By Adriano Marchese

Lands' End swung to a profit in its first quarter on a gain from its WHP Global Investment, while warehousing and shipment issues which weighed on revenue.

For the three months ended May 1, the apparel and home goods retailer posted net income of $330.7 million, or $10.56 a share, compared with a loss of $8.3 million, or 27 cents a share, in the same quarter a year ago.

The quarter's profit benefited from an investment for WHP Global, the brand management firm that owns Anne Klein, Toys "R" Us, and Bonobos, Lands' End said Tuesday.

On an adjusted basis, which excludes one-off items and costs, the company logged a loss of 11 cents a share. According to FactSet, analysts were expecting a loss of 20 cents a share.

Net revenue fell 8.5% to $238.9 million, missing analysts' forecasts, which had expected a rise to $268.7 million.

Lands' End said that its rollout of a new warehouse-management system was disrupted and the company had to adjust the pacing of its shipments as the distribution centers ramped back to normal capacity.

Without the interruption, Lands' End figured it would have delivered low-single-digit revenue growth in the quarter.

Inventories were also about 14% higher at the end of the quarter, the company said, reflecting the timing effects of the distribution center ramp-up as well as the effects of tariffs. Lands' End expects these levels to align better with its revenue trajectory as operations normalize.

Chief Executive Andrew McLean said the business is benefiting from an underlying momentum. "Consumer traffic was up double digits, new customer acquisition improved, and our European business delivered strong double-digit revenue growth," he said.

Looking ahead to the second quarter, the company expects revenue of $290 million to $310 million, with a net loss of between $2 million and $5 million. On a per-share basis, that would be a loss of between 6 cents and 16 cents.

Adjusted earnings are expected to be between 6 cents and 16 cents.

Analysts expect revenue of $304 million and adjusted earnings of 6 cents to 16 cents.

For the full year, the company expects revenue of $1.3 billion to $1.4 billion, with net income between $310 million and $320 million, which on a per-share basis represents a profit of $10.02 a share to $10.34 a share.

Adjusted income is expected to be between 32 cents and 65 cents.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

June 09, 2026 07:16 ET (11:16 GMT)

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