Digital push & licensing drive US' Lands' End's FY25 outlook

The adjusted net loss is forecast between $7.0 million and $4.0 million and adjusted diluted loss per share between $0.22 and $0.13. Adjusted EBITDA is expected to range from $9.0 million to $12.0 million.

For full FY25, the company expects net revenue between $1.33 billion and $1.45 billion, and gross merchandise value (GMV) is expected to grow at a mid-to-high single-digit percentage rate. The net income is forecast between $8.0 million and $20.0 million, with diluted earnings per share (EPS) between $0.25 and $0.64.

The adjusted net income is expected to range from $15.0 million to $27.0 million, with adjusted diluted earnings per share between $0.48 and $0.86. Adjusted EBITDA is projected between $95.0 million and $107.0 million, with capital expenditures estimated at approximately $30.0 million. The outlook includes the anticipated impact of existing global tariffs.

“Looking ahead, we are focused on further enhancing our digital business and operations, continuing to leverage our compelling asset-light licensing business, and growing our market-leading Outfitters business, all while delivering solutions that are ready for life’s every journey,” said Andrew McLean, chief executive officer (CEO) at Land’s End.

“Looking at 2025 and beyond, we are continuing to focus on generating improved cash flows, particularly from the prioritisation of our licensing strategy and ongoing emphasis on more high-quality sales, which we expect will drive additional gross profit dollars and gross margin expansion over the long term,” said Bernie McCracken, chief financial officer (CFO) at Land’s End.

Meanwhile, the company reported net revenue of $1.36 billion in full fiscal 2024 (FY24) ended January 31, 2025, down 7.4 per cent year-over-year (YoY), primarily due to transitioning the kids and footwear lines to licensing and reducing promotional activity to focus on high-quality sales, Land’s End said in a press release.

Despite the revenue decline, the gross profit rose by 4.4 per cent to $653.3 million, driven by strong performance in swimwear, outerwear, and adjacent categories, alongside improved inventory management and supply chain efficiencies.

The gross margin improved by approximately 550 basis points (bps) to 47.9 per cent. Selling and administrative expenses increased to $561.8 million, or 41.2 per cent of net revenue, largely due to higher digital marketing costs and professional services.

The net income stood at $6.2 million, compared to a net loss of $130.7 million in fiscal 2023. Adjusted net income was $12.6 million, or $0.40 per diluted share, reflecting a significant turnaround from the previous year’s adjusted net loss.

The company achieved adjusted EBITDA growth of 10 per cent YoY and gross margin improvement of 550 bps to 48 per cent. Key business highlights for full year included mid-single digit GMV growth (excluding the 53^rd week of FY23), a 12 per cent YoY inventory reduction, and a 5 per cent increase in global new customer acquisition through enhanced digital marketing.

“Lands’ End had a strong finish to a year defined by continued positive momentum across the business. We increased gross profit dollars, expanded gross margins and grew GMV each quarter of fiscal 2024, excluding the 53^rd week, resulting in a return to profitability for the full year. Through our amazing products, robust product franchises and our evolved marketing approach, it is clear that our strategic evolution, including considerable growth from licensing, is driving strong progress and expanding the reach of our brand,” added McLean.

In the fourth quarter (Q4) of FY24, net revenue of the company was $441.7 million, a decrease of $73.2 million or 14.2 per cent YoY. GMV decreased low-single digits compared to Q4 FY23. The gross profit stood at $201.3 million, an increase of $5.9 million or 3.0 per cent and gross margin increased approximately 760 bps to 45.6 per cent compared to 38.0 per cent in Q4 FY23.

Selling and administrative expenses decreased $14.6 million to $158.0 million or 35.8 per cent of net revenue, and net income was $18.5 million, or $0.59 earnings per diluted share.

ALCHEMPro News Desk (SG)