It is now my pleasure to turn the meeting over to Tom Altholz. Please go ahead. Good morning, and thank you for joining our first quarter FY 2026 enhanced earnings conference call. In addition to our financial results, we will discuss our forward-looking strategy and financial outlook following the closing of our joint venture transaction with WHP Global. This morning's news release and an accompanying investor presentation can be found on our website, landsend.com. I'm Tom Altholz, Lands' End Senior Director of Financial Planning and Analysis, and I'm pleased to join you today with Andrew McLean, our Chief Executive Officer, and Bernard 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 risk 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, and in the slides which accompany this webcast and can be found on our investor relations website. 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. In addition, our comments also present illustrative examples of potential outcomes related to our joint venture. There can be no assurance that such examples will occur or that the joint venture will deliver the hypothetical results presented. 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'll turn the call over to Andrew. Thank you, Tom. Good morning, everyone. I'll begin by noting that as we previewed last quarter, today's call will cover both our Q1 earnings as well as a more comprehensive discussion of our strategic priorities and the significant opportunities ahead. After our quarterly results, we'll provide an overview of the joint venture transaction with WHP Global, which closed on April the 1st, our post-transaction operating model, including the key growth drivers behind it, our financial outlook for Q2 and full year 2026, as well as three-year targets and the potential value creation opportunities the joint venture unlocks. We'll discuss more shortly, but at a high level, it's helpful to note that the creation of the joint venture marked a genuine inflection point for our business. By changing the structure of our business, we believe that we have enhanced the character of Lands' End as an investment and enhanced the prospects for this iconic American brand and company. We enter this new chapter with momentum. We closed fiscal 2025 with a return to top-line growth in the fourth quarter. For the full year, we expanded gross margin, grew adjusted EBITDA, and more than doubled adjusted net income, building a strong foundation for what comes next. Because of the many changes to our business, on today's call, we will provide you with a clear picture of what to expect from the company, and then, of course, we'll look forward to your questions. With that, let me touch on some highlights from the first quarter. As we look at the first quarter, the most important takeaway is that underlying demand for the Lands' End brand continued to strengthen. Consumer traffic was up double digits, new customer acquisition improved, and Outfitters entered the year with a growing order book that reinforces our confidence in the business. While our reported results were affected by the temporary operational disruption tied to our U.S. distribution center upgrades, which delayed shipments and therefore muted sales, the underlying sales performance of the business was stronger than the headline numbers suggest. Absent those issues, we had the orders needed to drive positive sales comps for the company. Europe provides a particularly clear proof point. In that business, where distribution centers were not an issue, we delivered strong double-digit revenue growth, confirming that our product, merchandising, and brand positioning are resonating with customers. Importantly, the backlog that built to roughly one week of demand has now been cleared. We are back to operating in a steady state, we are already beginning to capture efficiency gains that should improve delivery speed, elevate the customer experience, and support stronger execution as we move through the year. Despite the operational challenges in the first quarter, we saw year-over-year improvement in both adjusted net income and adjusted earnings per share. A primary driver of that improvement was lower interest expense following repayment of the term loan in the quarter. We have seen that momentum continue into the second quarter. Q2 has started off well, with positive revenue comps and ongoing new customer growth through and now post the important Memorial Day period, led by key categories including swim, totes, and men's. There are, of course, a few factors that make the first quarter more complex to read on the surface. We repositioned parts of our marketplace business to prioritize profitability over lower quality revenue, and that decision weighed on top-line growth in the quarter, even as it improved the quality of our sales and flow-through of profitability. We also completed the creation of our joint venture with WHP Global during the quarter, an important strategic milestone that changes how certain elements of our P&L are presented. Gross margin now reflects the additional cost of royalty payments under the license structure. Licensing royalty revenue is no longer reflected in our reported revenue, and the benefit of our 50% share of JV profits is reflected in adjusted EBITDA. At the same time, elimination of our term loan materially lowers interest expense. Bernie will walk through these changes later in our call. Another factor affecting the quarter was tariffs. We continued to manage through that pressure, including booking at the higher rate currently in effect