v3.26.1
Segment Reporting
 6 Months Ended
Jul. 31, 2026
Segment Reporting [Abstract]  
Segment Reporting

NOTE 13. SEGMENT REPORTING

The Company identifies operating segments according to how business activities are managed and evaluated. The Company’s operating segments consisted of: U.S. eCommerce, Europe eCommerce, Outfitters, Third Party, Licensing and Retail.

 

•
U.S. eCommerce offers products through the Company’s eCommerce website.

 

•
Europe eCommerce offers products primarily direct to consumers located in Europe through eCommerce international websites as well as third-party marketplace websites.

 

•
Outfitters sells uniform and logo apparel to businesses and their employees, as well as to student households through school relationships, located primarily in the U.S.

 

•
Third Party sells products direct to consumers through third-party marketplace websites.

 

•
Licensing earned royalties on the use of the Lands’ End trademark and any fulfillment fees for fulfillment services provided by the Company through the closing of the WHP Transaction. Effective April 1, 2026, the licensing segment earns fees for fulfillment services provided by the Company.

•
Retail sells products through the Company Operated stores, located in the U.S.

The internal reporting of these operating segments is based, in part, on the reporting and review process used by the Company’s chief operating decision maker (“CODM”), its Chief Executive Officer. The CODM assesses segment performance based on variable profit, which is defined as net revenue minus cost of sales and variable selling expenses. The Company’s CODM monitors actual segment variable profit results relative to operating plan and forecast to assess the performance of the business and allocate resources. The CODM does not utilize segment asset information to evaluate performance and make resource allocation decisions, and thus such disclosures are not provided. Variable profit is a non-GAAP financial measure, which management believes provides useful information to investors and to the CODM in order to assess segment performance. A reconciliation of variable profit to consolidated income (loss) before income taxes is set forth below.

The Company determined the U.S. eCommerce, Outfitters and Third Party operating segments share similar economic and other qualitative characteristics, and therefore the results of these operating segments are aggregated into the U.S. Digital segment. The Europe eCommerce, Licensing and Retail operating segments are not quantitatively significant to be separately reported.

The Company has determined its significant segment expense categories based on amounts regularly provided to the Company’s CODM to evaluate segment profitability and drive strategic decision making. The following presents U.S. Digital segment sales and expenses:

 

 

13 Weeks Ended

 

 

13 Weeks Ended

 

 

 

July 31, 2026

 

 

August 1, 2025

 

(in thousands)

 

Segment

 

Total

 

 

Segment

 

Total

 

Net revenue

 

$

268,898

 

$

268,898

 

 

$

255,254

 

$

255,254

 

All other net revenue (1)

 

 

 

 

33,140

 

 

 

 

 

38,825

 

Total consolidated net revenue

 

 

 

$

302,038

 

 

 

 

$

294,079

 

Product cost of goods sold

 

 

110,620

 

 

 

 

 

100,484

 

 

 

Shipping cost of goods sold

 

 

34,888

 

 

 

 

 

33,096

 

 

 

Other cost of goods sold (2)

 

 

(19,020

)

 

 

 

 

(134

)

 

 

Marketing costs

 

 

46,008

 

 

 

 

 

43,283

 

 

 

Variable personnel costs

 

 

16,185

 

 

 

 

 

14,631

 

 

 

Other segment expenses (3)

 

 

8,816

 

 

 

 

 

7,204

 

 

 

Segment variable profit

 

$

71,401

 

 

 

 

$

56,690

 

 

 

 

(1)
All other net revenue is from Europe eCommerce, Licensing and Retail that does not meet the quantitative thresholds
(2)
Other cost of goods sold includes royalty expense, tariff recovery, donations and other miscellaneous cost of goods sold
(3)
Other segment expenses include credit card fees, customer service, webhosting, supplies and other miscellaneous expenses

 

 

 

26 Weeks Ended

 

 

26 Weeks Ended

 

 

 

July 31, 2026

 

 

August 1, 2025

 

(in thousands)

 

Segment

 

Total

 

 

Segment

 

Total

 

Net revenue

 

$

474,021

 

$

474,021

 

 

$

483,006

 

$

483,006

 

All other net revenue (1)

 

 

 

 

66,933

 

 

 

 

 

72,281

 

Total consolidated net revenue

 

 

 

$

540,954

 

 

 

 

$

555,287

 

Product cost of goods sold

 

 

187,146

 

 

 

 

 

184,085

 

 

 

Shipping cost of goods sold

 

 

64,370

 

 

 

 

 

60,799

 

 

 

Other cost of goods sold (2)

 

 

(13,781

)

 

 

 

 

1,352

 

 

 

Marketing costs

 

 

85,511

 

 

 

 

 

83,216

 

 

 

Variable personnel costs

 

 

30,278

 

 

 

 

 

30,201

 

 

 

