Lands’ End’s implementation of a Manhattan warehouse management system spurred a one-week backlog across its distribution centers in Q1, CEO Andrew McLean said during a June 9 earnings call.
The temporary snag impacted the pacing of shipments as the company worked to get its distribution centers back to normal capacity, according to CFO and Treasurer Bernard McCracken. He further clarified that the hiccup impacted shipment timing but was not a demand issue, adding that the company expected a portion of the impacted volume to return in Q2.
While brief, the disruption dampened the company’s total revenue by 9% year over year and brought U.S. e-commerce business net revenue down 10% compared to Q1 2025, McCracken told analysts. However, the company has resolved the warehouse issue.
“That is behind us,” McCracken said. “We have completed that implementation and are back on pace and shipping on time.”
Despite the disruption, Lands’ End said the implemented WMS has fueled supply chain wins for the retailer. McLean said that the company has been able to complete and fulfill orders within a day of using the system.
“That’s really important because that cuts down on our delivery time for a standard order, roughly 20% to 25%, and I think that’s an important enabler,” the CEO told analysts.
Lands’ End is one of many retailers looking to improve distribution performance and efficiency by leveraging WMS technology. Last year, grocery chain Giant Eagle implemented the Manhattan Active Warehouse Management system at its fifth facility and mentioned plans to transition to two more distribution centers by September 2025.
Office supply store Staples also has rolled out the platform at nine fulfillment centers over the past several years in a bid to reduce errors and improve order and inventory management. Last year, the retailer said it planned to implement the warehouse management system across the rest of its distribution centers by the end of 2026.
Meanwhile, sporting goods retailer Academy Sports and Outdoors is leveraging a WMS platform to fuel its omnichannel strategy, while regional grocery chain Hy-Vee has boosted delivery performance and distribution efficiency by implementing the technology.