while policy remains uncertain. Even with that headwind, we see encouraging evidence that the underlying margin structure of the business is improving. When we put it all together, our view is clear. Fiscal 2026 is positioned to deliver positive revenue growth. Our customer file is expanding with strength in younger cohorts. Underlying merchandise margins are improving before the impact of tariffs and royalties, and our operational footing is getting stronger. Just as important, we are guiding our adjusted EBITDA to grow versus 2025 on a like-for-like basis with further upside based on WHP Global unlocking more licensing value from the Lands' End brand. We remain optimistic, energized, and confident in the path ahead. Those themes show up clearly when we look at the first quarter across our businesses. Our core franchises continue to resonate. Customer engagement improved, and each part of the portfolio offered useful evidence that the strategic work underway is strengthening the foundation of the company. Turning to our U.S. consumer business, our solutions-based products and franchises continue to resonate as the reliable anchors of the business. Women's apparel and swim delivered positive comps in the first quarter, driven by product and fit improvements that are also showing up in lower return rates, a testament to the success of our solution strategy and our product and merchandising teams. Swim also continues to benefit from our separate strategy and UPF 50 franchise. Continuing a theme we've seen build over the past several years, totes were a standout, driving revenue and bringing new customers into the brand. The strong response to newness in the assortment, including our canvas dog tote carrier, reinforces our view that totes remain both a meaningful growth category and a powerful expression of the brand. To put a finer point on it, there is no category that better showcases the strength of our embroidery and personalization offering. From an overall product perspective, heading into Q2, we feel good about the assortment and the print and color stories we have in place. Our new CMO, Sarah Sylvester, who joined in March, is already having a stellar impact, building on the success of our focus to better market the brand and reach new customers. New-to-brand customer acquisition was up low single digits in the quarter over last year, proof that we are reaching beyond our existing base and continuing to convert new customers. Social followership continued to increase by more than 30% year-over-year, and traffic was up mid-teens across U.S. digital channels, with every channel showing growth. In addition to adding new customers, our product-led, solutions-based approach continued to win across multi-generational customer segments. We are also continuing to lean into experiential marketing. Recent swim-focused activations and our plans for another Nantucket pop-up build on the success we had there last year. These efforts are designed to put the brand in front of new customers in high-affinity environments and deepen our association with one of our most important categories. In third-party marketplaces, we deliberately pulled back on promotional activity to prioritize profitability. Amazon performed well, and we remain focused on making our key items bigger on the platform. At Nordstrom, more full-price selling in the quarter reinforces how we want the brand to be positioned in a premium retail environment. Our European business had a strong first quarter, and the top and bottom line results reflect disciplined execution. The strategic shift to a franchise-first assortment simplifies the business, improves inventory efficiency, and ensures our strongest programs anchor the range. Our focus on newness and solutions-based products resonated with our customers when they were ready to buy early in the season. Investment in a more localized consumer experience, European photography, more locally relevant content resonated with customers. We also launched a charity tote collaboration with four prominent London-based designers to reimagine our signature canvas tote ahead of London Fashion Week, a brand moment that reinforced our relevance with a new and influential audience. Turning to our business-to-business offering, Lands' End Outfitters. Outfitters had a strong quarter with demand led by national accounts, specifically our airline accounts. A channel where we have demonstrated expertise and leadership in meeting clients' exacting requirements. In schools, the timing of promotional activity shifted in the quarter, and we pulled back in February and April. We view this as a timing dynamic, not a demand issue, and expect a portion of that volume to come back in Q2. Importantly, the pipeline remains healthy. Overall, underlying demand in our Outfitters business is strong. The pipeline is growing, and we see identifiable opportunities ahead in Q2 and beyond. I'll now turn it over to Bernie to discuss our first quarter's performance in more detail. Thank you, Andrew. For the first quarter, total revenue was $239 million, a decrease of 9% compared to Q1 2025. That result was driven primarily by the temporary disruption associated with the rollout of our new warehouse management system and the deliberate pacing of shipments as we ramped our distribution centers back to normal capacity. Importantly, that disruption was timing related rather than demand related, and excluding its impact, we would have expected low single-digit revenue growth in the quarter. We delivered adjusted EBITDA of - $6 million, down $16 million from the