Q2 2025 Lands' End Inc Earnings Call

Lands' end second quarter 2025 earnings conference call at this time all participants are in a listen only mode. Later, you will have the opportunity to ask questions. During our question and answer session. You may registered to ask a question at any time by pressing star one on your telephone.

Also today's call is being recorded and if you should need any operator assistance during the call today. Please press star zero at any time now at this time I'd like to turn things over to Mr. Tom also senior director of financial planning and analysis. Please go ahead Sir.

Good evening and thank you for joining the Lands' end earnings call for a discussion of our second quarter 2025 results, which we released this afternoon and can be found at our website <unk> com.

I'm talking about both Lance and senior director of financial planning and analysis and I'm pleased to join you today with Andrew Mcclain, Our Chief Executive Officer, 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 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.

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 the 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.

Copy of which is posted in the Investor Relations section of our website at Lands' end desktop.

With that I'll turn the call over to Andrew.

Thanks, Tom Good evening, and thank you for joining us.

Speaking on today's call I want to spend a moment talking about I think we've seen over the past several months, including over the course of the second quarter and importantly, continuing into the third quarter.

Noticeable increase the momentum across our paper.

Across our key product categories channels and the engagement, we're seeing improvements that give us comfort that our strategy to serve our customers. The equity journey is working.

Weatherproof assortment and prioritize it and use it to market.

Just to resonate with customers and then it goes more high quality sales and keep it as customer loyalty.

Turning to the second quarter, we continued to reach new and existing customers across a broad base of channels as well.

We have done in previous quarters, we are engaging with them, where and when they want to shop and providing considered direction stories that resonate individually and create leverage as we reposition the brand.

Distributed commerce model.

Our increasing shift towards an asset light low capital intensity model allows us to rapidly deploy and use it to optimize customer engagement with TMT holding steady year on year, we're beginning to see the benefits of that work.

In the <unk> channel our team built on the successes by deepening relationships in the travel banking sector, extending a number of our long term enterprise contracts.

Critically we continued to invest in our brand.

Liberate strategy to weatherproof, our assortment with solutions like every journey and deliver for our customers in any environment. While also enhancing speeds across our supply chain has enabled us to be nimble and react quickly, especially as we see buying patterns shifting to a more wear now items.

In the second quarter debate.

Dominated by our licensing from third party marketplaces, where we continued to see vastly expanded.

Resulting in a more balanced model that importantly, deliberate about half of our new customer growth on virtually no capital investment.

With regard to sourcing as you've heard us talk about over the past several quarters, we have been intentionally repositioning our sourcing network to better serve the paper square building, leading to a more balanced supply chain that enables us to bring new solutions to customers with more speed and frequency corrupted year for example, our light.

Partners are becoming part of our sourcing network, allowing us to load lift access to their vendor network. While also providing those same partners with leverage from the lands end sourcing footprint.

Other consequential outcome of our update that sourcing strategy has been the ability to navigate tariffs by tapping into the full breadth of our sourcing matrix.

We're able to swiftly and strategically repositioning fabric and manufacturing as tariff conditions evolve.

There is they will get it sits there to see as we continued to deliver gross margin rates above last year in the quarter.

Even as we felt the initial tariff headwinds.

We feel confident that we have mitigated the near term impact of tariffs for the remainder of fiscal 2025.

Especially with the majority of our fall holiday items already ship.

As Bernie will detail.

As reflected in our guidance.

Turning to product we had notable wins.

We launched our focused landfill essentials lines on Amazon, consisting of approximately 40 styles, providing access points to new and existing customers.

Speaker #1: Strategy to weatherproof our assortment with solutions for life's every journey and deliver for our customers in any environment while also enhancing speed across our supply chain has enabled us to be nimble and react quickly, especially as we see buying patterns shifting to a more whereabouts items.

The product T. I can basically cross women's men's and swim is priced at the good end of our Merchandizing pyramid.

Andrew McLean: Strategy to wrap a quick-arm assortment with solutions that light every journey and deliver for our customers in any environment, while also enhancing speed across our supply chain, has enabled us to be nimble and react quickly, especially as we see buying patterns shifting to a more worn-out item. In the second quarter, the B2C businesses were dominated by our licensing and third-party marketplaces, where we continued to see vastly expanded reach, resulting in a more balanced model that, importantly, delivered over half of our new customer growth on virtually no capital investment. With regard to sourcing, as you've heard us talk about over the past several quarters, we have been intentionally repositioning our sourcing network to better serve the business we're building, leading to a more balanced supply chain that enables us to bring new solutions to customers with more speed and frequency throughout the year.

If it tastes of the solutions Lands' end is famous for and then fix the customer to find the Bachelor best assortment on our brand sites.

This essentials product line is a perfect segue from a licensing product to our brand and is attracting new customers.

Okay.

And the brand channels credit for the tote bag.

Ongoing efforts to collaborate and innovate ranging in size from Maine to Maxi I mean construction from canvas to straw have allowed us to expand the assortment.

We also added a customization package that is unique in the industry.

In the second quarter, the B2C businesses were dominated by our licensing and third-party marketplaces, where we continue to see vastly expanded reach, resulting in a more balanced model. That, importantly, delivers over half of our new customer growth with virtually no capital investment.

As seasonal buying habits are changing we are benefiting from the work we've done to weatherproof, our assortment, allowing us to deliver customers what they want when they want to be at swimming for summer recreation of our outerwear to batch will be element.

Andrew McLean: For example, our licensed partners are becoming part of our sourcing network, allowing us low-lift access to their vendor networks, while also providing those same partners with leverage from the Lands' End sourcing footprint. Another consequential outcome of our updated sourcing strategy has been the ability to navigate tariffs. By tapping into the full breadth of our sourcing matrix, we're able to swiftly and strategically reposition fabric and manufacturing as tariff conditions evolve. The resilience is there to see as we continue to deliver gross margin rates above last year in the quarter, even as we felt initial tariff headwinds. We feel confident that we have mitigated the near-term impact of tariffs for the remainder of fiscal 2025, especially with the majority of our fall holiday items already shipped. As Bernie will detail, this is reflected in our guidance. Turning to product, we had notable wins.

Following a colder spring in slower start for swim we saw momentum build throughout the summer as weather improved and experienced a strong August.

Both swim and outerwear or top five items over labor day weekend, reflecting changing consumer tastes around weather proofing.

With regard to sourcing, as you've heard us talk about over the past several quarters, we have been intentionally repositioning our sourcing network to better serve the business. We're building a more balanced supply chain that enables us to bring new solutions to customers with more speed and frequency throughout the year. For example, our licensed partners are becoming part of our sourcing network, allowing us low-lift access to their vendor networks while also providing those same partners with leverage from the land and sourcing footprint.

As a note for Q3, our customers are responding positively to our on trend Assortments embroidered dreams are our best seller.

Another consequential outcome of our updated sourcing strategy has been the ability to navigate tariffs.

By tapping into the full breadth of our sourcing matrix.

Without the need to discount and we have expanded our popular barrel like fit.

We're pleased to report that these trends with our we're not a full product are resonating strongly with customers.

We're able to swiftly and strategically, reposition Fabric, and Manufacturing as terrorists conditions evolve.

Laying the foundation for a strong third quarter as these important franchise categories.

Turning to the performance of our various businesses beginning with our PCB business.

Our b to B business continues to set us apart from competitors and had a terrific quarter with growth in both top and bottom line performance.

We feel confident that we have mitigated the near-term impact of tariffs for the remainder of fiscal 2025.

Especially with the majority of our fall, holiday items already shipped.

As Bernie will detail. This is reflected in our guidance.

On the commercial uniform side, our focus on building scale and contract duration with our enterprise customers.

Andrew McLean: We launched a focused Lands' End Essentials line on Amazon, consisting of approximately 40 styles, providing access points to new and existing customers. The product, key item basics across women, men's and swim, is priced at the good end of our merchandising pyramid, gives a taste of the solutions Lands' End is famous for, and invites the customer to find the better-best assortment on our brand site. This Essentials product line is a perfect segue from our licensing product to our brand and is attracting new customers. In the brand channels, credit to the tote bag, where our ongoing efforts to collaborate and innovate, ranging in size from mini to maxi and in construction from canvas to straw, have allowed us to expand the assortment. We also added a customization package that is unique in the industry.

Turning to product, we had notable wins.

Difficult for yourselves.

This year, we have won and are extending contracts with several large clients.

Marking our highest growth and contract durations that we have recorded during the second quarter. This side of the company spanning.

We launched a focused Lands' End Essentials line on Amazon consisting of approximately 40 styles, providing access points to new and existing customers.

2014.

The product key item basics across women's, men's, and swim is priced at the good end of our merchandising pyramid.

As we dialogue this strategy, we expect to add other household names and our key industry sectors over the coming year.

If the taste of the solutions Lands End is famous for and invites, the customer to find the better best assortment on our brand site.

Our school uniform business had another strong quarter with revenue up high single digits fueled by new customer wins.

The existential product line is a perfect segue from our licensing product to our brand and is attracting new customers.

We're continuing to win by leveraging the strength of our brand.

Our focus on quality, our market, leading embroidery, and personalization capabilities and our great customer service.

Turning to our B to C business.

Asset light licensing business remains a significant growth vehicle for the lands' end brand.

Andrew McLean: As seasonal buying habits are changing, we are benefiting from the work we've done to weatherproof our assortment, allowing us to deliver customers what they want, when they want it, be it swim for summer recreation or outerwear to battle the elements. Following a colder spring and slower start for swim, we saw momentum build throughout the summer as weather improved and experienced a strong August. Both swim and outerwear were top five items over Labor Day weekend, reflecting changing consumer tastes around weatherproofing. As a nod to Q3, our customers are responding positively to our on-trend assortment. Embroidered jeans are our best seller without the need to discount, and we have expanded our popular barrel-leg fit. We're pleased to report that these trends with our worn-out fall product are resonating strongly with customers, laying the foundation for a strong third quarter in these important franchise categories.

In the brand channels, credit to the tote bag where our ongoing efforts to collaborate and innovate, ranging in size from me to Maxie, and in construction from canvas to straw, have allowed us to expand the assortment. We also added a customization package that is unique in the industry.

We saw particularly strong performance in the club stores with continued wins across men's women's and kids categories and the expected.

Introduction of footwear in that channel later in the year land.

<unk> remains a highly desirable brands with licensed partners reporting new interests from a number of distributors and posted department store and club channels.

As seasonal buying habits are changing. We are benefiting from the work. We've done to weatherproof our assortment allowing us to deliver customers what they want when they want it. Be it swim for summer Recreation or outerwear to battle the elements.

Our third party marketplace business delivered strong topline results driven by performance and Macy's and a record setting prime week on Amazon, where we launched the lands and the essential line I mentioned earlier.

Following a colder spring and slower start for swim, we saw momentum build throughout the summer as the weather improved and experienced a strong August.

Both swim and outerwear were top 5 items over Labor Day. Weekend, reflecting changing consumer, tastes around weather proofing.

It talks to the approach continues to enhance this capability conversion and drive brand equity across platforms.

Market places are relatively low risk capital light and fit neatly into our distributed commerce go to market model.

As a not to Q3 our customers are responding positively to our on-trend. Assortments embroidered. Jeans are our best seller without the need to Discount. And we have expanded our popular Barrel leg fit.

Along with licensing we seen market places as a compelling driver of continued growth in the week and brand value of lands end and.

Andrew McLean: Turning to the performance of our various businesses, beginning with our B2B outfitters business. Our B2B outfitters business continues to set us apart from competitors and had a terrific quarter with growth in both top and bottom line performance. On the commercial uniform side, our focus on building scale and contract duration with our enterprise customers yielded significant results. This year, we have won and are extending contracts with several large clients, marking our highest growth in contract duration that we have recorded during the second quarter this side of the company's spin out in 2014. As we dial up this strategy, we expect to add other household names in our key industry sectors over the coming year. Our school uniform business had another strong quarter with revenue up high single digits, fueled by new customer wins.

We're pleased to report that these trends with our warehouse, all products are resonating strongly with customers, laying the foundation for a strong third quarter in these important franchise categories.

And importantly, it's where our consumer is shopping and where we're meeting those new to our iconic brands.

Turning to the performance of our various businesses. Beginning with our B2B business.

Our U S E Commerce business continues it evolutionary journey as the central hub of our commerce strategy, representing the most fashion forward collection oriented manifestation of the brand.

B2B business continues to set us apart from competitors and had a terrific quarter with growth in both top and bottom line performance.

We continued to elevate the site, creating a more immersive experiential look and feel that best presents our collections to customers existing and new.

On the commercial uniform side, our focus on building scale and contract duration with our enterprise customers yielded significant results.

Our recent momentum with a strong start to the third quarter is positioning lands' end as a trusted high quality brands with broad consumer appeal, especially among the all important 35 to 50 year old demographic.

This year we have 1 and are extending contracts with several large clients. Marking our highest growth in contract durations that we have recorded during the second quarter. This side of the companies spin has been 2014.

As we dial up this strategy, we expect to add other household names in our key industry sectors over the coming year.

The web site in both mobile and desktop showcases ever greater levels of personalization.

Andrew McLean: We're continuing to win by leveraging the strength of our brand, our steadfast focus on quality, our market-leading embroidery and personalization capabilities, and our great customer service. Turning to our B2C business, our asset-light licensing business remains a significant growth vehicle for the Lands' End brand. We saw a particularly strong performance in the club stores with continued wins across men's, women's, and kids categories, and the expected introduction of footwear in that channel later in the year. Lands' End remains a highly desirable brand with licensed partners reporting new interest from a number of distributors in both the department store and club channels. Our third-party marketplace business delivered strong top-line results, driven by performance in Macy’s and a record-setting Prime Week on Amazon, where we launched the Lands' End Essentials line I mentioned earlier. This targeted approach continues to enhance discoverability, conversion, and drive brand equity across platforms.

Our school uniform business had another strong quarter, with revenue up high single digits, fueled by new customer wins.

Our deployment of our new AI, driven recommendation outfitting engine makes it easier for customers to mix and match products. Additionally, we're driving more segmented them personalized campaigns, leveraging our SMS and email platforms, while expanding communications with AI agents are rapidly evolving search sector.

In capabilities and our great customer service.

Turning to our b2c business, our asset, like licensing, business remains a significant growth vehicle for the lanzen brand.

Sure.

Social commerce.

The final part of our distributed Commerce platform.

While we don't break out the segment and included within our U S ecommerce results.

Wonderful quarter with our Instagram followers growing by over 100% since last year.

Our total social traffic increased nearly 19% versus last year and nearly 60% in June and July versus last year, reaching a new and younger customer we created bespoke campaigns for example auto broke summer campaign.

We saw particularly strong performance in the club stores with continued winds across men's women's and kids categories, and the expected introduction of Footwear in that channel later in the year Land's, End remains a highly desirable brand with licensed Partners, reporting new interests from a number of Distributors and posters department store and club channels.

Our third-party Marketplace business delivered strong topline results, driven by performance in Macy's and a record-setting Prime Week on Amazon, where we launched Lands' End's Essential Line, as I mentioned earlier.

Offering our iconic pocket with personalization options at a series of pop up shops, and popular summit destinations. We continue to attract new customers at a rapid clip and the total remains our number one use of brands acquisition product.

Andrew McLean: Marketplaces are relatively low-lit, capital-light, and fit neatly into our distributed commerce go-to-market model. Along with licensing, we see marketplaces as a compelling driver of continued growth in the reach and brand value of Lands' End. Importantly, it's where our consumer is shopping and where we are meeting those new to our iconic brand. Our U.S. e-commerce business continues its evolutionary journey as the central hub of our commerce strategy, representing the most fashion-forward, collection-oriented manifestation of the brand. We continue to elevate the site, creating a more immersive and experiential look and feel that best presents our collections to customers, existing and new. Our recent momentum with a strong start to the third quarter is positioning Lands' End as a trusted, high-quality brand with broad consumer appeal, especially among the all-important 35 to 50-year-old demographic. The website in both mobile and desktop showcases ever-greater levels of personalization.

This talk to the approach continues to enhance, discoverability conversion and drive brand Equity across platforms.

Replaces are relatively low list?

Europe showed improvement during the second quarter with revenue declines beginning to moderate as we became more effective sellers and position the brand to build on the distributed commerce success that we're seeing in the U S.

Hospital Light and Fit neatly fit into our distributed commerce go-to-market model along with licensing. We see marketplaces as a compelling driver of continued growth in the reach and brand value of Lands' End.

Specifically, we launched a French language website with limited discounting and a more evolved look and field. In addition, we began to elevate the look and feel of the German and UK sites collaborating with more premium partners like share Lux and secret escape.

And importantly, it's where our consumer is shopping and where we are meeting those new to our iconic brands.

Our U.S. e-commerce business continues its evolutionary journey as the central hub of our commerce strategy, representing the most fashion-forward, collection-oriented manifestation of the brand.

For fall holiday, we plan to launch several designer collaborations as part of that repositioning as.

As with the U S.

We look to asset light low lift lunches to broaden our reach including opening on Amazon evidence and next with results significantly ahead of expectations.

We continue to elevate the site, creating a more immersive and experiential look and feel that best presents our collections to customers, both existing and new.

Europe will continue to be a testbed for us and while each market has its own dynamics, we're committed to building a global brand and view the Halo that these markets can provide plans that is invaluable.

Our recent momentum with a strong start to the third quarter is positioning, Land's End as a trusted high-quality brand with broad consumer appeal, especially among the all-important. 35 to 50 year old demographic.

Andrew McLean: Our deployment of our new AI-driven personalization and recommendation engine makes it easier for customers to mix and match products. Additionally, we're driving more segmented and personalized campaigns, leveraging our SMS and email platforms, while expanding communications with AI agents, a rapidly evolving search sector. Social commerce is the final part of our distributed commerce platform. While we don't break out this segment and include it within our U.S. e-commerce results, it had a wonderful quarter with our Instagram followers growing by over 100% since last year. Our total social traffic increased nearly 19% versus last year and nearly 60% in June and July versus last year. Reaching a new and younger customer, we created bespoke campaigns.

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

Thank you Andrew for the second quarter total revenue performance was $294 million.

A decrease of 7% compared to the second quarter last year.

<unk> was approximately flat year over year licensing and our presence across our third party marketplace partners continue to help the business diversify and reduce risk from any one business unit product or partner.

The website and both mobile and desktop showcases, ever greater levels of personalization, our deployment of our new AI driven recommendation and outfitting engine makes it easier for customers to mix and match products. Additionally, we're driving more segmented and personalized campaigns. Leveraging our SMS and email platforms while expanding Communications with AI agents, A rapidly evolving search sector.

Our U S ecommerce business saw sales decreased 11% compared to the second quarter of 2024.

Social commerce is the final part of our distributed Commerce platform. While we don't break out this segment and include it within our us e-commerce results. It had a wonderful quarter with our Instagram followers, growing by over 100% since last year.

The decrease was largely driven by the slow start to the swim season and as Andrew discussed we saw strong swim results through Labor day, which we have incorporated into our third quarter forecast.

Andrew McLean: For example, our Tote Girl Summer campaign, offering our iconic pocket tote with personalization options and a series of pop-up shops in popular summer destinations, we continue to attract new customers at a rapid clip, and the tote remains our number one new-to-brand acquisition product. Europe showed improvement during the second quarter, with revenue declines beginning to moderate as we became more effective sellers and positioned the brand to build on the distributed commerce success that we are seeing in the U.S. Specifically, we launched the French-language website with limited discounting and a more evolved look and feel. In addition, we began to elevate the look and feel of the German and U.K. sites, collaborating with more premium partners like Sheer Luxe and Secret Escape. For fall holiday, we plan to launch several designer collaborations as part of that reposition.

