Q4 2025 Lands' End Inc Earnings Call

March 20, 2025

To ask a question at any time by pressing the Star then the one key on your telephone keypad.

Speaker Change: You may withdraw yourself from the queue by pressing the star two key. Please note today's conference is being recorded I will be standing by if you should need any assistance. It is now my pleasure to turn the conference over to Tom <unk>. Please go ahead.

Tom: Good morning, and thank you for joining the Lands' end earnings call for a discussion of our fourth quarter and fiscal 2024 results, which we released this morning and can be found at our website <unk> Dot com.

Speaker Change: <unk> <unk> 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.

Tom: After the prepared remarks, we will conduct a question and answer session.

Tom: Please also note that the information we're about to discuss includes forward looking statements.

Tom: Such statements involve risks and uncertainties the company's actual results could differ materially from those discussed on the call.

Tom: 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.

Tom: 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 sub.

Tom: 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.

Tom: A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures can be found in our earnings release issued earlier today.

Tom: A copy of which is posted in the Investor Relations section of our website at Lands' end Dot com.

Andrew McClain: With that I will turn the call over to Andrew.

Andrew: Thanks, Tom Good morning, and thank you for joining US today, we are proud of our fourth quarter and full year 2024 results, which reflect our successful and deliberate evolution of lands end into a modern digitally focused forward looking brand that's ready for life separately journey, our Northstar is an obsession with providing our.

Andrew: With fresh and relevant solutions based products and engaging with them in a highly personalized manner utilizing industry leading capabilities.

Andrew: This approach helps them understand and deepen their relationship with lands' end.

Andrew: By the numbers the strong execution of our strategy enabled us to deliver on our fourth quarter commitments, we achieved low single digit GMB growth on a like for like quarterly basis.

Andrew: Sixth consecutive quarter of growth in gross profit dollars up 3% year over year.

Andrew: Our eighth consecutive quarter of gross margin expansion up approximately 760 basis points year over year adjusted.

Andrew: Adjusted EBITDA of $44 million.

Andrew: Up 38% year over year, and adjusted net income of $18 million and adjusted EPS of <unk> 57.

Andrew: 120% year over year, our fourth quarter performance was key as we closed out the full year delivering.

Andrew: Mid single digit GMB growth with net revenue of $1 $36 billion on a like for like basis.

Andrew: Gross margin improvement of 550 basis points to 48% compared to 43% in fiscal 2023 with year over year increases in each quarter throughout the fiscal year.

Andrew: Adjusted EBITDA of $93 million, a year over year increase of 10% and.

Andrew: Potential increase in net income and return to profitability with adjusted net income of $13 million or.

Andrew: Or <unk> 40 per share.

Andrew: When combined with our balance sheet improvements are growing high single digit ROIC.

I am pleased with our successful evolution of <unk> business model in particular, the outstanding performance of our licensing segment demonstrates the strength of the strategic initiatives further demonstrates its remarkable potential.

Andrew: Licensing is fueling significant expansion of our brand reach anchored on a capital efficient low risk high margin financial framework.

Andrew: I want to talk about that in greater detail later in the call.

Andrew: But first I'd like to highlight a few operational and customer facing areas of focus that are driving incremental growth and value creation.

Andrew: Our inventory as we have talked about for the past few years optimizing our inventory has been the priority is doing so has enabled a better cost structure, while freeing up resources to invest in the newness and speed that our customers demand.

Andrew: Our 12% year over year improvement in our year end inventory position allows us to significantly increase our turns by double digits and provide our customers with fresh styles much more frequently throughout the year.

Andrew: We're not resting on our laurels, though and are continuing to optimize our supply chain to minimize cost and bring items to market even faster.

Andrew: At the same time, we are closely monitoring changes to global trade policy and are positioned to take necessary steps to maintain an efficient and resilient global supply chain.

Andrew: Marketing has contributed significantly as we shift to a more balanced and innovative approach leveraging digital and experiential engagement that constantly builds our cultural relevancy on top of our historic catalog engagement.

Andrew: We doubled our following on Instagram year over year, finishing fiscal year 2024, with nearly a quarter of a million followers. We continue to use this channel to reach younger customers, who in turn have a high propensity to spend.

Andrew: Examples of that engagement on numerous with amongst the most entertaining being the teaser launch of our recent collaboration with Abbvie swim.

Andrew: During the fourth quarter, we accelerated our experiential approached by launching a pop up customization shop in New York City Soho neighborhood exclusively via non traditional media sources.

Andrew: This reached audiences on tech tuck in Instagram via bloggers, and Influencers with us running into the tens of millions it should come as no surprise that the choke back was our number one item driving new customer acquisition during the fourth quarter sign ups consistently bring as a customer 10 plus years younger than our average.

Andrew: To continue building on this brand momentum, we will leverage the successful playbook from our Soho shop to launch several beach pop ups. This summer and we will share more on that in the coming months.

Andrew: We continued to deepen our focus on technology to broaden the reach of the lands end brand over the past quarter and throughout 2024, we made it a priority to better use our technology and data to drive our strategy. We completed the re skin of both our consumer and B to B website, providing a more contemporary look and feel with enhanced.

Andrew: <unk> <unk>.

Andrew: The exercise saw us deploy tools to better serve the customer.

Andrew: Our work with AI tool provides a carousel product unique to every single customer, which when coupled with an enhanced positioning of the truth that sizing. So allows for a step change in the level of personalization offered.

Andrew: This is only the beginning as we continue our significant effort to redesign traditional paid search and Seo placements to better work with AI agents to meet consumer demands.

Andrew: Certainly an exciting time as we look outward into an even brighter future.

Andrew: Clearly our most significant path to success continues to be about the amazing product that we bring to our consumer and our ability to expand those franchise customers into lifestyle customers.

Andrew: Q4 wasn't just about our existing franchises. Although we are proud of how they performed it was about the constant reinvention and additions across the collection.

Andrew: Two years ago, we were focused on key items now we offer a full collection across numerous categories from apparel to home and enjoy bringing the customers something new and more solution oriented on a regular basis.

Back was our number one item driving new customer acquisition during the fourth quarter sign ups consistently bring as a customer 10 plus years younger than our average.

Andrew: As an example during Q4, we cross pollinated, our wonder wait and squirrel franchises, creating a waterproof puffer jacket and stylish colors that flew off the shelves.

To continue building on this brand momentum, we will leverage the successful playbook from our Soho shop to launch several beach pop ups. This summer and will share more on that in the coming months.

Andrew: Innovation did not stop there as part of our swim resort collection launch we took a classic one piece uplift silhouette and out of the Mckinney swim dress and shorts broadening this solution franchise and opening the aperture of creativity to reach a whole new cohort of customers.

We continue to deepen our focus on technology to broaden the reach of the lands end brand.

For the past quarter and throughout 2024, we made it a priority to better use our technology and data to drive our strategy. We completed the re skin of both our consumer and B to B website, providing a more contemporary look and feel with enhanced functionality be exercised saw us deploy tools to better serve the customer.

Andrew: Turning to the performance of our BTC and <unk> businesses I want to start with a key driver of our strategy, where we see considerable growth over the past two years licensing.

Where it with AI tool provides a carousel product unique to every single customer, which when coupled with an enhanced positioning of the truth that sizing. So allows for a step change in the level of personalization offered.

