LE - Earnings call transcript Q2 2025

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Operator

Good morning, and welcome to the Lands' End Second Quarter Earnings Conference Call. [Operator Instructions]. Please note today's call will be recorded, and I'll be standing by if you should need any assistance. It is now my pleasure to turn the call over to Tom Altholz, Senior Director, Financial Planning and Analysis. Please go ahead.

Tom Altholz

Good morning, and thank you for joining the Lands' End earnings call for a discussion of our second quarter 2024 results, which we released this morning and can be found on our website, landsend.com. and End pleased of with to our Executive Lands' Analysis, Planning Andrew Altholz, Chief Chief I'm our and join Officer; Tom Senior Financial Director and McLean, Financial I'm Officer. McCracken, Bernie you today

call. could a discussed risks remarks, that also company's and we're to uncertainties. conduct information on statements. forward-looking results session. discuss Please The After the includes will differ Such question-and-answer those prepared about we this materially note from the statements actual involve

could such noted not included filings, to that reports limited XX-Q. to on in SEC on are Factors include, but quarterly report contribute differences company's XX-K annual those and including and Form Form items our the

outlook any information do provided The that the as and to on obligation by today, is to this cause may and events forward-looking company's us. not Subsequent company outlook by we change. statements the developments made undertake forward-looking the of update company's call represents

non-GAAP non-GAAP posted issued call, we the principles. of this During to release Investor generally non-GAAP be website accepted comparable measures a found financial earnings of accordance of the A copy can These will section not the in accounting reconciliation GAAP measures today, referring is to prepared our in directly with most earlier measures. which measures be Relations are in at landsend.com.

will With over the that, Andrew. turn I to call

Andrew McLean

XXXX the morning, you reflecting joining delivered for quarter Good second us solutions-based thank Tom. and We you, execution results, of strategy. Thank robust continued our today.

supply inventory These increased and new Land's dollars. brand innovation gross focus driving and our the and gross assortment, across attracting position. our and improving profit on customers End are margin business involving is achievements further Our chain

a Let highlights. me few provide

profitable bringing of of of GMV the Innovation Adjusted guidance also is keystone of and $XXX our our range the approaches By X%, revenue guidance increase more at thinking up we're million, $XX top across and our net growth. fresh mid-single-digit new range. end a high the of strategy. at sales. business, year-over-year delivered end We EBITDA of driving our million percentage

are we the End result, and a Lands' a that of beyond. half strong confident positioned year we for As well back

of Our our year-over-year and speed increase rate. market position resulted to a newness in in XX% in improvement in assortment We to efforts a inventory our managing continued XX% in nimble prioritize remain our and inventory churn that our with a styles, consistent as and to we fit take introducing approach that assortment, trends most and fresh top on customers our brand, staying colors and moment deliberate importantly, the love. fabrics, are our

And sustained our customers. to our new-to-file long-term XX of consumers. on brand date, quality customer across new to Since driving to these progress All in and our groundwork years our our brand also brand Lands' End in second growth new Year-to-date, younger. and wide our a our mid-single-digit digital sales. appeals that the are elevate greater laying growth is and new-to-file own strides We are for we've in made marketing more the a we're to are channels translating customers to redefine seen as told, both The channels, full-price we generating efforts investments average more conversion made tomorrow. reinvigorating showcasing we've traffic range quarter. importantly,

years. approach and speed-to-market to incredibly initiatives From resulting our profit the responded facilitate Customers well in our product X gross the by year, to driven at products highest new levels last quarter, in to we've same a throughout margin new wear-now higher perspective, period seen assortment. meaningfully the than our

and quarter seeing and dresses and with denim performed the in of despite weather, woven tops summer particular, and sales the showed demand. the strength this, sweater volume in through warmer in our higher products second Newness layering

of we the category from have now has sweaters apparel become denim women's rapidly is Spring/Summer items our and The new expanding. our drift leading been for has of one success. whole of standout seen This huge

our to of quarter, our positioned which attention strongly our the thus are far are the assortment trending we in and on both turn we in holiday, well fall to As weatherproof capitalizing trends. towards third any fleet, franchise outerwear our transition weather underway

On Swim, and in swim our [Audio mentioned quarter we're have for another with This I our is the our theme our earlier, continued categories. [Audio vacation season. and we and Like build and pleased listen thrilled we a to across remains new our proud we does, to for the next are as during line Innovation filed we're performance Gap] patented our what throughout business bring to one and for this carefully Gap] style products swim our entire patent That's swim to exactly across business customers, a customers. feature. speed technology our market. quarter, have

Turning various to businesses. the of our performance

are We talk our evolution the of to more prepare we way the to to our business continuing evolve with consistent about be brands.