prior year, reflecting the shipment timing disruption, the effect of the new royalty structure following the WHP Global transaction, and continued tariff pressure. Our U.S. e-commerce business decreased 10% compared to Q1 2025, reflecting the temporary disruption tied to the rollout of our new warehouse management system across our distribution centers. That issue is behind us. We expect to return to positive comps in Q2. Sales from Lands' End Outfitters decreased 10% from Q1 2025, while Outfitters results were also affected by the distribution center upgrades. Absent those issues, we would have had positive sales comps. We continue to feel good about the underlying demand environment, the order book, and the pipeline heading into the balance of the year. Third-party marketplace revenue decreased 6%. The decline was mainly driven by a strategic focus on higher margin, higher quality sales, prioritizing brand integrity over lower value, promotion-driven volume. Performance on Amazon remained solid, and we were encouraged by the level of full price selling in premium environments such as Nordstrom. As a result, while this strategy weighed on reported revenue, it improved the quality of the business and supports healthier margin flow-through over time. In our European e-commerce business, our transformation work is continuing to show up in the results. Sales grew 15% versus last year. Profitability improved, with gross margin increasing approximately 70 basis points in the first quarter. Gross profit in the first quarter decreased 16% versus the prior year. Gross margin was down 47%, approximately 410 basis points year-over-year. That decline was driven principally by the deleverage created by the temporary distribution center disruption, the new royalty structure associated with the WHP Global joint venture, and continued tariff headwinds. At the same time, the underlying merchandise margin of the business remained healthy, supported by our solutions-focused merchandising strategy, disciplined promotional posture, and better product mix. SG&A increased $3 million year-over-year, and as a percentage of net revenue, increased approximately 570 basis points. This reflected a combination of the fixed cost deleverage from lower reported revenue and the ongoing investment in marketing and brand building. Adjusted net loss for the quarter was $4 million, or $0.11 per share, compared to adjusted net income of $5 million, or $0.18 per share in the prior year. While those comparisons reflect a complex quarter, we believe they do not fully capture the underlying momentum in demand, the benefits of the new structure, or the earnings power of the business as operations normalize. Turning to the balance sheet. Inventory at the end of the first quarter was $300 million, compared to $262 million a year ago. That increase primarily reflects the timing effects of the distribution center ramp-up and the impact of tariffs on inventory costs. As operations normalize and inventory flow improves, we expect inventory levels to become better aligned with demand and with our revenue trajectory. In terms of our debt, we ended the first quarter with $30 million in ABL borrowings, compared to $40 million last year. As previously announced, we used the majority of the $300 million in cash proceeds from the WHP Global transaction to fully repay our term loan, leaving us with enhanced liquidity and significantly reduced interest payments. The remainder of the transaction consideration was used for transaction-related and other corporate expenses. Finally, in conjunction with the April 1st closing of the WHP Global transaction, our board authorized the repurchase of up to $100 million of common stock through March 31st, 2029. As we will discuss in more detail shortly, with a strong balance sheet and this authorization in place, we have meaningful flexibility to evaluate opportunities to enhance shareholder value, including returning capital to shareholders. We will provide second quarter and full year 2026 guidance in the next section of this call. With that, I'll turn it back to Andrew. Thanks, Bernie. We'll now turn to a broader discussion of our strategy and outlook following the completion of the transformational JV we created with WHP Global and the opportunity for shareholder value it created going forward. I'll be referring to the slides, which are now on the screen of this webcast and can also be found on our investor relations website. Beginning on slide three, we want to spend a moment clearly laying out the strategic and financial rationale for the JV, and importantly, how it translates into multiple reinforcing drivers of shareholder value. First, in April, we completed the creation of the JV, which included Lands' End contributing our intellectual property in exchange for $300 million in gross proceeds from WHP Global. Lands' End and WHP each have 50% ownership of the JV, with WHP having a controlling interest. We believe this transaction drove immediate value for our shareholders, both indirectly and directly. The $300 million of proceeds from WHP enabled us to immediately pay our term loan in full, de-leveraging the balance sheet and fundamentally changing our financial position. This is a step change, not an incremental improvement in financial flexibility. In addition, WHP Global completed a tender offer for approximately $100 million in Lands' End shares at a purchase price of $45 per share, available to all shareholders to realize near-term value creation. WHP's acquisition of approximately 7% of Lands' End at a substantial premium