Andrew: Licensing is an asset light business that increases the reach of our brand strengthens our customer acquisition strategy and drive <unk> growth.

Andrew: It is also one of our fastest growing and highest margin businesses and it continued to grow in the fourth quarter. It.

This is only the beginning as we continue our significant effort to redesign traditional paid search and Seo placements to better work with AI agents to meet consumer demands. It's certainly an exciting time as we look outward into an even brighter future.

Andrew: It is worth calling out over the last 12 months, we have created a $150 million plus GM V licensing business with strong gross margin and gross profit dollars profiles and example of our success as the clubs business, which we began licensing last year.

Clearly our most significant path to success continues to be about the amazing product that we bring to our consumer and our ability to expand those franchise customers into lifestyle customers.

Andrew: This license business is performing exceptionally well, while also significantly increasing our brands reach and awareness with a broader array of consumers.

Q4 wasn't just about our existing franchises. Although we are proud of how they performed it was about the constant reinvention and additions across the collection too.

Andrew: Clearly our licensing business as brand enhancing by virtue of greater exposure and our experience to date has helped us deepen our understanding of how to best operate within the lands' end environment.

Two years ago, we were focused on key items now we offer a full collection across numerous categories from apparel to home and enjoy bringing the customers something new and more solution oriented on a regular basis.

Andrew: As a result, our licensing business is well positioned for additional growth via product channel and international expansion.

Andrew: For example, <unk>.

As an example during Q4, we cross pollinated or want to wait and squirrel franchises, creating a waterproof puffer jacket and stylish colors that flew off the shelves.

Andrew: <unk> advantage of our strong position in the category are home licensees offering will launch on Amazon later this summer and.

Andrew: And later this year New partners plan to launch offerings of hosiery men's underwear women's intimates baseless and travel accessories are manufactured and sold under licenses. We've recently awarded.

Innovation did not stop there as part of our swim resort collection launch we took a classic one piece of lists silhouette and added the Mckinney swim dress and shorts broadening this solution franchise and opening the aperture of creativity to reach a whole new cohort of customers.

Andrew: It is also notable that we are leveraging our platform and distribution capabilities again, as an asset light manner to offer licensed product relenza in dot com.

Turning to the performance of our BTC and <unk> businesses I want to start with a key driver of our strategy, where we see considerable growth over the past two years licensing.

Andrew: Turning to our U S E Commerce business, we delivered the eighth consecutive quarter of margin improvement with an increase of approximately 880 basis points.

Licensing is an asset light business that increases the reach of our brand strengthens our customer acquisition strategy and drive <unk> growth.

Andrew: This improvement was primarily driven by our marketing strategy and focus on higher quality sales supported by a more conservative promotional approach on.

It is also one of our fastest growing and highest margin businesses and it continued to grow in the fourth quarter. It.

Andrew: Our new to file customer growth and our inventory management improvements.

Andrew: We made a big decision, whether our approach to holiday.

It is worth calling out over the last 12 months, we have created a $150 million plus <unk> licensing business with strong gross margin and gross profit dollars profiles and example of our success as the clubs business, which we began licensing last year.

Andrew: <unk> from the traditional heavy discounting that has characterized the brand over the last number of years.

Andrew: It didn't resonate with all existing customers, which we anticipated but for the customers who continued on the journey and the new customers. We've attracted we provided them with an exceptional balance of price or value resetting the baseline for holidays to come and allowing us to return the business to growth with a younger more vibrant broader customer.

This license business is performing exceptionally well, while also significantly increasing our brands reach and awareness with a broader array of consumers.

Andrew: Thanks.

Clearly our licensing business as brand enhancing by virtue of greater exposure and our experience to date has helped us deepen our understanding of how to best operate within the lands and the environment.

Andrew: Our European business did not meet our expectations during the quarter and was the principal headwind on our overall performance due to our team's strong work. However, we were still able to drive over 300 basis points of improved gross margin rate in the fourth quarter.

As a result, our licensing business is well positioned for additional growth via product channel and international expansion for.

Andrew: I've talked before about using Europe to test ideas that we can then deploy across the rest of the business.

For example.

Taking advantage of our strong position in the category are home licensees offering will launch on Amazon later this summer and.

Andrew: In this case, our efforts to reach consumers with more elevated product beyond our existing customer file didn't resonate and we are reflecting our learnings and our go to market strategy and execution in 2025.

And later this year New partners plan to launch offerings of hosiery men's underwear women's intimates baseless and travel accessories, all manufacturer than sold under licenses. We've recently awarded.

Andrew: We've also brought on Andy hasn't a seasoned international leader from Nike to focus on growing the international business, including through new markets, while refreshing the brand identity and our existing UK and German markets.

It is also notable that we are leveraging our platform and distribution capabilities again, as an asset light manner to offer licensed product <unk> Dot com.

Turning to our U S E Commerce business, we delivered the eighth consecutive quarter of margin improvement with an increase of approximately 880 basis points.

Andrew: Third party partnerships continued to showcase the broad reach of lands end across all sectors of the market.

Andrew: The ability to tailor our assortment not just by leaning into categories, but by carefully leveraging the good the best merchandise assortment that we constantly refresh and balanced with a deep understanding of the specific channel customer. We are addressing is a significant win.

This improvement was primarily driven by our marketing strategy and focus on higher quality sales supported by a more conservative promotional approach.

Our new to file customer growth and our inventory management improvements.

Andrew: Throughout the quarter, we delivered excellent performances, Amazon and Nordstrom Amazon drove numerous records for us, including a strong black Friday and record cyber Monday, mostly from our mens Bedford quarter ZIP sweater bigger best seller, which delivered record sales, resulting in an increase of 300% year over.

We made a big decision, whether our approach to holiday pivoting from the traditional heavy discounting that has characterized the brand over the last number of years.

It didn't resonate with all existing customers, which we anticipated but for the customers who continued on the journey and the new customers. We've attracted we provided them with an exceptional balance of price or value resetting the baseline for holidays to come and allowing us to return the business to growth with a younger more vibrant broader customer.

Andrew: Year, while Nordstrom not surprisingly drove the highest <unk> and.

Andrew: In AUR Lands' end has recorded.

Andrew: Coming back to the significant opportunity, we see with licensing.

Thanks.

Our European business did not meet our expectations during the quarter and was the principal headwind on our overall performance due to our team's strong work. However, we were still able to drive over 300 basis points of improved gross margin rate in the fourth quarter.

Andrew: I want to know how much progress are data scientists and engineers have made in creating leverage for our licensees within our marketplaces.

Andrew: Through these improvements we are continuing to drive growth, while expanding the reach of our brand for example, our shoe licensee leveraged our capabilities to make the flurry kids snowfield and the men's Dakota.

I've talked before about using Europe to test ideas that we can then deploy across the rest of the business.

In this case, our efforts to reach consumers with more elevated product beyond our existing customer file didn't resonate and we are reflecting our learnings and our go to market strategy and execution in 2025.

Andrew: Number one items in their categories for long stretches of the quarter on Amazon.

Andrew: So I think to our B to B outfitters business.

Andrew: I'm pleased to note that <unk> met our revenue and profit objectives for the quarter.