BXC Specifically, in we beginning activities. our plan of discuss to our BXB, BXC with terms and business

business U.S. with targeted direct-to-consumer its sixth promotions and growth, improved customer great and The over new-to-file margin increase quality our to with due points sales, approach marketing largest of our delivered is to quarter business refined more Our channel. basis performance inventory of e-commerce an management. consecutive XXX strategy

maximize continue to as We drive to [Audio demand. such events Gap] key

showcase more strategies, and come to revenue well. across marketing to That continues drive team and market Europe full profitability as our events ultimately business. sales. for Combined innovate the the circle customers European margin The has assortment key a and higher great targeted proven of these enable in and has channels to in with test fit-centric rest owned Europe to be growth business quarter. during our with our our promotion organic traffic more and us

party. Turning to third

while allowing assortments into merchandise End a reaching This launched to partnership. focus solutions. with partners customer-focused asset-light on while a find and that share We licensing presenting of license availability vision our to broader streams can our End. we for to a our to licensing, work that reach and stations our new that strategy pleased announce of their We're tailored on visibility broadening elevate we individual brand visibility in concentrate continued the marketplace, set to terrific online to further in We're who entered opportunity customers Lands' on brand Nordstrom's have the of marketplaces recently distribute are announce recurring creating us while quarter, among to income and which will and land apparel. grow pleased we the to and provides consumer way further toâ€¦ Now base Lands' to

a time. the the attractive End meeting be of with quarter. or performed channel to remain part Lands' customer bullish clubs be powerful club strategy in and by familiar our as providing Our may an access second may well who first us for We

fulfillment P&L, brand GMV to the our growth with our license Gap] [Audio Gap]. business allowed and fees [Audio associated we us and on While drive overall

Turning now BXB Outfitters to business. our

quarter by its service. core second brand, of are Gap] outstanding to particularly We made progress solid [Audio our strengths high-quality, durable, relevant, customer hallmarks customized during backed around that personalized, the and

relaunched of sites, field and were employee all with more marketing dynamic a product base. better more and fits a managers the to home Our the work purchasing catalogs, in U.S. life contemporary that interested

apparel merchandise We also and our through which customers enable are to crafted and up expertly opening our serve we teams solutions. branded will Outfitter attract better expect sales

customers category, decision Additionally, promotional low-profit of period, allowing our strength. from exit commoditized to on a the during serving we the us point products this to focus made and

growth capabilities economic apparel. of increasingly sector and recognize We've in to in workforce as that customers branded the services are the developed strong benefits professional targeting serve companies and financial industry

we branches. Fargo, a across a the employees have apparel to For month, End into XX,XXX program. entering major multiyear approximately example, with launch X,XXX over this partnered client, asset Lands' career agreement Beginning Wells will

into later August a revenue with second even channel, saw digits results over gross back-to-school school low margin our the with expanding by outstanding first-half the in In have season, points. that up basis continued single we XXX and quarter

XXXX. as marks were products this with able service nimble in our our largest to provider commitment Wisconsin-based embroidery time year It's worth that centers add us mentioning with new channel. on a deliver and schools Our to arguably PTAs, we high last pipeline make burned strong this most domestic the and year great and for

inventory on quarter, concept lowest want the the moment since position Bernie, we've our It handing it spend speed made over to the strategy. our is how levels and fantastic to fastest-turning critical progress XXXX. coupled of public to one so the of we in a decade, inventory inventory this Before our the noting to and that I listing levels is that elaborating improve worth rate with during second-quarter discount achieved the lowest