signals their commitment to the future success and growth of our company. Under the long-term license agreement with the JV, Lands' End will pay the JV annual royalties of at least $50 million. We will receive half of all JV profits on a quarterly basis. These profits will come from the royalties we pay, the growth of Lands' End's existing licenses, which were contributed to the JV, as well as the growth of the brand with new licensees. The expansion possibilities available to the JV create a highly attractive revenue stream, creating a recurring, high-quality source of earnings with the JV expected to operate with EBITDA margins of no less than 85%. By partnering with WHP Global, we believe Lands' End is now positioned as a brand to grow faster and more profitably than it could have on a standalone basis. This is because WHP is a proven global licensing platform with a track record of scaling brands across new categories, new geographies, and new partners. In just a moment, I'll discuss the JV's early wins. Finally, the opportunity to exchange our stake into WHP Global equity creates a unique and powerful second layer of value for shareholders. Should WHP execute a monetization event, such as a sale or an IPO, Lands' End may exchange our stake in the JV for equity in WHP Global at the same multiple that WHP receives in the monetization event. Importantly, scaled brand management companies like WHP typically command materially higher valuation multiples than traditional retailers. This creates the opportunity for Lands' End shareholders to effectively step up into a higher multiple business through the exchange event. When you step back, this transaction delivers multiple layers of value. Immediate value realization, balance sheet transformation, accelerated high margin licensing growth, growing royalty income platform, and high multiple upside opportunity. These are additive, not alternative drivers of shareholder value. Turning to slide five, we've outlined here the four key levers to drive value for all Lands' End shareholders. First, as I just referenced, the significant financial flexibility we have following the completion of the JV transaction represents a fundamental reset of our financial position. By eliminating our term loan debt in full, we strengthened our financial position while shedding debt covenants that previously limited our ability to execute on strategies that could grow shareholder value. Second, key to our success over the years has been the strength of our direct-to-consumer business and our B2B platform, Lands' End Outfitters. Across both businesses, we operate highly capable, digitally enabled platforms that, when paired with ongoing strategic focus and cost discipline, provide the operating foundation to support future growth, cash generation, and shareholder value creation. Third, following the completion of the JV transaction, the Lands' End board authorized a $100 million share repurchase program through March 2029. This is a clear and deliberate capital allocation option aligned with shareholder value creation. At current prices, this authorization represents the ability to repurchase a significant portion of shares outstanding. Programs of this scale are often associated with both EPS accretion and multiple expansion over time. Importantly, we now have the financial flexibility to act opportunistically when we believe our stock is trading below its intrinsic value. Finally, as I referenced earlier, the ability for Lands' End to exchange our JV stake for equity in WHP Global in a potential WHP monetization event presents compelling and unique upside opportunity. This is a highly differentiated component of our equity story, one that is not typically reflected in traditional retail valuations. Now, turning to our commercial strategy on slide six. Consistent with the JV agreement, Lands' End will continue to do what it does best and operate its portions of the Lands' End business under a long-term license agreement with the JV. This model creates two complementary growth engines. Lands' End is focused on operating, driving its consumer businesses through its websites, serving the needs of enterprises with Outfitters, and day-to-day positioning and delivery of Lands' End through other digital channels, such as marketplaces. The joint venture is focused on extending the brand, unlocking higher margin licensing growth across new categories, partners, and geographies. Together, they expand both the earnings power and the strategic reach of the Lands' End brand. Our direct-to-consumer business remains the core of the Lands' End operating model. Through our digital channels in the U.S., U.K., France, and Germany, as well as marketplace partners including Amazon, Nordstrom, Kohl's, Macy's, and Target, we meet customers where they are and serve them with a solutions-based customer-first assortment. Across this business, we are expanding our customer file, improving new to brand acquisition, and strengthening gross margin by emphasizing higher quality, full price selling rather than chasing lower value promotional volume. Next, our B2B business, Lands' End Outfitters, provides branded apparel and uniform solutions to national accounts, Fortune 500 companies, small and mid-size businesses, and more than 5,000 U.S. schools. Outfitters is a competitively differentiated business with a long runway ahead. We win by combining the strength of the Lands' End brand with market leading embroidery and personalization capabilities, service levels customers trust, and a platform that supports recurring demand across