Hello, and welcome, everyone, to the Lands' End, Inc. fourth quarter and fiscal year-end 2025 earnings call. Later, you will have the opportunity to ask questions during the question and answer session. Please note this call is being recorded. We are standing by if you should need any assistance. It is now my pleasure to turn the meeting over to Tom Altholz. Please go ahead. Good morning.

And thank you for joining us this morning for a discussion of our fourth quarter and fiscal 2025 results, which we released this morning and can be found on our website, landsend.com. I am Tom Altholz, Lands' End, Inc.’s Senior Director of Financial Planning and Analysis, and I am pleased to join you today with Andrew McLean, our Chief Executive Officer, and Bernie McCracken, our Chief Financial Officer. After the prepared remarks, we will conduct a question and answer session. Please also note that the information we 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 due to such differences including, but not limited to, those items noted and included in the company's SEC filings, including our Annual Report on Form 10-Ks and Quarterly Reports on Form 10-Q, and our Solicitation/Recommendation Statement filed on Schedule 14D-9 on March 11, 2026. The forward-looking information that is provided by the company on the call represents the company's outlook as of today, and we do not undertake any obligation to update forward-looking statements made by us. Subsequent events and developments may cause the company's outlook to change. During this call, we will be referring to non-GAAP measures. These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures can be found in our earnings release issued earlier today, a copy of which is posted in the Investor Relations section of our website at landsend.com. With that, I will turn the call over to Andrew.

Thanks, Tom, and good morning, everyone. The fourth quarter was a turning point for Lands' End, Inc. as we returned to top-line growth driven by our most significant businesses and capped off the year in which we strengthened the foundation for sustainable, profitable, long-term growth. During the quarter, we also announced a transformative transaction with WHP Global, which we are confident builds on that platform and will help deliver compelling value for shareholders. More on that in a moment. We delivered 5% comp growth, driven by strong execution across our owned, licensed, and marketplace businesses. GMV grew by mid-single digits in the fourth quarter, reflecting broad-based momentum and increasing relevance of the Lands' End, Inc. brand. Seeing that momentum show up clearly across the business, our third-party marketplace business grew mid-single digits, led by double-digit growth at Amazon where our iconic Bedford quarter-zip sweater was the number one pullover on Amazon during Black Friday weekend. Our business in Europe delivered high single-digit comps, reversing a multi-quarter trend, as we reenergized our customer file and delivered on our solutions focus. Our school uniform channel sustained double-digit growth, building on another successful back-to-school season. In our U.S. consumer business, our solutions-based products and franchises continue to resonate. Iconic products, including Christmas stockings and canvas pocket totes, were both up double digits year over year, and we saw strength across our weatherproofed assortment as well. Increased investment in digital marketing accelerated customer acquisition, delivering measurable results by year end. We acquired 20% more new-to-brand households in Q4 versus last year, our strongest performance since the pandemic, and ended the year with positive new-to-brand growth overall. And we are not just adding customers, we are leveraging the household. Lands' End, Inc. is increasingly a multigenerational brand serving grandmother, mother, and granddaughter. We also leaned…

Thank you, Andrew. For 2025, total revenue was $462,000,000, an increase of 5% compared to 2024. GMV grew mid-single digits driven by strong performance in our Outfitters, third-party marketplace, and U.S. e-commerce businesses. Gross profit increased by 4% compared to last year. Gross margin in the fourth quarter was 45%, a slight decrease of approximately 30 basis points year over year, driven by tariff headwinds partially offset by our solutions-focused go-to-market strategy. When excluding the impact of the unmitigated IEPA tariffs, gross margin increased by approximately 140 basis points to 47% compared to the prior year. Our U.S. e-commerce business grew 5% compared to Q4 2024, with record new-to-brand acquisition up 20% year over year. Third-party marketplace revenue grew 4%, led by Amazon, which was up double digits year over year. Nordstrom also delivered strong outerwear results. We began to see the benefits from the transformation work in our European e-commerce business as sales grew 9% during the fourth quarter. SG&A expenses increased by $12 million year over year. As a percentage of net revenue, SG&A increased approximately 90 basis points, primarily driven by increased marketing spend to drive new customer acquisition and incentive accruals, partially offset by leverage from revenue growth and operational efficiencies. We delivered adjusted EBITDA of $47 million, which represents a 9% increase compared to the prior year. For the fourth quarter, we had adjusted net income of $24 million, or $0.76 per share. As Andrew stated, we capped off a year where we strengthened the foundation for sustainable, profitable growth across the company. For fiscal 2025, we delivered GMV growth in the low single digits, a gross margin increase of approximately 80 basis points to 49%. When excluding the impact of the unmitigated IEPA tariffs, gross margin expanded by approximately 180 basis points to 50%.…