B is watchword for a teams. our

year, customer let existing inventory drive products, have serve look month. season single initiatives accelerating margin, more better opportunities we to every freshness ultimately, for shifting create deliver our Over chase to the forward chain, our customers. to our as into last each open us lowering speed-to-market for inventory we reductions, capabilities the and which and creating SKU significantly We speed leaving Hemisphere, supply increased across new and Western the well [indiscernible], production

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

Bernard McCracken

Andrew. you, Thank

the at GMV mid-single second high our XXXX, decrease in last guidance. which compared revenue end to digits guidance range year. For with X% was a line quarter, at the $XXX our the for of million, quarter increased of in came total second performance of

retail we believe third-party as brand. indicator and as the comparable channels accounts sold to of BXB is customers of the value the BXC which for As of channels through important growth total the value order GMV, a reminder, well all of through sold performance the merchandise of an merchandise our

end second of efforts quarter, million which delivered guidance our and range results we year-over-year continued noted, of and efficiency solely sheet $XX high to profitability came versus Andrew in increase As adjusted prioritize X%. the the our reflect EBITDA These balance a at sales. of in

reinvest business, especially our improve to customer to margin business allowed has continue across the profit in in units, We us new which acquisition.

product second the newness increased gross in Gross lower assortment, reduction approximately The straight compared improvement second chain sixth margin activity, year, by of of driven was margin basis inventory, driven last quarter improvement improved point supply across sales was promotional and Gross and and solutions quarter by the XXXX. XX% our costs. margin profit expansion. X% of XXX in by the from to clearance quarter

the of X% e-commerce U.S. business second saw XXXX. to decrease Our sales quarter of a compared

transitioning generated sales U.S. to would kids XX% in a higher-quality direct by from profit and digits. model, products footwear continued have of sales. license impact the a gross driven a prioritize increase dollars, We Excluding mid-single efforts our increased to e-commerce

X% mid-single from profit quarter revenue our as XXXX. sales from quarter to to down second e-commerce compared XXXX, uniform business increasing End the We XX% European start to the Outfitters by of last the with strong gross by dollars were of second school compared back-to-school Sales the increased increased Our digits were X% year-over-year. Lands' pleased season with year.

uniform with national channel challenges. year-over-year, accounts resistance smaller timing certain and due of primarily result accounts as to decreased some from macroeconomic business a pricing changes the Our

initiatives. work branding continue margin We and challenges to through to offset these

year-over-year. XX% gross diversify business of over quarter from due and XX% dollars by generated The increased XXXX, to the wholesale was any second risk and one over primarily Our increase with revenue and to the help expansion marketplace third-party reduce licensing profit to arrangements. increasing Nordstrom's revenue business to partner. Licensing individual to our compared continue by

As by reinvesting XXX driven a compared professional was sales, on which and an of focused in marketing the customer higher SG&A was services, XX%, basis higher digital to acquisition, incentive-related spend increase points of through new primarily third-party costs. approximately XXXX, percentage business personnel

had net we share. million guidance quarter, had million our or share, or of of exceeded second a We the loss $X.XX net per $X.XX range. an $X.X per $X.X loss which adjusted For

Moving balance sheet. our to

our second increase quarter from end supply our turns XX% million deliberate efforts million position to ago. to to team's the efficiencies, of with in compared ongoing inventory our $XXX the paired The $XXX orbit. of chain at improvement strategy our year benefited a Inventories drive were

our was of million, loan $XXX million last was borrowings our quarter, the term the ABL and year. $XX terms which second end $XX the our second at In million debt, than lower balance of outstanding, of had quarter

balance second quarter, March, shares share our of million quarter. in as we to of the repurchase million million $XX During worth the remaining authorization $X authorization the end of under the $XX the announced of repurchased bringing

guidance. to Now moving

third quarter, million $XXX We are margin and to the $XXX season. high-quality and expansion to revenue selling and flows, continued GMV, fall million, continuing value, be mid-to-high prioritize drive or with we growth. expect during between be expected In expect gross merchandise cash to net to profit which holiday we single-digit sales improve gross the and

of $X.XX. $X income $X net adjusted adjusted and earnings between an expect per share be to million million diluted to and $X We

to EBITDA range the million. of million $XX be expect We to $XX adjusted in

to to be an we $X.XX. full per $X.XX to adjusted to in We We now be now to GMV adjusted $XX revenue million guidance. adjusted have net million $XX our For to million of expect income our mid-to-high growth. of $X.XX be million. expect $XX year, profit EBITDA net is $X.XX and diluted of the the $X single-digit earnings share range billion expect to while raised We billion, between now expected

incorporates approximately the Our guidance million full in capital for year $XX expenditures.

