LANDS' END, INC.
For the period ended Aug 1, 2025. Filed Sep 9, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Aug 1, 2025 · Filed Sep 9, 2025
LE$9.33-1.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-05-02; filed 2025-06-05.
0000950170-25-082338
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-08-01; filed 2025-09-09.
0000950170-25-113837
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 145 previous paragraphs and 189 current paragraphs.
97 unchanged; 40 reworded; 45 added; 7 removed; 1 previous and 7 current paragraphs rearranged.
Tables are not compared: 3 previous and 6 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (45)
Current report
Second Quarter 2025 – The 13 weeks ended August 1, 2025
Current report
Second Quarter 2024 – The 13 weeks ended August 2, 2024
Current report
Year-to-Date 2025 – The 26 weeks ended August 1, 2025
Current report
Year-to-Date 2024 – The 26 weeks ended August 2, 2024
Current report
We incurred $2.4 million and $2.3 million of restructuring costs during the Second Quarter 2025 and Second Quarter 2024, respectively. Restructuring costs of $5.8 million and $2.7 million were incurred Year-to-Date 2025 and Year-to-Date 2024, respectively.
Current report
Long-lived asset impairment – charges associated with the non-cash write down of certain long-lived assets for the 26 weeks ended August 2, 2024.
Current report
loss per share:
Current report
Long-lived asset impairment – charges associated with the non-cash write down of certain long-lived assets for the 26 weeks ended August 2, 2024.
Current report
Second Quarter 2025 compared with Second Quarter 2024
Current report
Gross Merchandise Value (“GMV”) was approximately flat when compared to Second Quarter 2024.
Current report
Net revenue was $294.1 million for the Second Quarter of 2025, a decrease of $23.1 million or 7.3%, from $317.2 million during the Second Quarter of 2024.
Current report
U.S. eCommerce Net revenue was $167.3 million for the Second Quarter of 2025, a decrease of $21.0 million or 11.2%, from $188.3 million during the Second Quarter of 2024. The Second Quarter of 2025 decrease reflected a slower start to the seasonal swim product.
Current report
Outfitters Net revenue was $66.4 million for the Second Quarter of 2025, an increase of $3.2 million or 5.1%, from $63.2 million during the Second Quarter of 2024. The school uniform channel increased high single digits primarily due to new customers acquired from a competitor exiting the business. Revenue from the business uniform channel was up year-over-year driven by our enterprise accounts.
Current report
Third Party Net revenue was $21.6 million for the Second Quarter of 2025, an increase of $2.7 million or 14.3%, from $18.9 million during the Second Quarter of 2024. The increase was primarily due to curated product assortments which resulted in strength across marketplaces.
Current report
Europe eCommerce Net revenue was $19.6 million for the Second Quarter of 2025, a decrease of $3.4 million or 14.8%, from $23.0 million during the Second Quarter of 2024. The decrease was primarily due to inventory timing from supply chain challenges and macroeconomic conditions while continuing to increase distribution channels with several marketplace expansions.
Current report
Licensing and Retail Net revenue was $19.2 million for the Second Quarter of 2025, a decrease of $4.7 million or 19.7%, from $23.9 million during the Second Quarter of 2024. The revenue decreased due to the performance of U.S. Company Operated stores partially offset by licensing revenues increasing approximately 19%.
Current report
Operating Income
Current report
As a result of the above factors, Operating income was $4.0 million in the Second Quarter of 2025 compared to $2.5 million in the Second Quarter of 2024.
Current report
Product cost of goods sold was $100.5 million or 39.4% of U.S. Digital Segment revenue in the Second Quarter of 2025 compared to $105.7 million or 39.1% of U.S. Digital Segment revenue in the Second Quarter of 2024. Shipping cost of goods sold was $33.0 million or 12.9% of U.S. Digital Segment revenue in the Second Quarter of 2025 compared to $34.8 million or 12.9% of U.S. Digital Segment revenue in the Second Quarter of 2024. The increase in Product and Shipping costs of goods sold as a percentage of U.S. Digital Segment revenue was primarily due to product assortment mix partially offset by improvements in supply chain costs.
Current report
Marketing expenses were $43.3 million or 17.0% of U.S. Digital Segment revenue in the Second Quarter of 2025 compared to $41.9 million or 15.5% of U.S. Digital Segment revenue in the Second Quarter of 2024. The increase in Marketing expenses was primarily due to higher digital spend focused on new customer acquisition.
Current report
Year-to-Date 2025 compared with Year-to-Date 2024
Current report
Gross Merchandise Value
Current report
U.S. Digital Segment Net revenue was $483.0 million for Year-to-Date 2025, a decrease of $16.1 million or 3.2% from $499.1 million in Year-to-Date 2024.
Current report
Third Party Net revenue was $35.6 million for Year-to-Date 2025, an increase of $1.2 million or 3.5%, from $34.4 million during Year-to-Date 2024. The increase was primarily due to curated product assortments which resulted in strength across marketplaces.