Thanks, Bernie. So here is what investors should expect from us in 2026. First, we will maintain our focus on driving profitable customer growth, improving acquisition, retention, and lifetime value through smarter marketing, better personalization, and a stronger digital experience. Second, we will keep raising the bar on product and innovation, leaning into franchises and solution-oriented assortments that are clearly resonating. Third, we will stay disciplined on costs and execution, continuing to fund growth while building operating leverage. And fourth, we will expand the brand’s reach, particularly internationally, through licensing and third-party marketplaces, and with WHP’s platform and global expertise, we can move faster into new categories and geographies. To support that growth agenda, we are also excited to welcome Sarah Sylvester as Chief Marketing Officer. This is a new role for Lands' End, Inc. and reflects our commitment to building brand awareness and accelerating growth. Sarah brings more than two decades of marketing leadership experience, most recently at Victoria’s Secret Pink, and we are confident she will make an immediate impact. As Bernie referenced, we are looking forward to discussing our strategy and outlook in more detail on our first quarter earnings call following the close of the WHP transaction. During that enhanced earnings call, we will walk through our priorities and what we believe is a clear path to long-term shareholder value creation. Let me close with the headline. Lands' End, Inc. is well positioned in 2026 and beyond, as highlighted by our growing operational and financial strength. Our fiscal 2025 performance, together with the opportunity to deliver outstanding value through the partnership with WHP and our strengthened balance sheet, give us great confidence in the future of this iconic company. In addition to established long-term GMV growth, in 2025, we returned to revenue growth and proved the model across channels. We delivered positive performance across the business, including 5% comp growth in the most recent quarter, and we did it with momentum coming from multiple engines: Outfitters, marketplaces, and our own digital businesses. Just as important, we strengthened the health of the business. Customer acquisition accelerated. We acquired 20% more new-to-brand households in Q4, and our product-led, solutions-based approach continued to win across multigenerational customer segments. Now we are entering fiscal 2026 with a clearer financial profile and more strategic flexibility. With the WHP transaction, we will be well positioned to drive real growth while also investing in our future. We are excited to work with the WHP team and take the Lands' End, Inc. brand to new levels. We are confident that this transaction and all that it enables will result in a better company for customers, a better company for partners, and, importantly, a better company for shareholders. As always, we will be guided by a fierce adherence to taking actions that improve our earnings power and delivering outstanding shareholder value. Thank you to our teams and customers. And with that, we will take your questions.

Thank you. And we will take our first question from Marni Shapiro with Retail Tracker. Your line is now open.

Hey, guys. Congratulations. This is so exciting. Congratulations on the hire of Sarah. I guess, Andrew, I have a big-picture question. I know you are going to discuss strategy once the deal closes, but the hire of Sarah is a big deal for Lands' End, Inc. From my vantage point, you guys have been very quick on marketing already online, especially, you know, St. Patrick’s Day, you were right there with the green set. It was fantastic. I guess, how should we think about it differently? Is this external reach? Is this influencers, events? Could you talk a little bit about where your head is at with that? And then just one very quick one on the WHP deal. Will you guys be able to work with them closely to make sure that any deals that they sign align with your brand vision for Lands' End, Inc. going forward so that they do not go off and do something that is not within what works for the brand? I am assuming yes, but I just want to ask the question.

Hey, Marley. How is it going? Hey. It is nice to hear from you. Let us start with the WHP question. It is a great question, and obviously that came into how we selected our partner. We did not want to go with any partner; we wanted to go with a partner that was like-minded and saw the world in the same way as us. So that made that part of the negotiation really easy. You are not going to find the brand distributed through your local car wash kind of thing. So we feel good about it. And actually, the message really is one of amplification. We view the partnership with WHP as being one that can really amplify and grow the licensing business that we had already successfully put in place. Actually, that sort of turns to your next question, which is what Sarah is going to be doing, and that is really about amplification. Lands' End, Inc. has not had a CMO in ten years, and marketing had been split somewhat between creative and performance. Since I have come in, we have been reuniting that and really getting more focused around the customer. We have our solutions; we are ready for life’s every journey, and that puts the customer at the center of everything we do. But underneath Sarah is some great talent. We have brought John Caruso in, and I think you have probably seen the impacts of his work over the last few months as he has joined us. In particular, I can point to the CDK on Instagram that we did where we caught the trend and we went with it. Same with St. Patrick’s Day. And actually, that ripples all the way through our business now where we do not run in silos,…

Oh, well, congratulations. I wish you luck, but it looks fantastic. Fantastic. Thanks, guys. Thanks, Bonnie.

Thank you. And we will take our next question from Dana Telsey with Telsey Group. Your line is now open.