attractive markets. Importantly, these operating businesses are the Lands' End cash flow engine. They fund reinvestment in product, marketing, technology, and customer experience. They support disciplined capital return, and they provide the earnings base from which we can create value as the JV adds incremental high margin growth. In other words, Lands' End and the JV are designed to work together. The operating company drives durable commerce and cash generation while the JV extends the reach and monetization of the brand. Now that we've discussed the transaction and our operating model, it's important to highlight the growth drivers that strengthen Lands' End, support cash generation, and position the company to deliver long-term shareholder value. Beginning on slide seven, on the top left is a strategy you've heard us talk about before, one that has been greatly accelerated through the JV with WHP Global. Together, we're partnering to expand the Lands' End brand into new categories, new channels, and international markets where we do not currently operate. WHP Global brings a terrific track record when it comes to licensing high caliber brands, and we have great confidence in their ability to drive success with the Lands' End brand. This strategy is now materially accelerated through WHP's platform. Shifting to the right, another core growth driver is our solutions driven product strategy. We build the brand to be ready for life's every journey with franchises that solve real customer needs and keep Lands' End relevant across the arc of the year. In outerwear, we are focused on owning the weather through standout programs like Squall, Wanderweight, and Anyweather. In swim, Tugless, Slender, and our new SlenderLite suits extend that same solutions leadership into a category where Lands' End has been a market leader for more than a decade by bridging fashion, technology, fit, and function. Our tote franchise tells the same story. It is iconic, functional, and a true wardrobe staple, and the business continues to grow double digits. Just as important, totes are the number one item purchased by new to file customers who are younger than our existing customers, making the category both a significant revenue driver and one of the strongest entry points into the brand. Moving down the slide and picking up on that theme, our customer relationship remains a distinctive advantage with the average customer relationship spanning 20 years, and we continue to bring in new customers who show strong loyalty once they enter the brand. There is also real connectivity across our divisions. A school uniform mom can become a DTC customer, then shop with her child over time, reinforcing the lifetime value cycle that makes the Lands' End customer model so powerful. Finally, on the bottom right of the slide, underpinning everything we do to drive performance is our continued focus on world-class operational execution. First, we're continuing to invest in and grow our two digitally native businesses, our DTC and B2B platforms, leaning into the franchises and solutions that are clearly resonating with customers. Second, we're deploying AI and advanced analytics to sharpen our marketing with a focus on reaching the right customers at the right moment with greater precision and efficiency. Third, we are deepening our personalization capabilities to deliver a stronger digital experience, strengthen customer loyalty, and convert one-time buyers into repeat customers. These are active areas of investment and focus. We believe the progress we make here will be meaningful drivers of the company's future performance. Moving to slide nine. Our intellectual property joint venture with WHP Global closed on April 1, 2026, and in roughly 60 days, we have already seen clear evidence of the platform's potential. The JV has agreed to consolidate and extend three licenses with our largest apparel licensee to create one license through 2033 at meaningfully higher guaranteed minimum royalties. Reached an agreement in principle to extend our footwear partnership by seven years and selected a new home textiles partner after a competitive process. Together, these actions are expected to drive more than $150 million of long-term guaranteed royalty value to the JV over the term of these agreements, with additional opportunities access across more than a dozen new categories and international markets. Just as important, WHP Global continues to expand its brand platform with real ambition, validating our choice of partner. Its recently announced definitive agreement to acquire Marc Jacobs from LVMH increases WHP's global retail sales to more than $9.5 billion annually and further strengthens its position in premium fashion. That matters to Lands' End because our exchange option gives shareholders exposure not only to the growth of our brand within the JV, but also to the value creation potential of a scaling, increasingly strategic platform. Taken all together, these updates reinforce the strategic value of the joint venture and give us even greater confidence in the long-term opportunity with WHP Global. Bernie, over to you. I'll take slide 11, where we reset the baseline for how to think about Lands' End financially following the creation of the joint venture. What we've done here is recast our fiscal 2025 results as if the JV structure had been in place for the entire year. Similarly, we used the proceeds to pay off the term loan. This is an important step to provide investors with a clear, comparable starting point as we move forward. At a high level, there are