Financial Analysis

NOTE 6. DEBT ABL Facility The Companys $ 225.0 million committed revolving ABL Facility, as amended to date, includes a $ 35.0 million sublimit for letters of credit and is available for working capital and other general corporate liquidity needs. The amount available to borrow is the lesser of (1) the Aggregate Commitments of $ 225.0 million or (2) the Borrowing Base or Loan Cap which is calculated from Eligible Inventory, Trade Receivables and Credit Card Receivables, all foregoing capitalized terms not defined herein are as defined in the ABL Facility. The following table summarizes the Companys ABL Facility borrowing availability: May 1, 2026 May 2, 2025 January 30, 2026 (in thousands) Amount Interest Rate Amount Interest Rate Amount Interest Rate ABL Facility limit $ 225,000 $ 225,000 $ 225,000 Borrowing Base 145,791 137,871 133,624 Outstanding borrowings 30,000 5.16 % 40,000 6.09 % Outstanding letters of credit 11,544 11,030 10,978 ABL Facility utilization at end of period 41,544 51,030 10,978 ABL Facility borrowing availability $ 104,247 $ 86,841 $ 122,646 Effective with the Fifth Amendment to the ABL Facility, dated March 28, 2025 (the Fifth Amendment), a 0.10 % adjustment to the SOFR benchmark interest rate was eliminated and the benchmark rates under the ABL Credit Agreement are, at the election of the Company, either: (1) Term SOFR (which is a forward looking term rate based on the secured overnight financing rate), or (2) a Base Rate (which is the greatest of (a) …

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The Companys revenue is disaggregated by distribution channel and geographic location. Revenue by distribution channel is presented in Note 13, Segment Reporting . Revenue by geographic location was: 13 Weeks Ended (in thousands) May 1, 2026 May 2, 2025 Net revenue: United States $ 216,055 $ 241,063 Europe 21,026 18,319 Other 1,835 1,826 Total Net revenue $ 238,916 $ 261,208 …

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NOTE 7. STOCK-BASED COMPENSATION The Company expenses the fair value of all stock awards over their requisite service period, ensuring that the amount of cumulative stock-based compensation expense recognized at any date is at least equal to the portion of the grant-date fair value of the award that is vested at that date. The Company has elected to adjust stock-based compensation expense for an estimated forfeiture rate for those shares not expected to vest and to recognize stock-based compensation expense on a straight-line basis for awards that only have a service requirement with multiple vest dates. The Company has granted the following types of stock awards to employees at management levels and above, each of which are granted under the Companys stockholder approved stock plans, other than inducement grants outside of the Companys stockholder approved stock plans in accordance with Nasdaq Listing Rule 5635(c)(4): Deferred Awards are in the form of restricted stock units and only require each recipient to complete a service period for the awards to be earned. Deferred Awards generally vest over three years . The fair value of Deferred Awards is based on the closing price of the Companys common stock on the grant date. Stock-based compensation expense is recognized ratably over the service period and is reduced for estimated forfeitures of those awards not expected to vest due to employee turnover. Performance Awards are in the form of restricted stock units and have, in …

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NOTE 10. FAIR VALUE MEASUREMENTS OF FINANCIAL ASSETS AND LIABILITIES Cash and cash equivalents and restricted cash is reflected on the Condensed Consolidated Balance Sheets at fair value based on Level 1 inputs. Cash and cash equivalents and restricted cash amounts are valued based upon statements received from financial institutions. The fair value of restricted cash was $ 0.5 million, $ 2.2 million and $ 0.6 million as of May 1, 2026, May 2, 2025 and January 30, 2026, respectively. Carrying amounts and fair values of long-term debt, including current portion were as follows: May 1, 2026 May 2, 2025 January 30, 2026 (in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Carrying Amount Fair Value Long-term debt, including current portion $ $ - $ 243,750 $ 239,442 $ 234,000 $ 235,780 The Company had no outstanding long-term debt as of May 1, 2026. Prior to its repayment on April 1, 2026, the fair value of the Term Loan Facility was classified as a Level 3 measurement within the fair value hierarchy. The Company estimated fair value using a combination of valuation techniques, including a Black-Derman-Toy model and observable and unobservable market inputs, reflecting the instruments contractual terms, including its optional redemption features. There were no nonfinancial assets or nonfinancial liabilities recognized at fair value on a nonrecurring basis as of May 1, 2026, May 2, 2025 and January 30, 2026 . …

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NOTE 11. INCOME TAXES Provision for Income Taxes At the end of each quarter, the Company estimates its effective income tax rate pursuant to ASC 740. The rate for the period consists of the tax rate expected to be applied for the full year to ordinary income adjusted for any discrete items recorded in the period. The Company recorded tax expense at an overall effective tax rate of 23.6 % for the 13 weeks ended May 1, 2026 and a tax benefit of 28.9 % for the 13 weeks ended May 2, 2025. The overall effective tax rate for the 13 weeks ended May 1, 2026, varies from the U.S. statutory rate of 21 % as a result of state taxes and non-deductible expenses. The overall effective tax rate for the 13 weeks ended May 2, 2025, varies from the U.S. statutory rate of 21 % as a result of state taxes and non-deductible expenses. On April 1, 2026, the Company finalized a joint venture transaction with WHP Global that included sale of 50 % interest in its intellectual property. The Company recorded tax expense of $ 122.2 million as a result of the transaction.