Current report
Gross Profit
Current report
Gross profit was $276.1 million for Year-to-Date 2025, a decrease of $14.8 million or 5.1% from $290.9 million during Year-to-Date 2024. Gross margin increased approximately 140 basis points to 49.7% in Year-to-Date 2025, compared with 48.3% in Year-to-Date 2024. The gross margin improvement was primarily driven by improved promotional productivity and the expansion of the licensing business.
Current report
Selling and Administrative Expenses
Current report
Selling and administrative expenses decreased $10.1 million to $252.8 million or 45.5% of Net revenue in Year-to-Date 2025 compared with $262.9 million or 43.6% of Net revenue in Year-to-Date 2024. The approximately 190 basis points increase was primarily driven by deleverage from lower revenues.
Current report
Depreciation and Amortization
Current report
Other Operating Expense
Current report
Other operating expense, net was $5.8 million in Year-to-Date 2025 compared to $5.5 million in Year-to-Date 2024. The increase was primarily driven by restructuring costs incurred. See Note 1, Background and Basis of Presentation.
Current report
Operating Income
Current report
As a result of the above factors, Operating income was $1.6 million in Year-to-Date 2025 compared to $4.7 million in Year-to-Date 2024.
Current report
Interest Expense
Current report
Other Expense (Income)
Current report
Other income was insignificant in Year-to-Date 2025 compared to $0.2 million in Year-to-Date 2024.
Current report
Income Tax (Benefit) Expense
Current report
Net Income (Loss)
Current report
As a result of the above factors, Net loss was $11.9 million and diluted loss per share was $0.39 in Year-to-Date 2025 compared with Net loss of $11.7 million and diluted loss per share was $0.37 in Year-to-Date 2024.
Current report
Adjusted Net Income (Loss)
Showing the first 40 of 45 passages. Open the source sections for the rest.
Removed paragraphs (7)
Previous report
We incurred $3.3 million and $0.3 million of restructuring costs during the First Quarter 2025 and First Quarter 2024, respectively.
Previous report
First Quarter 2025 compared with First Quarter 2024
Previous report
Net Revenue
Previous report
Third Party Net revenue was $14.1 million for First Quarter 2025, a decrease of $1.4 million or 9.0%, from $15.5 million during First Quarter 2024. The decrease was primarily due to challenges in one marketplace partially offset by positive performance in select marketplaces.
Previous report
Operating Income (Loss)
Previous report
As a result of above factors, Operating loss was $2.4 million in First Quarter 2025 compared to Operating income of $2.2 million in First Quarter 2024.
Previous report
Net cash used in operating activities was $22.5 million during First Quarter 2025 compared to $25.8 million during First Quarter 2024. The decrease in net cash used was due to changes in working capital.
Reworded paragraphs (40)
Previous wording
Macroeconomic issues which impact consumer discretionary spending, such as realized inflation-based price increases and high interest rates, have continued to have an impact on our business. Apparel purchases historically have been influenced by domestic and global economic conditions, which may negatively impact customer demand and may require higher levels of promotion in order to attract and retain customers. Additionally, the variable interest rates associated with our Debt Facilities are negatively affected by higher interest rate environments. Macroeconomic challenges may lead to increased cost of raw materials, packaging materials, labor, energy, fuel, debt and other inputs necessary for the production and distribution of our products. Moreover, uncertainty with respect to trade policy and tariffs, including increased tariffs applicable to countries where our vendors manufacture our product, may result in an increase in the cost of our products.
Current wording
Macroeconomic issues which impact consumer discretionary spending, such as realized inflation-based price increases and high interest rates, have continued to have an impact on our business. Apparel purchases historically have been influenced by domestic and global economic conditions, which may negatively impact customer demand and may require higher levels of promotion in order to attract and retain customers. Additionally, the variable interest rates associated with our Debt Facilities are negatively affected by higher interest rate environments. Macroeconomic challenges may lead to increased cost of raw materials, packaging materials, labor, energy, fuel, debt and other inputs necessary for the production and distribution of our products. Ongoing uncertainty surrounding global trade policy, including the potential for increased tariffs on goods manufactured in key sourcing regions, could elevate product costs. We are monitoring these developments and are actively pursuing mitigation strategies, but escalating trade tensions may pressure margins and disrupt supply chain efficiency.
Previous wording
During the First Quarter 2025, we reduced approximately 6% of our corporate office positions and incurred restructuring charges, primarily severance and benefit and other related costs. The reductions in the corporate office positions were made to better align with the evolving needs of the business and to invest in key growth areas. Additionally, we incurred ongoing costs related to exploring strategic alternatives to maximize shareholder value and have included those costs as part of restructuring. For the 13 weeks ended May 3, 2024, we incurred restructuring charges, primarily severance and benefit costs, related to cost optimization of business operations and strategic initiatives.
