Lands’ End (NASDAQ:LE) executives told investors the company returned to top-line growth in the fourth quarter of fiscal 2025, pointing to improving momentum across its owned, licensed and marketplace channels while also outlining a pending “transformative” transaction with WHP Global designed to monetize its intellectual property and materially reduce leverage.
Fourth-quarter results show return to revenue growth
Chief Executive Officer Andrew McLean called the quarter “a turning point” as the company posted 5% comparable growth and mid-single-digit growth in gross merchandise value (GMV). Chief Financial Officer Bernie McCracken reported fourth-quarter revenue of $462 million, up 5% from the prior-year period, with GMV growth driven by outfitters, third-party marketplaces and U.S. e-commerce.
Adjusted EBITDA in the quarter was $47 million, up 9% from a year earlier. The company reported adjusted net income of $24 million, or $0.76 per share, for the fourth quarter.
Channel performance: marketplaces, Europe and uniforms highlighted
Management emphasized broad-based performance across multiple growth engines. McLean said the third-party marketplace business grew at a mid-single-digit rate, led by Amazon’s double-digit growth. He noted that the Bedford Quarter-Zip Sweater was the number one pullover on Amazon during Black Friday weekend. McCracken said third-party marketplace revenue increased 4% overall, adding that Nordstrom delivered strong outerwear results.
In Europe, McLean said the business delivered high single-digit comparable growth in the quarter, reversing a multi-quarter trend. McCracken quantified European e-commerce growth at 9% in the fourth quarter and said the company was beginning to see benefits from its transformation efforts. In Q&A, McLean attributed the turnaround to a “get back to basics” approach centered on product franchises, personalization, and refreshed catalog and content strategies, including more dynamic video content. He also reiterated a long-term view that Europe can both elevate the brand and serve as a testing ground for concepts that can be transferred to the U.S.
The school uniform channel sustained double-digit growth, according to management, following what it described as another successful back-to-school season. McLean and McCracken also pointed to personalization and embroidery capabilities as a competitive advantage supported by infrastructure built in the uniforms and business-to-business operations.
Marketing, product “franchises,” and customer acquisition
Executives said increased digital marketing investment helped accelerate customer acquisition, with McLean stating Lands’ End acquired 20% more new-to-brand households in Q4 versus the prior year—its strongest performance since the pandemic—and ended fiscal 2025 with positive new-to-brand growth overall. He described the brand as increasingly “multi-generational,” aiming to serve the broader household.
McLean highlighted performance from key product “franchises” and solution-oriented assortments, including double-digit growth in Christmas stockings and canvas pocket totes, as well as strength in weatherproof categories. He also said feather-free outerwear and drifter sweaters delivered “best ever” fourth-quarter sales and margins.
During Q&A, McLean said newer customer cohorts coming into the brand skew younger, including customers acquired through Amazon and the school uniform channel. He also emphasized personalization as a form of “the future” of customer engagement, noting expanded embroidery options and citing strong holiday performance for customized items.
Management also announced the appointment of Sarah Sylvester as Chief Marketing Officer, a newly created role for Lands’ End. McLean said the company had not had a CMO in 10 years and that the role reflects a push to unify creative and performance marketing while broadening reach to new and younger customers.
Full-year fiscal 2025: higher profitability and margin expansion
For fiscal 2025, McLean said the company chose to prioritize growth while maintaining expense discipline. McCracken reported low single-digit GMV growth and a gross margin increase of about 80 basis points to 49%. Excluding the effect of unmitigated IEEPA tariffs, he said gross margin expanded about 180 basis points to 50%.
Adjusted EBITDA for the year rose 10% to $102 million, with adjusted EBITDA margin increasing about 90 basis points to 8%. McCracken said the improvement was driven primarily by expansion of the licensing and Outfitters businesses and continued gross margin expansion. Adjusted net income increased to $27 million, and adjusted earnings per share rose to $0.86.
SG&A expenses in the fourth quarter increased by $12 million year-over-year; as a percentage of net revenue, SG&A rose about 90 basis points, driven mainly by higher marketing spend and incentive accruals, partially offset by leverage from revenue growth and operational efficiencies.
WHP Global transaction: $300 million proceeds and term-loan payoff
McLean devoted significant time to a planned partnership with WHP Global, describing it as a “transformative transaction” and “not a sale of the whole company.” Under the arrangement, Lands’ End will contribute its intellectual property to a joint venture and receive $300 million in cash proceeds from WHP for a controlling 50% stake in the JV, executives said.
After closing, management said it intends to use the majority of proceeds to retire the company’s term loan in full. McCracken said the term loan balance was approximately $234 million at year-end, with no borrowings on the ABL. Both executives stressed that full repayment would leave Lands’ End with “0 term loan debt” and significantly reduced interest expense, increasing financial flexibility.
McLean also said WHP has launched a tender offer to purchase approximately 2.2 million shares at $45 per share. He added that Lands’ End shareholders could have upside participation in a future WHP monetization event—such as an IPO or sale—through the possibility of exchanging Lands’ End’s 50% JV stake for WHP Global shares at the same valuation multiple WHP receives in that event.
Under the long-duration license agreement described on the call, Lands’ End will pay royalties to the JV and, in return, receive roughly 50% of both its royalty payment and other royalty payments received by the JV, net of JV expenses. McCracken said excess cash generated by the JV will be distributed quarterly to Lands’ End and WHP based on ownership split, less JV expenses.
In response to analyst questions about brand control, McLean said Lands’ End sought a “like-minded” licensing partner and characterized the WHP relationship as one of “amplification,” aimed at expanding the licensing business in ways aligned with the brand vision.
Management said it is not providing forward financial guidance at this time because of the previously announced joint venture, but expects to provide guidance with its first-quarter release following the anticipated closing by the end of the first quarter. McCracken noted the company has $9 million remaining under its existing share repurchase program.
Looking ahead, McLean outlined priorities for fiscal 2026 focused on profitable customer growth, product and innovation, cost discipline, and expanding the brand’s reach internationally through licensing and marketplaces. He also said the company plans to move its consumer front end onto Shopify and replace back-end infrastructure with SAP before peak season, noting work resumed at a faster pace after the WHP deal was announced.
About Lands’ End (NASDAQ:LE)
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.