Hi, good morning, everyone. As you think—one of the interesting numbers that you mentioned there, Andrew, was the, I think it was 20% new-to-customer file, that you grew the customer base this year. Who were those customers? Is it a different demographic, the same demographic? And does this mean that your overall customer file grew? And then on just—I know you are not giving guidance, but any general themes of puts and takes on margins as we go through the year? Whether it is tariffs, whether it is what is happening with energy prices, and how you are thinking, given the solutions-based offering, how you are thinking about pricing this year? And just lastly, Europe—big turnaround in Europe—what are you seeing there? And then the Amazon piece up double digits. You mentioned Nord—I think last quarter you mentioned Macy’s. How are those third parties doing? Thank you.

Okay. I am going to try and hit them all, Dana. I was writing like fury as you were asking those questions. Yes, the customer file started growing again, and I think that has been really important—that we have started to establish a really solid core of customers. And I think as we look at it, we have spent a lot of time segmenting this file and making sure that they get segmented messages and we can increase that reach. There was a point I made in my commentary, and it was that we are approaching the whole household, and that was not a trivial point. That was a really important point where we want to be a broadly distributed brand with real broad reach. And we have product and solutions and franchises to do that. So that notion of hitting grandmother, mother, and granddaughter is absolutely key for us. And we test it out. We are testing it out physically. We are testing it out in our e-commerce strategies. And one of the places that you would have seen it was within our chaotically customized Christmas store—say that fast—in SoHo, where we really were able to welcome, in particular, mothers and daughters. Mother would bring in her tote bag and we would embroider that. Granddaughter would come in and pick up a new tote. And the ability to customize, I think, is one of our secret weapons that we are really able to bring to the fore. As we have been through a process over the last year, I think everyone is aware of that. One of the things that came out of it is that we have a real competitive advantage in our ability to customize. And customization is really the future because it is a form of…

The only other thing I wanted to know: on the European business—well, you mentioned the European business and the strength there—anything else on any other wholesale customers to mention? And then, Bernie, just obviously debt repayment—anything we should be thinking about on the balance sheet as we go through the year? Thank you.

Sure. I think as we have noted, as part of the WHP deal and when it closes, we will be paying off our long-term debt, which will then, of course, create flexibility for us to now pursue other opportunities to drive shareholder value through capital allocation alternatives. So we are pretty excited about the flexibility this will give us going forward. Yes. We would expect to come out of this and be—

—a growth company, Dana. I think for Lands' End, Inc., sort of unshackled from debt, there is real opportunity for our shareholders out there, and our every intention is to go get it. Thank you.

Thank you. Our next question comes from Eric Beder with SCC Research. Your line is now open. Good morning.

Good morning. Can you talk a little bit about what is driving the turnaround in Europe? I know you changed a lot of things there. And are pieces of that transferable to potentially the U.S. business or other international businesses?

So, Eric, and good morning. Eric, I have been clear since I came into the business about a couple of things on Europe. One is that I always wanted it to be more elevated than the U.S. to provide cachet. That we are known as a sophisticated European brand, and that carries through to our customers in the U.S. I think the second part is I always wanted to use it to test out concepts and test ideas that can be carried and transferred back to the U.S. And I think back in the fourth quarter, we achieved both of those. We got back to very much a focus on our franchises. And actually, we led that, if you look at the business, with really the reintroduction of our tote bag and the personalization that comes with that to reach wider into the customer cohort. We also reengineered our catalogs and tested out new ideas in those, as well as the notion of a lot more dynamic content around video versus static images that we have tended to use in the U.S. So you will see transfer of that actually come back. On the flip side of that, we do have stronger franchises in the U.S. and continue to want those to grow in Europe. And a lot of our plans really focus around taking some of those franchises and continuing to lean into them. The most obvious one being the one I have just discussed, which is the tote bag, which is so iconic here in America but has not really had the legs internationally for us. That can be incredibly powerful once we start to get behind that. So we were pleased with a get-back-to-basics in Europe, get focused around the customer in Europe, get focused around personalization in Europe, and where we took that. And the results came through really strongly for us. We had three, quite frankly, very difficult quarters followed by a really strong fourth quarter. And I appreciate the forbearance of the team in working through that. I think they did a really nice job. And now it is for us to build on that for this year. And I think, absent more fuel shortages than anything else that is out there, all things being equal, we can take a good run at that.

Great. And in terms of personalization, I know that you have leaned a lot more into Q4—the shops and other pieces. Is that one of the demographics of that customer—does that customer become—is that a younger customer? How should we be thinking about that? Because I know it has definitely continued into spring to push into that beyond just the tote into other apparel categories.

