DODGEVILLE, Wis., Dec. 09, 2025 (GLOBE NEWSWIRE) Lands’ End, Inc. (NASDAQ: LE) today announced financial results for the third quarter ended October 31, 2025.
Andrew McLean, Chief Executive Officer, stated: “Our third quarter results underscore the strength of our strategy and disciplined execution. We delivered a 28% increase in Adjusted EBITDA with strong flow through to Adjusted net income, reflecting our focus on profitability and operational efficiency. Our long-term partnership with Delta Air Lines is a powerful example of our leading B2B capabilities, combining product, service and technology to bring solutions to our enterprise clients. In our consumer business, we are reaching a younger, more diverse customer base and expanding brand relevance through new channels and experiences. Overall, we are well positioned to build on this momentum and create lasting value for all stakeholders.”
Third Quarter Financial Highlights
Balance Sheet and Cash Flow Highlights
Cash and cash equivalents were $36.3 million as of October 31, 2025, compared to $30.4 million as of November 1, 2024.
Inventories were $347.6 million as of October 31, 2025, and $335.9 million as of November 1, 2024, representing a 3% year over year increase. This increase was primarily due to tariffs, partially offset by continued discipline in inventory management and tariff mitigation strategies.
Net cash used in operating activities was $15.2 million for the 39 weeks ended October 31, 2025, compared to net cash used in operating activities of $12.2 million for the 39 weeks ended November 1, 2024. The increase in net cash used in operating activities was primarily due to tariffs, partially offset by operating income.
As of October 31, 2025, the Company had $75.0 million of borrowings outstanding and $115.1 million of availability under its ABL Facility, compared to $60.0 million of borrowings and $90.3 million of availability as of November 1, 2024. Additionally, as of October 31, 2025, the Company had $237.3 million of term loan debt outstanding compared to $250.3 million outstanding as of November 1, 2024.
During the third quarter of 2025, the Company did not repurchase any shares of the Company’s common stock. As of October 31, 2025, additional purchases of up to $8.8 million could be made under the current program through March 31, 2026.
Outlook
Bernie McCracken, Chief Financial Officer, stated, “Our results reflect a resilient business model and focused execution. We delivered gross margin of nearly 52%, up 120 basis points year over year despite the impact of tariffs, and we achieved Adjusted EBITDA growth of 28% year over year. With a healthy balance sheet and diversified revenue base, we are well-positioned to navigate tariff headwinds and carry this momentum forward.”
For Fourth Quarter fiscal 2025 the Company expects:
For fiscal 2025 the Company now expects:
For the full year, the Company’s guidance includes approximately $28.0 million of capital expenditures.
Strategic Alternatives Process
On March 7, 2025, the Company announced that its Board of Directors initiated a process to explore strategic alternatives, including a sale, merger or similar transaction involving the Company to maximize shareholder value. This process remains ongoing. No assurances can be given as to the outcome or timing of the Board’s process. The Company does not intend to make any further public comment regarding the process until it determines that disclosure is appropriate.
About Lands’ End, Inc.
Lands’ End, Inc. (NASDAQ:LE) is a leading digital retailer of solution-based apparel, swimwear, outerwear, accessories, footwear, home products and uniforms. Lands’ End offers products online at www.landsend.com, through third-party distribution channels, our own Company Operated stores and third-party license agreements. Lands’ End also offers products to businesses and schools, for their employees and students, through the Outfitters distribution channel. Lands’ End is a classic American lifestyle brand that creates solutions for life’s every journey.
-Financial Tables Follow-
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LANDS’ END, INC. Condensed Consolidated Balance Sheets (Unaudited) |
||||||||||||
| (in thousands, except per share data) | October 31, 2025 | November 1, 2024 |
January 31, 2025* |
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| ASSETS | ||||||||||||
| Current assets | ||||||||||||
| Cash and cash equivalents | $ | 36,344 | $ | 30,401 | $ | 16,180 | ||||||
| Restricted cash | 703 | 1,912 | 2,632 | |||||||||
| Accounts receivable, net | 36,721 | 35,538 | 47,839 | |||||||||
| Inventories | 347,629 | 335,855 | 265,132 | |||||||||
| Prepaid expenses | 30,300 | 36,246 | 33,258 | |||||||||
| Other current assets | 9,109 | 13,543 | 5,439 | |||||||||
| Total current assets | 460,806 | 453,495 | 370,480 | |||||||||
| Property and equipment, net | 116,189 | 109,173 | 115,618 | |||||||||
| Operating lease right-of-use asset | 16,596 | 21,484 | 20,373 | |||||||||
| Intangible asset | 257,000 | 257,000 | 257,000 | |||||||||
| Other assets | 2,072 | 2,419 | 2,010 | |||||||||
| TOTAL ASSETS | $ | 852,663 | $ | 843,571 | $ | 765,481 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||
| Current liabilities | ||||||||||||
| Current portion of long-term debt | $ | 13,000 | $ | 13,000 | $ | 13,000 | ||||||
| Accounts payable | 144,564 | 132,116 | 111,353 | |||||||||
| Lease liability – current | 4,527 | 5,196 | 4,534 | |||||||||
| Accrued expenses and other current liabilities | 100,230 | 109,894 | 98,736 | |||||||||
| Total current liabilities | 262,321 | 260,206 | 227,623 | |||||||||
| Long-term borrowings under ABL Facility | 75,000 | 60,000 | — | |||||||||
| Long-term debt, net | 216,880 | 227,558 | 224,888 | |||||||||
| Lease liability – long-term | 15,376 | 21,116 | 20,007 | |||||||||
| Deferred tax liabilities | 49,865 | 48,343 | 51,450 | |||||||||
| Other liabilities | 2,205 | 2,705 | 2,291 | |||||||||
| TOTAL LIABILITIES | 621,647 | 619,928 | 526,259 | |||||||||
| Commitments and contingencies | ||||||||||||
| STOCKHOLDERS’ EQUITY | ||||||||||||
|
Common stock, par value $0.01 authorized: 480,000 shares; issued and outstanding: 30,552, 31,023 and 30,843, respectively |
306 | 311 | 309 | |||||||||
| Additional paid-in capital | 347,945 | 351,940 | 349,940 | |||||||||
| Accumulated deficit | (101,123 | ) | (112,877 | ) | (94,358 | ) | ||||||
| Accumulated other comprehensive loss | (16,112 | ) | (15,731 | ) | (16,669 | ) | ||||||
| TOTAL STOCKHOLDERS’ EQUITY | 231,016 | 223,643 | ||||||||||
