DODGEVILLE, WIS. — Revenue growth was driven by gains in core digital and business-to-business channels. Lands' End US e-commerce segment revenues increased 9.0% to $182.4 million in the fiscal second quarter. The Outfitters business revenue rose 4.4% to $69.3 million in the fiscal second quarter. Europe e-commerce revenues increased 0.5% to $19.7 million in the fiscal second quarter.

"Since joining Lands' End, I have been energised by what I see ahead for this iconic American company," Cole said. "What excites me most is the clear runway we have to utilise our stellar brand strength and deep customer loyalty to further strengthen our customer engagement, expand our digital capabilities, and more effectively reach and convert new customers," Cole said.

Looking ahead, Lands' End projected fiscal third-quarter net revenue between $300 million and $330 million. The company projected fiscal third-quarter diluted earnings per share between a $0.03 loss and $0.10 profit. Adjusted diluted earnings per share for the third quarter are projected between $0.07 and $0.20.

For the full year, Lands' End projected fiscal year 2026 net revenue between $1.30 billion and $1.35 billion. Full-year adjusted diluted earnings per share are projected between $0.44 and $0.72.

Why It Matters

The 320-basis-point expansion in gross margin to 52.0% represents a shift in profitability metrics for the retailer, driven largely by one-time tariff refunds rather than operational pricing changes. This margin improvement occurred alongside a 13% increase in inventory levels, suggesting the company is stocking up despite mixed performance in third-party sales channels which dropped more than 20%.

The repayment of the term loan using $300 million from the WHP Global transaction alters the company's capital structure, removing debt obligations while simultaneously reducing share count through buybacks. These financial maneuvers coincide with the leadership transition to CEO Charlie Cole, who has outlined a strategy focused on digital expansion and customer loyalty conversion.

Timeline

Lands' End reported net revenue of $302 million for the fiscal second quarter ended July 31, 2026. Lands' End inventory levels increased 13% year-over-year in the fiscal second quarter ended July 31, 2026. Lands' End's gross margin increased by approximately 320 basis points to 52.0% in the fiscal second quarter ended July 31, 2026.

Lands' End third-party sales fell 20.4% to $17.2 million in the fiscal second quarter ended July 31, 2026. Lands' End selling and administrative expenses increased to $135.3 million in the fiscal second quarter ended July 31, 2026.

What's New

Additional reporting indicates Lands’ End, Inc. reported a net income of $3.5 million for the second quarter of 2026, with a gross margin of 52.0%, an increase of 320 basis points from the second quarter of 2025, primarily driven by IEEPA tariff refunds. Lands' End reported adjusted earnings per share of 9 cents for the fiscal second quarter.

Lands' End adjusted EBITDA declined to $11 million in the fiscal second quarter. Lands' End inventory levels increased 13% year-over-year in the fiscal second quarter. Lands' End used $300 million in proceeds from the WHP Global transaction to fully repay its term loan.