us and our we further discussed, work maintain gross inventory forward. expect to As bolster at we have enable to our margin inventory to improved management expand moving normalized levels

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

Andrew McLean

Bernie. Thanks,

in significant our to philosophy. progress brand. strategic goals to innovative operational our thank We efforts build have entire an employees second the efficiency against made continued their customer-first quarter expand and to I'd like for go-to-market our our

Innovation experience has our a digital the next XX more and with business. will to in that continue months, planning of and is across it culture and been increase speed, merchandising. and drive enable the the success keystone Lands' End over loyalty, XX build success. us personalization, years improvements end, XX innovative to that can-do will of To implement a we last the will to End to over well Lands' authentic promotions, new Crucially, ERP suited the collaboration that

via world-class potential are to engine. digital way And to with be well-positioned forward to remain doing in growth are will experience. evolving that's our End Lands' core to multiple to look this delivering possible than questions. your and Lands' commitment drive really customer had We consistent our accelerate a that so the and we brand the success, We best momentum always avenues. larger while has brand End a

Operator

Our Telsey Advisory from question Telsey first with [Operator come Instructions] will Dana Group.

Dana Telsey

of into and with is in that the up to your you're impressive. base the pricing customers? how are and the you can new you've is gross exit you the the mentioned What then channels talk about customer And given And each quarter? margin demographics core nice throughout also mid-single is The resonates lower what noticing promotions. versus see the customer And about also third younger that what cadence about promotion? rate seeing Anything with just quarter progress. of the digits the of file

Andrew McLean

is questions Great to like [Audio just the the think hear them it. nice Bernie write part from on any the consumer with and GMV And U.S. and our the measure I really and the I Dana, same. health, file. doing down, of don't a growth with saw perspective, in digit there's positive it's about it line. business. my it's I think, great I lined mid-single customer so from I consumer of some health, you. noise it's Gap] as mean It's know e-commerce always. up the consumer we the new overall miss that I specifically

positive mid-single-digit well. both were they as So

to we business saw spoke in the So patterns the consumer. that in health

about the in customer's to and that about way our in talked but I've distribution, that. multiple paths equally past to product the having recognize important we particular, talked plan. it's And on

younger some about were I there reduction average that was were years question them, on XX So from And years X everywhere, were could we your were saw if the where and about channels pleasing we channels we our consumer added revolvers. it we others. average, the in our years in to a high-growth category, range younger. What they XX add customers reaching to that was across that measure, consistent the and would

terms tight we pretty was saw. it what in So of

it which continued see And categories. broader much our fit powerful because very to is us leaning into them range that it database. for we of And evolver, bolster a

lot activity. at intrigue went of into had of holiday, with a If There's Summing conversation. what I that new which the QX trend in from AOV to with we're Labor saw through QX. increases we we continued weekend, increases AUR, that we margin a seeing. look it I the of customer underpinned sort view would the Day mean, I just a see and lot in So up, we've

classes, no customer seeing about our well. of dresses in and that really We're performing resistance I are particularly might Some come it. think there's price to

in virtuous a reacting lowest more, model Bernie part way number and to of that forward, seen it years. in and I'll the a but having moving we our it's customer an us see with forward. all XXXX IPO, with the in avenue as to chime through let and promotion rates look pushes continually we've saw the the it, in product, updating drove that we of the fall and company I that very how promotion rate speed, back we

Bernard McCracken

I portion than an them tagged the on and these average average have with just And strength customers, have convert the to add, reiterate seen have customer, a and of twice in we we actually with returning are just would Dana, customers. we tenure file, buying us industry XX they or found new a customer customers, And we at actually our past and years, those month once the quicker have of of a the X again. within then

other your a business, quarter, a business And strong the is of for not quarter. and just and of had the for August as quarter. August. multiple it as some had us was from business, school the lessee the question us us, that businesses our about offset a July the then our very And benefit having back-to-school our through and even in flow quarter carries in one fairly where USD but And second business business second big we're into strong they that