four key changes to call out in this exercise. First, on revenue. Reported revenue declines modestly by approximately $18 million. This reflects the fact that certain licensing revenues are no longer recorded within Lands' End as those rights now sit with the JV. Second, at the gross profit level, you see a more significant change. Gross profit decreases by about $83 million and gross margin declines from 49% to 43%. This is primarily due to the introduction of royalty payments that Lands' End now makes to the JV under the long-term license agreement. Third, importantly, you begin to see the offset from the new structure in other income, which now includes our 50% share of JV profits. That contribution adds approximately $37 million in this recast view. When you put these elements together, adjusted EBITDA shifts from $102 million to $56 million. While that is a lower absolute level, it is critical to emphasize that this is largely a structural reclassification rather than a reflection of weaker underlying economics. Finally, just as important, below the line, the benefits of the transaction become very clear. Interest expense declines dramatically from roughly $37 million to just over $4 million as a result of fully repaying the term loan with the proceeds from the JV transaction. While adjusted net income and EPS are modestly lower in this recast view, the company is now operating with significantly reduced leverage, materially lower interest burden, and a more flexible capital structure. Stepping back, the key takeaway from this slide is straightforward. We are establishing a new financial baseline that reflects a hybrid model where Lands' End generates cash through consumer digital and outfitters, while the joint venture provides a growing high margin royalty stream through licensing. This framework is what underpins our outlook for improving earnings quality, stronger cash generation, and long-term shareholder value creation. Now turning to guidance on slide 12. Our guidance reflects current conditions, including tariffs at currently implemented rates and prevailing macroeconomic factors. For the second quarter, we expect net revenue to be between $290 million-$310 million, adjusted net income of $2 million-$5 million, and adjusted diluted earnings per share of $0.06-$0.16. Our adjusted EBITDA to be in the range of $11 million-$14 million. Turning to full year, we expect net revenue to be between $1.3 billion-$1.4 billion, adjusted net income of $10 million-$20 million, and adjusted diluted earnings per share of $0.32-$0.65, and our adjusted EBITDA to be in the range of $68 million-$78 million. Our guidance for the full year incorporates approximately $40 million in capital expenditures. Let me shift now to our three-year targets, which we view as a separate but important way to frame the earnings power of the business under the new model. Starting with revenue, we are targeting mid-single digit annual growth over this period. It is important to emphasize that this growth is expected to be driven primarily by our core operating businesses, specifically continued expansion in direct-to-consumer and outfitters. We see opportunity to grow through increased customer acquisition and retention, strengthen key product franchises, and continued momentum in our B2B platform. Turning to profitability, we expect to deliver a growing adjusted EBITDA margin, reaching the high single digits over time. That margin expansion is supported by improved merchandise margins, disciplined cost management, operating leverage as the business scales, and increasing contribution from high-margin JV profit streams. Importantly, underpinning both our growth and margin outlook is a step change in financial flexibility we have achieved following the JV transaction. With a stronger balance sheet and significantly reduced interest burden, we now have greater capacity to allocate capital deliberately and consistently in support of shareholder value creation. That includes reinvestment in the business to support profitable growth, maintaining a disciplined cost structure, and executing against our authorized share repurchase program when we see compelling value. While revenue growth is driven by the core business, the combination of financial flexibility, capital allocation discipline, and high quality JV economics positions us to deliver high quality earnings and stronger long-term returns to shareholders. Back to you, Andrew. Thanks, Bernie. We want to spend a few minutes walking through how Lands' End realizes value from the JV today, and the potential additional upside embedded in the exchange option over time. On slide 13, the framework is straightforward. There are two complementary sources of value from the JV, recurring royalty cash flow and event-driven equity upside. First, the JV generates royalty income from the Lands' End operating company, from existing licensees, and from new licenses added over time. Because Lands' End owns 50% of the JV, we receive 50% of those profits on a quarterly basis, net of expenses. That creates a recurring high quality earnings stream that grows as the brand expands. Second, in the event of a qualifying WHP Global monetization event, Lands' End may, or in some cases be obligated to, exchange its JV stake for equity in WHP Global at the same valuation multiple implied by that transaction. Because scaled brand management companies like WHP often command materially higher multiples than traditional retailers, this creates a meaningful second layer of potential value. Put simply, the JV can create value in two