Lands’ End(US:LE)2025-12-09 11:49Financial Performance - Net revenue for Q3 2025 was $317.5 million, a decrease of $1.1 million or 0.3% from Q3 2024[3] - U.S. Digital Segment Net revenue increased by $4.0 million or 1.5% to $277.5 million in Q3 2025[3] - Net revenue for the 13 weeks ended October 31, 2025, was $317,487,000, a decrease of 0.4% compared to $318,628,000 for the same period in 2024[21] - Gross profit for the 39 weeks ended October 31, 2025, was $440,618,000, down 2.6% from $452,010,000 in 2024[21] - Operating income increased to $16,767,000 for the 13 weeks ended October 31, 2025, compared to $9,287,000 in 2024, reflecting a 80.5% increase[21] - Net income for the 13 weeks ended October 31, 2025, was $5,164,000, compared to a net loss of $593,000 in the same period of 2024[21] - Adjusted net income for the 13 weeks ended October 31, 2025, was $6,523,000, significantly higher than $1,785,000 in 2024[29] - Adjusted EBITDA increased by 28% to $25.9 million in Q3 2025 compared to $20.3 million in Q3 2024[8] - Adjusted EBITDA for the 39 weeks ended October 31, 2025, was $49,455,000, representing a 5.7% increase compared to $48,909,000 in the prior year[33] Cash and Assets - Cash and cash equivalents increased to $36.3 million as of October 31, 2025, from $30.4 million a year earlier[4] - Total current assets increased to $460,806,000 as of October 31, 2025, compared to $453,495,000 as of November 1, 2024[19] - Cash and cash equivalents increased to $36,344,000 as of October 31, 2025, from $30,401,000 as of November 1, 2024[19] - The company reported a net cash increase of $18,235,000 for the period, ending with cash, cash equivalents, and restricted cash totaling $37,047,000[37] Liabilities and Expenses - Total liabilities stood at $621,647,000 as of October 31, 2025, slightly up from $619,928,000 in 2024[19] - Interest expense for the 39 weeks ended October 31, 2025, was $27,944,000, down from $31,049,000 in the same period last year[33] - Corporate restructuring and other expenses for the 39 weeks ended October 31, 2025, amounted to $7,219,000, compared to $4,482,000 in the previous year[33] Inventory and Cash Flow - Inventories rose by 3% year-over-year to $347.6 million as of October 31, 2025[4] - The company experienced a significant increase in inventories, with a change of $(81,400,000) for the 39 weeks ended October 31, 2025[37] - Cash flows from operating activities for the 39 weeks ended October 31, 2025, resulted in a net cash used of $15,181,000, compared to $12,212,000 in the previous year[37] Future Guidance - The company expects net revenue for Q4 2025 to be between $460.0 million and $490.0 million[12] - The company provided guidance for Q4 Fiscal 2025, projecting adjusted EBITDA between $49,000,000 and $54,000,000[34] - Adjusted net income for Q4 Fiscal 2025 is expected to be between $22,000,000 and $26,000,000, with adjusted diluted earnings per share projected at $0.71 to $0.84[35] Strategic Initiatives - The strategic alternatives process is ongoing, exploring options such as a sale or merger to maximize shareholder value[11] Accumulated Deficit - The company’s accumulated deficit improved to $(101,123,000) as of October 31, 2025, compared to $(112,877,000) in 2024[19]