Speaker Change: We've also brought on Andy hasn't a seasoned international leader from Nike to focus on growing the international business, including through new markets, while refreshing the brand identity and our existing UK and German markets.

Andrew: Along with the Wells Fargo launch in Q3, it was a great back half to the full year.

Andrew: We have made significant progress in developing the sales pipeline for the uniforms business. For example over the next few months, we will begin supplying another customer in the aviation space.

Speaker Change: Third party partnerships continued to showcase the broad reach of lands end across all sectors of the market.

Andrew: For our school uniform business. We also continued to see upside from our unrelenting focus on winning and retaining customers for <unk>.

Speaker Change: The ability to tailor our assortment not just by leaning into categories, but by carefully leveraging the good the best merchandise assortment that we constantly refresh and balanced with a deep understanding of the specific channel customer. We are addressing is a significant win.

Andrew: Both of these uniform businesses, we win by leveraging both our brand our steadfast focus on quality, our market, leading embroidery and personalization capabilities and our great customer service to be less qualified competition.

Speaker Change: Throughout the quarter, we delivered excellent performances, Amazon and Nordstrom Amazon drove numerous records for us, including a strong black Friday and record cyber Monday, mostly from our men's Bedford quarter Zip sweater being a best seller, which delivered record sales, resulting in an increase of 300% year over year.

Andrew: And then as a leader in the uniforms channel because it delivers on the promise of a branded experience that few if any competitors can match. It is now coupled with an extraordinary product engine and improved technology.

Andrew: For our shareholders the business remains attractive and highly differentiated with multiyear contracts lower marketing expense and the opportunity to reach hundreds of thousands of new b to b to C customers, who can discover the consumer side of our brand.

Speaker Change: While Nordstrom not surprisingly drove the highest <unk> and AUR Lands' end has recorded.

Speaker Change: Coming back to the significant opportunity, we see with licensing.

Speaker Change: Want to know how much progress are data scientists and engineers have made in creating leverage for our licensees within our marketplaces.

Andrew: I'll now turn it over to Bernie to discuss our fourth quarter performance in more detail.

Bernie McCracken: Thank you Andrew GMB increase low single digits on a like for like basis for the fourth quarter of 2024, primarily.

Speaker Change: Through these improvements we are continuing to drive growth, while expanding the reach of our brand for example, our shoe licensee leveraged our capabilities to make the flurry kids notebook and the men's Dakota.

Bernie McCracken: Driven by the ongoing successful execution of our licensing strategy.

Bernie McCracken: For the fourth quarter total revenue performance came in at $442 million.

Speaker Change: Number one items in their categories for long stretches of the quarter on Amazon.

Bernie McCracken: A decrease of 14% compared to last year.

Bernie McCracken: When excluding the impact of the 50, <unk> week, and the transition of kids and footwear product.

Speaker Change: So I think to our B to B outfitters business.

Speaker Change: I am pleased to note that <unk> met our revenue and profit objectives for the quarter.

Bernie McCracken: Licensing arrangements total revenues decreased by mid single digits year over year.

Speaker Change: Along with the Wells Fargo launch in Q3, it was a great back half to the full year.

Gross profit increased by 3% compared to last year, driven by our eighth straight quarter of gross margin expansion gross margin in the fourth quarter was 46% and approximately 760 basis point improvement from the fourth quarter of 2023 the.

Speaker Change: We have made significant progress in developing the sales pipeline for the uniforms business. For example over the next few months, we will begin supplying another customer in the aviation space.

Speaker Change: For our school uniform business. We also continued to see upside from our unrelenting focus on winning and retaining customers.

Bernie McCracken: The margin improvement was driven by newness across the assortment lower promotional activity and fewer clearance sales.

Speaker Change: Both of these uniform businesses, we win by leveraging both our brand our steadfast focus on quality, our market, leading embroidery and personalization capabilities and our great customer service to be less qualified competition.

Bernie McCracken: We delivered adjusted EBITDA of $44 million in the fourth quarter, a year over year increase of 38%.

Bernie McCracken: These revenue and profitability results reflect our continued efforts to prioritize less promotional.

Speaker Change: <unk> is a leader in the uniforms channel because it delivers on the promise of a branded experience that few if any competitors can match that is now coupled with an extraordinary product engine and improved technology.

Bernie McCracken: Higher quality sales over sales volume, which has translated to consistent gross profit margin improvement throughout our business.

Bernie McCracken: Before moving into the discussion of our performance across different lines of business. We want to note that consistent with segment reporting requirements are forthcoming 10-K will include new segment level reporting based on business units with similar characteristics there will be more detail to share in the 10-K.

Speaker Change: For our shareholders the business remains attractive and highly differentiated with multiyear contracts lower marketing expense and the opportunity to reach hundreds of thousands of new b to b to C customers, who can discover the consumer side of our brand.

Speaker Change: I'll now turn it over to Bernie to discuss our fourth quarter performance in more detail.

But for the purpose of consistency on today's discussion, we're continuing to provide detail about our business units rather than the broader segments.

Bernie: Thank you Andrew GMB increase low single digits on a like for like basis for the fourth quarter of 2024 Pri.

Bernie McCracken: Our U S E Commerce business saw a sales decrease of 19% compared to the fourth quarter of 2023.

Bernie: Primarily driven by the ongoing successful execution of our licensing strategy.

Bernie: For the fourth quarter total revenue performance came in at $442 million.

Bernie McCracken: Excluding the impact of the 50, <unk> week, and kids and footwear U S. Ecommerce sales decreased mid single digits year over year.

Bernie: A decrease of 14% compared to last year, when excluding the impact of the 50, <unk> week and the transition of kids and footwear product to licensing arrangements total revenues decreased by mid single digits year over year.

Bernie McCracken: Sales from Lands' end Outfitters was down 2% from the fourth quarter of 2023, when adjusting for the 50 <unk> week in 2023.

Bernie: Gross profit increased by 3% compared to last year, driven by our eighth straight quarter of gross margin expansion gross margin in the fourth quarter was 46% and approximately 760 basis point improvement from the fourth quarter of 2023.

Bernie McCracken: Sales from business uniform channel declined year over year due to program timing of larger accounts, partially offset by growth in our school uniform channel.

Bernie McCracken: Third party revenue decreased 2% compared to last year when adjusting for the 50 <unk> week in 2023 as declines in existing marketplaces, where all partially offset by new relationships.

Bernie: The margin improvement was driven by newness across the assortment lower promotional activity and fewer clearance sales.

Bernie: We delivered adjusted EBITDA of $44 million in the fourth quarter, a year over year increase of 38%.

Bernie McCracken: Our licensing and retail business combined to grow revenue over 50% to last year with the expansion of our licensing model.

Bernie: These revenue and profitability results reflect our continued efforts to prioritize less promotional.

Bernie McCracken: Licensing and our presence across our third party marketplace partners continue to help the business diversify and reduce risk to any one individual partner.

Bernie: Higher quality sales over sales volume, which has translated to consistent gross profit margin improvement throughout our business.

Bernie McCracken: Sales from our European E Commerce business decreased 22% year over year, but we grew gross margin by approximately 310 basis points.

Bernie: Before moving into the discussion of our performance across different lines of business. We want to note that consistent with segment reporting requirements are forthcoming 10-K will include new segment level reporting based on business units with similar characteristics, there will be more detail to share in the 10-K, but for.

