Key insights
- Lands' End reported weaker than expected Q4 2025 earnings and revenue, leading to a pre-market stock decline. While the company cited year-over-year revenue growth, tariff pressures impacted gross margins. The stock is currently trading below its fair value and is considered oversold, potentially presenting a buying opportunity. However, the earnings miss signals near-term headwinds for the company.
Lands’ End Inc. reported its fourth-quarter earnings for fiscal year 2025, revealing earnings per share (EPS) of $0.76, falling short of the forecasted $0.79. Revenue came in at $462.4 million, also missing the anticipated $472.24 million. The company’s stock reacted negatively, dropping 5.47% in pre-market trading to $12.80 per share. Despite these shortfalls, Lands’ End highlighted significant year-over-year growth in several areas, including a 5% increase in total revenue compared to the same period last year.
Lands’ End showed resilience in Q4 2025, achieving a 5% increase in revenue year-over-year, driven by strong performance across its business segments. The company emphasized its strategic focus on product innovation and trend-responsive marketing, which helped boost customer engagement and sales. However, the quarter’s results were marred by tariff-related pressures that impacted gross margins.
Lands’ End’s EPS of $0.76 fell short of the forecasted $0.79, representing a negative surprise of 3.8%. Revenue also missed expectations, coming in 2.08% below forecasts. This marks a deviation from the company’s previous trend of meeting or exceeding expectations, highlighting the challenges posed by external economic factors.
Following the earnings announcement, Lands’ End’s stock price declined by 5.47% in pre-market trading, reflecting investor concerns over the earnings miss. The stock’s current price of $12.80 is significantly below its 52-week high of $20.04, indicating broader market challenges and investor caution. The decline extends a challenging period for the stock, which has fallen over 10% in the past week alone.
Despite the recent weakness, InvestingPro analysis suggests the stock is trading below its Fair Value, placing it among undervalued stocks in the retail sector. An InvestingPro Tip indicates the RSI suggests the stock is in oversold territory, potentially signaling a buying opportunity for value-oriented investors. Analyst price targets range from $25 to $45, suggesting substantial upside potential from current levels. Subscribers can access 11 additional ProTips for deeper insights into Lands’ End’s investment potential.
Looking ahead, Lands’ End has projected a cautious outlook for fiscal 2026, with EPS forecasts ranging from $0.03 to $0.44 for the upcoming quarters. The company remains focused on enhancing its e-commerce platform and expanding its personalization capabilities to drive future growth.
The company’s financial health score stands at 2.02 (rated as FAIR) according to InvestingPro, with liquid assets exceeding short-term obligations and a current ratio of 1.76. Notably, the stock trades at a PEG ratio of just 0.23, suggesting attractive valuation relative to expected earnings growth. For investors seeking comprehensive analysis, Lands’ End is among the 1,400+ US equities covered by InvestingPro’s Pro Research Reports, which transform complex financial data into clear, actionable intelligence.
CEO Jerome Griffith stated, "While we faced some headwinds this quarter, our strategic initiatives in product innovation and customer engagement continue to yield positive results. We are committed to navigating the challenges ahead and building on our strong foundation for sustainable growth."
During the earnings call, analysts inquired about Lands’ End’s strategies to mitigate tariff impacts and the timeline for implementing its new e-commerce platform. Executives highlighted ongoing efforts to optimize sourcing and improve operational efficiencies as key focus areas for the coming quarters.
Operator: Thank you for your continued patience. Your meeting will begin shortly. If you need assistance at any time, please press star zero and a member of our team will be happy to help. Thank you for your continued patience. Your meeting will begin shortly. If you need assistance at any time, please press star zero and a member of our team will be happy to help. Thank you for your continued patience. Your meeting will begin shortly. If you need assistance at any time, please press star zero and a member of our team will be happy to help. Hello and welcome everyone joining the Lands’ End fourth quarter and fiscal year-end 2025 earnings call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session.
Operator: To register to ask a question at any time, please press star one on your telephone keypad. Please note this call is being recorded. We are standing by if you should need any assistance. It is now my pleasure to turn the meeting over to Tom Altholz. Please go ahead.
