LANDS' END, INC.

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. 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.

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 ongoing and potential tariff increases on goods manufactured in key sourcing regions, have elevated and could further 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

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.

Current wording

We incurred restructuring and other charges related to cost optimization of business operations and exploring strategic alternatives. 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 and other.

Previous wording

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 wording

We incurred $1.5 million and $1.8 million of restructuring and other costs during the Third Quarter 2025 and Third Quarter 2024, respectively. Restructuring and other costs of $7.2 million and $4.5 million were incurred Year-to-Date 2025 and Year-to-Date 2024, respectively.

Previous 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.

Current wording

As of October 31, 2025, approximately $0.2 million of restructuring and other 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

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.

Current wording

Corporate restructuring and other – composed of severance and benefit costs as well as costs related to the strategic alternative exploration for the 13 and 39 weeks ended October 31, 2025 and primarily severance and benefit costs for the 13 and 39 weeks ended November 1, 2024.

Previous wording

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 wording

Long-lived asset impairment – charges associated with the non-cash write down of certain long-lived assets for the 13 and 39 weeks ended October 31, 2025 and November 1, 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 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.

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 39 weeks ended October 31, 2025 and November 1, 2024 in conjunction with our licensing arrangements commencing in Fiscal 2024.

Previous wording

The following tables set forth, for the periods indicated, a reconciliation of Net loss to Adjusted net loss and Adjusted diluted

Current wording

The following tables set forth, for the periods indicated, a reconciliation of Net income (loss) to Adjusted net income (loss) and Adjusted diluted earnings (loss) per share:

Previous 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.

Current wording

Corporate restructuring and other – composed of severance and benefit costs as well as costs related to the strategic alternative exploration for the 13 and 39 weeks ended October 31, 2025 and primarily severance and benefit costs for the 13 and 39 weeks ended November 1, 2024.

Previous wording

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 wording

Long-lived asset impairment – charges associated with the non-cash write down of certain long-lived assets for the 13 and 39 weeks ended October 31, 2025 and November 1, 2024.

Previous 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.

Current wording

Net gain or loss on disposal of property and equipment – disposal of property and equipment for the 13 and 39 weeks ended October 31, 2025 and November 1, 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 26 weeks ended August 1,

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 39 weeks ended October 31, 2025 and November 1, 2024 in conjunction with our licensing arrangements commencing in Fiscal 2024.

Previous 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:

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 income (loss) to Adjusted EBITDA:

Previous wording

Gross Merchandise Value (“GMV”) was approximately flat when compared to Second Quarter 2024.

Current wording

Gross Merchandise Value (“GMV”) increased low-single digits when compared to Third Quarter 2024.

Previous 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.

Current wording

U.S. Digital Segment Net revenue was $277.5 million for the Third Quarter of 2025, an increase of $4.0 million or 1.5% from $273.5 million in the Third Quarter of 2024.

Previous wording

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 wording

Outfitters Net revenue was $78.8 million for the Third Quarter of 2025, an increase of $5.4 million or 7.4%, from $73.4 million during the Third Quarter of 2024. The school uniform channel significantly increased due to a strong back to school season and new customers acquired from a competitor exiting the market. Revenue from the business uniform channel was down year-over-year driven by the timing of orders from select enterprise accounts.

Previous wording

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 wording

Licensing and Retail Net revenue was $20.2 million for the Third Quarter of 2025, an increase of $0.1 million or 0.5%, from $20.1 million during the Third Quarter of 2024. The revenue increased due to licensing revenue increasing by over 30% and the performance of U.S. Company Operated stores partially offset by the timing of wholesale transactions compared to last year.

Previous 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.

Current wording

Gross profit was $164.5 million for the Third Quarter of 2025, an increase of $3.4 million or 2.1% from $161.1 million during the Third Quarter of 2024. Gross margin increased approximately 120 basis points to 51.8% in the Third Quarter of 2025, compared with 50.6% in the Third Quarter of 2024. The gross margin improvement was primarily driven by continued strength across key categories at a higher average unit retail and the expansion of the licensing business, partially offset by tariffs.

Previous 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.

Current wording

Depreciation and amortization expense decreased $0.8 million to $7.4 million in the Third Quarter of 2025 compared with $8.2 million in the Third 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 $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.

Current wording

Other operating expense, net was $1.7 million in the Third Quarter of 2025 compared to $2.8 million in the Third Quarter of 2024. The decrease was primarily driven by restructuring and other costs incurred. See Note 1, Background and Basis of Presentation.

Previous wording

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 wording

As a result of the above factors, Operating income was $16.8 million in the Third Quarter of 2025 compared to $9.3 million in the Third Quarter of 2024.

Previous 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.

Current wording

Interest expense was $9.4 million in the Third Quarter of 2025 compared to $10.3 million in the Third Quarter of 2024. The $0.9 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 the Second Quarter of 2025 compared to $0.1 million in the Second Quarter of 2024.

Current wording

Other income was insignificant in the Third Quarter of 2025 compared to other expense of $0.4 million in the Third Quarter of 2024.

Previous 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.

Current wording

We recorded income tax expense at an overall effective rate of 30.2% for the Third Quarter 2025 and a tax benefit of 55.4% for the Third Quarter of 2024, respectively. The overall effective tax rate for the 13 weeks ended October 31, 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 November 1, 2024 varies from the U.S. federal statutory rate of 21% as a result of state taxes, non-deductible expenses, the impacts of certain state audit closures, and stock-based compensation adjustments.