Bernie McCracken: SG&A expenses decreased $15 million compared to the prior year.

Bernie McCracken: Driven by leveraging digital marketing investments and new customer acquisition earlier in the year.

Bernie McCracken: Strong cost controls across the entire business.

Bernie: The purpose of consistency on today's discussion, we're continuing to provide detail about our business units rather than the broader segments.

Bernie McCracken: As a percentage of sales SG&A was 36%, which was an increase of approximately 230 basis points compared to 2023.

Bernie: Our U S E Commerce business saw a sales decrease of 19% compared to the fourth quarter of 2023.

Bernie McCracken: Primarily driven by deleverage from lower revenues.

Bernie: Excluding the impact of the 50, <unk> week, and kids and footwear UFC ecommerce sales decreased mid single digits year over year.

Bernie McCracken: For the fourth quarter, we had net income of $19 million or <unk> 59 per share. We had adjusted net income of $18 million or <unk> 57 per share.

Bernie: Sales from Lands' end Outfitters was down 2% from the fourth quarter of 2023, when adjusting for the 50 <unk> week in 2023.

Bernie McCracken: Moving to our balance sheet.

Inventories at the end of the fourth quarter were $265 million compared to $302 million a year ago, the 12% improvement in our inventory position benefited from our supply chain teams ongoing efforts to drive efficiencies paired with our speed to market initiatives.

Bernie: Sales from business uniform channel declined year over year due to program timing of larger accounts, partially offset by growth in our school uniform channel.

Bernie: Third party revenue decreased 2% compared to last year when adjusting for the 50 <unk> week in 2023 as declines in existing marketplaces, where all partially offset by new relationships.

Bernie McCracken: In terms of our debt.

Bernie McCracken: At the end of the fourth quarter, our term loan balance was $247 million and our ABL had zero borrowings outstanding which was in line with our fourth quarter last year.

Bernie: Our licensing and retail business combined to grow revenue over 50% to last year with the expansion of our licensing model.

Bernie McCracken: During the fourth quarter, we repurchased $3 million worth of shares under our $25 million share repurchase authorization announced in March 2024.

Bernie: Licensing and our presence across our third party marketplace partners continue to help the business diversify and reduce risk to any one individual partner.

Bernie McCracken: Bringing the balance of the remaining authorization to $14 million as of the end of the quarter.

Bernie McCracken: To reiterate some highlights for fiscal year 2024, we delivered.

Bernie: Sales from our European E Commerce business decreased 22% year over year, but we grew gross margin by approximately 310 basis points.

Bernie McCracken: Mid single digit GMB growth on a like for like basis with net revenue of 136 billion.

SG&A expenses decreased $15 million compared to the prior year.

Bernie McCracken: Gross margin improvement of 550 basis points to 48% compared to 43% in fiscal 2023.

Bernie: Driven by leveraging digital marketing investments in new customer acquisition earlier in the year and strong cost controls across the entire business.

Bernie McCracken: With year over year increases in each quarter throughout the fiscal year.

Bernie McCracken: Adjusted EBITDA of $93 million, a year over year increase of 10%.

Bernie: As a percentage of sales SG&A was 36%, which was an increase of approximately 230 basis points compared to 2023.

Bernie McCracken: And adjusted net income of $13 million or <unk> 40 per share.

Bernie McCracken: Now moving to guidance.

Bernie: Primarily driven by deleverage from lower revenues.

Bernie McCracken: We are continuing to prioritize high quality sales and improved cash flows, which we expect to drive continued gross profit and margin expansion during the spring and summer selling season.

Bernie: For the fourth quarter, we had net income of $19 million or <unk> 59 per share. We had adjusted net income of $18 million or <unk> 57 per share.

Bernie McCracken: In the first quarter of 2025, we expect net revenue to be between $260 million and $290 million with gross merchandise value or GMB is expected to be approximately flat to low single digit growth.

Bernie: Moving to our balance sheet.

Bernie: Inventories at the end of the fourth quarter were $265 million compared to $302 million a year ago, the 12% improvement in our inventory position benefited from our supply chain teams ongoing efforts to drive efficiencies paired with our speed to market initiatives in.

Bernie McCracken: We expect an adjusted net loss of 7 million to $4 million and adjusted diluted loss per share to be between 20 to.

Bernie: Terms of our debt.

13.

Bernie: At the end of the fourth quarter, our term loan balance was $247 million.

Bernie McCracken: We expect adjusted EBITDA to be in a range of 9 million to $12 million.

Bernie: And our ABL had zero borrowings outstanding which was in line with our fourth quarter last year.

Bernie McCracken: For the full year, we expect net revenue to be between $133 billion to $145 billion while.

Bernie: During the fourth quarter, we repurchased $3 million worth of shares under our $25 million share repurchase authorization announced in March 2024.

Bernie McCracken: While <unk> is expected to be mid to high single digit growth. We now expect adjusted net income of 15 million to $27 million and adjusted diluted earnings per share of <unk> 48 to 86 cents.

Bernie: Bringing the balance of the remaining authorization to $14 million as of the end of the quarter.

Bernie McCracken: We now expect our adjusted EBITDA to be in the range of $95 million to a $107 million.

Bernie: To reiterate some highlights for fiscal year 2024, we delivered.

Bernie: Mid single digit GMB growth on a like for like basis with net revenue of 136 billion.

Bernie McCracken: Our guidance for the full year incorporates approximately $30 million in capital expenditures.

Bernie McCracken: Our guidance also incorporates the impact of already implemented global tariffs.

Bernie: Gross margin improvement of 550 basis points to 48% compared to 43% in fiscal 2023 with.

Andrew McClain: With that I will turn the call back over to Andrew.

Andrew McClain: Thank you Bernie.

Speaker Change: With a successful 2024 behind US we have now turned our attention to 2025 and beyond with clear strategic goals and priorities.

Bernie: With year over year increases in each quarter throughout the fiscal year.

Bernie: Adjusted EBITDA of $93 million, a year over year increase of 10% and.

Speaker Change: <unk> growth supplemented by a return to growth in revenue.

Bernie: And adjusted net income of $13 million or <unk> 40 per share.

Speaker Change: Speed to market, allowing us to control inventory and drive enhanced margins and increased ROIC.

Bernie: Now moving to guidance.

Bernie: We are continuing to prioritize high quality sales and improved cash flows, which we expect to drive continued gross profit and margin expansion during the spring and summer selling season.

Speaker Change: SG&A, leveraging as we grow including by Delayering, the organization and utilizing new technologies.

Speaker Change: Marketing leverage driven by careful consideration of the balanced between catalog and digital spend and an emphasis on leveraging technologies like AI, driven personalization and driving increased adjusted EBITDA.

Bernie: In the first quarter of 2025, we expect net revenue to be between $260 million and $290 million with gross merchandise value or GMB is expected to be approximately flat to low single digit growth.

Within our business, we will continue our focus on increasing our asset light licensing business to grow and enhance our brand.

Bernie: We expect an adjusted net loss of 7 million to $4 million and adjusted diluted loss per share to be between 22 and.

Speaker Change: Aleutians oriented products that customers love to power of the whole company.

Bernie: 13th.

Speaker Change: Our uniforms business to aggressively continued developing meaningful long term partnerships and marketplace specialization to forge a winning partnerships to extend the reach of our brand.