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NOTE 12. COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company is party to various claims, legal proceedings and investigations arising in the ordinary course of business. Some of these actions involve complex factual and legal issues and are subject to uncertainties. At this time, the Company is not able to either predict the outcome of these legal proceedings or reasonably estimate a potential range of loss with respect to the proceedings. While it is not feasible to predict the outcome of such pending claims, proceedings and investigations with certainty, management is of the opinion that their ultimate resolution should not have a material adverse effect on results of operations, cash flows or financial positions taken as a whole.

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In September 2025, the FASB issued Accounting Standards Update (ASU) 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which modernizes the accounting for internal-use software to current development practices, clarifies when to begin capitalizing costs and enhances disclosure requirements. This update is effective for interim and annual periods beginning after December 15, 2027, with early adoption permitted . The Company is currently assessing the impact of ASU 2025-06 on the Companys Condensed Consolidated Financial Statements. In July 2025, the FASB issued ASU 2025-05, Financial InstrumentsCredit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets , which provides targeted relief for entities estimating expected credit losses on short-term receivables and contract assets under Topic 606. The guidance allows entities to bypass the requirement to incorporate macroeconomic data into their forecasts when such data is not expected to materially affect the estimate. ASU 2025-05 is effective for the annual periods beginning after December 15, 2025. The Company is currently assessing the impact of ASU 2025-05 on the Companys Condensed Consolidated Financial Statements. In November 2024, the FASB issued ASU 2024-03 Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income St …

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NOTE 14. REVENUE Net Revenue Product Sales Revenue includes sales of merchandise and delivery revenue related to merchandise sold. Substantially all of the Companys revenue is recognized when control of product passes to customers, which for the U.S. eCommerce, Europe eCommerce, Outfitters and Third Party distribution channels is when the merchandise is received by the customer and for the Retail distribution channel is at the time of sale in the store. The Company recognizes revenue, including shipping and handling fees billed to customers, in the amount expected to be received when control of the Companys products transfers to customers, and is presented net of various forms of promotions, which range from contractually fixed percentage price reductions to sales returns, discounts and other incentives that may vary in amount. Variable amounts are estimated based on an analysis of historical experience and adjusted as better estimates become available. The Companys revenue is disaggregated by distribution channel and geographic location. Revenue by distribution channel is presented in Note 13, Segment Reporting . Revenue by geographic location was: 13 Weeks Ended (in thousands) May 1, 2026 May 2, 2025 Net revenue: United States $ 216,055 $ 241,063 Europe 21,026 18,319 Other 1,835 1,826 Total Net revenue $ 238,916 $ 261,208 Licensing Agreements The Company generates revenue from fulfillment services performed on behalf of third-parties for product sold on the Companys website …

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NOTE 13. SEGMENT REPORTING The Company identifies operating segments according to how business activities are managed and evaluated. The Companys operating segments consisted of: U.S. eCommerce, Europe eCommerce, Outfitters, Third Party, Licensing and Retail. U.S. eCommerce offers products through the Companys 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 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 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 Companys 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 Companys CODM …

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NOTE 8. STOCKHOLDERS EQUITY Share Repurchase Program On April 1, 2026, the Company announced that its Board of Directors authorized the Company to repurchase up to $ 100 million of the Companys common stock through March 31, 2029 (the 2026 Share Repurchase Program). Under the 2026 Share Repurchase Program, the Company may repurchase its common stock through open market purchases, in privately negotiated transactions, or by other means in accordance with federal securities laws, including Rule 10b-18 of the Exchange Act. The amount and timing of purchases were determined by the Companys management depending upon market conditions and other factors and may be made pursuant to a Rule 10b5-1 trading plan. As of May 1, 2026, additional purchases of up to $ 99.7 million could be made under the 2026 Share Repurchase Program. On March 15, 2024, the Company announced that its Board of Directors authorized the Company to repurchase up to $ 25.0 million of the Companys common stock through March 31, 2026 (the 2024 Share Repurchase Program). Under the 2024 Share Repurchase Program, the Company repurchased its common stock through open market purchases, in privately negotiated transactions, or by other means in accordance with federal securities laws, including Rule 10b-18 of the Exchange Act. The amount and timing of purchases were determined by the Companys management depending upon market conditions and other factors and were also made from time to time pursuant to Rule 10b5-1 trading …

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