Current wording
We incurred restructuring charges, primarily severance and benefit costs, related to cost optimization of business operations and strategic initiatives. During Year-to-Date 2025, we reduced approximately 6% of our corporate office positions and incurred restructuring charges, primarily severance and benefit and other related costs. The reductions in the corporate office positions were made to better align with the evolving needs of the business and to invest in key growth areas. Additionally, we incurred ongoing costs related to exploring strategic alternatives to maximize shareholder value and have included those costs as part of restructuring.
Previous wording
As of May 2, 2025, approximately $2.4 million of restructuring costs incurred had yet to be paid and are included in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets.
Current wording
As of August 1, 2025, approximately $3.2 million of restructuring costs incurred had yet to be paid and are included in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets.
Previous wording
We experience seasonal fluctuations in our Net revenue and operating results and historically have realized a significant portion of our net revenue and earnings for the year during our fourth fiscal quarter. We generated approximately 34% of our net revenue in the fourth quarters of Fiscal 2024 and Fiscal 2023.
Current wording
We experience seasonal fluctuations in our Net revenue and operating results and historically have realized a significant portion of our net revenue and earnings for the year during our fourth fiscal quarter. We generated approximately 34.0% of our net revenue in the fourth quarters of Fiscal 2024 and Fiscal 2023.
Previous wording
The following table sets forth, for the periods indicated, selected income statement data, both in dollars and as a percentage of Net revenue:
Current wording
The following tables set forth, for the periods indicated, selected income statement data, both in dollars and as a percentage of Net revenue:
Previous wording
Corporate restructuring – primarily severance and benefit costs as well as costs related to the strategic alternative exploration for the 13 weeks ended May 2, 2025. Primarily severance and benefit costs for the 13 weeks ended May 3, 2024.
Current wording
Corporate restructuring – primarily severance and benefit costs as well as costs related to the strategic alternative exploration for the 13 and 26 weeks ended August 1, 2025. Primarily severance and benefit costs for the 13 and 26 weeks ended August 2, 2024.
Previous wording
Exit costs - charges associated to exit kids and footwear lines of business including inventory excess and obsolescence reserves, inventory discounts and operational charges recorded in the 13 weeks ended May 2, 2025 in conjunction with our licensing arrangements commencing in Fiscal 2024.
Current wording
Exit costs - charges associated to exit kids and footwear lines of business including inventory excess and obsolescence reserves, inventory discounts and operational charges recorded in the 26 weeks ended August 1,
Previous wording
The following table sets forth, for the periods indicated, a reconciliation of Net loss to Adjusted net income (loss) and Adjusted diluted earnings (loss) per share:
Current wording
The following tables set forth, for the periods indicated, a reconciliation of Net loss to Adjusted net loss and Adjusted diluted
Previous wording
Corporate restructuring – primarily severance and benefit costs as well as costs related to the strategic alternative exploration for the 13 weeks ended May 2, 2025. Primarily severance and benefit costs for the 13 weeks ended May 3, 2024.
Current wording
Corporate restructuring – primarily severance and benefit costs as well as costs related to the strategic alternative exploration for the 13 and 26 weeks ended August 1, 2025. Primarily severance and benefit costs for the 13 and 26 weeks ended August 2, 2024.
Previous wording
Net gain or loss on disposal of property and equipment – disposal of property and equipment for the 13 weeks ended May 2, 2025 and May 3, 2024.
Current wording
Net gain or loss on disposal of property and equipment – disposal of property and equipment for the 13 weeks ended August 1, 2025 and the 13 and 26 weeks ended August 2, 2024.
Previous wording
Exit costs - charges associated to exit kids and footwear lines of business including inventory excess and obsolescence reserves, inventory discounts and operational charges recorded in the 13 weeks ended May 2, 2025 in conjunction with our licensing arrangements commencing in Fiscal 2024.
Current wording
Exit costs - charges associated to exit kids and footwear lines of business including inventory excess and obsolescence reserves, inventory discounts and operational charges recorded in the 26 weeks ended August 1, 2025 and the 13 and 26 weeks ended August 2, 2024 in conjunction with our licensing arrangements commencing in Fiscal 2024.
Previous wording
The following table sets forth, for the periods indicated, selected income statement data, both in dollars and as a percentage of Net revenue and a reconciliation of Net loss to Adjusted EBITDA:
Current wording
The following tables set forth, for the periods indicated, selected income statement data, both in dollars and as a percentage of Net revenue and a reconciliation of Net loss to Adjusted EBITDA:
Previous wording
We use Net revenue to evaluate revenue performance for the U.S. eCommerce, Europe eCommerce, Outfitters, Third Party and Licensing distribution channels. We use GMV, which equals total order value of all Lands’ End branded merchandise sold to customers through business-to-consumer and business-to-business channels, as well as the estimated retail value of the merchandise sold through third party distribution channels, as an important indicator of the performance of the comparable growth of the total brand. For our Retail distribution channel, we use Same Store Sales as a key measure in evaluating performance. A Company Operated store is included in U.S. Same Store Sales calculations when it has been open for at least 14 months. Online sales and sales generated through our in-store web portal are considered revenue in our U.S. eCommerce and are excluded from U.S. Same Store Sales.