Bernie: We expect adjusted EBITDA to be in a range of 9 million to $12 million.

Bernie: For the full year, we expect net revenue to be between 133 to $1 $45 billion.

Speaker Change: As we close out the year I want to thank all <unk> employees for their tireless work and dedication to this iconic American brand and to our loyal customers that depend on us to be there for life's every journey.

Bernie: While GMB is expected to be mid to high single digit growth. We now expect adjusted net income of 15 million to $27 million and adjusted diluted earnings per share of <unk> 48 to 86 cents.

Speaker Change: Because of their hard work and the strong execution of our strategy 2024 was a pivotal year.

Bernie: We now expect our adjusted EBITDA to be in the range of $95 million to $107 million.

Speaker Change: And our successes setup plans and for a bright future ahead.

Bernie: Our guidance for the full year incorporates approximately $30 million in capital expenditures.

Speaker Change: Lastly earlier this month, we announced that the board of directors has initiated a process to explore strategic alternatives, including a sale merger or similar transaction involving the company to maximize shareholder value.

Bernie: Our guidance also incorporates the impact of already implemented global tariffs.

Bernie: With that I will turn the call back over to Andrew.

Andrew GMB: Thank you Bernie.

Speaker Change: Because the review is ongoing we will not be commenting further on it at this time and we will provide an update once appropriate.

Speaker Change: With a successful 2024 behind US we have now turned our attention to 2025 and beyond with clear strategic goals and priorities.

Speaker Change: We look forward to your questions.

Speaker Change: GMB growth supplemented by a return to growth in revenue.

Speaker Change: Thank you at this time, if you'd like to ask a question. Please press star one on your telephone keypad, you may withdraw yourself from the queue at any time by pressing star to once again that is star one to ask a question. We will take our first question from Dana Telsey with Telsey Group. Please go ahead.

Speaker Change: Speed to market, allowing us to control inventory and drive enhanced margins and increased ROIC.

Speaker Change: SG&A, leveraging as we grow including by Delayering, the organization and utilizing new technologies.

Speaker Change: Marketing leverage driven by careful consideration of the balance between catalog and digital spend and an emphasis on leveraging technologies like AI, driven personalization and driving increased adjusted EBITDA.

Speaker Change: Hi.

Speaker Change: Nice to see the progress on the year.

Speaker Change: Andrew It seems like the business is becoming more asset light has the potential to continue to increase the adjusted EBITDA and profitability.

Speaker Change: See because some licensing and now the <unk>.

Speaker Change: Within our business, we will continue our focus on increasing our asset light licensing business to grow and enhance our brand.

Speaker Change: Entry into Amazon in a bigger way and we're seeing what's happening with the health of the consumer how do you frame what the cadence of the year could look like in terms of sales.

Speaker Change: Aleutians oriented products that customers love to power of the whole company.

Speaker Change: Think of the other business lines, whether e-commerce.

Speaker Change: Our uniform business to aggressively continued developing meaningful long term partnerships and marketplace specialization to forge a winning partnerships to extend the reach of our brand.

Speaker Change: E Commerce business, how you're seeing that develop in terms of where we could see the rate of growth going forward and has pricing come into any play given the headwinds of what we've been saying.

Speaker Change: Okay. Thank you.

Dana Telsey: Thanks Dana.

Speaker Change: Great set of questions.

Speaker Change: I look at February which is the month I think we've all been through this in a lot of conversation.

Speaker Change: Because of their hard work and strong execution of our strategy 2024 was a pivotal year.

Speaker Change: I look at the performance of of really some of our product because it was a cold February I've been talking for the last couple of years about weather proofing, the assortment and we really leaned in on our outerwear and fleece for February and we're able to drive that and in fact as we.

Speaker Change: And our successes setup plans and for a bright future ahead.

Speaker Change: As we came through we see that say.

Speaker Change: That's a record on a record in terms of the comps that were driving out of that business and some of the franchises.

Because the review is ongoing we will not be commenting further on it at this time and we will provide an update once appropriate.

Speaker Change: That would.

Speaker Change: It would be further frame.

Speaker Change: We look forward to your questions.

Speaker Change: We saw that customer really lean and they like that they like being in that product, it's a great price point.

Speaker Change: It's a lower price point than want away, which is.

Speaker Change: Which is the downfield that we have but we're able to pull through and I think thats going to characterize the year where merchants fundamentally.

Speaker Change: The whole industry.

Speaker Change: It's about being able to take our assortment and manage it in the best way possible against everything that gets thrown at you and that's what we're going to continue to do in every channel wherein I appreciate you picking up on the asset light.

Speaker Change: Hi.

Dana Telsey: Nice to see the progress on the year.

Dana Telsey: Andrew It seems like the business is becoming more asset light has the potential to continue to increase the adjusted EBITDA and profitability as you see the growth from licensing and now.

Speaker Change: Our licensing business and we are continuing to lean into that.

Dana Telsey: CN to Amazon in a bigger way and we're seeing what's happening with the health of the consumer how do you frame what the cadence of the year could look like in terms of sales.

Speaker Change: We see significant opportunity there.

Speaker Change: For Lands' end, it really becomes about creating a flywheel effect, where the more physical representation that we can have up the brand in some of these channels and actually some of the better product that we can get into because we don't have the resources ourselves. The more we can put ourselves in front of a new customer in a new venue and ultimately.

Dana Telsey: Think of the other business lines, whether e-commerce.

Dana Telsey: E Commerce business, how you're seeing that develop in terms of where we could see the rate of growth going forward.

Dana Telsey: And as pricing come into any play given the headwinds of what we've been saying.

Speaker Change: <unk> always.

Speaker Change: Always to bring them back to the E Commerce engine to lands' end dot com, because they'll see a full representation of our assortment and bandwidth will be able to lock them in as a customer coming out of that so we were very pleased with the way the all the dots connected and I think Amazon was another piece of it ive talked before.

Dana Telsey: Thank you.

Speaker Change: Thanks Dana.

Dana Telsey: Great set of questions.

Speaker Change: I look at February which is the month I think we've all been through this in a lot of conversation.

Speaker Change: On the calls.

Speaker Change: We had the opportunity to really lean in or not.

Speaker Change: What was great and as such the stretch of Land's end as the waiver two guardrails of our of our marketplace business, where Amazon and Nordstrom. We saw records on both of those and we saw tremendous growth on both of those and we will continue to see that growth going forward.

Speaker Change: I want to drive that and in fact as we.

Speaker Change: As we came through we see that say.

Speaker Change: That's a record on a record in terms of the comps that were driving out of that business and some of the franchises.

Speaker Change: Would be further frame.

Speaker Change: As my take and in particular, it's because we have adopted different strategies. The strategy for Amazon continues to be a much much narrower assortment, we sold hundreds of thousands of quarters up sweaters.

Speaker Change: We saw the customer really lean and they like that they like being in that product at a lower price point them underway.

Speaker Change: Which is the down felt that we have but we were able to pull through and I think that's kind of characterize the year where merchants fundamentally.

Speaker Change: Men's quarter ZIP sweaters, and we find it's a great place to meet that men's customer and so we will continue to lean into that.

Speaker Change: For us the whole industry.