Other segment expenses (3)

 

 

15,023

 

 

 

 

 

13,769

 

 

 

Segment variable profit

 

$

105,474

 

 

 

 

$

109,584

 

 

 

 

(1)
All other net revenue is from Europe eCommerce, Licensing and Retail that does not meet the quantitative thresholds
(2)
Other cost of goods sold includes royalty expense, tariff recovery, donations and other miscellaneous cost of goods sold
(3)
Other segment expenses include credit card fees, customer service, webhosting, supplies and other miscellaneous expenses

 

 

The reconciliation between segment variable profit to consolidated income (loss) before income taxes is as follows:

 

 

 

13 Weeks Ended

 

 

13 Weeks Ended

 

(in thousands)

 

July 31, 2026

 

 

August 1, 2025

 

Segment variable profit

 

$

71,401

 

 

$

56,690

 

All other variable profit (1)

 

 

2,260

 

 

 

8,306

 

Depreciation expense

 

 

(6,147

)

 

 

(7,656

)

Unallocated corporate expenses (2)

 

 

(59,327

)

 

 

(53,357

)

Interest expense

 

 

(1,021

)

 

 

(9,262

)

Other income, net

 

 

1,051

 

 

 

3

 

Income (loss) before income taxes

 

$

8,217

 

 

$

(5,276

)

 

(1)
All other variable profit is from Europe eCommerce, Licensing and Retail that does not meet the quantitative thresholds
(2)
Unallocated corporate expenses include fixed personnel costs, strategic alternative costs, incentive compensation, office occupancy, information technology and professional fees

 

 

 

 

26 Weeks Ended

 

 

26 Weeks Ended

 

(in thousands)

 

July 31, 2026

 

 

August 1, 2025

 

Segment variable profit

 

$

105,474

 

 

$

109,584

 

All other variable profit (1)

 

 

7,238

 

 

 

14,151

 

Depreciation expense

 

 

(12,247

)

 

 

(15,947

)

Unallocated corporate expenses (2)

 

 

(136,386

)

 

 

(106,175

)

Gain on WHP Transaction

 

 

491,622

 

 

 

—

 

Loss on extinguishment of debt

 

 

(9,172

)

 

 

—

 

Interest expense

 

 

(6,535

)

 

 

(18,527

)

Other income, net

 

 

915

 

 

 

14

 

Income (loss) before income taxes

 

$

440,909

 

 

$

(16,900

)

 

(1)
All other variable profit is from Europe eCommerce, Licensing and Retail that does not meet the quantitative thresholds
(2)
Unallocated corporate expenses include fixed personnel costs, strategic alternative costs, incentive compensation, office occupancy, information technology and professional fees

 

 

Net revenue is presented by distribution channel in the following tables:

 

 

 

13 Weeks Ended

 

% of Net

 

 

13 Weeks Ended

 

% of Net

 

(in thousands)

 

July 31, 2026

 

Revenue

 

 

August 1, 2025

 

Revenue

 

Net revenue:

 

 

 

 

 

 

 

 

 

 

U.S. eCommerce

 

$

182,400

 

 

60.4

%

 

$

167,268

 

 

56.9

%

Outfitters

 

 

69,318

 

 

23.0

%

 

 

66,424

 

 

22.6

%

Third Party

 

 

17,180

 

 

5.7

%

 

 

21,562

 

 

7.3

%

Total U.S. Digital Segment Revenue

 

 

268,898

 

 

 

 

 

255,254

 

 

 

Europe eCommerce

 

 

19,739

 

 

6.5

%

 

 

19,639

 

 

6.7

%

Licensing and Retail

 

 

13,401

 

 

4.4

%

 

 

19,186

 

 

6.5

%

Total Net revenue

 

$

302,038

 

 

 

 

$

294,079

 

 

 

 

 

 

 

26 Weeks Ended

 

% of Net

 

 

26 Weeks Ended

 

% of Net

 

(in thousands)

 

July 31, 2026

 

Revenue

 

 

August 1, 2025

 

Revenue

 

Net revenue:

 

 

 

 

 

 

 

 

 

 

U.S. eCommerce

 

$

335,739

 

 

62.1

%

 

$

338,016

 

 

60.9

%

Outfitters

 

 

107,811

 

 

19.9

%

 

 

109,346

 

 

19.7

%

Third Party

 

 

30,471

 

 

5.6

%

 

 

35,644

 

 

6.4

%

Total U.S. Digital Segment Revenue

 

 

474,021

 

 

 

 

 

483,006

 

 

 

Europe eCommerce

 

 

40,266

 

 

7.5

%

 

 

37,490

 

 

6.7

%

Licensing and Retail

 

 

26,667

 

 

4.9

%

 

 

34,791

 

 

6.3

%

Total Net revenue

 

$

540,954

 

 

 

 

$

555,287