Lands' End, Inc.

Good day, and welcome to the Lands End Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in listen-only mode. As a reminder, this call is being recorded. I would like to turn the call over to Bernard McCracken, Chief Accounting Officer. You may begin.

Good morning, and thank you for joining the Lands End Earnings Call for a discussion of our fourth quarter and fiscal 2021 results, which we released this morning and can be found on our website, landsend.com. On the call today, you will hear from Jerome Griffith, our Chief Executive Officer, and Jim Gooch, our President and Chief Financial Officer. After the company's prepared remarks, we will conduct a question and answer session. Please also note that the information we're about to discuss includes forward-looking statements. Such statements involve risks and uncertainties. The company's actual results could differ materially from those discussed on this call. Factors that could contribute to such differences include but are not limited to those items noted and included in the company's SEC filings, including our annual report on Form 10-K and quarterly reports on Form 10-Q. The forward-looking information that is provided by the company on this call represents the company's outlook as of today, and we do not undertake any obligation to update forward-looking statements made by us. Subsequent events and developments may cause the company's outlook to change. During this call, we'll be referring to non-GAAP measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures can be found in our earnings release issued earlier today, a copy of which is posted in the investor relations section of our website at landsend.com. With that, I will turn the call over to Jerome Griffith.

Thank you, Bernie. Good morning, everyone, and thank you all for joining us today for a discussion of our fourth quarter and full year performance. Looking back at 2021, I'm incredibly proud of our performance, particularly in light of the industry-wide challenges we faced. We delivered 15% revenue growth and 39% adjusted EBITDA growth for the year, despite global supply chain headwinds. We also generated the highest revenue the company has seen since 2011 and the highest adjusted EBITDA since 2014. which was the first year as a public company after our spinoff from Sears. This performance demonstrates the strength of our business model and the strong execution and resiliency of our teams as we continued to advance our strategic growth pillars. As I shared in the past, we believe the size of our total addressable market has grown, and we have the opportunity to gain share long term. Beyond strong sales growth, we hit a record high number of customers in the U.S., approximately 5.8 million. representing 5% growth versus prior year. The U.S. e-commerce also delivered strong results as average unit retail and revenue both achieved growth of over 6% versus 2020. I'd like to thank our team for their commitment and dedication as they continue to perform at a superior level throughout this challenging operating environment. Now, I will provide some brief highlights from the fourth quarter. While our year was outstanding, our fourth quarter performance was impacted by supply chain challenges that we, along with the rest of the industry, continue to navigate. As a result, Q4 performance was slightly below our expectations, with revenue up 3% and adjusted EBITDA of $27 million. We continue to make steps to mitigate these impacts while maintaining our focus on our four strategic growth pillars. Starting with product, our successful Let's Get Comfy campaign continues to resonate with consumers, and we plan to carry this message forward as we know that casual, comfortable apparel remains a top priority for our customers. We believe that the strong casualization trend is here to stay, with comfort and versatility remaining important product attributes as we collectively emerge from the pandemic. Our customers love our one closet focus, versatile assortment, as well as the broad range of sizes and the consistent quality of our fit that we offer. As we highlighted last quarter, fit is a critical component of our product offering. And according to TrueFit, Land's End is ranked as the number one favorite fit with consumers ages 55 to 64 and is ranked number six in fit overall. We know that our product offerings continue to align with customers' needs based on the strong sell-through that we saw with in-stock merchandise. Importantly, our basic products, where we have implemented our demand forecasting and replenishment programs, were areas of strength. Trends in cashmere sweaters, khakis, woven categories, dress pants, dress separates, and women's dresses were strong as our customers began to refresh their wardrobes in preparation for a return to more routine activities. Performance in our home category was also strong, driven largely by our bedding offering. The momentum in sleepwear continued becoming one of our leading categories as we continue to build upon last year's successful offerings. We also benefited from our swimwear business, where the category is extending well beyond its historical selling season due to our more versatile and expanded offering. Turning to our marketing investments, we continue to drive our customer engagement and attract new customers to the brand through our refinement of our SEO functionalities, investments in social media channels, and catalog efficiency. For the year, our global customer base grew 5% to 7.1 million, with a record number of new customers. Search engine optimization remains a highly efficient marketing tool for us to attract new customers and drive frequency among our existing customers. Turning now to our third-party partnerships. Our performance at Kohl's continued to exceed our expectations, and we remain very excited about its partnership. We are continuing to extend and grow with Kohl's as we look to build on our early strength. We also introduced a limited test with QVC in the fourth quarter. We plan to expand our offering this spring and are highly encouraged by the early results. These partnerships are proving to be highly effective vehicles to expand our brand awareness, and our product is resonating and attracting new customers with similar profiles to the Land's End demographic. We're proud of our accomplishments over the past few years, building a solid foundation with proven strategies to drive long-term profitable growth. With that, I will turn the call over to Jim, who will provide you with greater detail on our financial performance during the fourth quarter and our outlook for 2022.