Current wording
We use Net revenue to evaluate revenue performance for the U.S. eCommerce, Europe eCommerce, Outfitters, Third Party, Retail and Licensing distribution channels. We use GMV, which equals total order value of all Lands’ End branded merchandise sold to customers through business-to-consumer and business-to-business channels, as well as the estimated retail value of the merchandise sold through third party distribution channels, as an important indicator of the performance of the comparable growth of the total brand.
Previous wording
U.S. Digital Segment Net revenue was $227.7 million for First Quarter 2025, a decrease of $1.0 million or 0.4% from $228.7 million in First Quarter 2024.
Current wording
U.S. Digital Segment Net revenue was $255.3 million for the Second Quarter of 2025, a decrease of $15.1 million or 5.6% from $270.4 million in the Second Quarter of 2024.
Previous wording
Gross profit was $132.7 million for First Quarter 2025, a decrease of $6.3 million or 4.5% from $139.0 million during First Quarter of 2024. Gross margin increased approximately 210 basis points to 50.8% in First Quarter 2025, compared with 48.7% in First Quarter 2024. The gross margin improvement was primarily driven by the impact of transitioning kids and footwear inventory to licensees in First Quarter 2024.
Current wording
Gross profit was $143.4 million for the Second Quarter of 2025, a decrease of $8.5 million or 5.6% from $151.9 million during the Second Quarter of 2024. Gross margin increased approximately 90 basis points to 48.8% in the Second Quarter of 2025, compared with 47.9% in the Second Quarter of 2024. The gross margin improvement was primarily driven by improved promotional productivity and the expansion of the licensing business.
Previous wording
Selling and administrative expenses decreased $3.9 million to $123.5 million or 47.3% of total Net revenue in First Quarter 2025 compared with $127.4 million or 44.6% of Net revenue in First Quarter 2024. The approximately 270 basis points increase was primarily driven by deleverage from lower revenues.
Current wording
Selling and administrative expenses decreased $6.1 million to $129.4 million or 44.0% of Net revenue in the Second Quarter of 2025 compared with $135.5 million or 42.7% of Net revenue in the Second Quarter of 2024. The approximately 130 basis points increase was primarily driven by deleverage from lower revenues.
Previous wording
Depreciation and amortization expense decreased $0.7 million to $8.3 million in First Quarter 2025 compared with $9.0 million in First Quarter 2024. The decrease in depreciation and amortization is primarily driven by lower software depreciation as a result of major software projects becoming fully depreciated.
Current wording
Depreciation and amortization expense decreased $1.0 million to $7.7 million in the Second Quarter of 2025 compared with $8.7 million in the Second Quarter of 2024. The decrease in depreciation and amortization is primarily driven by lower software depreciation as a result of major software projects becoming fully depreciated.
Previous wording
Other operating expense, net was $3.3 million in First Quarter 2025 compared to $0.3 million in First Quarter 2024. The increase was primarily driven by restructuring costs incurred. See Note 1, Background and Basis of Presentation.
Current wording
Other operating expense, net was $2.4 million in the Second Quarter of 2025 compared to $5.2 million in the Second Quarter of 2024. The decrease was primarily driven by restructuring costs incurred. See Note 1, Background and Basis of Presentation.
Previous wording
Interest expense was $9.3 million in First Quarter 2025 compared to $10.3 million in First Quarter 2024. The $1.0 million decrease was primarily driven by lower ABL Facility interest related to lower average outstanding balances and lower applicable interest rates under the Term Loan Facility.
Current wording
Interest expense was $9.3 million in the Second Quarter of 2025 compared to $10.4 million in the Second Quarter of 2024. The $1.1 million decrease was primarily driven by lower ABL Facility interest related to lower average outstanding balances and lower applicable interest rates under the Term Loan Facility.
Previous wording
Other income was insignificant in First Quarter 2025 compared to $0.1 million in First Quarter 2024.
Current wording
Other income was insignificant in the Second Quarter of 2025 compared to $0.1 million in the Second Quarter of 2024.
Previous wording
We recorded an income tax benefit at an overall effective rate of 28.9% and 19.6% for the First Quarter 2025 and First Quarter 2024, respectively. The overall effective tax rate for the 13 weeks ended May 2, 2025 varies from the U.S. federal statutory rate of 21% as a result of state taxes, and non-deductible expenses. The overall effective tax rate for the 13 weeks ended May 3, 2024 varies from the U.S. federal statutory rate of 21% as a result of state taxes, non-deductible expenses, and the impact of stock-based compensation.
Current wording
We recorded an income tax benefit at an overall effective rate of 30.5% and 33.4% for the Second Quarter of 2025 and Second Quarter of 2024, respectively. The overall effective tax rate for the 13 weeks ended August 1, 2025 varies from the U.S. federal statutory rate of 21% as a result of state taxes, and non-deductible expenses. The overall effective tax rate for the 13 weeks ended August 2, 2024 varies from the U.S. federal statutory rate of 21% as a result of state taxes, non-deductible expenses, and the impact of stock-based compensation.