Dana Telsey

of on clean. One what inventory thing other are inventory times inventories getting you any And holiday? the remain seeing planning very the product Are and Bernie, you outlook for you any -- going quick to or forward? lead levels, are how continues seeing freight in in any the charges terms

Bernard McCracken

Yes.

basis As gross we improvement point margin. a reported, XXX we in have

those for They any We half our in account and types transportation. improvements expect year. to of back freight challenges see the continue through do to of the

And of any and the those mitigate to transportation and job been proactive issues any up fantastic that of has a point. done delays avoiding -- costs to seen. this to able we've team we've being Our those of

an excellent done So job. they've

historical inventories our stay lows. at expect to We

shores. about speed he initiative speed, more around and talked product closer we'll implemented be frequently and has his Andrew comments, in our -- As and bringing a to an

Andrew McLean

Yes. Dana. add amount to during it's back We I'd from talked about of Western reduction. being SKU and closer half I mean a cap will moved to that, to Hemisphere. just And the grow than our just material the we've customer. I it We're continue getting into think more speed business,

the from we -- Port X to that America Central with it's really transportation Houston. have days experienced So issues

to So there, and a expect there that and lane, in we of in is we capacity get don't speed lot change. that

really whole to to So we variables of to package get see the being customer more chain. the control together related nearer and able we the coming as supply

Operator

Our Eric Research. with next question will from SCC come Beder

Eric Beder

Nordstrom even adding you on digital further to Congratulations wide where to Target, pretty have Is range marketplace mix here? see that now digital do in now in should the Nordstrom, partners in to maybe digital actively of these now looking mix. Where Kohl's, there marketplaces? evolving the internationally? Macy's. Are you marketplace But the for of a that all players that we ability terms the customers

Andrew McLean

is good evolve on is some very merchandising Nordstrom, better player in if a we mean Eric, with pyramid, think players good got in in more great the more best good, a got our spread. a there. we've have think about I question. better, you product we energy put Yes. we've sites. architecture continuing how you're best, there, into and I what We've it's now And about and those it's got some players there we it to see

conversations areas if the was Nordstrom, done one at around and with the and what uniforms. lend with think you really of we've I them school great into school we And look

mean, as in, And our have don't the of first more and more in we that for So somewhere you, with others. strategic, better to womenswear tends like was I then that Target we as tell strategy And about Macy's conversations be swim. be for be lean think we it's strategic tends the Nordstrom. to partners, marketplace that have I would more about Kohl's assortment. part tailor really And and can I our merchandising between. run is

next. go and right we dead You're where

come And America. that for look really are for us would opportunity grow to we But I that it's something think fully cannot the U.S. to North I infill few terms. a think internationally. we and points in in there is that the

profitability, So my in to that returned many the international my their as they I if plug saying business, to our moment. do they to in reiterate, I are made want returned want business just it at said that business it and there I to -- comments, the I European-based aren't retailers but growth who

would And we congratulate on how that. it's are So team now I And take those about the of that some my forward. conversations.

players but be that market really the and Europe, in a in it This We're border just to pursue particular, Germany. think north we opportunities actually us. over with us all America another staying quarters. familiar I gives not South couple is And begin expansion next Canada, in growth can U.K. with the of That the for into of area will long-established the

Eric Beder

add When Interesting. rolled continued I at as it to about catalog, how the see catalog in forth on back I'm jewelry categories trying potential the tow, us go you the could Ionic have categories? you look the be returns, the and we out licenses expand with to interplays the you to the remind you should guess, also? maximize month. you that this I overall how actions, -- thinking