Speaker Change: Being able to take our assortment and manage it in the best way possible against everything that gets drove that new and that's what we're going to continue to do in every channel we're in.

Speaker Change: Our full assortment, we will see them back on Landsend com suddenly with Nordstrom, we reached a new customer we actually.

Speaker Change: Lien debt and reached a women's customer and that was a very powerful consumer to lean into and it's worth reiterating that comment from the script, which is we saw the highest <unk> and AUR.

Speaker Change: I appreciate you picking up on the asset light.

Speaker Change: Our licensing business and we are continuing to lean into that.

Speaker Change: We see significant opportunity therefore for lands' end, it really becomes about creating a flywheel effect, where the more physical representation that we can have up the brand in some of these channels and actually some of the better product that we can get into because we don't have the resources ourselves the more we can put ourselves in.

Speaker Change: We've pretty much ever recorded I'm not going to say that reference because I don't have all the history going back three times, but they were very very strong. So it's about managing the product it's about managing the assortment is about managing what's driving that.

Speaker Change: We will continue to lean into these new channels as we go forward.

Dana Telsey: And then Dana.

Speaker Change: Of our new customer and a new venue and ultimately the thought always to bring them back to the E. Commerce engine to lands' end dot com, because they'll see a full representation of our assortment and bandwidth will be able to lock them in as a customer coming out of that so we were very pleased with the way the all the dog.

Dana Telsey: Ernie and I will lean into the tariffs a little bit.

Speaker Change: As you know and we've talked about in the past we are not heavily.

Speaker Change: Risks in China, it's less than 8% of our bi.

Speaker Change: So our guidance incorporates the impact of already implemented tariffs at this point.

Speaker Change: It's connected and I think Amazon was another piece of it I talked before on the calls.

Speaker Change: And I'll just give you the product sensibility on that.

Speaker Change: It will mean less cashmere in our lineup, but that doesn't mean, we're walking away from it we're replacing it with Marina, we're replacing it with cotton fiber that we can get out of other markets.

Speaker Change: We had the opportunity to really lean in.

Speaker Change: What was great and as such the stretch of Lands' end.

Speaker Change: We were the two guardrails of our marketplace business, where Amazon and Nordstrom.

Speaker Change: A game that notion of you have your business.

Speaker Change: You have issues that come up you have headwinds you have tailwind, we manage and we managed through it.

Speaker Change: We saw records on both of those and we saw tremendous growth on both of those and we will continue to see that growth going forward.

Speaker Change: Thank you.

Speaker Change: Thank you and our next question will come from Marni Shapiro with retail tracker. Please go ahead.

Speaker Change: As my take and in particular, because we've adopted different strategies. The strategy for Amazon continues to be a much much narrower assortment, we sold hundreds of thousands of quarter Zip sweaters.

Congrats on all the improvements.

Marni Shapiro: I have to just call out you've done and Andrew you know I've been obsessed about this and I loved the new startup as we have done an exceptional job with pop up social media getting in this younger customer taking advantage of a moment out there I guess, how do you move those customers these younger customers.

Speaker Change: Men's courses ZIP sweaters, and we find it's a great place to meet that men's customer and so we will continue to lean into that.

Speaker Change: For the full assortment will see them back on Landsend com Similarly, with Nordstrom, we reached a new customer we actually.

Speaker Change: Leaned in and reached a women's customer and that was a very powerful consumer to lean into and it's worth reiterating.

Marni Shapiro: Coming in from Topaz into your other segments like what's the next obvious movie of a couple of very iconic segments in your.

Speaker Change: Comment from the script, which is we saw the highest <unk> and AUR.

Marni Shapiro: And your.

Speaker Change: <unk>.

Marni Shapiro: In your house and then just on licensing if I could ask a follow up.

Speaker Change: But really we've pretty much ever recorded I am not going to say that referenced because I don't have all the history going back through time, but they were very very strong. So it's about managing the product. It's about managing the assortment is about managing what's driving that.

Marni Shapiro: As you continue to extend the licensing at the same time, you're improving in elevating the core lands' end brand to have very strict guardrails around the marketing that others are doing with your licensing what does that look like.

Speaker Change: We'll continue to lean into these new channels as we go forward.

Speaker Change: And then Dana Ernie and I will lean into the tariffs a little bit.

Bernie McCracken: Yes, I'll start with the licensing and then good morning, Marni, It's nice to have you on the call.

Speaker Change: As you know and we've talked about in the past we are not.

Marni Shapiro: <unk>.

Marni Shapiro: <unk> background.

Speaker Change: Heavily.

Speaker Change: Risks in China, it's less than 8% of our bi.

Speaker Change: My past history of a knife licensed with urban Outfitters license with American Eagle and for me, it's really about leaning in and having a very tight agreements that you have approval of the product you have approval over the manufacturing and you have approval of of where it's going to be solved and so we contractually obligated.

Speaker Change: So our guidance incorporates the impact of already implemented tariffs at this point.

Speaker Change: And I'll just give you the product sensibility on that.

Marni Shapiro: Our partners on that.

Marni Shapiro: I wouldn't do it.

Marni Shapiro: That per our customer or our brand positioning in jeopardy, because from my perspective, and I truly believe that the customer doesn't know.

You have issues that come up you have headwinds you have tailwind, we manage and we managed through it.

Speaker Change: Thank you.

Marni Shapiro: Dealing with our licensee as far as they're concerned they're dealing with lands' end and so it should always be representative and actually one of the things and there is a point of difference for us.

Speaker Change: Thank you and our next question will come from Marni Shapiro with retail tracker. Please go ahead.

Speaker Change: Congrats on all the improvements.

Marni Shapiro: I have to just call out you've done and Andrew you know I've been obsessed about this and I loved the new straw tote bag and we've done an exceptional job with pop up social media getting in this younger customer taking advantage of a moment out there I guess, how do you move those customers these younger customers.

Marni Shapiro: Absolutely.

Marni Shapiro: Been influencing vessels have gone wrong or if it's been in the back of my mind, but its really come to the floor because we sell older product on our website. So we have.

Marni Shapiro: The licensees.

Confined our inventory to sell it out of our own distribution facilities were able to see exactly what the quality of the product and we're able to run it through our own QC processes, we're able to reap the customer feedback from the site and so it gives us that extra control point.

Speaker Change: Coming in from Topaz into your other segments like what's the next obvious movie of a couple of very iconic segments in your.

Speaker Change: In Europe.

Speaker Change: In your house and then just on licensing if I could ask a follow up.

Marni Shapiro: A lot of license a lot of license source doesn't necessarily get so there's a real value added in there.

Speaker Change: As you continue to extend the licensing at the same time, you're improving in elevating the core Lands' end brand do you have very strict guardrails around the marketing that others are doing with your licensing like what does that look like.

Speaker Change: Youre right about the pop ups Youre right about the social media and then I'm.

Marni Shapiro: I am going to just note it because it was a great fact.

Marni Shapiro: Yes, I'll start with the licensing and then good morning, Marni, It's nice to have you on the call.

Marni Shapiro: Katie Holmes photo shoot we got $7 1 billion impressions.

Speaker Change: <unk>.

Marni Shapiro: With her.

Speaker Change: <unk> background.

Marni Shapiro: Pocket tote bag and I think that was just a tad.

