Lands’ End’s first-quarter bottom line benefited from its transaction with WHP Global though sales were impacted by distribution center upgrades.

Net income for the quarter ended May 1 was $330.7 million, or $10.56 per diluted share, compared to net loss of $8.3 million or 27 cent loss per diluted share in the first quarter of 2025. The net income result was primarily driven by the WHP Global acquisition last January of a 50 percent stake in a joint venture holding Lands’ End’s intellectual property. WHP, a brand management firm, paid Lands’ End $300 million. The transaction enabled Lands’ End to repay a $234 million term loan in full and is expected to help position the Dodgeville, Wis.-based brand for growth.

Adjusted net loss was $3.5 million, an improvement from adjusted net losses of $5.4 million a year earlier.

Net revenue fell 8.5 percent to $238.9 million in the first quarter. Lands’ End attributed the decrease in revenue primarily to the temporary disruption associated with the rollout of a new warehouse management system and the deliberate pacing of shipments as the distribution centers ramped back to normal capacity.  Excluding the disruption, the company estimated it would have delivered low single-digit revenue growth in the quarter.

“Our first-quarter results reflect a business with real underlying momentum,” Andrew McLean, Lands’ End’s chief executive officer, said in a statement Tuesday. “Consumer traffic was up double digits, new customer acquisition improved, and our European business delivered strong double-digit revenue growth — confirmation that our solutions-based strategy is resonating with customers. We experienced a temporary operational disruption tied to our U.S. distribution center upgrades which caused a timing issue, and it is behind us. Additionally, we delivered year-over-year improvement in both adjusted net income and adjusted earnings per share.” Lands’ End’s “solution-based” strategy refers to the brand’s offering of garments designed to meet everyday needs such as protection from inclement weather and offering a wide range of fits.

“Looking forward, the creation of the joint venture with WHP Global marked a genuine inflection point for Lands’ End and positions us to deliver outstanding shareholder value,” McLean added. “Whether from the continued growth of our existing commercial operations, a much more favorable capital structure with no term-loan debt, the board’s April authorization of a $100 million share repurchase program, the profit-share we’ll receive from the JV (joint venture) or the potential exchange of our JV stake into equity in WHP Global at the same multiple WHP receives in a qualifying monetization event, the opportunity in front of Lands’ End has never been clearer, and we are committed to building on our successes and focused on delivering on the potential in this great American company.”

For fiscal 2026, Lands’ End expects: