/p>\n
Gross profit rose 9.5 per cent to $157.0 million, with gross margin expanding to 52.0 per cent from 48.8 per cent. Adjusted net income was $2.7 million, while adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) stood at $11.3 million, down from $15.1 million a year earlier.<\/p>\n
Diluted earnings per share (EPS) were $0.11, compared to a loss per share of $0.12 in Q2 FY25.<\/p>\n
\u201cSince joining Lands’ End, I have been energised by what I see ahead for this iconic American company. Our focus now is on excellence in execution to ensure we have the right infrastructure, technology, and customer acquisition capabilities in place as we head into the holiday season. I am confident we are well positioned, and I look forward to sharing more in the months ahead,\u201d said Charlie Cole, chief executive officer, Lands’ End<\/em><\/strong>.<\/p>\n The US digital segment remained the primary growth driver, with net revenue rising 5.3 per cent to $268.9 million. US e-commerce net revenue grew 9.0 per cent year on year to $182.4 million, benefiting from carryover shipments following earlier warehouse management system disruptions.<\/p>\n The Outfitters segment posted a 4.4 per cent increase to $69.3 million, supported by enterprise accounts, while Europe e-commerce revenue was stable at $19.7 million. Third-party net revenue declined 20.4 per cent to $17.2 million as the company prioritised profitable sales over promotional volume.<\/p>\n Gross margin improved by 320 basis points to 52.0 per cent, primarily due to tariff refunds received under the International Emergency Economic Powers Act (IEEPA), partially offset by a new royalty structure and temporary warehouse management costs.<\/p>\n Selling and administrative expenses increased to $135.3 million, or 44.8 per cent of net revenue, reflecting higher digital marketing investment and operational inefficiencies from the warehouse transition.<\/p>\n Inventory levels rose 13 per cent year on year to $342.0 million, aligning with seasonal build and revenue projections.<\/p>\n Cash and cash equivalents stood at $16.1 million as of July 31, 2026, compared to $21.3 million a year earlier. The company used most proceeds from the WHP Global transaction to repay its term loan, reducing outstanding borrowings to $60.0 million.<\/p>\n Net cash used in operating activities was $86.5 million for the first half of fiscal 2026, mainly due to seasonal inventory build and transaction-related impacts.<\/p>\n Lands’ End repurchased $10.5 million of its common stock during the quarter, with $89.2 million remaining authorised under the current programme through March 2029, the company said in a press release.<\/p>\n Lands’ End reaffirmed its fiscal 2026 guidance, expecting net revenue between $1.30 billion and $1.35 billion, and net income of $317.0 million to $325.0 million. Adjusted net income is forecast in the range of $13.0 million to $21.0 million, with adjusted EBITDA between $62.0 million and $70.0 million.<\/p>\n For the third quarter, net revenue is projected between $300.0 million and $330.0 million, with adjusted EBITDA of $14.0 million to $18.0 million. The company plans approximately $40.0 million in capital expenditures for the full year.<\/p>\n \u201cWe made meaningful progress during the second quarter, moving beyond the distribution centre challenges that affected our operations earlier in the year. Our core US eCommerce operations normalised during the quarter and Outfitters has now returned to normal operating levels. Combined with our significantly reduced debt and interest expense, these developments provide a stronger foundation for executing through the holiday season and creating long-term value,” said Bernie McCracken, chief financial officer, Lands’ End<\/em><\/strong>.\u00a0<\/p>\n
<\/p>\n Fibre2Fashion News Desk (MS)<\/p>\n
\n <\/p><\/div>\n\tE-commerce and segment performance<\/strong><\/h3>\n
\tMargin expansion and cost dynamics<\/strong><\/h3>\n
\tBalance sheet and cash flow<\/strong><\/h3>\n
\tGuidance and outlook for FY26<\/strong><\/h3>\n