Speaker Change: My past history of an IP license with urban Outfitters license with American Eagle and for me, it's really about leaning in and having a very tight agreements. So that you have approval of the product you have approval over the manufacturing and you have approval of aware, it's going to be solved and so we contractually obligated.

Marni Shapiro: Testament to not only the marketing teams, but to the product teams into the strength of the lands end brand.

Marni Shapiro: The places where that customer is going to go and where we encourage them to cross shop into that most are going to pay our market leading positions in the most obvious one is swimwear and I look at what we've been doing in swimwear and it's really about for us when we're just about our traditional franchisee.

Speaker Change: Our partners on that.

Speaker Change: I wouldn't do it.

Speaker Change: That per our customer or our brand positioning in jeopardy, because from my perspective, and I truly believe that the customer doesn't know that.

Marni Shapiro: When where it's about trading up lifestyle.

Marni Shapiro: So if I look at as I mentioned in the script, if I look at <unk>, which is now 41 years old.

Speaker Change: Dealing with our licensee as far as they're concerned they're dealing with lands' end and so it should always be representative and actually one of the things and there is a point of difference for us.

Marni Shapiro: We really only had one seller for most of those 41 years now we sort of went bust is it out into.

Marni Shapiro: Amid genie went bust.

Speaker Change: So.

Marni Shapiro: Women dress, we've made it into.

Speaker Change: Been influencing vessels I've gotten all of it has been in the back of my mind, but its really come to the floor because we sell older product on our website. So we have that.

Marni Shapiro: At two piece, we're looking at a bikini with it we did listen to your Montney.

Marni Shapiro: I think that I think that the.

Speaker Change: Opportunity that is to really put that in a place where our customer can see it. So if you think about what we did with Andy swim.

Speaker Change: The license fees.

Speaker Change: Consign their inventory will sell it of our own distribution facilities were able to see exactly what the quality of the product and we're able to run it through our own QC processes, we're able to reap the customer feedback from the site and so it gives us that extra control point.

Marni Shapiro: <unk>, we put in that that reached a much younger customer.

Marni Shapiro: Then our traditional demographics and it was a different psychographic as well, it's a very fashion forward customer.

Marni Shapiro: We're going to see more of that and I know you saw it because we've discussed that we did the Alice and Olivia.

Speaker Change: A lot of license a lot of license source don't necessarily get so there's a real value added in there.

Speaker Change: Lands' end co lab.

Speaker Change: It wasn't about swim, but it did actually start to introduce a younger customer to some of our denim cuts and we spent a lot of time really reengineering jeans, making great denim denim assortment for us, but I would say, it's about swim and it's really about outerwear followed by that and then we'll look to make a move.

Speaker Change: Youre right about the pop ups Youre right about the social media and then I'm going to just note. It because it was a great fact.

Speaker Change: The Kb home's photo shoot we got $7 1 billion impressions a steady hum.

Speaker Change: With her with her.

Speaker Change: Pocket tote bag and I think that was just.

Speaker Change: A testament to not only the marketing teams, but to the product teams into the strength of the lands end brand.

Speaker Change: Into.

Speaker Change: Into apparel, but it's a good question, we've given a lot of thought and I think by.

Speaker Change: The places where that customer is going to go and where we encourage them to cross shop into that most are going to pay our market leading positions in the most obvious one.

Speaker Change: <unk> you are seeing is due in particular and what we're doing on social media that leans into the power in there and I think theres a lot of power in there to drive this brand over the coming years.

Speaker Change: And I look at what we've been doing in swimwear and it's really about for us when we're just about our traditional franchises when where it's about trading up lifestyle and swimwear. So if I look at and I mentioned it in the script if I look at <unk>, which is now 41 years old.

Yeah, there's a lot of I would say <unk> is a huge theme out there in general to consumers and I feel like people have a lot in the <unk> for this brand.

Speaker Change: Best of luck with the spring season.

Bonnie: Thanks, Bonnie take care.

Speaker Change: Thank you we'll take our next question from Eric Peter with SCC Research. Please go ahead.

Speaker Change: We really only had one CLO for most of those 41 years now we sort of went bust as it out into.

Eric Peter: Good morning.

Speaker Change: In terms of licensed product.

Speaker Change: <unk>, we busted into.

Speaker Change: Can we get kind of a feel for how it's going to flow I know last year, you launched shoes.

Speaker Change: Women's dress.

Speaker Change: <unk> made it into.

Speaker Change: At two piece, we're looking at a bikini with it we did listen to your Montney.

Speaker Change: There was an in between period, where they werent shoes and I'm, assuming we're we've been kind of in that in between period I believe our kids.

Speaker Change: And I think that.

Speaker Change: I think that the.

Speaker Change: It shouldn't be that is to really put that in place when our customer can see it. So if you think about what we did with Andy swim.

Speaker Change: Whenever you're going to see <unk> start to come into your catalog and rollout through bear and in terms of the wholesale and other pieces, but are we going to start to see some of these products licensed product for Olin.

Speaker Change: The co lab, we put in that that reached a much younger customer.

Speaker Change: And then our traditional demographics and it was a different psychographic as well as a very fashion forward customer.

Speaker Change: Kits.

Speaker Change: <unk> Kitson shoes are already there.

Speaker Change: <unk>.

Speaker Change: There in the market you will see home on Amazon with our licensed partner comes up back half of the year.

Speaker Change: Going to see more of that and I know you saw it because we've discussed that we did the Alice and Olivia.

Speaker Change: And in addition to that you see our licensed partner.

Speaker Change: Lands' end co lab it.

Speaker Change: In Coles and also in target with swim.

Speaker Change: As we get later into the year.

Speaker Change: So those are the biggies in terms of the licenses that we've discussed.

Speaker Change: I talked about men's underwear, I talked about women's intimates, sock and hosiery travel accessories and base layer. They will all launch in the back half of this year. So we're continuing to build that muscle with the.

Speaker Change: Into.

Speaker Change: Into apparel.

Speaker Change: It's a good question, we've given a lot of thought and I think by.

Speaker Change: <unk> you are seeing is due in particular and what we're doing on social media that leads into the power in there and I think there's a lot of power in that to drive this brand over the coming years.

With the launches and actually what I would add is you will see huge come into the clubs in the back half of the year and I want to call that out because you know the clubs can move a lot of volume so.

Speaker Change: Yeah.

Speaker Change: A lot of I would say <unk> is a huge theme out there in general to consumers and I feel like people have a lot into soldier for this brand.

Speaker Change: We would expect to be talking about that as we get into the Q3 call.

Speaker Change: Best of luck with the spring season.

Speaker Change: Okay.

Speaker Change: Thanks, Bonnie take care.

Speaker Change: Terms of.

Speaker Change: Thank you Linda <unk>. Our next question from Eric Peter with SCC Research. Please go ahead.

Speaker Change: So we've seen a tremendous evolution in the catalog in the last few months.

Eric Peter: Good morning.

Speaker Change: Has it become much more of a lifestyle and a resource here and you know how has been the response to that where does it kind of been a thought process on what should we be seeing going forward in terms of the catalog as a driver.

Eric Peter: In terms of licensed product.

Speaker Change: We get kind of a feel for how it's going to flow I know last year, you launched shoes.

Speaker Change: For younger customer for a more.