Our third party marketplace business grew approximately 14% with year over year growth across our marketplaces.

Our total social traffic increased nearly 19% versus last year and nearly 60% in June and July versus last year, reaching a new and younger customer. We created bespoke campaigns; for example, our Tote Growth Summer campaign.

We were very pleased with our performance in Macy's and Amazon and we believe an improved performance at Kohl's has positioned the marketplace business well for the back half of the year.

Offering our iconic Pockets with personalization options at a series of pop-up shops in popular. Summer destinations, we continue to attract new customers at a rapid clip and the tote remains our number 1, new to Brand acquisition product.

Sales from Lands' end outfitters increased 5% from the second quarter of 2024.

Sales from our school uniform channel increased high single digits.

Europe showed improvement during the second quarter, but revenue declines are beginning to moderate as we became more effective sellers and positioned the brand to build on the distributed commerce success that we're seeing in the U.S.

Given by our acquisition of New school accounts.

Revenues for the business you reported channel were up year over year, driven by our enterprise accounts sales in Europe decreased 15% year over year, primarily due to supply chain challenges on key seasonal products and broader macroeconomic pressures. However.

Specifically, we launched the French-language website with limited discounting and a more evolved look and feel. In addition, we began to elevate the look and feel of the German and UK sites, collaborating with more premium partners like Sheerluxe and Secret Escape.

Andrew McLean: As with the U.S., we look to asset-light, low-lit launches to broaden our reach, including opening on Amazon, Bevanums, and Next, with results significantly ahead of expectations. Europe will continue to be a test bed for us, and while each market has its own dynamics, we're committed to building a global brand and view the halo that these markets can provide Lands' End as invaluable. I'll now turn it over to Bernie to discuss our second quarter performance in more detail.

However, we are encouraged by the early progress from adding additional channels and expect this business to improve in the back half of the year.

For the fall holiday, we plan to launch several designer collaborations as part of that.

As with the US.

Revenue from our licensing business grew 19% year over year, reflecting the continued momentum of our licensing program.

We look to asset like low lift launches to broaden our reach, including opening on Amazon, Deon. And next, with results significantly ahead of expectations.

This growth was fueled by increased brand visibility from existing licensees further expanding our reach and impact.

Gross profit decreased by 6% compared to last year.

Europe will continue to be a test bed for us. And while each market has its own dynamics, we're committed to building a global brand and view the halo that these markets can provide as invaluable.

Gross margin in the second quarter was 49% and approximately a 90 basis point improvement in the second quarter of 2024.

Bernard McCracken: Thank you, Andrew. For the second quarter, total revenue performance was $294 million, a decrease of 7% compared to the second quarter last year, and GMV was approximately flat year over year. Licensing and our presence across our third-party marketplace partners continued to help the business diversify and reduce risk from any one business unit, product, or partner. Our U.S. e-commerce business saw sales decrease 11% compared to the second quarter of 2024. The decrease was largely driven by the slow start to the swim season, and as Andrew discussed, we saw strong swim results through Labor Day, which we have incorporated into our third quarter forecast. Our third-party marketplace business grew approximately 14% with year-over-year growth across our marketplaces.

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

The margin improvement was driven by continued strength in full price selling across key categories and expansion of our licensing business.

SG&A expenses decreased by $6 million year over year.

As a percentage of net revenue SG&A increased 130 basis points, primarily driven by deleverage from lower revenues.

Thank you, Andrew for the second quarter. Total revenue performance was 294 million. A decrease of 7% compared to the second quarter last year and gmv was approximately flat year-over-year, licensing, and our presence of our third party Marketplace Partners. Continue to help the business diversify and reduce risk from any 1 business unit product or partner,

For the second quarter, we had an adjusted net loss of $1 $9 million or <unk> <unk> per share.

We delivered adjusted EBITDA of $14 million in the second quarter, representing a year over year decrease of 18%. The decrease was driven by initial tariff headwinds Europe E Commerce performance and the slow start to the swim season, partially offset by marketplaces licensing.

10% compared to the second quarter of 2024.

The decrease was largely driven by the slow start to the swim season and as Andrew discussed we saw strong swim results through Labor Day which we have incorporated into our third quarter forecast.

Bernard McCracken: We were very pleased with our performance in Macy’s and Amazon, and we believe improved performance at Kohl’s has positioned the marketplace business well for the back half of the year. Sales from Lands' End outfitters increased 5% from the second quarter of 2024. Sales from our school uniform channel increased high single digits, driven by our acquisition of new school accounts. Revenues from the business uniform channel were up year over year, driven by our enterprise accounts. Sales in Europe decreased 15% year over year, primarily due to supply chain challenges on key seasonal products and broader macroeconomic pressures. However, we are encouraged by the early progress from adding additional channels and expect this business to improve in the back half of the year. Revenue from our licensing business grew 19% year over year, reflecting the continued momentum of our licensing program.

And outfitters.

Our third-party marketplace business grew approximately 14%, with year-over-year growth across our marketplaces.

Moving to our balance sheet inventories at the end of the second quarter were $302 million.

Down 3% compared to last year.

Reflecting disciplined inventory management and proactive measures to mitigate tariff impacts.

We were very pleased with our performance in Macy's and Amazon, and we believe in improved performance at Kohl's. This has positioned the marketplace business well for the back half of the year.

In terms of our debt at the end of the second quarter, our term loan balance was $241 million and our ACL had $35 million of borrowings outstanding.

Sales from Lands' End and Outfitters increased 5% from the second quarter of 2024.

They also, from our school uniform channel, increased high single digits driven by our acquisition of new school accounts.

Total long term debt was flat to last year.

So we're in the second quarter, we repurchased $2 million of shares under our $25 million share repurchase.

<unk> announced in March of last year, bringing the balance of the remaining authorization to $9 million as of the end of the quarter.

Revenues from the business uniform Channel, were up year-over-year driven by our Enterprise accounts sales in Europe. Decreased 15% year-over-year primarily due to supply chain challenges on case seasonal, products and broader, macroeconomic pressures.

Now moving to guidance our guidance includes the impact of tariffs at the current implemented rates. We are implementing mitigation measures to effectively manage the tariff headwinds at current levels for the remainder of fiscal 2025.

However, we are encouraged by the early progress from adding additional channels and expect this business to improve in the back half of the year.

Bernard McCracken: This growth was fueled by increased brand visibility from existing licensees, further expanding our reach and impact. Gross profit decreased by 6% compared to last year. Gross margin in the second quarter was 49%, an approximately 90 basis point improvement from the second quarter of 2024. The margin improvement was driven by continued strength in full-price selling across key categories and expansion of our licensing business. SG&A expenses decreased by $6 million year over year. As a percentage of net revenue, SG&A increased 130 basis points, primarily driven by deleverage from lower revenues. For the second quarter, we had an adjusted net loss of $1.9 million or $0.06 per share. We delivered adjusted EBITDA of $14 million in the second quarter, representing a year-over-year decrease of 18%.

Revenue from our licensing business grew, 19% year-over-year, reflecting the continued momentum of our licensing program.

For the third quarter, we expect.

Net revenue to be between 328 million to $350 million, while GMB is expected to be mid to high single digit growth.

This growth was fueled by increased brand visibility from existing licenses, further expanding our reach and impact.

Growth profit decreased by 6% compared to last year.

Adjusted net income of 3 million to $7 million and adjusted diluted earnings per share of <unk> to 'twenty two.

Gross margin in the second quarter was 49% and approximately 90 basis. Point improvements in the second quarter of 2024,

And our adjusted EBITDA to be in the range of 24 million to $28 million.

The margin improvement was driven by continued strength in full-price selling of Cross Key categories and expansion of our licensing business.

Turning to full year, we now expect net revenue to be between $1.33 billion to $1.40 billion.

SG&A expenses decreased by $6 million year-over-year.

While <unk> is expected to be low mid single digit growth.

As a percentage of net revenue, SG&A increased 130 basis points, primarily driven by de-leverage from lower revenues.

Adjusted net income of $19 million to $27 million and adjusted diluted earnings per share of <unk> 62 to 88.

For the second quarter, we had an adjusted net loss of $1.9 million, or 6 cents per share.

And our adjusted EBITDA to be in the range of $98 million to $107 million.

Bernard McCracken: The decrease was driven by initial tariff headwinds, Europe e-commerce performance, and the slow start to the swim season, partially offset by marketplaces, licensing, and outfitters. Moving to our balance sheet, inventories at the end of the second quarter were $302 million, down 3% compared to last year, reflecting disciplined inventory management and proactive measures to mitigate tariff impacts. In terms of our debt, at the end of the second quarter, our term loan balance was $241 million, and our ABL had $35 million of borrowings outstanding. Total long-term debt was flat to last year. During the second quarter, we repurchased $2 million of shares under our $25 million share repurchase authorization announced in March of last year, bringing the balance of the remaining authorization to $9 million as of the end of the quarter. Now moving to guidance.

Our guidance for the full year incorporates approximately $25 million in capital expenditures with that I'll turn the call back over to Andrew.

Thanks Bernie.

We delivered adjusted EVA of $14 million in the second quarter, representing a year-over-year decrease of 18%. The decrease was driven by initial tariff headwinds in Europe, e-commerce performance, and a slow start to the swim season, partially offset by marketplace licensing and outfitters.

I want to thank <unk> employees for their hard work and dedication during the quarter with their support we have created a truly distributed commerce retailer with.

Moving to our balance sheet inventories. At the end of the second quarter, we had $302 million, down 3% compared to last year.