Previous 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.

Current wording

As a result of the above factors, Net income was $5.2 million and diluted earnings per share was $0.17 in the Third Quarter of 2025 compared with Net loss of $0.6 million and diluted loss per share was $0.02 in the Third Quarter of 2024.

Previous 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.

Current wording

Adjusted net income was $6.5 million and Adjusted diluted earnings per share was $0.21 in the Third Quarter of 2025 compared to Adjusted net income of $1.8 million and Adjusted diluted earnings per share of $0.06 in the Third Quarter of 2024.

Previous 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.

Current wording

U.S. Digital Segment variable profit was $71.4 million in the Third Quarter of 2025, an increase of $8.0 million compared to $63.4 million in the Third Quarter of 2024. U.S. Digital Segment variable profit was 25.7% of Net revenue in the Third Quarter of 2025, which is an increase of 250 basis points compared to 23.2% of Net revenue in the Third Quarter of 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.

Previous wording

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 wording

Product cost of goods sold was $104.5 million or 37.7% of U.S. Digital Segment revenue in the Third Quarter of 2025 compared to $103.9 million or 38.0% of U.S. Digital Segment revenue in the Third Quarter of 2024. Shipping cost of goods sold was $32.4 million or 11.7% of U.S. Digital Segment revenue in the Third Quarter of 2025 compared to $33.8 million or 12.4% of U.S. Digital Segment revenue in the Third Quarter of 2024. The change in Product and Shipping cost of goods sold as a percentage of U.S. Digital Segment revenue was primarily due to product assortment mix and improvements in supply chain costs. Marketing expenses were $45.3 million or 16.3% of U.S. Digital Segment revenue in the Third Quarter of 2025 compared to $45.2 million or 16.5% of U.S. Digital Segment revenue in the Third Quarter of 2024. The increase in Marketing expenses was primarily due to higher digital spend focused on new customer acquisition.

Previous 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.

Current wording

Gross Merchandise Value (“GMV”) was approximately flat 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 $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%.

Current wording

Net revenue was $872.8 million for Year-to-Date 2025, a decrease of $48.5 million or 5.3%, from $921.3 million during Year-to-Date 2024. Excluding the impact of transitioning kids and footwear inventory to licensees, Net revenue decreased by 3.8%.

Previous wording

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 wording

U.S. Digital Segment Net revenue was $760.6 million for Year-to-Date 2025, a decrease of $11.9 million or 1.5% from $772.5 million in Year-to-Date 2024.

Previous 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.

Current wording

U.S. eCommerce Net revenue was $517.8 million for Year-to-Date 2025, a decrease of $27.1 million or 5.0%, from $544.9 million during Year-to-Date 2024. Year-to-Date 2025 reflected continued strength in our outerwear and transitional key items which resulted in gross margin expansion and improved profitability compared to Year-to-Date 2024.

Previous 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.

Current wording

Outfitters Net revenue was $188.1 million for Year-to-Date 2025, an increase of $8.9 million or 5.0%, from $179.2 million during Year-to-Date 2024. The school uniform channel increased primarily due to a strong back to school season and new customers acquired from a competitor exiting the market. The business uniform channel was approximately flat primarily due to strength in enterprise accounts offset by slight weakness in medium and smaller accounts.

Previous wording

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 wording

Third Party Net revenue was $54.6 million for Year-to-Date 2025, an increase of $6.2 million or 12.8%, from $48.4 million during Year-to-Date 2024. The increase was primarily due to curated product assortments which resulted in a strong Third Quarter 2025 across nearly all of the marketplaces.

Previous 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.

Current wording

Europe eCommerce Net revenue was $57.3 million for Year-to-Date 2025, a decrease of $15.6 million or 21.4%, from $72.9 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 and continued macroeconomic pressures.

Previous 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%.

Current wording

Licensing and Retail Net revenue was $55.0 million for Year-to-Date 2025, a decrease of $20.8 million or 27.4%, from $75.8 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 by over 30%. Compared to Year-to-Date 2024, Licensing GMV increased by over 40%.

Previous wording

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 wording

Gross profit was $440.6 million for Year-to-Date 2025, a decrease of $11.4 million or 2.5% from $452.0 million during Year-to-Date 2024. Gross margin increased approximately 140 basis points to 50.5% in Year-to-Date 2025, compared with 49.1% in Year-to-Date 2024. The gross margin improvement was primarily driven by continued strength across key categories and expansion of the licensing business, partially offset by tariffs.

Previous wording

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 wording

Selling and administrative expenses decreased $12.4 million to $391.4 million or 44.8% of Net revenue in Year-to-Date 2025 compared with $403.8 million or 43.8% of Net revenue in Year-to-Date 2024. The approximately 100 basis points increase was primarily driven by deleverage from lower revenues partially offset by operational efficiencies and strong cost controls across the entire business.

Previous wording

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 wording

Depreciation and amortization expense decreased $2.5 million to $23.4 million in Year-to-Date 2025 compared with $25.9 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.

Previous wording

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 wording

Other operating expense, net was $7.5 million in Year-to-Date 2025 compared to $8.4 million in Year-to-Date 2024. The decrease was primarily driven by restructuring and other costs incurred. See Note 1, Background and Basis of Presentation.