Speaker Change: There was an in between period, where there werent shoes and I'm, assuming we're we've been kind of in that in between period I believe bandwidth kids.

Speaker Change: Customer who is looking for that key item key look thank.

Speaker Change: Thank you.

Speaker Change: Whenever you're going to see kids start to come into your catalog and rollout through there and in terms of the wholesale and other pieces, but are we going to start to see some of these products licensed product for Olin.

Speaker Change: The catalogs youre not seeing all the catalogs, we are able to drop 58 different catalogs and a year. So we have a huge breadth of assortment and traditionally it has been very much about how many pages you get in the catalog.

Speaker Change: Hidden kitchen kitchen shoes are already there so.

Speaker Change: Youre seeing going forward is far more than that.

Speaker Change: And the market you will see home on Amazon with our licensed partner come to the back half of the year.

Speaker Change: It's about the pages. It is about how many pages you get but it's also about what's on those pages.

Speaker Change: In addition to that Youll see our licensed partner.

Speaker Change: So as we lean in we see a very traditional customer you remember from various calls I've talked about over a customer who's been with US a long time, they're going to continue to see more of those traditional.

In Coles and also in target with swim.

Speaker Change: <unk>.

Speaker Change: As we get later into the year.

Speaker Change: So those are the biggies in terms of the licenses that we've discussed.

Speaker Change: Whereas the evolve our customer is going to see more of.

Speaker Change: I talked about men's underwear I talked about women's intimates, that's upfront Sox and hosiery travel accessories and base layer. They will all launch in the back half of this year. So we're continuing to build that muscle with the.

Speaker Change: The collection put together and I think.

Speaker Change: It's for us we.

Speaker Change: Definitely taken catalog and we've pivoted away from being at channel and we've pivoted to being a marketing device and it really gets covered in the topic of personalization, where I just you as another form of.

Speaker Change: With the launches and actually what I would add is you will see huge come into the clubs in the back half of the year and I want to call that out because you know the clubs can move a lot of volume so.

Speaker Change: Marketing that should be personalized and the big driver for our industry over the next few years I really do believe is going to be personalization and so having that catalog that we're able to slice and dice is going to be really important for us. It also has a COO Eric <unk> satellite Bernie.

Speaker Change: We'd expect to be talking about that as we get into the Q3 call.

Okay.

Speaker Change: Arms of.

Speaker Change: So we've seen a tremendous evolution in the catalog in the last few months.

Speaker Change: Mr. <unk>, if I missed out on that there is a customer who responds to the nudge from it versus getting 40 pages.

Speaker Change: To become much more of a lifestyle and a resource here and how has been the response to that so we're just kind of a thought process and what should we be seeing going forward in terms of the catalog as a driver.

Speaker Change: I think that nudge can be handled in different ways. It's also the ability to prospect, but.

Speaker Change: For younger customer for a more.

Speaker Change: We lead in and instead of having to have a 40 or 50 page book, we might have a 10 page foldout postcards and that might be the way that we lead into it and again, we're not necessarily doing that for cost reasons. We are doing it to be thoughtful about the value that we put against the customer and the return on that individual.

Speaker Change: Customer who is looking for that key item key look thank.

Speaker Change: Thank you.

Speaker Change: From a thing standpoint.

Speaker Change: You are seeing going forward is far more than that.

It's about the pages is about how many patients you get but it's also about what's on those pages.

Speaker Change: And so as we lean in we see a very traditional customer you remember from various calls ive talked about our customer who's been with US a long time, they're going to continue to see more of those traditional.

Speaker Change: Whereas the evolve our customer is going to see more of.

Speaker Change: The collection put together and I think.

Speaker Change: It is for us.

Speaker Change: Is going to be really important for US also has our ARINC <unk> satellite Bernie.

Speaker Change: Remiss if I if I missed out on that there is a customer who responds to the nudge from it versus getting 40 pages.

Speaker Change: I think that nudge can be handled in different ways. It's also the ability to prospect, but we lead it and instead of having to have a 40 or 50 page book, we might have a 10 page foldout postcards and that might be the way that we lead into it and again, we're not necessarily doing that for cost reasons, but we.

Speaker Change: Are doing it to be thoughtful about the value that we put against the customer and the return on that individual customer from things standpoint.

Speaker Change: Great. Thank you.

Speaker Change: Yeah.

Speaker Change: Thank you Robert.

Speaker Change: And as a reminder, ladies and gentlemen that is star one for a question. We will take our next question from Alex Furman with Craig Hallum. Please go ahead.

Hey, guys. Thanks for taking my question and congratulation on all the progress that you made last year it looks like you're expecting some pretty nice GNP growth for the year, but not as much in Q1 can you just explain that difference and why youre expecting <unk> growth to accelerate after Q1.

Speaker Change: Yeah, Good morning, Alex.

Speaker Change: Last year and 24, we were liquidating, our shoe and kids inventory. So there is a chunk that is non comp last year and thats pretty much the variance between.

Speaker Change: And on a like for like basis, it will be very for the whole year.

Speaker Change: Okay. That's really helpful already banked and then Andrew you mentioned Theres, a subset of your customer base that the holiday promotional strategy didn't resonate.

Speaker Change: There are plans to try to get those customers back this year or is that a customer that more of a once a year customer looking for guests or clearance items.

Speaker Change: Hey, Alex has to go in.

Speaker Change: Good day.

Speaker Change: Yes, I love the question.

Alex We love all of our customers, but I think theres different times to reach those customers and instead of being.

Speaker Change: 50% to 70 off of our Black Friday, cyber Monday, cyber Monday, because youre, just a hunting volume.

Speaker Change: I think there is a time when we can address that customer very specifically and right now it is.

Speaker Change: About how we manage our winter sale.

Speaker Change: Our summer sale.

Speaker Change: It's like we give great offers for them. It's like we've got products that we specifically have engineer for them and I think it's about how we connect them with that with that marketing and the trick is a trick as we go down this path of personalization is how you widened the aperture out from them just being us.

Speaker Change: Customer a couple of times, a year to introducing them to other franchises.

Speaker Change: <unk> to pay more for and so I'll give you a perfect example of it.

Speaker Change: <unk> always had the expedition Parker.

Speaker Change: Our most expensive piece of outerwear, it's actually arguably the most expensive thing where Kerry on the site at any one time and we weatherproof that by adding a lighter weight <unk> and then we further web approach that by adding further free and we further weatherproof on top of that by adding fleece that creates a series of entry points for that customer.

Speaker Change: <unk>.

They can come in and they can find product that works for them.

Speaker Change: Yes.

Speaker Change: At a price point, that's relevant to them and we see very specific behavior. There. So again, it's back to the question Eric was asking is.

Eric Peter: How do you customize the marketing to be right on it.

Eric Peter: <unk> point is definitely these two sale events, but how we open the aperture from there we will define it and I'm not going to chase any customers away from the brands, but nor am I on the other on the other side of this going to have a brand where we just discount should be at.

Eric Peter: Our price point that our tracks.

Eric Peter: A customer who is not really going to be tremendously profitable for us and not really help support the brand. So theres a couple of ways that it does that answer your question.

Speaker Change: It sure does thanks very much Andrew I appreciate that.

The Alex.

Speaker Change: Thank you and this does conclude today's program. Thank you for your participation you may disconnect at anytime.

Speaker Change: Okay.

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