Tom Altholz, Senior Director of Financial Planning and Analysis, Lands’ End: Good morning, and thank you for joining us this morning for a discussion of our fourth quarter and fiscal 2025 results, which we released this morning and can be found on our website, landsend.com. I’m Tom Altholz, Lands’ End Senior Director of Financial Planning and Analysis, and I’m pleased to join you today with Andrew McLean, our Chief Executive Officer, and Bernie McCracken, our Chief Financial Officer. After the prepared remarks, we will conduct a question-and-answer session. Please also note that the information we’re about to discuss includes forward-looking statements. Such statements involve risks and uncertainties. The company’s actual results could differ materially from those discussed on this call.
Factors that could contribute to such differences include, but are not limited to, those items noted and included in the company’s SEC filings, including our annual report on Form 10-K and quarterly reports on Form 10-Q, and our solicitation recommendation statement filed on Schedule 14D-9 on March 11, 2026. The forward-looking information that is provided by the company on this call represents the company’s outlook as of today, and we do not undertake any obligation to update forward-looking statements made by us. Subsequent events and developments may cause the company’s outlook to change. During this call, we will be referring to non-GAAP measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles.
A reconciliation of non-GAAP financial measures to most directly comparable GAAP measures can be found in our earnings release issued earlier today, a copy of which is posted in the investor relations section of our website at landsend.com. With that, I’ll turn the call over to Andrew.
Andrew McLean, Chief Executive Officer, Lands’ End: Thanks, Tom, and good morning, everyone. The fourth quarter was a turning point for Lands’ End as we returned to top-line growth driven by our most significant businesses and capped off a year in which we strengthened the foundation for sustainable, profitable long-term growth. During the quarter, we also announced a transformative transaction with WHP Global, which we’re confident builds on that platform and will help deliver compelling value for shareholders. More on that in a moment. Focusing first on our performance, we delivered 5% comp growth driven by strong execution across our owned, licensed, and marketplace businesses. GMV grew by mid-single digits in the fourth quarter, reflecting broad-based momentum and increasing relevance of the Lands’ End brand. We’re seeing that momentum show up clearly across the business.
Our third-party marketplace business grew mid-single digits, led by double-digit growth at Amazon, where our iconic Bedford Quarter-Zip Sweater was the number one pullover on Amazon during Black Friday weekend. Our business in Europe delivered high single-digit comps, reversing a multi-quarter trend as we re-energized our customer file and delivered on our solutions focus. Our school uniform channel sustained double-digit growth, building on another successful back-to-school season. In our U.S. consumer business, our solutions-based products and franchises continued to resonate. Iconic products, including Christmas stockings and canvas pocket totes, were both up double digits year-over-year, and we saw strength across our weatherproof assortment as well. Increased investment in digital marketing accelerated customer acquisition, delivering measurable results by year-end. We acquired 20% more new-to-brand households in Q4 versus last year, our strongest performance since the pandemic, and ended the year with positive new-to-brand growth overall.
We’re not just adding customers, we’re leveraging the household. Lands’ End is increasingly a multi-generational brand, serving grandmother, mother, and granddaughter. We also leaned into brand building in new ways, launching our holiday shop earlier and activating experiences like our chaotically customized New York pop-up, which further helped introduce Lands’ End to new and younger customers, driving awareness and engagement across social platforms. Our product franchises continued to differentiate Lands’ End, and they’re driving profitable growth. As noted, we moved quickly to spot and lead the quarter zip trend that took off on TikTok over the holidays, and it became a number one item across multiple customer touch points. In womenswear, our owning the weather strategy is working. Feather-free outerwear and drifter sweaters delivered best ever sales and best ever margin fourth quarters. Turning to our adjusted EBITDA.
As we closed out the year, we made a deliberate choice to prioritize growth and set the stage for long-term value creation. We delivered $102 million in adjusted EBITDA for the full year, up 10% from last year and in line with our expectations. The key takeaway here is that we executed our strategy, delivered significant growth, maintained a disciplined approach to expenses, and strengthened our financial foundation to generate ongoing momentum. We’re well-positioned heading into 2026, and I couldn’t be more confident about the opportunities ahead for Lands’ End and the value c