Lands’ End is continuing to work through an inventory backlog following challenges encountered during the implementation of its new warehouse management system (WMS) in the first quarter, CEO Charlie Cole said during the company’s Q2 earnings call.
The WMS encountered difficulties processing products requiring value-added services, affecting the timing of school uniform shipments. The resulting disruption delayed some deliveries and pushed backlog levels above those recorded a year earlier.
Despite the difficulties, Lands’ End says its operations have largely returned to normal. Cole told analysts that “operations are proceeding as normal,” while CFO Bernard McCracken said the company is confident that the WMS-related problems affecting its core U.S. e-commerce business have been addressed.
Long-term benefits remain in focus
While the rollout created short-term operational challenges, Lands’ End remains positive about the potential benefits of the upgraded WMS.
Cole said the company expects to unlock additional efficiencies once the warehouse management system can be supported by other software solutions. The broader technology setup is expected to improve operational performance over time.
The recovery from the implementation issues nevertheless contributed to a 13% year-over-year increase in Q2 inventory, according to Cole.
The comparison was also influenced by Lands’ End’s inventory strategy in the previous year. The retailer had deliberately maintained leaner inventory levels amid uncertainty surrounding tariffs, making this year’s comparison less favorable.
“We remain confident in our holiday assortment and expect inventory to remain within typical levels,” McCracken said.
Other retailers pursuing WMS upgrades
Lands’ End is not alone in looking to warehouse management technology to improve supply chain operations.
Jewelry retailer Pandora is another example. Earlier this year, the company overhauled its supply chain technology stack, including the implementation of a new WMS designed to support operational flows from manufacturing through to distribution centers.
For Lands’ End, the immediate priority remains clearing the inventory backlog while ensuring that the new warehouse technology operates reliably. The company nevertheless continues to view the WMS investment as a longer-term opportunity to improve efficiency across its operations.