Previous wording
As a result of the above factors, Net loss was $8.3 million and diluted loss per share was $0.27 in First Quarter 2025 compared with Net loss of $6.4 million and diluted loss per share was $0.20 in First Quarter 2024.
Current wording
As a result of the above factors, Net loss was $3.7 million and diluted loss per share was $0.12 in the Second Quarter of 2025 compared with Net loss of $5.3 million and diluted loss per share was $0.17 in the Second Quarter of 2024.
Previous wording
Adjusted net loss was $5.4 million and Adjusted diluted loss per share was $0.18 in First Quarter 2025 compared to Adjusted net loss of $6.2 million and Adjusted diluted loss per share of $0.20 in First Quarter 2024.
Current wording
Adjusted net loss was $1.9 million and Adjusted diluted loss per share was $0.06 in the Second Quarter of 2025 compared to Adjusted net loss of $0.7 million and Adjusted diluted loss per share of $0.02 in the Second Quarter of 2024.
Previous wording
As a result of the above factors, Adjusted EBITDA was $9.5 million in First Quarter 2025 and $11.6 million in First Quarter 2024, respectively.
Current wording
As a result of the above factors, Adjusted EBITDA was $14.1 million in Second Quarter 2025 and $17.1 million in Second Quarter 2024, respectively.
Previous wording
U.S. Digital Segment Variable profit was $52.9 million in First Quarter 2025, a decrease of $1.9 million compared to $54.8 million in First Quarter 2024. U.S. Digital Segment Variable profit was 20.2% of Net revenue in First Quarter 2025, which is an increase of 100 basis points compared to 19.2% of Net revenue in First Quarter 2024. The increase in Variable profit as a percentage of Net revenue was driven by product solutions and newness across the assortment, improvements in supply chain costs and cost controls across the entire business.
Current wording
U.S. Digital Segment variable profit was $56.7 million in the Second Quarter of 2025, a decrease of $6.1 million compared to $62.8 million in the Second Quarter of 2024. U.S. Digital Segment variable profit was 22.2% of Net revenue in the Second Quarter of 2025, which is a decrease of 100 basis points compared to 23.2% of Net revenue in the Second Quarter of 2024. The decrease in variable profit as a percentage of Net revenue was driven by deleverage from lower revenues and channel mix partially offset by product solutions and newness across the assortment, improvements in supply chain costs and cost controls across the entire business.
Previous wording
Gross Merchandise Value (“GMV”) decreased low-single digits compared to First Quarter 2024. Excluding the $12.7 million impact of transitioning kids and footwear inventory to licensees during First Quarter 2024, GMV increased by low-single digits.
Current wording
Gross Merchandise Value (“GMV”) decreased low-single digits compared to Year-to-Date 2024. Excluding the $12.7 million impact of transitioning kids and footwear inventory to licensees during First Quarter 2024, GMV increased by low-single digits.
Previous wording
Net revenue was $261.2 million for First Quarter 2025, a decrease of $24.3 million or 8.5%, from $285.5 million during First Quarter 2024. Excluding the impact of transitioning kids and footwear inventory to licensees, Net revenue decreased by 4.2%.
Current wording
Net revenue was $555.3 million for Year-to-Date 2025, a decrease of $47.3 million or 7.8%, from $602.6 million during Year-to-Date 2024. Excluding the impact of transitioning kids and footwear inventory to licensees, Net revenue decreased by 5.8%.
Previous wording
U.S. eCommerce Net revenue was $170.7 million for First Quarter 2025, an increase of $0.2 million or 0.1%, from $170.5 million during First Quarter 2024. First Quarter 2025 reflected continued strength in our Outerwear product offset by a slower start to the seasonal swim product.
Current wording
U.S. eCommerce Net revenue was $338.0 million for Year-to-Date 2025, a decrease of $20.9 million or 5.8%, from $358.9 million during Year-to-Date 2024. Year-to-Date 2025 reflected continued strength in our weather proofed Outerwear and transitional key items offset by a slower start to the seasonal swim product.
Previous wording
Outfitters Net revenue was $42.9 million for First Quarter 2025, an increase of $0.2 million or 0.5%, from $42.7 million during First Quarter 2024. The business uniform channel increased year-over-year primarily due to strength in national accounts. The school uniform channel slightly decreased primarily due to the timing of customer orders compared to the prior year.
Current wording
Outfitters Net revenue was $109.3 million for Year-to-Date 2025, an increase of $3.5 million or 3.3%, from $105.8 million during Year-to-Date 2024. The business uniform channel increased year-over-year primarily due to strength in enterprise accounts. The school uniform channel increased primarily due to new customers acquired from a competitor exiting the business.