ways: through cash earnings we receive along the way, and through the equity value that could be realized in a potential monetization event. Slide 14 is intended to show what the second source of value could mean under various illustrative assumptions. Now, turning to slide 14. This is one of the most important slides in the presentation because it illustrates how a potential WHP monetization event could translate into additional value for Lands' End shareholders beyond the recurring royalty stream we discussed on the prior slide. The mechanics are straightforward. Lands' End owns 50% of the JV, and in certain qualifying WHP monetization events, such as a sale or an IPO, we may exchange that JV stake for equity in WHP Global. The value of that exchange would be based on the JV's EBITDA at the time of the event and the valuation multiple implied by the WHP transaction. Put differently, if the JV grows meaningfully and WHP is valued at a premium multiple in a monetization event, Lands' End could participate in that upside through the exchange option. To illustrate the range of outcomes, we've modeled two scenarios using different assumptions for JV EBITDA and the monetization multiple. In the first scenario, assuming JV EBITDA of $100 million on a trailing 12-month basis and determined in accordance with our LLC agreement and a 13x monetization multiple, the JV would be valued at approximately $1.3 billion. Lands' End's 50% share of that value would be approximately $650 million, which equates to roughly $22 per Lands' End share. In the second scenario, assuming JV EBITDA of $150 million and a 15x monetization multiple, the JV value would rise to approximately $2.25 billion. Lands' End's 50% share would be approximately $1.1 billion or about $38 per Lands' End share. These scenarios are illustrative and actual outcomes will depend on the timing and terms of any potential monetization event. The purpose of this slide is clear, to show that the exchange option could represent a meaningful and currently under-reflected component of Lands' End's value. We do not believe this is reflected in our current valuation, and we now have both the balance sheet flexibility and the repurchase authorization to respond when the disconnect is too wide. Before we open the line for Q&A, I want to take a moment to bring together what we have covered today. We came into this call with a clear objective, to give investors a fuller picture of where Lands' End is headed and why we believe the company is at a genuine inflection point. We have real momentum in the business, and we are executing against a clear and deliberate strategy. At its core, Lands' End remains fundamentally strong with underlying demand, growing new customer acquisition, and improving engagement across key categories. We have created a business model that is now more flexible, less leveraged, and better positioned to convert brand strength into earnings and cash flow. At the same time, the WHP transaction has strengthened our investment case in multiple ways. We have realized immediate value through the $45 per share WHP tender offer, significantly de-leveraged the balance sheet, and created new avenues for long-term value creation through recurring JV profit participation and the exchange option. Additionally, our board has authorized a $100 million share repurchase program. Taken together, we believe the opportunity in front of Lands' End has never been clearer. We have an iconic brand, durable customer relationships, differentiated operating platforms, improved fundamentals, and a capital structure that now gives us the ability to invest in growth while also acting decisively on behalf of shareholders. To our shareholders, our message is straightforward. We believe there is significant value in this company, and we are focused on driving shareholder value. We appreciate your support, and we take this responsibility seriously, and we are focused to deliver the progress and value creation opportunities we have outlined today. Finally, I want to thank all of our dedicated employees at Lands' End. Together, you've built a tremendous brand, and the results we've discussed today are a reflection of your commitment and hard work. With that, we are pleased to open the line for questions. Thank you. If you would like to ask a question, please press star one on your keypad. To leave the queue at any time, press star two. Once again, to ask a question, please press star one on your telephone keypad. We'll take our first question from Dana Telsey with Telsey Advisory Group. Please go ahead. Your line is open. Hi. Good morning, everyone, thank you very much for the detailed presentation of the opportunities that lie ahead, which certainly are compelling. A couple questions just on the now then the future. On the now, in terms of current business trends, what you're seeing is the distribution center warehouse management system update complete. Is there any hangover into Q2? Tariffs and tariff refunds and how you're planning that. On the future, with the opportunities that WHP brings, particularly in licensing, how are the two of you ensuring that it's the quality that you want? How does design process, how do you see the timeline of when new license categories begin to evolve? In terms of the royalty stream, how you're thinking about it between the two of you. Lastly, just on that $45 price, how did that come to be? How did that number come to be? What's the background or how did that get set up? Thank you. Morning, Dana. Thank you for taking the call, thank you for the questions. I'll