With the weeks to deliver for our customers existing and new across channels geographies and categories.

Reflecting disciplined inventory management and proactive measures to mitigate tariff impacts.

Looking ahead to the third quarter, we're seeing broad strength across all categories at our U S business.

Building on our positive momentum and the trends we saw develop over the course of the second quarter.

In terms of our debt, at the end of the second quarter, our Term Loan balance was $241 million, and our ABL had $35 million of borrowings outstanding.

Our sales and margin over Labor day weekend.

Total alarm, long-term debt was flat to last year.

Best we've had in the last decade, bringing significant new to file by that.

As I mentioned earlier this reflects the intentional work, we've done to weatherproof profit risk and ensure our customers have what they want when they want it.

During the second quarter we repurchased 2 million dollars of shares. Under our 25th, authorization announced in March of last year bringing the balance of the remaining authorization to 9 million as of the end of the quarter,

It also underscores the strength of our strategy to be promotional around holiday, while maintaining full price selling in between.

Bernard McCracken: Our guidance includes the impact of tariffs at the current implemented rates. We are implementing mitigation measures to effectively manage the tariff headwinds at current levels for the remainder of fiscal 2025. For the third quarter, we expect net revenue to be between $320 million to $350 million, while GMV is expected to be mid to high single-digit growth. Adjusted net income of $3 million to $7 million and adjusted diluted earnings per share of $0.10 to $0.22. Our adjusted EBITDA is to be in the range of $24 million to $28 million. Turning to full year, we now expect net revenue to be between $1.33 billion to $1.40 billion, while GMV is expected to be low to mid-single-digit growth. Adjusted net income of $19 million to $27 million and adjusted diluted earnings per share of $0.62 to $0.88.

Now, moving to guidance.

Our guidance includes the impact of tariffs at the current implemented rates.

Finally.

The board's previously announced process to explore strategic alternatives remains ongoing.

We are implementing mitigation measures to effectively manage the tariff headwinds at current levels for the remainder of fiscal 2025.

We will not be commenting further on it at this time, we will provide an update once appropriate with that we look forward to your questions.

For the third quarter, we expect.

Thank you very much ladies and gentlemen at this time I would like to ask a question. Please press star one on your telephone and if you find your question has been addressed your name remove yourself from the queue by pressing star to once again star one for questions well go first this afternoon to Dana Telsey of the Telsey group.

Debt revenue is expected to be between $320 million to $350 million, while GMV is anticipated to experience mid to high single-digit growth.

Adjusted net income of dollars to 7 million and adjusted diluted earnings per share of 10 cents to 22 cents.

Hi, good afternoon, everyone and nice to hear about the progress.

And our adjusted Eva to be in the range of 24 million to 28 million.

The acceleration of momentum on the top line and you're talking about equity into the third quarter. Now what are you seeing byproduct category how much of it is lower promotion and given the cap environment have you taking price and then also it sounds like he lands into essentials and Premier.

Turning to full year. We now expect net revenue to be between 1.33 to 1.40 billion dollars. While gmv is expected to be low to mid single digit growth.

Bernard McCracken: Our adjusted EBITDA is to be in the range of $98 million to $107 million. Our guidance for the full year incorporates approximately $25 million in capital expenditures. With that, I'll turn it all back over to Andrew.

Kidney.

Adjusted net income of 19 million to 27 million and adjusted diluted earnings per share of 62 cents to 88 cents.

You're seeing that's driving the business how is the margin and price points relative to the best of the next thank you.

And our adjusted evidence to be in the range of 98 million to 107 million.

Thanks, Dana it's nice to hear from you.

With.

Really been progressing the business towards the distributed commerce model over the last two.

Andrew McLean: Thanks, Bernie. I want to thank Lands' End's employees for their hard work and dedication during the quarter. With their support, we have created a truly distributed commerce retailer with the reach to deliver for customers existing and new across channels, geographies, and categories. Looking ahead to the third quarter, we are seeing broad strength across all categories in our U.S. business, building on our positive momentum and the trends we saw develop over the course of the second quarter. Our sales and margin over Labor Day weekend were the best we've had in the last decade, bringing significant new-to-buyers sign-up. As I mentioned earlier, this reflects the intentional work we've done to weatherproof our business and ensure our customers have what they want when they want it. It also underscores the strength of our strategy to be promotional around holidays while maintaining full-price selling in between.

Our guidance for the full year incorporates approximately $25 million in capital expenditures. With that, I'll turn the call back over to Andrew.

12 months and in fact, we saw that.

Thanks Bernie.

With our customers' shopping habits, you know as we move from our.

Traditional customer are resolved to our revolver I know I've talked about on previous calls.

With their support, we have created a truly distributed commerce retailer.

We started to actually look at where the customer was shopping and quite a lot of the work we did around working with AI agents.

With the reach to deliver for customers, existing and new, across channels, geographies, and categories.

To put that in the past, what we started to see that.

Customer habits are changing customers are migrating to different channels, there are new customers to tap into and so it became clear to us that we had opportunities beyond just the traditional branch site.

Looking ahead to the third quarter, we are seeing broad strength across all categories in our U.S. business, building on our custom momentum and the trends we saw develop over the course of the second quarter.

Our sales and margin over Labor Day weekend were the best. We've had in the last decade bringing significant new to file sign up.

The branch site will always be the alpha to us it's going to be.

Most fashion forward pop version of our brand is going to be the most complete version, but we know that those customers are shopping and we see within our top market places from the distributor model.

As I mentioned earlier, this reflects the intentional work we’ve done to weatherproof our business and ensure our customers have what they want when they want it.

Andrew McLean: Finally, the board's previously announced process to explore strategic alternatives remains ongoing. We will not be commenting further on it at this time, and we will provide an update once appropriate. With that, we look forward to your questions.

It also underscores the strength of our strategy to be promotional around holidays while maintaining full-price selling in between.

We see that the.

Amazon customers want some price points and by really focusing in on a couple of handful obscures, we'd put ourselves in a position that we can.

Finally, the board previously announced the process to explore strategic Alternatives remains ongoing.

Really lean in the marketing behind those skus and reach them at price points that matter and we think we can build a significant business. Our Q3 numbers have been absolutely astonishing actually.

Operator: Thank you very much. Ladies and gentlemen, at this time, if you would like to ask a question, please press star one on your telephone. If you find your question has been addressed, you may remove yourself from the queue by pressing star two. Once again, star one for questions. We'll go first this afternoon to Dana Telsey of the Telsey Group.

We will not be commenting further on it at this time and we will provide an update once appropriate with that. We look forward to your questions.

We've lent further into this.

We're seeing a tremendous amount of customer spend Mike great to see the full assortment.

Dana Telsey: Hi. Good afternoon, everyone, and nice to hear about the progress. Andrew, the acceleration in momentum on the top line that you're talking about, frankly, into the third quarter now, what are you seeing by product category? How much of it is lower promotion? Given the tariff environment, have you taken price? It sounds like the Lands' End Essentials is a new opportunity. What are you seeing that's driving the business? How is the margin and price points relative to the rest of the mix? Thank you.

Thank you very much. Ladies and gentlemen, at this time, if you would like to ask a question, please press *1 on your telephone. If you find your question has been addressed, you may remove yourself from the queue by pressing *2. Once again, *1 for questions. We'll go first this afternoon to Dana Telsey of the Telsey Group.

<unk> Dot com, so we think that that's a fly.

Hi. Good afternoon, everyone, and nice to hear about the progress.

Flywheel effect, that's going to be happening and that will continue to accelerate and spend the business forward as we see that momentum continue.

I would just note that at the top end of that we have Macy's.

<unk>, where we saw some of the highest price points that we have.

And the company and are any of these have been somewhat astonishing and we see that.

As we're reaching the top of our merchandise assortments. So again, we're putting the products.

Andrew McLean: Hey, thanks, Dana. It's nice to hear from you. We've really been progressing the business towards a distributed commerce model over the last 12 months. In fact, we saw this with our customers' shopping habits as we sort of moved from our very traditional customer, our resolver, to our revolver. I know I've talked about that on previous calls. We started to actually look at where the customer was shopping, and quite a lot of the work we did around working with AI agents took us down this path where we started to see there's customer habits changing, customers are migrating to different channels, there are new customers to tap into. It became clear to us that we had opportunities that lay beyond just a traditional brand site. The brand site will always be the alpha to us. It's going to be the most fashion-forward version of the brand.

Where we see certain customer and we're matching that product to the customer all the better and now we're able to manage promotions differently against each of those.

Andrew, the acceleration in momentum on the top line that you're talking about, frankly, into the third quarter. Now, what are you seeing by product category? How much of it is lower promotions, and given the tariff environment, have you taken price? And then also, it sounds like the Lands' End Essentials is a new opportunity. What are you seeing that’s driving the business? How is the margin and price points relative to the rest of the mix? Thank you.

Hey, thanks. Dana.

It's nice to hear from you. Um, we've really been progressing the business towards a distributed Commerce model over the last. Um,

One thing I want to call out the team has done a great job on this is we built an AI engine.

Sickly create product display pages P D piece and it will build language that's appropriate to each page. So MPC a product that's online 10 Dot com has a page materialize. This by the time you get to Amazon.

Differently, it will read more appropriate to the Amazon box.

AI search tools and it will read differently I'm, probably more elevated than all cancers to a nordstrom's or customers.

Starting what were being much more thoughtful about how we address each of these segments.

In terms of the category conversation that's out there.

You know, 12 months and it's like we we saw this um, with our customers shopping habits, you know, as we sort of like moved from our very, uh, traditional customer our resolver to our revolver. And I know I've talked about that on previous calls, you know, we started to actually look at where the customer was shopping and quite a lot of the work we did around um, working with AI agents. So it took us down this path where we started to see there is. There's customer habits, are changing customers and are migrating to different channels. There are new customers to tap into. And so it became clear to us that we had opportunities that lay Beyond just the traditional brand site.

