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Segment Reporting | 6 Months Ended
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Aug. 01, 2025
Segment Reporting [Abstract] |
Segment Reporting | NOTE 12. SEGMENT REPORTING The Company identifies operating segments according to how business activities are managed and evaluated. Following internal organizational changes and realignment of distribution channel responsibilities in Fourth Quarter 2024, the Company’s operating segments consisted of: U.S. eCommerce, Europe eCommerce, Outfitters, Third Party, Licensing and Retail. Beginning Fourth Quarter 2024, the Wholesale business is included in Licensing and prior periods were recast to reflect the change in operating segments for comparability purposes. • U.S. eCommerce offers products through the Company’s eCommerce website. • Europe eCommerc e 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 earns royalties on the use of Lands’ End trademark and any fulfillment 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 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 |
|  | August 1, 2025 |  |  | August 2, 2024 |
(in thousands) |  | Segment |  | Total |  |  | Segment |  | Total |
Net revenue |  | $ | 255,254 |  | $ | 255,254 |  |  | $ | 270,361 |  | $ | 270,361 |
All other net revenue (1) |  |  |  |  | 38,825 |  |  |  |  |  | 46,812 |
Total consolidated net revenue |  |  |  | $ | 294,079 |  |  |  |  | $ | 317,173 |
Product cost of goods sold |  |  | 100,484 |  |  |  |  |  | 105,675 |  |  |
Shipping cost of goods sold |  |  | 32,962 |  |  |  |  |  | 34,808 |  |  |
Marketing costs |  |  | 43,283 |  |  |  |  |  | 41,883 |  |  |
Variable personnel costs |  |  | 14,631 |  |  |  |  |  | 17,066 |  |  |
Other segment expenses (2) |  |  | 7,204 |  |  |  |  |  | 8,119 |  |  |
Segment variable profit |  | $ | 56,690 |  |  |  |  | $ | 62,810 |  |  |
(1) All other net revenue is from Europe eCommerce, Licensing and Retail that does not meet the quantitative thresholds (2) Other segment expenses include credit card fees, customer service, webhosting, supplies and other miscellaneous expenses
|  | 26 Weeks Ended |  |  | 26 Weeks Ended |
|  | August 1, 2025 |  |  | August 2, 2024 |
(in thousands) |  | Segment |  | Total |  |  | Segment |  | Total |
Net revenue |  | $ | 483,006 |  | $ | 483,006 |  |  | $ | 499,089 |  | $ | 499,089 |
All other net revenue (1) |  |  |  |  | 72,281 |  |  |  |  |  | 103,555 |
Total consolidated net revenue |  |  |  | $ | 555,287 |  |  |  |  | $ | 602,644 |
Product cost of goods sold |  |  | 184,085 |  |  |  |  |  | 185,463 |  |  |
Shipping cost of goods sold |  |  | 62,151 |  |  |  |  |  | 68,042 |  |  |
Marketing costs |  |  | 83,216 |  |  |  |  |  | 80,985 |  |  |
Variable personnel costs |  |  | 30,201 |  |  |  |  |  | 33,110 |  |  |
Other segment expenses (2) |  |  | 13,769 |  |  |  |  |  | 13,803 |  |  |
Segment variable profit |  | $ | 109,584 |  |  |  |  | $ | 117,686 |  |  |
(1) All other net revenue is from Europe eCommerce, Licensing and Retail that does not meet the quantitative thresholds (2) Other segment expenses include credit card fees, customer service, webhosting, supplies and other miscellaneous expenses The reconciliation between segment variable profit to consolidated loss before income taxes is as follows:
|  | 13 Weeks Ended |  |  | 13 Weeks Ended |
(in thousands) |  | August 1, 2025 |  |  | August 2, 2024 |
Segment variable profit |  | $ | 56,690 |  |  | $ | 62,810 |
All other variable profit (1) |  |  | 8,306 |  |  |  | 9,186 |
Depreciation expense |  |  | (7,656 | ) |  |  | (8,692 | )
Unallocated corporate expenses (2) |  |  | (53,357 | ) |  |  | (60,818 | )
Interest expense |  |  | (9,262 | ) |  |  | (10,447 | )
Other income, net |  |  | 3 |  |  |  | 84 |
Loss before income taxes |  | $ | (5,276 | ) |  | $ | (7,877 | )
(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, incentive compensation, office occupancy, information technology and professional fees
|  | 26 Weeks Ended |  |  | 26 Weeks Ended |
(in thousands) |  | August 1, 2025 |  |  | August 2, 2024 |
Segment variable profit |  | $ | 109,584 |  |  | $ | 117,686 |
All other variable profit (1) |  |  | 14,151 |  |  |  | 19,511 |
Depreciation expense |  |  | (15,947 | ) |  |  | (17,697 | )
Unallocated corporate expenses (2) |  |  | (106,175 | ) |  |  | (114,781 | )
Interest expense |  |  | (18,527 | ) |  |  | (20,783 | )
Other income, net |  |  | 14 |  |  |  | 172 |
Loss before income taxes |  | $ | (16,900 | ) |  | $ | (15,892 | )
(1) All other variable profit is from Europe eCommerce, Licensing and Retail that does not meet the quantitative thresholds (1) Unallocated corporate expenses include fixed personnel 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) |  | August 1, 2025 |  | Revenue |  |  | August 2, 2024 |  | Revenue |
Net revenue: |  |  |  |  |  |  |  |  |  |
U.S. eCommerce |  | $ | 167,268 |  |  | 56.9 | % |  | $ | 188,336 |  |  | 59.4 | %
Outfitters |  |  | 66,424 |  |  | 22.6 | % |  |  | 63,159 |  |  | 19.9 | %
Third Party |  |  | 21,562 |  |  | 7.3 | % |  |  | 18,866 |  |  | 6.0 | %
Total U.S. Digital Segment Revenue |  |  | 255,254 |  |  |  |  |  | 270,361 |  |  |
Europe eCommerce |  |  | 19,639 |  |  | 6.7 | % |  |  | 22,950 |  |  | 7.2 | %
Licensing and Retail |  |  | 19,186 |  |  | 6.5 | % |  |  | 23,862 |  |  | 7.5 | %
Total Net revenue |  | $ | 294,079 |  |  |  |  | $ | 317,173 |  |  |
|  | 26 Weeks Ended |  | % of Net |  |  | 26 Weeks Ended |  | % of Net |
(in thousands) |  | August 1, 2025 |  | Revenue |  |  | August 2, 2024 |  | Revenue |
Net revenue: |  |  |  |  |  |  |  |  |  |
U.S. eCommerce |  | $ | 338,016 |  |  | 60.9 | % |  | $ | 358,868 |  |  | 59.5 | %
Outfitters |  |  | 109,346 |  |  | 19.7 | % |  |  | 105,836 |  |  | 17.6 | %
Third Party |  |  | 35,644 |  |  | 6.4 | % |  |  | 34,385 |  |  | 5.7 | %
Total U.S. Digital Segment Revenue |  |  | 483,006 |  |  |  |  |  | 499,089 |  |  |
Europe eCommerce |  |  | 37,490 |  |  | 6.7 | % |  |  | 47,918 |  |  | 8.0 | %
Licensing and Retail |  |  | 34,791 |  |  | 6.3 | % |  |  | 55,637 |  |  | 9.2 | %
Total Net revenue |  | $ | 555,287 |  |  |  |  | $ | 602,644 |  |  |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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