LANDS' END, INC. Segments Disclosure
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.
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 . 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:
|
Fiscal 2025 |
|
|
Fiscal 2024 |
|
|
Fiscal 2023 |
|
||||||||||||
(in thousands) |
Segment |
|
Total |
|
|
Segment |
|
Total |
|
|
Segment |
|
Total |
|
||||||
Net revenue |
$ |
1,162,769 |
|
$ |
1,162,769 |
|
|
$ |
1,154,442 |
|
$ |
1,154,442 |
|
|
$ |
1,293,178 |
|
$ |
1,293,178 |
|
All other net revenue (1) |
|
|
|
172,377 |
|
|
|
|
|
208,493 |
|
|
|
|
|
179,330 |
|
|||
Total consolidated net revenue |
|
|
$ |
1,335,146 |
|
|
|
|
$ |
1,362,935 |
|
|
|
|
$ |
1,472,508 |
|
|||
Product cost of goods sold |
|
450,856 |
|
|
|
|
|
444,092 |
|
|
|
|
|
553,169 |
|
|
|
|||
Shipping cost of goods sold |
|
155,555 |
|
|
|
|
|
157,557 |
|
|
|
|
|
190,059 |
|
|
|
|||
Marketing costs |
|
188,002 |
|
|
|
|
|
179,499 |
|
|
|
|
|
174,701 |
|
|
|
|||
Variable personnel costs |
|
66,006 |
|
|
|
|
|
75,465 |
|
|
|
|
|
69,584 |
|
|
|
|||
Other segment expenses (2) |
|
32,707 |
|
|
|
|
|
32,407 |
|
|
|
|
|
39,744 |
|
|
|
|||
Segment variable profit |
$ |
269,643 |
|
|
|
|
$ |
265,422 |
|
|
|
|
$ |
265,921 |
|
|
|
|||
The reconciliation between segment variable profit to consolidated income (loss) before income taxes is as follows:
(in thousands) |
|
Fiscal 2025 |
|
|
Fiscal 2024 |
|
|
Fiscal 2023 |
|
|||
Segment variable profit |
|
$ |
269,643 |
|
|
$ |
265,422 |
|
|
$ |
265,921 |
|
All other variable profit (1) |
|
|
36,990 |
|
|
|
45,949 |
|
|
|
26,405 |
|
Depreciation expense |
|
|
(30,169 |
) |
|
|
(33,772 |
) |
|
|
(38,465 |
) |
Goodwill impairment |
|
|
- |
|
|
|
- |
|
|
|
(106,700 |
) |
Unallocated corporate expenses (2) |
|
|
(232,199 |
) |
|
|
(226,642 |
) |
|
|
(224,676 |
) |
Interest expense |
|
|
(36,717 |
) |
|
|
(40,439 |
) |
|
|
(48,291 |
) |
Loss on extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
(6,666 |
) |
Other income (expense), net |
|
|
203 |
|
|
|
(22 |
) |
|
|
655 |
|
Income (loss) before income taxes |
|
$ |
7,751 |
|
|
$ |
10,496 |
|
|
$ |
(131,817 |
) |
Net revenue is presented by distribution channel in the following table:
(in thousands) |
|
Fiscal 2025 |
|
% of Net Revenue |
|
Fiscal 2024 |
|
% of Net Revenue |
|
Fiscal 2023 |
|
% of Net Revenue |
|||
U.S. eCommerce |
|
$ |
829,812 |
|
62.1% |
|
$ |
842,751 |
|
61.8% |
|
$ |
930,314 |
|
63.2% |
Outfitters |
|
|
241,800 |
|
18.1% |
|
|
228,161 |
|
16.7% |
|
|
269,943 |
|
18.3% |
Third Party |
|
|
91,157 |
|
6.8% |
|
|
83,530 |
|
6.1% |
|
|
92,921 |
|
6.3% |
Total U.S. Digital Segment revenue |
|
|
1,162,769 |
|
|
|
|
1,154,442 |
|
|
|
|
1,293,178 |
|
|
Europe eCommerce |
|
|
90,188 |
|
6.8% |
|
|
103,079 |
|
7.6% |
|
|
112,855 |
|
7.7% |
Licensing and Retail |
|
|
82,189 |
|
6.2% |
|
|
105,414 |
|
7.8% |
|
|
66,475 |
|
4.5% |
Total Net revenue |
|
$ |
1,335,146 |
|
|
|
$ |
1,362,935 |
|
|
|
$ |
1,472,508 |
|
|
The geographical allocation of Net revenue is based upon where the product is shipped. The following presents summarized geographical information:
(in thousands) |
|
Fiscal 2025 |
|
% of Net Revenue |
|
Fiscal 2024 |
|
% of Net Revenue |
|
Fiscal 2023 |
|
% of Net Revenue |
|||
United States |
|
$ |
1,233,048 |
|
92.4% |
|
$ |
1,245,240 |
|
91.4% |
|
$ |
1,342,366 |
|
91.2% |
Europe |
|
|
92,459 |
|
6.9% |
|
|
105,000 |
|
7.7% |
|
|
114,778 |
|
7.8% |
Other |
|
|
9,639 |
|
0.7% |
|
|
12,695 |
|
0.9% |
|
|
15,364 |
|
1.0% |
Total Net revenue |
|
$ |
1,335,146 |
|
|
|
$ |
1,362,935 |
|
|
|
$ |
1,472,508 |
|
|
Other than the United States no geographic region represented more than 10% of Net revenue.
Property and equipment, net by geographical location are as follows:
(in thousands) |
|
Fiscal 2025 |
|
|
Fiscal 2024 |
|
||
United States |
|
$ |
108,508 |
|
|
$ |
109,609 |
|
Europe |
|
|
7,073 |
|
|
|
5,923 |
|
Asia |
|
|
120 |
|
|
|
86 |
|
Total long-lived assets |
|
$ |
115,701 |
|
|
$ |
115,618 |
|
Other than the United States, no geographic region is greater than 10% of total Property and equipment, net.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 26, 2026 | Showing above |
| 2025 | Mar 27, 2025 | |
| 2024 | Apr 3, 2024 | |
| 2023 | Apr 10, 2023 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.