Lands' End, Inc.

Hello and welcome, everyone, joining today's Land's End Third Quarter 2025 Earnings Call. At this time, all participants are in a listen-only mode. Later, you will have the opportunity to ask questions during the question and answer session. To register to ask a question at any time, please press star 1 on your telephone keypad. Please note this call is being recorded. We are standing by if you should need any assistance. It is now my pleasure to turn the meeting over to Tom Alfos. Please go ahead.

Good morning, and thank you for joining us this morning for a discussion of our third quarter 2025 results, which we released this morning and can be found on our website, landsend.com. I'm Tom Alfos, Lands End Senior Director of Financial Planning and Analysis. And I'm pleased to join you today with Andrew McClain, our Chief Executive Officer, and Bernie McCracken, our Chief Financial Officer. After the 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 risk 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 will 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 LandN.com. With that, I'll turn the call over to Andrew.

Thank you, Tom. Good morning, and thank you for joining us. At its core, our third quarter performance was a strong demonstration of our strategy and its ability to drive value for all stakeholders. We generated compelling results, including gross margin expansion, stronger customer engagement, and enhanced brand awareness. And critically, we built on and sustained the positive momentum that began during the second quarter. As a customer-obsessed, solutions-oriented, forward-looking business, we are connecting with customers where and how they want to shop, delivering high-quality solutions that fit their lives. And we're doing all this in an asset-light, agile way that provides the opportunity for us to continue focusing on driving growth and value creation. For example, a return to EPS profitability and 28% growth in our adjusted EBITDA coupled with record gross margin and adjusted EBITDA rates since our spinoff, point to a brand delivering on its potential. In addition, growth in our GMV was supplemented by low single-digit gains in our North American businesses with flat revenues overall. Underpinning these wins is an unwavering belief in the customer. Over the last three years, we have intentionally taken steps to expand our traditional base to include new and evolved product, playing to our strengths with core products or developing new and exciting solutions to reach a broader audience. Our brand is more relevant than ever. Our marketing has expanded from functional to fun. Our product speaks directly to how the customer wants to feel, and our ambitions have found us increasingly meeting the customer where they are. starting with our B2B businesses. One of the most exciting developments in our Outfitters business was securing a long-term partnership with Delta Airlines, which Delta announced in November. Delta selected Land's End as the exclusive design and manufacturing partner for its next generation of uniforms, outfitting more than 60,000 employees worldwide, including airport customer service agents, onboard flight attendants, and ground operations teams. Our school uniform business delivered on the promise we've discussed all year up over 20%, with a broad base of growth from both new and existing schools during the all-important back-to-school season. Turning to B2C, our licensing and third-party marketplace businesses remain major growth drivers. Third-party sales rose 34% year-over-year, led by Amazon and Macy's, both up approximately 40%. Amazon's Prime Week performance was exceptional, with our top 25 items accounting for more than half of our Amazon Marketplace sales. Our performance in this channel is also proving to be a great conduit to LandZen.com, and yet we recognize that we are still only scratching the surface of this opportunity. Our U.S. consumer business profitability increased year over year, with outerwear leading the way, supported by strong results in both knitwear and bottoms. As we've discussed before, we're keenly focused on weatherproofing our assortment. Perhaps no category demonstrates that weatherproofing strategy more than outerwear, which is now an always-on category. with transitional styles like Sherpa and Rainwear extending the season and contributing to our performance. And importantly, we saw the largest new customer increase during a quarter, other than peak COVID in Q3 2020. Traffic increases in our U.S. consumer business were up 25% driven by digital channels, social and search, with the most U.S. e-commerce website third quarter visits ever. a very positive indicator heading into the holiday season. Turning to our holiday strategy, we leveraged learnings from last year and launched our holiday shop in mid-September, well ahead of many brands, and the results were strong. Holiday patterns and novelty assortments sold rapidly. Christmas needlepoint stockings were up high double digits year over year, and several prints in sleepwear and knits sold out quickly. Our focus on customization and personalization continue to resonate, reinforcing our positioning as a solutions-oriented brand. As part of our holiday launch, we executed another very successful pop-up shop in New York City in November called our Chaotically Customized Holiday Shop. We were thrilled to see so many customers come out to customize our iconic tote bags and cashmere sweaters. a major success for raising brand awareness and introducing Land's End to new customers, many of whom are much younger than our typical customer. A pop-up shop not only drove strong in-person sales, but was a huge success online with more than 5 million social media impressions in just five days and coincided with record-breaking traffic to landsend.com, almost the same level we saw last year on Black Friday. With the introduction of embroidered totes, adding more customization options, canvas tote sales were up triple digits. Europe began to show early signs of improvement. During the first half of the year, we focused our efforts to become more effective sellers and position the brand to build on the success that we are seeing in the US. As part of these efforts, We recently announced two exciting collaborations with Harris Tweed and Lulu Guinness. In addition, we expanded our marketplace presence to include Amazon and Debenhams, implementing our successful U.S. philosophy to meet the customer where they are. We achieved record gross margins against the backdrop of uncertainty around tariffs and continue to refine our highly flexible co-source strategy. allowing us to shift production as needed. Our focus around a smaller vendor pool is clearly winning and continues apace. As I mentioned, we added more customers in the third quarter than at any point outside of the pandemic since our spinoff 11 years ago. Leveraging additional channels as part of our distributed commerce model is yielding results. We opened a TikTok shop as our Instagram followers swell toward half a million. These customers are skewing younger, and we are seeing the brand relevance growing significantly with millennials, with new-to-file customers averaging in the 45- to 50-year-old cohort. Taken all together, our third quarter results reflect the intentional work we've done to weatherproof our assortment, align our promotional calendar to consumer behavior, and ensure our customers can buy what they want when they want it. I'll now turn it over to Bernie to discuss our third quarter performance in more detail.