Retailer Lands End Q1 revenue falls on distribution disruption

Lands End

Tue 11:56

Overview
US apparel retailer's Q1 revenue fell 8.5% yr/yr due to distribution center disruption
Adjusted EPS loss narrowed yr/yr, reflecting improved operating performance
Company repurchased $0.3 mln of stock under new $100 mln buyback program in Q1

Outlook
Lands' End sees Q2 net revenue between $290 mln and $310 mln
Company expects Q2 adjusted diluted EPS between $0.06 and $0.16
Lands' End forecasts 2026 net revenue between $1.30 bln and $1.40 bln

Result Drivers
DISTRIBUTION CENTER DISRUPTION - Co said lower Q1 revenue was primarily due to temporary disruption from U.S. distribution center upgrades and deliberate pacing of shipments
EUROPEAN GROWTH - European eCommerce revenue grew 14.5% yr/yr, driven by a shift to a franchise-first assortment and improved inventory efficiency
GROSS MARGIN PRESSURE - Gross margin declined due to distribution center disruption, new WHP Global JV royalty structure, and continued tariff headwinds

Company press release: ID:nGNX1PCmjn

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Miss
$238.9 mln
$267.97 mln (2 Analysts)
Q1 Adjusted EPS
Beat
-$0.11
-$0.21 (2 Analysts)
Q1 EPS
 
$10.56
 

Analyst Coverage
The one available analyst rating on the shares is "buy"
The average consensus recommendation for the apparel & accessories retailers peer group is "buy"
Wall Street's median 12-month price target for Lands' End Inc is $32.50, about 189.9% above its June 8 closing price of $11.21
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 17 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)