We've seen strength across all categories.

Andrew McLean: It's going to be the most complete version. We know that those customers are shopping. We see within our, let's just talk marketplaces from the distributed model, we see that there's an Amazon customer who wants a price point. By really focusing in on a couple of handfuls of SKUs, we put ourselves in a position that we can really lean in, put the marketing behind those SKUs, and reach them at price points that matter. We think we can build a significant business. Our Q3 numbers have been absolutely astonishing, actually, as we've leaned further into this. In fact, what we're seeing is a tremendous amount of those customers then migrate to see the full assortment on LandsEnd.com. We think that there's a flywheel effect that's going to be happening and that will continue to accelerate and spin the business forward as we see that momentum continue.

The second quarter was definitely there was momentum all the way through it slower may win swim, which is really important to us.

To the business.

May.

We saw was that there was in June and July and then interestingly.

August.

What I'm starting to see is the strategy that.

The designers are putting in place around weather.

For us.

Because we are able to sell to the customer when they want it.

I watch it.

So it was something not seen in the company's history before over Labor day weekend, where we had both swim and I would say.

Our top five categories, which was new to us and that was relatively full price selling.

Because again, we're trying to meet more of a discounting in different channels like having.

The brand site will always be the alpha to us. It's going to be, you know, the most fashion forward. Um, version of the brand is going to be the most complete version but we know that those customers are shopping and you know, we see within our let's just talk marketplaces from the distributed model. Um you know, we see that you know, there's an Amazon customer who wants a price point and by really focusing in on you know a couple of handfuls of skus. We put ourselves in a position that we can, um, you know, really lean in put the marketing behind those skus and reach them at price points that matter and we think we can build a significant business. Our Q3 numbers have been absolutely astonishing. Actually, as we've learned further into this, and it's like what we're seeing is a tremendous amount of those customers, then my great to see the full assortment on landsend.com. So we think that there's a flywheel effect that's going to be happening and that will continue to accelerate and

Having that customer online center I'll call them with something more premium we were able to manage around that.

Andrew McLean: I would just note that at the top end of that, we have Macy's and Nordstrom, where we sell some of the highest price points that we have in the company. Our AOVs have been somewhat astonishing. We see that as we're reaching the top of our merchandise pyramid. Again, we're putting the product where we see a certain customer, and we're matching that product to the customer all the better. Now we're able to manage promotions differently against each of those. In fact, one thing I want to call out, I think the team's done a great job on this, is we built an AI engine that basically creates product display pages, PDPs, and it will build language that's appropriate to each page. If you see a product that's on LandsEnd.com, how the page materializes by the time you get to Amazon, it will read differently.

Spin the business forward. As we see that momentum continue.

Asked me about.

Tariffs and how are we handling everything onto the customer I gotta be honest, yes, we are.

I would just note that, at the top end of that, we have Macy's and Nordstrom, where we sell some of the highest price points that we have.

As little as we possibly can we look at our tariffs.

And the view, we took 425, which is in the guidance.

<unk> to 'twenty six is that we're making.

A number of changes made a number of changes in our sourcing network they've been very successful for us and they've given us the nimbleness to move in and out of market as tariffs come in we've also worked with our vendors and narrowed the number of vendors and that's given us the ability to share some of the tariff burden with them. So we think about them or.

Andrew McLean: It will read more appropriate to the Amazon bot and AI search tools, and it will read differently and probably more elevated in all candor to a Nordstrom customer. We're starting, we're being much more thoughtful about how we address each of these segments. In terms of the category conversation that's out there, we've seen strength across all categories. The second quarter was definitely, there was momentum all the way through. It was slow on May with swim, which is really important to us. It's a third of the business in May. What we saw was that build in June, it built in July, and then interestingly, it built into August.

Alright.

Realize that we're seeing of the remainder were splitting that fairly evenly between internal changes that we're making as we get it from.

The low margin and then the rest of it is going through.

Say, the relatively small increase to that.

Customer and we will endeavor to make that <unk>.

Wallace number it can be but I don't want to sugarcoat it.

In terms of the category conversation that's out there, we've seen strength across all categories, and it was...

So that we can absorb the whole thing so I think I got everything in there I'm happy to go back to if he felt more.

Product categories would be that one of the exciting things for US is as people are shifting their timing on purchases, while we noted.

Andrew McLean: What I'm starting to see is that the strategy that the designers and merchants put in place around weatherproofing has been incredible, because we are able to sell to the customer when they want it, not just where they want it. It was something I'd not seen in the company's history before over Labor Day weekend, where we had both swim and outerwear as top five categories, which was new to us. That was relatively full-price selling because, again, we're trying to meet more of the discounting in different channels. It's like having the customer on LandsEnd.com with something more premium, we were able to manage markdown around that. You asked me about tariff and are we handing anything on to the customer? I'm going to be honest, yes, we are. As little as we possibly can.

Swim was a little bit.

Later when season is a little bit of a negative for Q2, but it's actually been a nice tailwind to start in Q3.

As that swim kicks in and when Andrew was talking about essentials.

It's a smaller part of our business, but it's been really a big lift in its early days in both Amazon.

And we're all in the other places that we're putting in.

Thank you.

Thank you. We'll go next now to Eric better of SCC research.

You know, the the second quarter was was, definitely. There was momentum all the way through it slower met with swim which is really important to us. It's, you know, it's a third of the business in May, what we saw was that building June, it built in July and then, interestingly, it built into August. And what I'm starting to see is that the strategy that, um, the, the designers and Merchants put in place around weather, proofing has been incredible for us because we are able to sell to the customer when they want it, not just where they want it. And so, it was something I not seen in the company's history before over Labor Day weekend where we had both swim and out to where as top 5 categories which was new to us and that was you know relatively full price selling

Good afternoon.

Right.

Could you talk a little bit about the flow of licensing here I know that firsthand.

Because again, we're trying to meet more of the discounting in different channels. It's like having the customer on Lands' End cam with something more premium. We were able to manage markdown around that, you asked me about.

Kind of.

Uh, tariffs. And are we passing anything on to the customer?

Puts and takes because you were shifting licensing to from all categories.

Andrew McLean: We look at our tariffs and the view we took for 2025, which is in the guidance, then into 2026, is that we're making a number of changes. We've made a number of changes in our sourcing network. They've been very successful for us, and they've given us the nimbleness to move in and out of markets as tariffs come. We've also worked with our vendors and narrowed the number of vendors. That's given us the ability to share some of the tariff burden with them. We think about them for half of the tariff rise that we're seeing. Of the remainder, we're splitting that fairly evenly between internal changes that we're making as we get after our below margin. The rest of it is going through to what I would say is a relatively small increase to the customer.

Previously.

Our licensing category, what are we going to see in the back half in terms of potentially now be coming.

Expanding the categories beyond what you've done before with the licensing.

I’m going to be honest. Yes, we are. Um, as little as we possibly can. Um, we look at our tariffs, um, and the view we took for 2025, which is in the guidance and into 2026, is that we’re making, um,

Mechanism.

Eric I'm going to take be a check.

Check upfront and then I'll, let Ernie take the back half.

Yeah were up 36% on our licensing revenues then that's the number you'll see in the Q, but I really wanted to call that out.

We continue to look at how we will drive the business forward in the back half with that in the back half. We think that there is upside to it because there are new licenses and then on top of that.

We get into the holiday season, like we weren't really sell somebody in our infancy lessons last year on this so we see tremendous upside opportunity actually.

Andrew McLean: We will endeavor to make that the smallest number it can be. I don't want to sugarcoat it, that we can absorb the whole thing. I think I got everything in there. I'm happy to go back to it if you've got more.

The Sky's the limit in terms of the licenses. We can go after we've been a little slower for reasons.

a number of changes, we've made a number of changes in our sourcing Network. They've been very successful for us. And they've given us the Nimble to move in and out of markets as tariffs. Come, and we've also worked with our vendors and narrowed the number of vendors and that's given us the ability to, you know, share some of the Tariff burden with them. So we think about them or half of the Tariff um uh rise that we're seeing of the remainder were splitting that fairly evenly between internal changes that we're making as we get after our get after below margin and then the rest of it is going through to a what I would say is a relatively small increase to the the customer and we're we will endeavor to make that the smallest number it can be but I I I don't want to sugarcoat it but we're um

Bernard McCracken: Dana, the only thing that's on the product categories would be that, you know, one of the exciting things for us is as people are shifting their timing on purchases. Whilst we noted that swim was a little bit later swim season, it's a little bit of a negative for Q2, it's actually been a nice tailwind to start Q3 as that swim kicks in. When Andrew was talking about Essentials, it's a smaller part of our business, but it's been really a big lift in its early days in both Amazon and the other places that we're putting it.

For some reasons this year and I think as we.

We get into the future, we see opportunity to accelerate those number of licenses.

I would add to that we started the year.

The licensees started the business in early last year, there was a ramp up for those so what we're starting to see as we hit the back half of this year as an accelerating our current licensees are accelerating to their full potential and we will get that benefit in the back half of this year. While we also have the new licensees starting to bill.

That, that we can absorb the whole thing. So I think I got everything in there. I'm happy to go back to it. If you've got more on Friday, categories would be that, you know, one of the exciting things for us is as people are shifting their timing on purchases. Whilst we noted that swim was a little bit later swim season.

Their program and then we will get the benefit next year of them building up to full potential.

Dana Telsey: Thank you.

It's a little bit of a negative for Q2, but it's actually been a nice Tailwind to start Q3, um, as that swim kicks in and when Andrew was talking about Essentials, it's, it's, it's a smaller part of our business, but it's been really a big lift, um, in its early days in both Amazon. Um, and we're, and the other places that we're putting in

On the leverage points.

But it really interesting is when you sort of go down this path and.

Thank you.

