Lands’ End(US:LE)2025-09-09 20:13Financial Performance - Net revenue for Q2 2025 was $294.1 million, a decrease of $23.1 million or 7.3% from $317.2 million in Q2 2024[3] - U.S. eCommerce net revenue decreased by $21.0 million or 11.2% to $167.3 million compared to $188.3 million in Q2 2024[3] - Net loss for Q2 2025 was $3.7 million, or $0.12 loss per diluted share, an improvement from a net loss of $5.3 million or $0.17 loss per diluted share in Q2 2024[10] - Adjusted EBITDA for Q2 2025 was $14.1 million, down from $17.1 million in Q2 2024[10] - The company reported a strong performance in the Outfitters segment, with net revenue increasing by 5.1% to $66.4 million in Q2 2025[3] - For the 13 weeks ended August 1, 2025, the company reported a net loss of $3,667,000, a decrease of 1.2% compared to a net loss of $5,251,000 for the same period in 2024[34] - Adjusted EBITDA for the 13 weeks ended August 1, 2025, was $14,062,000, representing 4.8% of total revenue, down from $17,061,000 or 5.4% in the prior year[34] - For the 26 weeks ended August 1, 2025, the net loss was $11,929,000, an increase of 2.1% from a net loss of $11,693,000 in the previous year[34] Revenue Guidance - The company expects net revenue for fiscal 2025 to be between $1.33 billion and $1.40 billion[13] - The company provided guidance for the third quarter of fiscal 2025, projecting adjusted EBITDA of $24,000,000, down from $28,000,000 in the prior year[35] - Adjusted net income for the third quarter of fiscal 2025 is expected to be $3,000,000, compared to $7,000,000 in the same quarter last year[36] - The fiscal 2025 guidance for adjusted EBITDA is set at $98,000,000, down from $107,000,000 previously projected[36] Operational Efficiency - Gross margin increased approximately 90 basis points to 48.8% in Q2 2025, compared to 47.9% in Q2 2024[10] - Operating income for the 13 weeks ended August 1, 2025, increased to $3,983 from $2,486 in the same period last year, indicating improved operational efficiency[22] Assets and Liabilities - Total current assets decreased to $405,062 as of August 1, 2025, from $414,764 as of January 31, 2024[20] - Total liabilities stood at $575,517 as of August 1, 2025, slightly down from $576,002 as of January 31, 2024[20] - The company reported an accumulated deficit of $106,287 as of August 1, 2025, compared to $112,284 as of January 31, 2024, indicating a reduction in losses over time[20] Cash Flow and Expenditures - The company reported a net cash provided by operating activities of $469,000 for the 26 weeks ended August 1, 2025, a significant decrease from $4,909,000 in the prior year[38] - Cash, cash equivalents, and restricted cash at the end of the period were $23,546,000, compared to $27,887,000 at the end of the same period last year[38] - The company plans to spend approximately $25.0 million on capital expenditures for fiscal 2025[12] Strategic Initiatives - The strategic alternatives process initiated on March 7, 2025, is ongoing, exploring options such as a sale or merger[9] - The company is focusing on restructuring and strategic alternatives, with corporate restructuring costs amounting to $2,434 for the 13 weeks ended August 1, 2025[30] Inventory and Accounts Payable - Inventories decreased by 3% year-over-year to $301.8 million as of August 1, 2025, from $312.0 million as of August 2, 2024[5] - The company experienced a significant increase in accounts payable, which rose by $36,250,000 for the 26 weeks ended August 1, 2025, compared to $14,023,000 in the previous year[38]