Lands’ End (NASDAQ:LE) Issues Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Lands’ End (NASDAQ:LE) released its earnings results on Tuesday. The company reported ($0.11) earnings per share for the quarter, topping the consensus estimate of ($0.21) by $0.10, FiscalAI reports. Lands’ End had a return on equity of 9.80% and a net margin of 0.41%.The firm had revenue of $238.92 million for the quarter, compared to the consensus estimate of $268.68 million. During the same period in the prior year, the business posted ($0.27) earnings per share. Lands’ End updated its FY 2026 guidance to 0.320-0.650 EPS and its Q2 2026 guidance to 0.060-0.160 EPS.

Here are the key takeaways from Lands’ End’s conference call:

• Underlying demand improved despite a reported revenue decline, with management citing double-digit traffic growth, better new-customer acquisition, and a strong order book for Outfitters. The company said the Q1 sales shortfall was largely due to temporary distribution center disruptions, not weaker demand.
• The WHP Global joint venture closed April 1, and Lands’ End used the proceeds to fully repay its term loan, materially reducing leverage and interest expense. Management framed the transaction as a major inflection point that also gives the company a new high-margin royalty stream and a share repurchase authorization of up to $100 million.
• Q1 results were pressured by operational and structural factors, including warehouse management system upgrades, tariff headwinds, and the new royalty/license accounting from the JV. Revenue fell 9% to $239 million, adjusted EBITDA was negative $6 million, and adjusted EPS declined, though management emphasized these effects were largely timing- and structure-related.
• Europe and key product franchises showed strength, with Europe delivering 15% revenue growth and improved profitability, while U.S. categories like swim, women’s apparel, and totes performed well. Management highlighted stronger full-price selling, lower returns from product/fit improvements, and growing traction with personalization and embroidery.
• Management guided to a better year ahead, calling for fiscal 2026 revenue of $1.3 billion-$1.4 billion and adjusted EBITDA of $68 million-$78 million, with positive revenue growth expected and Q2 comps already trending positive. The company also outlined three-year targets for mid-single-digit annual revenue growth and high-single-digit adjusted EBITDA margins, supported by DTC, Outfitters, and JV profits.

Lands’ End Stock Performance

Lands’ End stock opened at $12.16 on Wednesday. The stock’s 50-day moving average is $11.41 and its 200-day moving average is $14.21. The company has a market cap of $373.92 million, a price-to-earnings ratio of 67.56 and a beta of 2.36. The company has a debt-to-equity ratio of 0.88, a current ratio of 1.61 and a quick ratio of 0.41. Lands’ End has a 12 month low of $8.50 and a 12 month high of $20.04.

Hedge Funds Weigh In On Lands’ End

A number of large investors have recently modified their holdings of LE. BNP Paribas Financial Markets raised its holdings in shares of Lands’ End by 83.0% in the 3rd quarter. BNP Paribas Financial Markets now owns 2,384 shares of the company’s stock worth $34,000 after purchasing an additional 1,081 shares during the period. Quarry LP purchased a new position in shares of Lands’ End in the 3rd quarter worth about $36,000. Integrated Wealth Concepts LLC acquired a new stake in shares of Lands’ End in the first quarter valued at about $104,000. Los Angeles Capital Management LLC acquired a new stake in shares of Lands’ End in the fourth quarter valued at about $137,000. Finally, Wells Fargo & Company MN grew its stake in shares of Lands’ End by 14.5% in the fourth quarter. Wells Fargo & Company MN now owns 10,355 shares of the company’s stock valued at $150,000 after buying an additional 1,309 shares in the last quarter. 37.46% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen downgraded Lands’ End from a “strong-buy” rating to a “buy” rating in a research report on Saturday, March 21st. One research analyst has rated the stock with a Hold rating, According to data from MarketBeat.com, Lands’ End presently has an average rating of “Hold”.

Lands’ End declared that its board has approved a share repurchase program on Wednesday, April 1st that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 28.9% of its stock through open market purchases. Stock repurchase programs are generally an indication that the company’s board of directors believes its stock is undervalued.

About Lands’ End

Lands’ End, Inc (NASDAQ: LE) is an American retailer specializing in casual apparel, accessories and home goods. Headquartered in Dodgeville, Wisconsin, the company sells its products through a combination of direct-to-consumer channels including e-commerce, catalogues and a network of outlet stores. Lands’ End is known for its nautical-inspired designs, functional outerwear and commitment to quality fabrics.

Founded in 1963 by Gary Comer as a mail-order sailing supply business, Lands’ End rapidly expanded its product offering beyond marine gear.