Operator: Thank you. We'll go next now to Eric Beder of SCC Research.

<unk> done this before.

And then my career, which is the pool of licensees to get the licenses together.

Thank you. We go next now to Eric Better of SEC Research.

Eric Beder: Good afternoon.

Andrew McLean: Brad.

Eric Beder: Hey, Eric.

Their afternoon.

Andrew McLean: Could you talk a little bit about the flow of licensing here? I know that the first half had kind of a little bit of push and shake because you were shifting licensing from a category you bought and previously had into a licensing category. What are we going to see in the back half in terms of potentially now becoming expanding the categories beyond what you've done before with the licensing mechanism?

Right.

And go to a big customer Big Department store customers and really have been present as a complete.

Lands' end and in doing that.

Powerful to have that.

Leverage.

We negotiate into that we see that as an amplification of licenses.

It was originally anticipated and what we have and have we were laying out the business model, but it is not.

It became very lumpy, especially went further into this so we see upside here.

Um, could you talk a little bit about the flow of Licensing here? I know that the first half had kind of a little bit of puts and takes because they were shifting licensing to from a categories. You you previously had into a licensing category, what are we going to see in the back half in terms of potentially now becoming um, expanding the categories, beyond what you've done before with the licensing, uh,

Eric Beder: Eric, I'm going to take the front half, and then I'll let Bernie take the back half. We're up 36% on our licensing revenues, and that's a number you'll see in the queue, but I really wanted to call that out. We continue to look at how we will drive the business forward in the back half with that. In the back half, we think that there's upside to it because there are new licenses. On top of that, we get into the holiday season. In fact, we were really still sort of in our infancy last year on this. We see tremendous upside opportunity. Actually, the sky's the limit in terms of the licenses we can go after. We've been a little slower for some reasons this year. I think as we get into the future, we see opportunity to accelerate those number of licenses.

[noise].

Mechanism.

Greg when you look in outerwear last year, you should continue to should see Edwards more wear now.

And kind of.

Heavy product and that was a big success, what should we be thinking about how are you going to handle outerwear. This year, obviously it seems like it started out pretty well on labor.

Eric, I'll I'll take the um, I'm going to take the front half and then, um, I'll let Bernie take, take the back half. Um, you know, we're up 36% on our licensing revenues. And then, you know, that's the number you'll see in the queue, but I really wanted to call that out.

Now aric hardwood product meetings all morning.

See slide <unk>.

At Boise.

Absolutely Darling and actually and as much as in as much as I wanted to give you the full answer.

And then I'd point, you to some of the new products that we have out there around squall.

In particular.

That boosted we will send you the.

The PDP of the rain jacket.

You will see a couple of things you will see new product.

New innovation and you will see.

Bernard McCracken: Yeah. What I would add to that, we started the year, the licensees started the business in early last year. There's a ramp-up for those. What we're starting to see as we hit the back half of this year is them accelerating. Our current licensees are accelerating to their full potential. We'll get that benefit in the back half of this year while we also have the new licensees starting to build their program. We'll get the benefit next year of them building up to full potential.

You Pdp's that really speak to how the customer wants to shop in the PDP almost in its own way acts as a landing page for the brand.

Incredible use of imagery.

Incredible use of.

Storyline in there and actually we lean heavily into customer reviews, and part of why I was loving the product. So much. This morning is the team was showing me early reviews on it which are many of them are five star and we see it from our resolve and our evolve our customer and we know when both of those.

Andrew McLean: One of the leverage points that I find really interesting is as we sort of go down this path, and I've done this before in my career, which is to pull the licensees to get their licenses together and go to a big customer, you know, a big department store customer, and really have them all present as a complete house of Lands' End. In doing that, it's very powerful to have that leverage. As we negotiate into that, we see that as an amplification of licenses that wasn't originally anticipated in what we were laying out of the business model, but it is now. It became very obvious as we went further into this. We see upside here.

You know, we started the business in early last year. There's a ramp-up for those. So what we're starting to see as we hit the back half of this year is them accelerating; our current licenses are accelerating to their full potential, and we'll get that benefit in the back half of this year while we also have the new licenses starting to build their program. Then we'll get the benefit next year of them building up the full potential. One of the leverage points that I found really interesting is, as we sort of like go down this path and...

Loving the product, it's going to be a home run. So I don't think joined necessarily don't C U E.

Franchises being added, but I think youll see those franchises.

I'm not going to give you the whole store, you're going to have to wait to see some of it because we've got some Spanish product coming up.

Great.

Last question. So when you look at the catalogs, there's been an increasing focus on defense.

Lifestyle, and driving kind of multiple purchases for that.

Looking at your customer base.

That 35%.

I I I've done this before uh and in my career which is to pull the licenses to get the licenses together and go to our big customer, you know, a big department store customer and really you know have them all present as a complete House of Lan's ends and in doing that you know it's very powerful to have that leverage and as I say it's like we negotiate into that. We see that as an amplification of licenses that wasn't originally anticipated in what we, and how we were laying out the business model, but it is now, you know, it became very obvious as we went further into this. So we see upside here,

Customers your focus.

Eric Beder: Great. When you look at outerwear, last year you continued to shift the outerwear to a more wear-out and thinner and kind of not as heavy product. That was a big success. What should we be thinking about how you're going to handle outerwear this year? Obviously, it seems like it started out pretty well on Labor Day.

Their response to that.

It's kind of a prior core and are you seeing those customers.

On the in terms of.

Percentage of buying all pieces. Thank you.

Yes, we continue to see the evolve.

35 to 50 year old to new to final customer.

Andrew McLean: Oh, Eric, I was in product meetings all morning, and you should see the outerwear that's to come. It's absolutely darling. In as much as I want to give you the full entry, and I will, I mean, I'd point you to some of the new products that we have out there around Squall in particular. We'll send you the PDP of the rain jacket, and you'll see a couple of things. You will see new product, new innovation, and you will see new PDPs that really speak to how the customer wants to shop. The PDP almost in its own way acts as a landing page for the brand. It's like there's incredible use of imagery, there's incredible use of storyline in there, and we lean heavily into customer reviews.

Great. When you look at outerwear, the last year you shifted to continue to shift the outer to more. We're now in thinner and kind of not as heavy product, and that was a big success. Once you would be thinking about how you're going to handle outerwear this year. Obviously, it seems like it started out pretty well in Labor Day.

It's coming it's coming to the brands and they are buying across across product categories and by a bigger basket and it has been an incredibly successful strategy for us to lean into that versus the more traditional resolve our customer it tends to come back and buy something.

That's worn out or just stick with the one in one particular category, maybe just maybe ashwin customer attached to that going to be we're starting to see behavior, new cohorts resolver is with.

Oh, Eric. I was um, in product meetings all morning and you should see like the outerwear that was it's absolutely darling. And actually in as much as in as much as I want to give you the full entry. And I will, I mean, I'd point you to some of the new products that we have out there around Squall. Uh, in particular, um, and we'll, we'll send you the, the, the PDP of the rain jacket and it is, it's you'll see a couple of things, you will see new product.

Involve or tendencies.

New innovation, and you will see.

Starting to break down that barrier.

We have done with <unk> and in particular as we came into Q3, we were extremely thoughtful about this fleet really leaned in with the.

New PDPs that really speak to how the customer wants to shop, and the PDP almost in its own way acts.

Data scientists and began to be thoughtful about the particular kind of catalog.

As a landing page for the brand, there's incredible use of imagery. There's incredible use of...

Two five times short term, which is effectively a result, but for us at this point.

Andrew McLean: Part of why I was loving the product so much this morning is the team was showing me early reviews on it, which are many of them five star. We see it from our resolver and our revolver customer, and we know when both of those are loving the product, that it's going to be a home run. I don't think you're necessarily going to see new new franchises being added, but I think you'll see those franchises being deepened. I'm not going to give you the whole story. You're going to have to wait to see some of it because we've got some astonishing product coming up.

As a.

Customer, we're trying to encourage to a second purchase because we know recency is very important to us.

Actually we began to segment the final more to chase after lapsed customers. We know there's a tremendous amount of value in there and we've begun actually with the catalog to prospect to gain that for a number of years of not using the cash flow to prospect timber line, probably a little too much on performance marketing.

Um, the storyline in there actually leans heavily into customer reviews, and part of why I was loving the product so much this morning is that the team was showing me early reviews on it, many of which are 5-star. We see it from our resolver and our revolver customers, and we know when both of those.

I think performance marketing is under pressure in any case from AI agents, but I think it has a tendency to be more transactional versus emotional and we find that we can handle transactional back to Ron say Amazon that's about that that's the best place to be with that kind of fun with that kind of customer purchase decisions.

Eric Beder: Great. Bob, last question. When you look at the catalogs, there's been an increasing focus on events and lifestyle and driving kind of multiple purchases for that. When you look at your customer base, that 35 to 50-year-old customer is your focus. How has been their response to that versus the prior core? Are you seeing those customers continue to increase on the price in terms of the % of buying all pieces? Thank you.

I am loving the product, and it's going to be a home run. So, I don't think you're necessarily going to see new franchises being added, but I think you'll see those franchises being deepened. And I'm not going to give you the whole story; you're going to have to wait to see some of it because we've got some astonishing products coming up.

Great. Um,

So for US the catalog is I think it's fair to think we've taken the gaslog on the offensive.

This quarter, and I think youre going to see more and more of that from us and actually you just might get different catalogs sent to you and I'll give you a very good example, our traditional customer that was over she likes to see red lines, what do I mean by that she wants to see or was it his pricing our revolver it doesn't want to see that.