Previous wording
Europe eCommerce Net revenue was $17.9 million for First Quarter 2025, a decrease of $7.1 million or 28.4%, from $25.0 million during First Quarter 2024. The decrease was primarily due to new leadership using the quarter to relaunch as a more premium brand, eliminating lower value inventory and positioning for marketplace expansion.
Current wording
Europe eCommerce Net revenue was $37.5 million for Year-to-Date 2025, a decrease of $10.4 million or 21.7%, from $47.9 million during Year-to-Date 2024. The decrease was primarily due to new leadership using the first half to relaunch as a more premium brand while continuing to increase distribution channels with several marketplace expansions.
Previous wording
Licensing and Retail Net revenue was $15.6 million for First Quarter 2025, a decrease of $16.2 million or 50.9%, from $31.8 million during First Quarter 2024. The decrease was primarily driven by the impact of transitioning kids and footwear inventory to licensees in First Quarter 2024 and transitioning adult wholesale to a licensing partner in First Quarter 2025. Licensing revenue increased over 60% while the U.S. Company Operated stores experienced a decrease of 7.4% in Same Store Sales as compared to First Quarter 2024.
Current wording
Licensing and Retail Net revenue was $34.8 million for Year-to-Date 2025, a decrease of $20.8 million or 37.4%, from $55.6 million during Year-to-Date 2024. The decrease was primarily driven by the impact of transitioning kids and footwear inventory to licensees in the First Quarter of 2024 and the performance of U.S. Company Operated stores partially offset by licensing revenue increasing approximately 36%.
Previous wording
Product cost of goods sold was $83.6 million or 32.0% of Net revenue in First Quarter 2025 compared to $79.8 million or 27.9% of Net revenue in First Quarter 2024. Shipping cost of goods sold was $29.2 million or 11.2% of Net revenue in First Quarter 2025 compared to $33.3 million or 11.7% of Net revenue in First Quarter 2024. The increase in Product and Shipping cost of goods sold as a percentage of Net revenue was primarily due to product assortment mix partially offset by improvements in supply chain costs. Marketing expenses were $39.9 million or 15.3% of Net revenue in First Quarter 2025 compared to $39.1 million or 13.7% of Net revenue in First Quarter 2024. The increase in Marketing expenses was primarily due to higher digital spend focused on new customer acquisition.
Current wording
Product cost of goods sold was $184.1 million or 38.1% of U.S. Digital Segment revenue in Year-to-Date 2025 compared to $185.5 million or 37.2% of U.S. Digital Segment revenue in Year-to-Date 2024. Shipping cost of goods sold was $62.2 million or 12.9% of U.S. Digital Segment revenue in Year-to-Date 2025 compared to $68.0 million or 13.6% of U.S. Digital Segment revenue in Year-to-Date 2024. The increase in Product and Shipping cost of goods sold as a percentage of U.S. Digital Segment revenue was primarily due to product assortment mix partially offset by improvements in supply chain costs. Marketing expenses were $83.2 million or 17.2% of U.S. Digital Segment revenue in Year-to-Date 2025 compared to $81.0 million or 16.2% of U.S. Digital Segment revenue in Year-to-Date 2024. The increase in Marketing expenses was primarily due to higher digital spend focused on new customer acquisition.
Previous wording
Our primary need for liquidity is to fund working capital requirements of our business, which are inventory purchases, payments on debt, capital expenditures and for general corporate purposes. Our cash and cash equivalents and the ABL Facility serve as sources of liquidity for short-term working capital needs and general corporate purposes. The ABL Facility had a balance outstanding of $40.0 million on May 2, 2025, other than letters of credit. Cash generated from our net revenue and profitability, and to a lesser extent our changes in working capital, are driven by the seasonality of our business, with a significant amount of net revenue and operating cash flows generally occurring in the fourth fiscal quarter of each year. We expect that our cash on hand and cash flows from operations, along with revolving on the ABL Facility, will be adequate to meet our capital requirements and operational needs for at least the next 12 months.
Current wording
Our primary need for liquidity is to fund working capital requirements of our business, which are inventory purchases, payments on debt, capital expenditures and for general corporate purposes. Our cash and cash equivalents and the ABL Facility serve as sources of liquidity for short-term working capital needs and general corporate purposes. The ABL Facility had a balance outstanding of $35.0 million on August 1, 2025, other than letters of credit. Cash generated from our net revenue and profitability, and to a lesser extent our changes in working capital, are driven by the seasonality of our business, with a significant amount of net revenue and operating cash flows generally occurring in the fourth fiscal quarter of each year. We expect that our cash on hand and cash flows from operations, along with revolving on the ABL Facility, will be adequate to meet our capital requirements and operational needs for at least the next 12 months.
