Lands' End surges 34% on $300M joint venture with WHP Global
Retailer to repay debt entirely as licensing partnership unlocks brand value
Lands' End shares surged more than 34% on Monday after the clothing retailer announced a joint venture with WHP Global that will deliver $300 million in cash and eliminate the company's entire debt burden.
The stock climbed to $18.77 in morning trading, adding roughly $4.72 per share, after the Wisconsin-based retailer revealed it would form a 50-50 joint venture to monetize its intellectual property. The transaction represents a significant restructuring for a company that had struggled with declining earnings despite maintaining relatively stable revenue.
WHP Global, a brand management company that oversees intellectual property for companies including Anne Klein and Joseph Abboud, will pay $300 million for its half-stake in the joint venture. Lands' End intends to use the proceeds to fully repay its $234 million term loan, with remaining funds allocated for general corporate purposes.
The deal includes a tender offer from WHP Global to purchase up to $100 million of Lands' End shares at $45 per share—a 138% premium to Friday's closing price of $18.88. The offer will be subject to proration, and is expected to leave WHP Global owning approximately 7% of Lands' End's outstanding common stock upon completion.
"This joint venture represents a fantastic opportunity for Lands' End and will enable an even brighter future for the company and brand," said Josephine Linden, chair of the Lands' End board. "After carefully reviewing the full range of strategic alternatives available to the company, the board determined that this structure delivers Lands' End stockholders superior long-term, risk-adjusted value."
Under the agreement, Lands' End will contribute all of its brand-related intellectual property and licensing assets to the joint venture, while maintaining full operational control of its existing direct-to-consumer and business-to-business operations. The company will receive a long-term, royalty-bearing license to continue operating its core businesses, with guaranteed minimum royalty payments of $50 million annually for the first 11 years, increasing thereafter.
The structure allows Lands' End to unlock the value of its brand while preserving operational continuity—a crucial consideration given the company's recent financial performance. In its most recent quarter ended October 31, 2025, Lands' End reported a 64.7% decline in earnings per share to $0.37, while revenue slipped just 0.4% to $1.31 billion over the trailing twelve months.
Chief Executive Officer Andrew McLean framed the partnership as recognition of the brand's enduring value. "Partnering with WHP Global in this way is clear recognition of the enduring value of Lands' End's extraordinary brand and provides a unique opportunity to supercharge the Lands' End licensing business," he said. "With a strengthened balance sheet, Lands' End will be well positioned to execute on opportunities to drive growth and stockholder value."
WHP Global will lead the joint venture's global licensing strategy and brand expansion efforts, leveraging its platform that spans more than 80 countries and 225 license partners. "We see significant opportunity to expand the reach of the Lands' End brand both in the U.S. and globally," said Yehuda Shmidman, founder, chairman and chief executive officer of WHP Global.
The joint venture includes a provision that could enable Lands' End to exchange its 50% interest for equity in WHP Global during certain monetization events, such as a public listing or majority sale, at the same valuation multiple. This creates potential additional upside for Lands' End shareholders beyond the immediate cash infusion.
Analysts had maintained a largely positive outlook on Lands' End prior to the announcement, with a consensus "buy" rating and an average price target of $20, suggesting the rally may have room to run despite the sharp gains. The stock had been trading near its 52-week high of $17.12 before Monday's surge, up significantly from its 52-week low of $7.65.
The transaction is expected to close in the first half of 2026, subject to regulatory approvals and other customary closing conditions. For investors, the deal transforms Lands' End from a traditional retailer carrying significant debt into a financially flexible company with a strengthened balance sheet and a partner focused on maximizing the value of its brand through global licensing expansion.