Lands' End reports Q2 revenue growth and return to profitability

US clothing retailer Lands’ End Inc. increased its revenue and returned to profitability in the second quarter of the 2026/27 financial year, according to an interim report published on Thursday.

Group revenue for the 13 weeks to July 31 amounted to 302.0 million US dollars. This represented an increase of 2.7 percent compared to the same quarter last year. The growth driver was the digital business in the US, which grew by 5.3 percent to 268.9 million US dollars. European e-commerce revenues were 19.7 million US dollars, a slight increase of 0.5 percent on the previous year's figure.

The gross margin increased by 320 basis points to 52.0 percent, thanks to a refund of improper customs payments. At the same time, the company recorded higher operating costs. This was partly due to increased marketing expenses and the impact of a temporary disruption in its warehouse management system.

As a result, adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 25 percent to 11.3 million US dollars. The bottom line was a net profit of 3.5 million US dollars, compared to a loss of 3.7 million US dollars in the same quarter of the previous year.

In light of recent developments, management is taking a more cautious view of the full year. The revenue forecast, previously between 1.30 and 1.40 billion US dollars, has been capped at 1.30 to 1.35 billion US dollars. The target for adjusted EBITDA has been lowered from a range of 68.0 to 78.0 million US dollars to between 62.0 and 70.0 million US dollars.