Previous wording
Our $225.0 million committed revolving ABL Facility, as amended to date, includes a $35.0 million sublimit for letters of credit and is available for working capital and other general corporate liquidity needs. The amount available to borrow is the lesser of (1) the Aggregate Commitments of $225.0 million (“ABL Facility Limit”) or (2) the Borrowing Base or Loan Cap which is calculated from Eligible Inventory, Trade Receivables and Credit Card Receivables, all foregoing capitalized terms not defined herein are as defined in the ABL Facility. The balance outstanding on May 2, 2025 and May 3, 2024 was $40.0 million and $40.0 million, respectively. The balance of outstanding letters of credit was $11.0 million and $8.1 million on May 2, 2025 and May 3, 2024, respectively. The borrowing availability under the ABL Facility was $86.8 million and $133.8 million as of May 2, 2025 and May 3, 2024, respectively.
Current wording
Our $225.0 million committed revolving ABL Facility, as amended to date, includes a $35.0 million sublimit for letters of credit and is available for working capital and other general corporate liquidity needs. The amount available to borrow is the lesser of (1) the Aggregate Commitments of $225.0 million (“ABL Facility Limit”) or (2) the Borrowing Base or Loan Cap which is calculated from Eligible Inventory, Trade Receivables and Credit Card Receivables, all foregoing capitalized terms not defined herein are as defined in the ABL Facility. The balance outstanding on August 1, 2025 and August 2, 2024 was $35.0 million and $20.0 million, respectively. The balance of outstanding letters of credit was $10.9 million and $8.1 million on August 1, 2025 and August 2, 2024, respectively. The borrowing availability under the ABL Facility was $87.6 million and $117.5 million as of August 1, 2025 and August 2, 2024, respectively.
Previous wording
The ABL Facility fees include (i) commitment fees of 0.20% or 0.30% based upon the average daily unused commitment (aggregate commitment less loans and letter of credit outstanding) under the ABL Facility for the preceding fiscal quarter, (ii) customary letter of credit fees and (iii) customary annual agent fees. The Fifth Amendment extended the maturity date of the ABL Facility to the earlier of (a) March 28, 2030 and (b) September 29, 2028 if, on or prior to such date, the Term Loan Facility has not been refinanced, extended or repaid in full in accordance with the terms thereof and not replaced with other indebtedness. Under applicable accounting guidance, certain unamortized debt issuance costs originating from the ABL Facility are deferred and amortized over the extended term of the ABL Facility, and certain unamortized debt issuance costs have been written off. As of May 2, 2025, we had $40.0 million borrowings outstanding under the ABL Facility.
Current wording
The ABL Facility fees include (i) commitment fees of 0.20% or 0.30% based upon the average daily unused commitment (aggregate commitment less loans and letter of credit outstanding) under the ABL Facility for the preceding fiscal quarter, (ii) customary letter of credit fees and (iii) customary annual agent fees. The Fifth Amendment extended the maturity date of the ABL Facility to the earlier of (a) March 28, 2030 and (b) September 29, 2028 if, on or prior to such date, the Term Loan Facility has not been refinanced, extended or repaid in full in accordance with the terms thereof and not replaced with other indebtedness. Under applicable accounting guidance, certain unamortized debt issuance costs originating from the ABL Facility are deferred and amortized over the extended term of the ABL Facility, and certain unamortized debt issuance costs have been written off. As of August 1, 2025, we had $35.0 million borrowings outstanding under the ABL Facility.
Previous wording
As of May 2, 2025, we were in compliance with its financial covenants in the Debt Facilities.
Current wording
As of August 1, 2025, we were in compliance with the financial covenants in the Debt Facilities.
Previous wording
Net cash used in investing activities was $8.3 million and $6.7 million during First Quarter 2025 and First Quarter 2024, respectively. Cash used in investing activities for both periods was primarily used for investments to update our digital information technology infrastructure.
Current wording
Net cash used in investing activities was $17.2 million and $11.5 million during Year-to-Date 2025 and Year-to-Date 2024, respectively. Cash used in investing activities for both periods was primarily used for investments to update our digital information technology infrastructure.
Previous wording
Net cash provided by financing activities was $32.4 million during First Quarter 2025, compared to $35.0 million during First Quarter 2024. The decrease in net cash provided by financing activities is primarily due to increased purchases of our common stock during First Quarter 2025 under the share repurchase program.
Current wording
Net cash provided by financing activities was $22.1 million during Year-to-Date 2025, compared to $6.9 million during Year-to-Date 2024. The increase in net cash provided by financing activities is primarily due to an increase in borrowings under our ABL Facility in the Second Quarter 2025 as compared to the prior year.
Previous wording
The ABL Facility is available for working capital and other general corporate liquidity needs. The balance outstanding on May 2, 2025 and May 3, 2024 was $40.0 million and $40.0 million, respectively. The balance of outstanding letters of credit was $11.0 million and $8.1 million on May 2, 2025 and May 3, 2024, respectively.
Current wording
The ABL Facility is available for working capital and other general corporate liquidity needs. The balance outstanding on August 1, 2025 and August 2, 2024 was $35.0 million and $20.0 million, respectively. The balance of outstanding letters of credit was $10.9 million and $8.1 million on August 1, 2025 and August 2, 2024, respectively.
