Lands’ End, Inc. (NASDAQ:LE) reported fourth-quarter results that came in below analyst expectations, with adjusted earnings per share of $0.76 missing the consensus forecast of $0.79 and revenue of $462.4 million falling short of the $472.24 million estimate. Shares declined about 1.7% in premarket trading following the release.
The apparel retailer generated net revenue of $462.4 million for the quarter ended January 30, 2026, marking a 4.7% increase from $441.7 million in the same period a year earlier. Although revenue missed expectations, the company returned to year-over-year growth after several quarters of declining sales. Gross merchandise value rose by a mid-single-digit percentage compared with the prior year.
Chief Executive Officer Andrew McLean stated, “The fourth quarter was a turning point for Lands’ End as we returned to topline growth, driven by our most significant businesses, and capped off a year in which we strengthened the foundation for sustainable, profitable, long-term growth.”
Adjusted earnings per share improved to $0.76 from $0.57 in the same quarter last year, while GAAP earnings per share were $0.40 compared with $0.59 previously. Adjusted EBITDA increased to $47.4 million from $43.7 million in the fourth quarter of fiscal 2024.
Gross margin declined by 30 basis points to 45.3%, reflecting $7.6 million in tariff-related costs that were not offset. Excluding the tariff impact, gross margin would have expanded by 140 basis points to 47.0%. The U.S. Digital segment posted revenue growth of 5.3% to $402.3 million, while Europe eCommerce sales climbed 9.3% to $32.9 million, reversing a decline seen in previous quarters.
The company recently announced a joint venture with WHP Global, contributing its intellectual property in exchange for $300 million in cash. The proceeds are expected to eliminate approximately $234 million in term loan debt. Lands’ End said it will not provide financial guidance until the transaction is completed, which is expected by the end of the first quarter of fiscal 2026.