Well, I will finish up on Q4 because it is definitely not into the spring, but the Christmas stocking sales that we had were absolutely incredible. I mean, to have the Christmas stocking—a nice program for us, but it has not traditionally been a huge, huge program—be a top-five program over holiday was really incredible for us. So that is all about personalization. And in terms of who we are seeing, we are using our marketing to reach wider than we traditionally have. So this is not about just getting them for the grandkids. This is about the grandkids themselves coming in and getting more. And actually, the way we met the younger customer is we have widened the amount of embroidery that we can do. So our one image for the fourth quarter was actually a sausage dog, and I think that was really, really cute for us. I think that there was incredible opportunity for us to just expand beyond where we have been, which was traditionally—you put “Mom,” “Dad,” “Grandpa,” whatever the kid’s name on it. We are now really starting to flex the muscle we have with personalization, and that is a real competitive advantage for us in 2026 to continue to lean into that. And I think you will see more from us, and you will see us understand how we can really bring that to the market. So there is good news in there. Eric, go—just to finish, the tote will be ubiquitous. But if you look at the Christmas shop that we had, we embroidered cashmere. I think there are very few people doing that right now. I think that is a competitive differentiator as well. So another franchise starts to fall into line on that program with value added to be layered on top. Bernie? And then, Eric, to add to that,

the infrastructure we have the benefit of is from our school uniform and our business-to-business that built the infrastructure of embroidery capabilities so that the rest of the business now gets the benefit in the U.S. DTC business, and the marketplace businesses eventually will all benefit from having that—on top of having that younger customer in that uniform business that also we can attract through our personalization.

Great. Last one. Cannot not mention Outfitters. That was a great quarter. You picked up share from school uniforms, and obviously, you picked up some larger B2B clients. What is the potential here, and are we just scratching the surface somewhere?

And thank you. Yes, I have always been a fan of Outfitters. You and I have talked about this quite a lot. I think that Outfitters, once we got it firmly in its lane and behind the franchise where it can excel, the sky has become the limit. Our teams just got back from a sourcing trip in India with one of our major airline partners, and they could not be happier about the breadth that we are able to offer and the opportunity that we are creating for their employees. And, you know, I will say it again because it is worth noting: the amplification that you get from having 100,000 airline employees who are somehow connected to the brand of Lands' End, Inc. is really powerful and widens the reach of where we can go. So I would continue to watch this space. I would continue to look for us to add major partners throughout the year. And you are absolutely right. I think this can power through because, you remember—and it is worth saying because we do not talk about it that much—we sign long-term contracts. So it is very sticky business. The switching costs tend to be quite high, or the barriers to switching tend to be quite high, and so once you lock in, you can have them for many, many years. And I think there is a real power in what is almost a subscription business.

I think it is also important to note, Eric, it being a differentiator in any industry is important, and in that industry, we tend to be the only one bringing a brand to the game. So that has proved very successful with our large consumer business and our larger partners as they want to do well for their employees, and they want to bring a brand name to that employee and make them feel proud of what they wear.

Great. Thank you, and good luck for 2026. It will be a fun year.

Thanks. Take care. Thanks, Eric.

Our final question comes from Steve Silver with Argus Research.

Thanks, operator. Thanks for taking my questions, and congratulations on all the recent events. Guys, you talked about recently the goal of the company to modernize its infrastructure and its software platforms, and suggested that maybe some of those decisions might have been on hold while you were under the strategic review last year. I am just curious as to whether any of those activities have now started since the deal was announced, or if they are just waiting until the deal closes, and really what the timeline for implementation might look like just to really get updated with these systems.

We will have replaced our existing back-end infrastructure with SAP before we go into peak later this year, and we will have moved our front end of the consumer business onto Shopify. So, again, that is going to happen before peak. During the process that we went through over the last year, we stopped, pending the outcome of that. But we did not stop—well, we stopped across the company; we did not refrain from continuing the desktop work that was key to making sure that we stayed on time. And then as we announced the transaction with WHP, we restarted the heavier lifting to make sure that we could be timely, to be in place before we get to peak. We feel good about where we are at. There is always risk associated with it in these really big projects, but I think they are really important for the company. We are well along, feel good about it. I think the opportunity to further leverage our infrastructure that they provide is not just an SG&A game; it is also a revenue and margin game for us as well.

That is helpful. Great. And one more, if I may—it is probably very little you can say about it at this point—but given the prospect of eliminating the term loan and really giving the company a flexibility that it has not had in quite some time, is there any low-hanging fruit in terms of strategic opportunities for growth? Andrew, you mentioned that you are going to be looking at Lands' End, Inc. now as being more of a growth company. Is there anything, even just category-wise, that you are thinking, just in terms of what some of those opportunities might be to invest in growth?

I do not blame you for asking, Steve, but we are going to have an extended—we are going to have an extended Q1 call, and we will look forward to sharing with you then. It is the obvious question. You are right to ask it. And we will look forward to our next call.

Fair enough. Thanks again, and congratulations.

Thank you. Thank you.

This does bring us to the end of our question and answer session, as well as Lands' End, Inc.’s fourth quarter and fiscal year-end 2025 earnings call. We appreciate your time and participation. You may now disconnect.