Andrew McLean: Yes, we continue to see the evolver. A 35 to 50-year-old new-to-buy customer is coming to the brand, and they are buying across product categories and buy a bigger basket. It has been an incredibly successful strategy for us to lean into that versus the more traditional resolver customer who tends to come back and buy something that's worn out or to stick with one, as in one particular category. They just may be a swim customer, and that's who they're going to be. We're starting to see behavior of new cohorts, resolvers with evolver tendencies. We are starting to break down that barrier. What we have done with catalogs, and in particular, as we came into Q3, we were extremely thoughtful about this.

Last question. You know, when you look at the catalogs, there's been an increasing focus on events and lifestyle, driving kind of multiple purchases for that. You know, when you look at your customer base, um, that 35 to 50 year old customers, your focus—how has been their response to that versus kind of the prior core? And are you seeing those customers continue to increase on the price in terms of um, percentage of buying all pieces? Thank you.

So you might find that you get a different catalog.

Depending on how we've evaluated you as a customer and we will continue to lean into this the data science behind this is fascinating and hopefully we can spend some time walking you through when you visit next.

Okay.

Thank you.

Thank you well go next to Steve Silver of Argus Research.

Thanks, operator, and thanks for taking my questions.

Yes, we continue to see the evolver, I think a 35 to 50 year old new to file customer is coming, is coming to the brand and they are buying across across, um, product categories and buy a bigger basket, and it has been an incredibly successful strategy for us to lean into that versus the more traditional resolve or customer who tends to come back and buy something that's worn out, or to stick with it. Once as, in 1 particular category, just maybe a swim customer and that's who they're going to be, where it's starting.

Great to hear the progress and the outfitters business. It sounds like there might be some new opportunities to be announced over the course of the rest of the year.

Just curious as to your view of the state of the pipeline in all theaters broadly.

Andrew McLean: We really leaned in with our data scientists and began to be thoughtful about the particular kind of catalog that goes to a five-times shopper, which is effectively a resolver for us at this point, versus a customer we're trying to encourage to a second purchase because we know recency is very important to us. We began to segment the file more to chase after lapsed customers. We know there's a tremendous amount of value in there. We've begun actually with the catalog to prospect again after a number of years of not using the catalog to prospect and relying probably a little too much on performance marketing because I think performance marketing is under pressure in any case from AI agents. I think it has a tendency to be more transactional versus emotional. We find that we can handle transactional better on, say, Amazon.

Maybe if you can just put into some context, how many prospects may be in more advanced stages of conversation at any point in time.

Yeah. Thanks, how does it go and Steve It's nice to hear from you.

He was wrong.

So we break it up into <unk>.

When we breakout fitness out into several buckets I'm, just going to I'm, just going to start with school.

Very deliberately targeting growth in school.

We have found that the product that we put into market.

<unk> certified and that means that there is absolutely nothing bad in it and we find it to be very competitively priced and if something none of our competitors can do.

So we have.

Our competitive advantage that we can lean in and go after.

Progressively more schools from large to small and so we really tasked our team.

Andrew McLean: That's a better place to be with that kind of customer purchase decision. For us, the catalog is, I think it's fair to say, we've taken the catalog on the offensive this quarter. I think you're going to see more and more of that from us. You just might get different catalogs sent to you. I'll give you a very good example. Our traditional customer, that resolver, she likes to see red lines. What do I mean by that? She wants to see a what is pricing. Our evolver doesn't want to see that. You might find that you get a different catalog depending on how we've evaluated you as a customer. We will continue to lean into this. The data science behind this is fascinating. Hopefully, we can spend some time walking you through it when you visit next.

That business and I would say not just because one of our competitors fell out last year, but because of our own doubling down and having more having a better go to market strategy.

Amount of value in there. And we've begun actually with the catalog to prospect. Again, after a number of years of not using the catalog, to Prospect and relying. Probably a little too much on Performance Marketing because I think Performance Marketing is under pressure in any case from AI agents. But I think it has a tendency to be more transactional versus emotional. And we find that, you know, we can handle transactional better on say Amazon, that's the best, that that's a better place to be with that kind of, um, with that kind of, uh, customer purchase decision. So, for us, the catalog is

We see opportunity to pick up those schools and I tend to think about adding schools in.

We went from about half a million.

$3 million.

Bucket, given the size of those opportunity and they're with multiple.

Customers I think when it gets into.

I think it's fair to say we've taken the catalog on the offensive this quarter, and I think you're going to see more and more of that from us. Actually, you just might get different catalogs sent to you, and I'll give you a very good example. Our traditional customer, that resolver, she likes to see red lights. What do I mean by that? She wants to see a was-is pricing; our revolver doesn't want to see that.

The commercial uniforms business.

Kind of split it into just to simplify over here all night.

I think the smaller customers.

We.

Rebuilt our experience for our customers.

Eric Beder: Okay. Good. Look forward to it. Thank you.

So you might find that you get a different catalog depending on how we've evaluated you as a customer. We will continue to lean into this. The data science behind this is fascinating, and hopefully, we can spend some time walking you through it when you visit next.

It's paying starting to pay dividends for us.

Okay. Good. Look. Looking forward to it. Thank you.

Operator: Thank you. We'll go next now to Steven Silver of Argus Research.

Right, which in my opinion has become extremely soda.

Steven Silver: Thanks, operator, and thanks for taking my questions. It's great to hear the progress in the outfitters business. It sounds like there might be some new opportunities to be announced over the course of the rest of the year. Just curious as to your view of the state of the pipeline in outfitters broadly. Maybe if you can just put in some context how many prospects may be in more advanced stages of conversation at any point in time.

Thank you. We'll go next now to Steve Silver of Argus Research.

B to C focused and was more category driven.

But the emphasis of differentiation of what we can bring to your business and I think the other part as we've done.

We changed our philosophy to be more and more of that spring rather than sort of like longer projects and we're delivering continuous upgrades and that's allowing us to be much more focused on <unk>.

Uh, thanks operator and uh, thanks for taking my questions. Uh it's great to hear the progress in The Outsiders business. Sounds like there might be some new opportunities to be announced um, over the course of the rest of the year. Um just curious as to your view of the state of the pipeline in Outfitters broadly. Uh and maybe if you can just put into some context how many prospects may be in a in more advanced stages of conversation at any point in time,

Andrew McLean: Yeah, thanks. How's it going, Steven? It's nice to hear from you.

<unk> turnaround for the customer in that.

Um, yeah. Thanks

I would say that.

Bernard McCracken: As well.

It doesn't stop there because what we tend to find as many big companies, who may well become.

Andrew McLean: We break it up into, I mean, we break outfitters out into several buckets. I'm just going to start with school. We're very deliberately targeting growth in school. We have found that the product that we bring to market is OEKO-TEX certified, and that means that there's absolutely nothing bad in it. We find it to be very competitively priced, and it's something none of our competitors can do. We have a competitive advantage that we can lean in and go after progressively more schools from large to small. We've really tasked our team to grow that business. I would say not just because one of our competitors fell out last year, but because of our own doubling down and having a better go-to-market strategy, we see opportunity to pick up those schools.

How's it going, Steve? It's nice to hear from you. Um, you as well.

Second which is our enterprise accounts.

Tend to start off by shopping a small and so we can use that to prospect quite quite heavily in terms of the enterprise accounts.

So we we break it up into we we break out Fitters out into several buckets. I'm just going to I'm just going to start with um School we're very deliberately targeting growth in school. Um

Got so much good news in there.

Really not in a position to share obviously on the last call, we talked about winning delta back I'm extremely proud of.

Our team just got back from Italy, where they had been with Delta.

Thing.

We have found that the products they'll bring to Market is, um, okex certified and that means that there's absolutely nothing bad in it. And we find it to be very competitively priced and it's something none of our competitors can do. So we have

Uniforms for the future and it's like it's there's a lot of goodness to come from that I would say that the impact of bringing that up.

A competitive advantage that we can lean in and go after.

Delta back it's not lost on other airlines out there I'm going to leave it at that and in financial services, we continue to dominate a big play for us.

He is going to be.

Building adjacent categories and one of the adjacent categories, we really like.

Andrew McLean: I tend to think about adding schools in anywhere from about $0.5 million to $3 million buckets, given the size of those. Opportunity in there with multiple customers. I think when it gets into the commercial uniform business, I'm going to split it in two just to simplify over here all night. I think there's the smaller customers. We have completely rebuilt our experience for smaller customers, and it's starting to pay dividends for us. The site, which in my opinion had become extremely sort of B2C focused and was more category-driven, is now about the emphasis of differentiation and what we can bring to your business. The other part is we've done, we changed our IT philosophy to be more about sprints rather than sort of like longer projects, and we're delivering continual upgrades.

And in the health care industry, and I think youll see us start to add to that category.

More consistently and carefully I, just don't want to like blanket everyone everywhere.

<unk> does better when it focuses on something and decides to win at that.

How we work as a team.

That's helpful. Thank you so much and one last one if I may.

Cited some progress in Europe.

Progressively more schools from large to small and so we've really tasked our team to grow that business and I would say, not just because 1 of our competitors fell out last year, but because of our own doubling down and having more go, having a better go to market strategy, what we see opportunities that pick up those schools and I tend to think about adding schools in anywhere from about half a million to 3 million dollar, uh, buckets, given the size of those so opportunity in there with multiple um, uh customers. I think when it gets into, um, the commercial uniforms business, I'm going to split it into 2 just to simplify it. I will be here all night.

With the narrowing of the of.

The declines there also the implementation of new websites in some key European markets I'm curious if you could put some context around.

The expectations for completing the turnaround of the European business.

I think there's this, this smaller customer segment we have completely rebuilt. Our experience for smaller customers is starting to pay dividends for us. The site, which in my opinion had become extremely sort of...

And moving to.

Each towards something more of a contribution to the overall business.

Yeah, It's a great question.

Usually I mean, Europe testing ideas, good bad or indifferent.

B2C-focused and was more category-driven. It's now about the emphasis on differentiation and what we can bring to your business. I think the other part is we've done...

One argument that we're taking from the U S. That's really important. So this is this distributed commerce model.

