Core Insights - Lands' End, Inc. reported a wider-than-expected loss in Q2 fiscal 2025, with revenues missing estimates and showing unfavorable year-over-year comparisons [1][2][3] Financial Performance - The company posted an adjusted loss of $0.06 per share, compared to the Zacks Consensus Estimate of a loss of $0.03 and an adjusted loss of $0.02 per share in the same quarter last year [2] - Net revenues were $294.1 million, falling short of the Zacks Consensus Estimate of $322 million and down 7.3% year-over-year [3] - U.S. Digital segment revenues were $255.3 million, a decrease of 5.6% year-over-year, while U.S. e-commerce revenues dropped 11.2% to $167.3 million [3] Revenue Breakdown - Outfitters' revenues increased by 5.1% to $66.4 million, driven by new customer acquisitions in the school uniform channel [4] - Third Party revenues rose 14.3% to $21.6 million, supported by curated product assortments in marketplaces like Amazon and Macy's [4] - Europe e-commerce revenues decreased by 14.8% to $19.6 million due to supply chain issues and macroeconomic conditions [5] - Licensing and Retail net revenues fell by 19.7% to $19.2 million, impacted by poor performance in U.S. company-operated stores [6] Margin Analysis - Gross profit declined by 5.6% year-over-year to $143.4 million, but gross margin improved by 90 basis points to 48.8% due to better promotional productivity [7] - Selling and administrative expenses as a percentage of net revenues increased to 44%, up from 42.7% in the previous year [7] Cash Flow and Debt - The company ended the quarter with cash and cash equivalents of $21.3 million and net long-term debt of $219.6 million [9] - Inventories at the end of the quarter were $301.8 million, with net cash provided from operations amounting to $469 million [9] Future Outlook - For Q3 fiscal 2025, Lands' End projects net revenues between $320 million and $350 million, with adjusted EBITDA expected in the range of $24 million to $28 million [13] - For the full fiscal year 2025, net revenues are anticipated to be between $1.33 billion and $1.40 billion, with adjusted EBITDA projected at $98 million to $107 million [14]