Lands' End Returns to Growth as $300 Million WHP Deal Speeds Deleveraging

Overview

• Fourth-quarter revenue rose 5% to $462 million with mid-single-digit GMV growth, and adjusted EBITDA increased 9% to $47 million.
• Gross margin was 45%, down about 30 basis points from IEEPA tariff headwinds, which management said masked an underlying ~140-basis-point expansion to roughly 47%.
• Lands' End will place its intellectual property into a 50/50 joint venture with WHP Global for $300 million and intends to eliminate its roughly $234 million term loan using the proceeds, with an option to exchange its JV stake for WHP equity.
• WHP launched a tender offer for about 2.2 million Lands' End shares at $45, providing near-term shareholder liquidity.
• Growth was led by double-digit marketplace gains including Amazon, roughly 9% European e-commerce growth, and strong school uniforms, supported by a 20% increase in new-to-brand households, a new CMO hire, and a planned Shopify front end and SAP back end migration before the 2026 peak season.