Previous wording
This document contains forward-looking statements. Forward-looking statements reflect our current views with respect to, among other things, future events and performance. These statements may discuss, among other things, our GMV, net sales, gross margin, operating expenses, operating income, net income, adjusted net income, adjusted EBITDA, cash flow, financial condition, financings, impairments, expenditures, growth, strategies, plans, achievements, dividends, capital structure, organizational structure, future store openings, market opportunities and general market and industry conditions. We generally identify forward-looking statements by words such as “anticipate,” “estimate,” “expect,” “intend,” “project,” “plan,” “predict,” “believe,” “seek,” “continue,” “outlook,” “may,” “might,” “will,” “should,” “can have,” “likely,” “targeting” or the negative version of these words or comparable words. Forward-looking statements are based on beliefs and assumptions made by management using currently available information. These statements are only predictions and are not guarantees of future performance, actions or events. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management’s underlying beliefs and assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. These risks and uncertainties include those risks, uncertainties and factors discussed in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended January 31, 2025 and “Part II, Item 1A Risk Factors” of this Quarterly Report on Form 10-Q. Forward-looking statements speak only as of the date on which they are made. We expressly disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable securities laws and regulations.
Current wording
This document contains forward-looking statements. Forward-looking statements reflect our current views with respect to, among other things, future events and performance. These statements may discuss, among other things, our GMV, variable profit, net sales, gross margin, operating expenses, operating income, net income, adjusted net income, adjusted EBITDA, cash flow, financial condition, financings, impairments, expenditures, growth, strategies, plans, achievements, dividends, capital structure, organizational structure, future store openings, market opportunities and general market and industry conditions. We generally identify forward-looking statements by words such as “anticipate,” “estimate,” “expect,” “intend,” “project,” “plan,” “predict,” “believe,” “seek,” “continue,” “outlook,” “may,” “might,” “will,” “should,” “can have,” “likely,” “targeting” or the negative version of these words or comparable words. Forward-looking statements are based on beliefs and assumptions made by management using currently available information. These statements are only predictions and are not guarantees of future performance, actions or events. Forward-looking statements are subject to risks and uncertainties. If one or more of these risks or uncertainties materialize, or if management’s underlying beliefs and assumptions prove to be incorrect, actual results may differ materially from those contemplated by a forward-looking statement. These risks and uncertainties include those risks, uncertainties and factors discussed in the “Risk Factors” section of our Annual Report on Form 10-K for the fiscal year ended January 31, 2025 and “Part II, Item 1A Risk Factors” of our Quarterly Report on Form 10-Q for the quarter ended May 2, 2025. Forward-looking statements speak only as of the date on which they are made. We expressly disclaim any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable securities laws and regulations.
Rearranged current paragraphs (7)
Current report — wording carried from elsewhere
2025 and the 13 and 26 weeks ended August 2, 2024 in conjunction with our licensing arrangements commencing in Fiscal 2024.
Current report — wording carried from elsewhere
The tax impact of adjustments is calculated at the applicable U.S. and non-U.S. Federal and State statutory rates.
Current report — wording carried from elsewhere
Depreciation and amortization expense decreased $1.8 million to $15.9 million in Year-to-Date 2025 compared with $17.7 million in Year-to-Date 2024. The decrease in depreciation and amortization is primarily driven by lower software depreciation as a result of major software projects becoming fully depreciated.
Current report — wording carried from elsewhere
Interest expense was $18.5 million in Year-to-Date 2025 compared to $20.8 million in Year-to-Date 2024. The $2.3 million decrease was primarily driven by lower ABL Facility interest related to lower average outstanding balances and lower applicable interest rates under the Term Loan Facility.
Current report — wording carried from elsewhere
We recorded an income tax benefit at an overall effective rate of 29.4% and 26.4% for the Year-to-date 2025 and Year-to-date 2024, respectively. The overall effective tax rate for the 26 weeks ended August 1, 2025 varies from the U.S. federal statutory rate of 21% as a result of state taxes, and non-deductible expenses. The overall effective tax rate for the 26 weeks ended August 2, 2024 varies from the U.S. federal statutory rate of 21% as a result of state taxes, non-deductible expenses, and the impact of stock-based compensation.
Current report — wording carried from elsewhere
U.S. Digital Segment Results of Operations
Current report — wording carried from elsewhere
U.S. Digital Segment variable profit was $109.6 million in Year-to-Date 2025, a decrease of $8.1 million compared to $117.7 million in Year-to-Date 2024. U.S. Digital Segment variable profit was 22.7% of Net revenue in Year-to-Date 2025, which is a decrease of 20 basis points compared to 23.6% of Net revenue in Year-to-Date 2024. The decrease in variable profit as a percentage of Net revenue was driven by deleverage from lower revenues and channel mix partially offset by product solutions and newness across the assortment, improvements in supply chain costs and cost controls across the entire business.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
First Quarter 2024 – The 13 weeks ended May 3, 2024