Thank you for standing by and welcome to the Lands' End second quarter 2021 earnings call. At this time, all participants are in listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]. Please be advised that today's call is being recorded. [Operator Instructions]. I would now like to hand the call over to Bernard McCracken, CAO. Please go ahead.

Good morning and thank you for joining the Lands' End earnings call for a discussion of our second quarter results, which we released this morning and can be found on our website, landsend.com. On the call today, you will hear from Jerome Griffith, our Chief Executive Officer and James Gooch, our President and Chief Financial Officer. After the company's prepared remarks, we will conduct a question-and-answer session. Please also note that the information we are about to discuss includes forward-looking statements. Such statements involve risks and uncertainties. The company's actual results could differ materially from those discussed on this call. Factors that could contribute to such differences include, but are not limited to those items noted and included in the company's SEC filings, including our Annual Report on Form 10-K and quarterly reports on Form 10-Q. The forward-looking information that is provided by the company on this call represents the company's outlook as of today and we do not undertake any obligation to update forward-looking statements made by us. Subsequent events and developments may cause the company's outlook to change. Of note, in this respect, the COVID-19 pandemic continues to have an impact on our business and its duration could materially alter our outlook. During this call, we will be referring to non-GAAP measures. These non-GAAP measures are not prepared in accordance with Generally Accepted Accounting Principles. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures can be found in our earnings release issued earlier today, a copy of which is posted in the Investor Relations section of our website at landsend.com. With that, I will turn the call over to Jerome Griffith.

Thank you Bernie. Good morning everyone and thank you for joining us today for a discussion of our second quarter results. Building on our July 20 announcement where we raised our second quarter and full year outlook, we are extremely pleased with the results across all financial metrics. This quarter, Lands' End delivered the highest second quarter revenue in our 58-year history. Our topline momentum was driven by the continued strength in our global e-commerce business, as well as the earlier than expected recovery in our outfitters business, as both our national accounts and school uniform businesses showed meaningful improvement. Within our global e-commerce business, our digitally-led product offering and compelling marketing strategies continued to drive growth. We are a digitally-led e-commerce business and are continuing to enhance our capabilities through our data driven focus, an important driver of our customer acquisition. During the second quarter, we increased our global new customers by 8% from the prior year and 41% from the second quarter of 2019. Our total global customer file expanded 4% from the prior year and 13% from the same period in 2019. As we shared with you last quarter, our new customers are profitable within the first year, supporting our efficient new customer acquisition strategy. The overall customer file has continued to perform and behave similarly to our pre-pandemic customers with retention rates consistently over 55% even as stores have reopened. We continue to profitably and sustainably expand our presence in global e-commerce apparel, as we enhance our capabilities across the four strategic pillars we first shared with you over three years ago. Our progress is demonstrated by the strength of our financial performance and our encouraging customer metrics. Our sustainable performance with both our new and existing customers is, in part, driven by the marketing initiatives…

Thank you Jerome and good morning. We are very pleased with the strong results we delivered in the second quarter as we continued to make great progress across our strategic initiatives despite the still difficult environment. Similar to last quarter, I will make select comparisons to our second quarter of 2019 to help normalize for the significant improvement we saw in our business in Q2 of last year. As you may recall, COVID-19 negatively impacted our business in March and April of last year with the recovery in the second quarter of 2020. For the second quarter as compared to last year, total revenue increased 23.1% to $384.1 million and grew 29% from in the second quarter of 2019. This was at the high-end of our revised guidance of $380 million to $385 million we provided you on July 20 and well above our initial guidance of $345 million to $355 million. Our global e-commerce sales increased 7.7% from 2020 and 32.5% from 2019, as the momentum in our business remains strong. The strength was led by our U.S. e-commerce business, which increased 7.6% from 2020 and 35.7% from 2019. Our international business also expanded 8.2% in the quarter from the prior year, due to the 17.1% growth in Europe. Our better-than-expected results were driven by strength across a number of our key categories, including swimwear, sleepwear and knits. The strength in swimwear was aided by increased leisure travel during the quarter and our overall growth was supported by marketing strategies that continue to message the value and comfort in our product. Revenue for our third-party business increased to $19.1 million. That's a $14 million improvement compared to last year. This increase was largely driven by our performance through Kohl's, particularly as we expanded our swimwear offering to an additional…

