By Kelly Cloonan
Lands' End logged lower profit in its latest quarter, hurt by unmitigated tariff costs.
The retailer on Thursday posted a profit of $12.3 million, or 40 cents a share, compared with $18.5 million, or 59 cents a share, a year earlier. The recent quarter's figure was dented by $7.6 million in unmitigated tariff costs, the company said.
Adjusted earnings per share were 76 cents, compared with estimates of 78 cents a share according to analysts polled by FactSet.
Revenue rose 4.7% to $462.4 million, compared with analyst estimates of $473.1 million.
U.S. digital sales, which make up the bulk of the company's top line, rose 5.3%. Europe e-commerce sales gained 9.3%, while licensing and retail revenue fell 8.4%.
The company withheld guidance for the fiscal year, citing its pending deal with brand management and acquisition company WHP Global.
Under the transaction, announced earlier this year, Lands' End agreed to form a joint venture with WHP Global in a deal expected to provide it with $300 million in cash. As part of the arrangement, Lands' End will contribute all of its intellectual property in exchange for guaranteed minimum royalty payments per year starting at $50 million for the first year. WHP Global will also offer to buy up to $100 million of Lands' End shares at a price per share of $45.
The company had previously been exploring strategic alternatives, including a potential sale.
Lands' End said it expects to provide guidance when it releases first-quarter results, following the close of the deal.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
March 19, 2026 07:10 ET (11:10 GMT)
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