Andrew McLean

catalogs package to certainly around license taken there that's some those we expect a organization the partners. for we our obligations, contractual placement bring marketing that services we of in But of services on. them So are is addition, of building, can support or partners marketing we're part a a that that's that categories part cycle. offer being and a nascent group And for of to the which

like with a done talked when those our it's something the of you I've know retailers about that come great a a set And skill we've number to I partner suite before. up past, It's in of talked picked of business became partners about because it, had they table services. the partners. that to have to done. you something book to And have basically we it's it's the And

takes it to level. the this So next

get important. this sell business, item We company, is it's collection strategy strategies in, is an a And put build to that it's month item But basket. season we that categories the in me being we're of from the And having seeing more of really important outset. after customer to AOV it's know a we'll a one business that in complete for that's build of maximum And season after as to and terms to business. no is to month, of just the build it's away the winning build able asset, way. the my story been kind like comes In there. surprise our able

And things like jewelry, they are wonderful add-ons to complete the outset.

You XX% from that call Lands' them our have years got have pair a they We've found center should of package there asking it and make it never from. buy can on over End that big a there conceptually, be go crazy of should and aren't be over apologies customer it should where because entities. the found but but of that verbose, the the we we shoes if, we your our it time, in calling part for what say, catalog buy

to they want So see. they everything buy

So we'll sell them everything see. they

Eric Beder

And last question.

got I terms see or quarter to outfitters, you'd the like know in we there, it? Where of we, the for are kind of in in, inning new where what be In outfitters getting like management of are terms kind of to and to it you've turns. potential starting you're

Andrew McLean

the the third. the spend at I the my top or life of second of bottom whole

we're just we're So it's striving -- the and fact Fargo for Fargo at the hard with bottom that have have and addition it, in night." means would that think look no it's sales an you're to was "Oh, for a that win see not about the go not we to And seeing all want built we me like have yes, on as company, always customer, at point because second system It's Wells. us built the business. I can I call I next. Fargo, organizational support the in it's that out and there like uniforms said, Wells of understated. the quarter, about with you significant another in I was of it's mean the in be business that what's my large for really What build ever that just Wells for we the signs team, can't Wells career them a it

that's in So place. very much

year, path is And a but bring to an business. at And Lands' we on we we've if a more margin. third That not school great we're done discounting, top a we've focused that probably -- it's And uniforms it. And been focus customer us fantastic us. do made done building attributes was that, and adding just the those last we're delivered our it the brand, we're same and started bring practices not brand. back that It but with and taken in paramount not American business. of and was more pipeline. the it of amazing is that's sure going within drift we're core getting really that an a it's to of Uniforms consequence to to being the again, that the are There's on that iconic This And to BXB. business. and BXC as We with had less I've because brand, business. the we product End that for business, the therapy and service. the really behind we lasts schools endures that summer, much

larger were the and hear you second years, hear quarter. strategy what signs that in to excellent you customers gives an you if focused is the next going where uniform business over few about to me the the about be really the So school the talking talking me and identity

Operator

question will with Fuhrman from Our Craig-Hallum next Group. come Capital Alex

Alex Fuhrman

revenues curious maybe bit like that strength the third-party despite elsewhere guidance moving if the in sounds licensing biggest It or you're channel. there's portfolio Great. if that driving of having that's is GAAP a lower club lot in success the driver higher GMV dynamic? a of little the I'm

Bernard McCracken

Yes, I Alex. guess, is this

our I'm most that about -- mid-single comments last in when digits. the was shoes up and you notice the things is our X% I excited USD think of up one from the exclude numbers, you'll business kids year's

growth there. we think I So have

during in lessen Our quarter is up business the the back-to-school season.

the they enumerated landsend.com. in go product, layer clubs to the where if Lands licensing styles. next you or and to get business then only see is X they And with X to place to are get especially the And their

of So a growth, also. portion is yes, that our but big GMV underlying businesses that also are our supporting

Andrew McLean

something â€“ customers. XXs, particular worth are to they of are from up to able us given the $XXX,XXX in would At Costco sure putting reasons harvest their you and of there year, is very we're in of Sam typically and many orders to XXs that piece the potential it our â€“ X/X right, any a shops. Costco, and There's make it income with order is Bernie's buy Alex, Costco the in they that of X magnitude like just ability assortment so to that U.S. website. It is the that them. than noting, plus X front and on product ever it's and Then we be bigger of like we're reaching from in they Evolver narrow is great get a have to that is like other customers, our XXs. The one

be anymore landsend.com happy that business. customer -- it's a see we into just going. gets business item and It there. core fabulous is part back it underestimate But So out our I very to of can't us that's that the one for power really it's and distributed where like we're widely,

with on us top of and is driving GMV new we're point it's But the great well. piece that Bernie's I holds model. this from think it's happy places that. big of business growing if lots where coming in There's and market share of the So see as a to business,