Andrew McLean: That's allowing us to be much more focused on getting turnaround for the customer in there. I would say that it doesn't stop there because what we tend to find is many big companies who may well become the second group, which is our enterprise accounts, tend to start off by shopping as small. We can use that to prospect quite quite heavily. In terms of the enterprise accounts, I've got so much good news in there, but I'm really not in a position to share it. Obviously, on the last call, we talked about winning Delta back, and we're extremely proud about that. Our team just got back from Italy, where they had been with Delta assessing uniforms for the future, and there's a lot of goodness to come from that.

No.

Just so we're on the same patient and it really allows the customer to purchase.

We changed our IT philosophy to be more about sprints rather than sort of like longer projects. We're delivering continual upgrades, and that's allowing us to be much more focused on getting turnaround for the customer.

Play from where that browsing, some werent meeting customers, where they are rather than waiting for them to come to the brand site, so that might be social media it might be from online articles.

I would say that it doesn't stop there because what we tend to find is many big companies who may well become.

Got it.

<unk> and it could be from market places and so we are.

The second group, which is our Enterprise accounts, tends to start off by shopping small. We can use that to prospect quite effectively.

Quite heavily in terms of the enterprise accounts.

Working our way into it.

Social media more working our way into market places and I think I wanted to emphasis on the marketplaces, because Europe is a retail has always been more marketplace driven than in North America.

I've got so much good news in there, but I'm really not in a position to share it. Obviously, on the last call, we talked about, um, winning Delta back, and we're extremely proud of that.

Our team just got back from, um, Italy where they had been with Delta assessing.

That's an area of growth for us. So we open backs, we opened <unk>, we opened Amazon.

Andrew McLean: I would say that the impact of bringing a Delta back is not lost on other airlines out there. I'm going to leave it at that. In financial services, we continue to dominate. The big play for us is going to be now building adjacent categories. One of the adjacent categories we really like is in the healthcare industry. I think you'll see us start to add that category more consistently and carefully. I just don't want to blanket everyone everywhere. Lands' End does better when it focuses on something and decides to win. That's how we work as a team.

We've seen.

Terrific starts to each of those I think youll see us continue to grow those and take from the strategy that's been already really successful.

In the U S.

Other airlines out there. I'm going to leave it at that. And in financial services, we continue to dominate. The big play for us is going to be.

Think that's focusing around product that's appropriate to that channel and product that is.

No building adjacent categories and one of the adjacent categories. We really like.

It's priced appropriately and narrow assortment, but then encourage.

Is in the healthcare industry, and I think you'll see us start to add that.

I'd be curious about coming back to see other lines in Costar UK or the German site are actually the French site.

That's the first part of it in terms of the.

Steven Silver: That's helpful. Thank you so much. One last one, if I may. You cited some progress in Europe with the narrowing of the decline there, also the implementation of new websites in some key European markets. I'm curious if you could put some context around the expectations for completing the turnaround of the European business and moving just towards something of more of a contribution to the overall business.

Category more consistently and carefully. I just don't want to blanket everyone everywhere. Lands' End does better when it focuses on something and decides to win, and that's how we work as a team.

In terms of the brand sites themselves.

The UK is in pretty good shape I think we turned the corner there we understood the UK consumer.

And we've made inroads with them.

We've got the product assortment right right now the area, we're working on and it kind of is that meeting there was an earlier today is to get focused around our German resolved for a customer they have all of our customer we've got nailed it's about.

Working on the resolve of our customer and arguably is going to come through catalog.

Andrew McLean: Yeah, it's a great question. Usually, I'm in Europe testing out ideas, good, bad, or indifferent. One idea that we're taking from the U.S. that's really important to us is this distributed commerce model. Just so we're on the same page, it really allows the customer to purchase directly from where they're browsing. We're meeting customers where they are rather than waiting for them to come to the brand site. That might be social media, it might be from online articles, it might be from smart devices, and it could be from marketplaces. We are working our way into social media and marketplaces. I want to put emphasis on the marketplaces because Europe's retail has always been more marketplace-driven than in North America, and that's an area of growth for us. We opened Next, we opened Bevanums, we opened Amazon, and we've seen terrific starts to each of those.

That's helpful. Thank you so much and 1 last 1. If I met um, you cited some progress in Europe um with the narrowing of the uh of the declines there. Also, the implementation of new websites and some key European markets. I'm curious if you could put some context around, um, the expectations for uh, completing the turnaround of of the European business um and moving, um just in toward something of of more of a contribute contribution to the overall business.

So we are spending time working at taking us taking excuse the pun a page out of what we've done in the U S. And then working out how we can use the catalog ethylene active to.

Yeah, it's a great question. Um,

Should we engaged with that resolve our German customer and then that will bring us.

You know, usually, I'm in Europe, testing out ideas—good, bad, or indifferent. Um, one idea that we're taking from the U.S. that's really important to us is this distributed commerce model. So, you know,

Fully back to where the brand is contributing from Europe because again.

Absolutely committed to it because the halo that we will get from Europe is key and the last point I'll make on this.

Particularly to reach our with all of our customers watch for a couple of really powerful collapse coming the collab muscle that we've had from the success of the tote bag in the U S has created a halo for the brand everywhere.

Taking that we're taking that on the road and we're not going to be doing that in Europe.

I would love to.

We'd love to share who those collab stuff for them, but I think my team of Europe would be really really upset with me so I'm going to keep them going to stay quiet and watch this space.

Great. Thank you so much for the color and best of.

Andrew McLean: I think you'll see us continue to grow those and take from the strategy that's been already really successful in the U.S. I think that's focusing around product that's appropriate to that channel and product that is priced appropriately and narrow assortments that then encourage you to be curious about coming back to see either Lands' End UK or the German site or actually the French site. That's the first part of it. In terms of the brand sites themselves, the UK is in pretty good shape. I think we turned the corner there. We understood the UK consumer, and we've made inroads with them. I think we've got the product assortment right. Right now, the area we're working on, and again, as a meeting I was in earlier today, is to get focused around our German resolver customer. The evolver customer we've got nailed.

Looking into the second half.

Hey, Thank you take care.

Thank you and gentlemen that was our final question for today, so that will bring us to the conclusion of today's lands and earnings conference call again, everyone would like to thank you all so much for joining us this afternoon and wish you all a great remainder of your day Goodbye.

Just just so we're on the same page. I mean, it really allows the customer to purchase directly from, where they're browsing. So we're meeting customers where they are, rather than waiting for them to come to the brand site, so that might be social media. It might be from online articles, it takes to be from Smart devices and it could be from marketplaces. And so we are working our way into, you know, social media. We're working our way into marketplaces and I think I want to put emphasis on the marketplaces because Europe's retail has always been more Marketplace driven than in North America. And I, I that's an area of growth for us. So we open next, we open Devon's, we opened Amazon and we've seen, um, you know, terrific starts to each of those. And I think you'll see us continue to grow those and take from the strategy. That's been already really successful.

Hum.

Okay.

Um, in the U.S., uh, I think that's focusing around product that's appropriate to that channel and product. That is, that is priced appropriately and narrow assortments that then encourage you.

[music] Hum.

To be curious about coming back to see either Lantern.co UK, or the German site, or actually the French site. So that's the first part of it in terms of the.

Yeah.

In terms of the sort of brand sites themselves, the UK is in pretty good shape. I think we've turned the corner. There, we understood the UK consumer, and we've made inroads with them.

And I think we've got the product assortment right. Right now, the area we're working on—and again, it was a meeting that was earlier today—is to get focused around our German resolver customer.

Andrew McLean: It's about now working on the resolver customer, and that arguably is going to come through catalog. We're spending time working out, taking, excuse the pun, a page out of what we've done in the U.S., and then working out how we can use the catalog as an effective tool to engage with that resolver German customer. That will bring us fully back to where the brand is contributing from Europe. I'm absolutely committed to it because the halo that we will get from Europe is key. The last point I will make on this, particularly to reach our revolver customers, watch for a couple of really powerful collabs coming. The collab model that we've had, this is the success of the tote bag in the U.S., has created a halo for the brand everywhere.

We have all our customers. We've got it nailed. It's about now working on the resolver, customer, and that arguably is going to come through catalog. So we're spending time working out, taking a page out of what we've done in the U.S. and then working at how we can use the catalog as an effective tool to engage with that resolver, German customer. And then that will bring us.

Fully back to where the brand is contributing, from Europe, because again, I'm absolutely committed to it. The halo that we will get from Europe is key. And the last point I will make on this, you know, particularly to reach our revolver customers, watch for a couple of really powerful collaborations.

Andrew McLean: We're taking that on the road, and we're now going to be doing that in Europe. I would love to share who those collabs are for, but I think my team in Europe would be really, really upset with me. I'm going to stay quiet and watch this space.

Coming from the collaboration model that we've had from the really, this is the success of the tote bag in the U.S. has created a halo for the brand everywhere.

Steven Silver: Great. Thank you so much for the call and best of luck in the second half.

We're taking that we're taking that on the road and we're now going to be doing that in Europe. And again, I would love to, I would love to share who those collabs are for, but I think my team of Europe would be really, really upset with me. So I'm I'm Gonna Keep, I'm gonna stay quiet and watch this space.

Andrew McLean: Hey, thank you. Take care.

Great. Thank you so much for the call, and best of luck in the second half.

Operator: Thank you. Gentlemen, that was our final question for today. That will bring us to the conclusion of today's Lands' End earnings conference call. Again, everyone, we'd like to thank you all so much for joining us this afternoon, and wish you all a great remainder of your day.

Okay, thank you. Take care.

Thank you. And gentlemen, that was our final question for today, so that will bring us to the conclusion of today's Lands' End earnings conference call. Again, we would like to thank you all so much for joining us this afternoon and wish you all a great remainder of your day. Goodbye.