LANDS' END, INC. Leases Disclosure
NOTE 4. LEASES
The following table summarizes the Company’s components of lease expense, primarily related to Company Operated stores, which is included in Selling and administrative expense in the Consolidated Statements of Operations:
(in thousands) |
|
Fiscal 2025 |
|
|
Fiscal 2024 |
|
|
Fiscal 2023 |
|
|||
Operating lease expense |
|
$ |
5,195 |
|
|
$ |
5,718 |
|
|
$ |
6,340 |
|
Variable lease expense |
|
|
2,013 |
|
|
|
2,529 |
|
|
|
2,572 |
|
Total lease expense |
|
$ |
7,208 |
|
|
$ |
8,247 |
|
|
$ |
8,912 |
|
Short-term lease cost was not material for Fiscal 2025 and Fiscal 2023. Short-term lease cost was $1.4 million for Fiscal 2024.
Supplemental balance sheet information related to operating leases are as follows:
($'s in thousands) |
|
Fiscal 2025 |
|
|
Fiscal 2024 |
|
||
Operating lease right-of-use asset |
|
$ |
15,680 |
|
|
$ |
20,373 |
|
Lease liability – current |
|
|
4,434 |
|
|
|
4,534 |
|
Lease liability – long-term |
|
|
14,264 |
|
|
|
20,007 |
|
Weighted average remaining lease term in years |
|
|
4.4 |
|
|
|
5.3 |
|
Weighted average discount rate |
|
|
6.64 |
% |
|
|
6.71 |
% |
Supplemental cash flow information related to operating leases are as follows:
(in thousands) |
|
Fiscal 2025 |
|
|
Fiscal 2024 |
|
|
Fiscal 2023 |
|
|||
Operating cash outflows from operating leases |
|
$ |
6,349 |
|
|
$ |
7,980 |
|
|
$ |
8,060 |
|
Operating lease right-of-use-assets (reversal) obtained in exchange for lease liabilities |
|
|
(959 |
) |
|
|
302 |
|
|
|
(2,236 |
) |
Maturities of operating lease liabilities as of January 30, 2026 are as follows:
(in thousands) |
|
|
|
|
2026 |
|
$ |
5,517 |
|
2027 |
|
|
5,282 |
|
2028 |
|
|
4,514 |
|
2029 |
|
|
3,100 |
|
2030 |
|
|
1,843 |
|
Thereafter |
|
|
1,262 |
|
Total operating lease payments |
|
|
21,518 |
|
Less imputed interest |
|
|
2,820 |
|
Present value of lease liabilities |
|
$ |
18,698 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 26, 2026 | Showing above |
| 2025 | Mar 27, 2025 | |
| 2024 | Apr 3, 2024 | |
| 2023 | Apr 10, 2023 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.