Alex Fuhrman

kind your perhaps steady customer to what need move you me. a coming profile XX younger the really with customers should the tiny less customers Or Andrew, of your as is that? file. have rest try And think more the maintain to than in How new about that a age you of older? conscious younger? brand effort average or this bit then younger we customers consistent Is just to in been about for a attract and lastly years mentioned get

Andrew McLean

to the and to a going customer years some about column it's particular bringing column more be bit You're new younger. little right? it's point, a question, It's great going bit of seasons, your to managing from customers, some some Alex, XX a to existing seasons, it's a a yield about managing seasons plus B, be who's going A. little always It's for be

what has file is in that when for And our time stopped And been is would the customer first few aging aging. last this say years. the customer has I that the

it we at that to a of start up in to see. like and for gain brand. a period same it well if the this at was bit And the build the it looked thing and can the Our second quarter same age last little is long the as growth augurs end of we back as year, was a term, great that it's file for years in

Operator

Steve Argus next come from with Research. Silver will Our question

Steven Silver

as the Lands saw discounting. is, on as website that My given to congratulations that able And we to just for proposition being in products curious the more part that's expansion and quarter you're cost And customers. question big SG&A well. growth discounting to first-time how if the in of nature? I'm the minimal for really is aggressive conjunction customer of with into a with new fact QX sell using things acquisitions to the visits playing acquire

Bernard McCracken

What when X/X close that growth thanks. you'll points at of higher gross Steve, Yes, driven a basis you the from of retail at XXX our average door. unit look find of to margin, was

customer social a That's actually higher that areas or business. customer the XX our average less customer the So And new solutions buying is in the why then we're us. long-tenured more that retail customer. we're whole normal as at actually they're as our and new unit and by areas than heavily years a company. That's our acquisition constantly younger into like product discounting is a and newness driven bringing for

So we're a actually being at able to acquire those customers margin. higher

Steven Silver

one And I if follow-up, can.

talked to as category. a company You whether couple curious if just as of the patent tracks swim that the of the in pipeline And compared about patents years maintains eligible being to products filed in development? maybe new I'm ago? how so, even maybe a

Andrew McLean

now, was companies and -- were data seems put avenues. but of it the which on one than this nervous its of And company it, of risible we cataloging the incredibly ago. X-XXX it Lands' been the an was of was to first ago was of to a that It science the one the years years had of at We to have it's a really doing a time for along tracks earlier have number, than not first different first years, the innovative. incredible, one it things companies the had End couple one about to those behind aspiration couple companies that innovate in I

when have and one lands the in you innovation. innovation think say in just company is I dangerous place ahead of to it

everyone. So innovation want from I see to

everyone's to it's more to see want think the company job of that of the part I culture I be innovative.

important. weren't I I our as open about if past, path. our our me making we And we clear to for we -- so be and come in that if I that and digital strides that wanted fundamentally, is a as in, really put them. first, great it the talking We're on But have the put customers to to innovation we more brand footprint, tends certainly floodgates. think built on done it we And became

We also them, which for product great built differentiation. a means

a talked and they solutions the in And lot of business. those that us to been fashion want business innovation it more require and a protect about business, solutions, has innovation. the I I've solutions

doing pipeline coming And I solutions right of that of because a I for critical I patents fear I'm calls that myself along innovation part we'll I this company want to innovation. become a as its you to is there now, I'm them. because so talk And to building going game get won't that that. continue about to that's our customer is to we're speak a so note to And many on where and making just do for known

thank So on me core. myself that for for letting you get

Operator

are this quarter second call. you. Thank Lands' earnings queue. no will there in time, the conclude At further questions in End This

your time, and wonderful You at day. a line may have this disconnect

Lands' End (LE) 5 Sep 242025 Q2 Earnings call transcript