Thanks Jim. We remain committed to delivering a long term profitable growth for our shareholders by consistently focusing on our investments on our strategic pillars, including getting the product right, being a digitally driven company, implementing a uni-channel distribution strategy and enhancing both our infrastructure and processes. Based on these pillars, we have created a strong and resilient foundation, which delivered second quarter global e-commerce sales growth of 33% over our 2019 pre-pandemic levels. We see significant opportunity to capitalize on our multidimensional growth ahead. We believe the pandemic drove a permanent shift in consumer behavior, accelerating online shopping and increasing demand for comfort. The increase in U.S. households within our demographics who are now more willing to shop online, which represents more than 95% of our business, has meaningfully increased our total addressable market. We remain focused on building our brand awareness and attracting more of these consumers to Lands' End as we continue to see significant opportunity with new customers. As such, our marketing initiatives are an important investment priority, particularly in our digital strategies where customer acquisition is highly efficient. We are testing new strategies in social media and we will continue to refine our search engine optimization. We are also improving our catalog spending efficiency as we continue to enhance our profitability and digital capabilities. Turning now to our product assortment. We are well-positioned our product and our let's get comfy messaging to leverage the more casual aesthetic driving the apparel market, particularly as people return to more normal activities. We will continue to focus on our one closet message and diversity of fit as we introduce seasonal colors, transitional items and more denim heading into the fall. Our data analytics is an important tool we leverage to inform our product assortment and we will evolve…

[Operator Instructions]. We have a question from Alex Fuhrman with Craig-Hallum Capital. Your line is open.

Great. Hi. Thanks very much for taking my question and congratulations on a strong quarter. I wanted to ask about what you are seeing with the shipping delays and costs here? Obviously, it sounds like you are able to raise your full year guidance. So clearly you are offsetting those costs. But are you starting to see any orders being canceled as a result of products taking longer to get the delivered than you would had hoped for? And I guess more importantly, what strategies you have in place for the holiday season where customers might be expecting to get their orders ahead of key days like Christmas?

Yes. I can probably take the first part of that, Alex. Yes, we have been seeing these challenges really for the last year, a year-and-a-half-year. The challenges have been moving higher costs across the board. We have had, as I said, delays at various points in our supply chain. And to-date, if you look at our strong performance, especially over the last couple of quarters, I think our teams have been doing a great job of trying to get out in front of these and offsetting those. In our guidance, to your point, we are expecting those to continue at a similar rate. We are expecting some of the higher costs are associated with having to expedite shipping costs associated with back orders to continue. And we are expecting the strong consumer demand to continue in the back half. Our biggest challenge will be if anything further happens where we are just having difficulty getting the actual product. And right now, like I said, the teams have been doing a good job, but there's certainly challenges going on and we highlighted specifically in Vietnam where we are seeing some factories shut down.

Great. That's really helpful. And then can you just give us an update as you think about the seasonal workers that you typically hire, how far along are you in that process already? Do you have a lot of those workers with some kind of commitment here? Are you confident that you are going to have the labor that you need for the holiday season?

Again, the teams are doing a great job of trying to get out in front of that. It's certainly a challenge. The federal funding is stopping in Wisconsin this month. So we are hoping to get a pickup from that. I would say, we are slightly behind where we would want to be for this season. But we still think it's manageable going into Christmas.

Okay. That's really helpful. Thanks very much and congratulations again on the really strong quarter.

Thank you.

That concludes our Q&A session. Ladies and gentlemen, thank you for participating in today's conference. This does conclude the program and you may now disconnect. Everyone, have a great day.