get going, Bernie can fill in. Current business trends are really pretty positive, we said it in the call that we had seen positive comps, not just through Memorial Day, beyond Memorial Day. Actually, we're seeing a stronger swim season come together. There's been a trend in the market for the last couple of years for one pieces. We do see that continuing. Our big product launch for the spring was the SlenderLite Suit, that's been very positively received. Actually, one of the things that we're seeing that I'm particularly pleased about because it really is in Lands' End's DNA are two pieces. We put mix and match capabilities into the site that let you personalize a whole lot more, and frankly, they're a great solution in that your top may be a medium and your bottom may be a small, and we can accommodate you appropriately. I think that continues to be very positive for us and a nice surprise. In terms of that, we've seen really good numbers coming out of our home business, our men's business, and actually, even our women's business. As it's warmed up, we've really seen the numbers also warm up and feel good about where Q2 is. With regard to tariffs, there's two parts to this. There's the accounting of it, and then there's the book part of it. I would say, and I'll let Bernie speak to it, we have started to receive cash back from the government for the tariffs that were ruled illegal last year. Then for this year, we're just taking a very prudent stance. We're booking everything at 15%, so the higher rate, and then realizing it as it comes in, and at right now, at a lower rate. We just stand ready to deal with that and really have built it into our operating model. We've done a lot of work around AUC to make sure that we have good margin structure that can see us through this. We've done a lot of editing our line and making sure that it's more balanced and more concentrated. Actually, we continue to reduce the number of factories that we source to. That's been something that I've been working on since I joined the company, and I think with Matt DelVecchio coming in as our head of sourcing, we'll continue to see that reduce further. Before I go onto the future questions, I'm just going to see if Bernie's got. Yes. I think the only thing I'd add on the tariffs is, when Andrew talks about us consolidating our supply chain, what we've done is we've gone with many larger manufacturers who have very flexible supply chains and can move between countries, so that as there is challenges in tariffs for one country, we're able to move that production to a different country with the same vendor, with the same timing. That's been very positive for us, and as Andrew talked about, been very positive for our average unit cost of product. Thank you, Bernie. Turning to the future and your questions there, Dana. First of all, let's just get to the emotional side of it. We ran a long process. We found the partner that best matched Lands' End, and that was WHP. We see the world from the same perspective, and we see their ambition and vision, and it meshes with us. If you look at the Marc Jacobs deal, that's a big push forward for a scaled brand management company like WHP. If that's their direction, then that's the direction we saw during the joint venture negotiations, and I think that speaks volumes to how we will go forward. From a more practical standpoint, obviously, we have a governance solution in place where I sit along with my chair, Josephine, on the board of the IP company, along with Yehuda, Stanley, and Effie. We're able to meet on a regular basis and ensure the brand goes forward right. Fundamentally, once you get below that, and this was part of our agreement, and again, part of why we bought into WHP as such a great partner for us. They talk about Lands' End HQ, what we represent, and what Bernie and I were discussing this morning. All of the design comes out of there and all of the direction. They have been really great at sort of tapping into the work that Kym and Sarah are doing, in particular, in the consumer brand to make sure that we're really staying on brand and the story is consistent, and we don't end up with some weird looking brand that grows around the world. That's been excellent. I think the timeline for new licenses, we should expect to see new licenses really start to kick off next year, if I'm perfectly honest. There's a lot of work going on right now, and I think we mentioned that there's probably a dozen or so in the pipeline, licenses in the pipeline that Yehuda and his team are working on, and we're very excited about those and doing our part to help to bring them to market. In terms of how we look at those royalty streams coming in, we're very thoughtful about how we balance that out, how we put that into the numbers. We looked at various business cases, and the one we presented to you, I would say, is the most realistic, and I'm going to let Bernie give his comments on it. Yeah. I think I'd also like to start with, on when you talked about the timeline of opportunities. What WHP started with is renegotiating the current licenses we have, and they've been able to extend the terms of those licenses and increase the total amount of GMR, which we've stated in our presentation, which I think was a big first step and shows what benefits they're going to start applying to this. As far as the royalty streams go, the Lands' End licensing team already had some new licenses in line, and those will start producing royalties in the fall. We expect to see the WHP effect take effect in the next year, as Andrew stated. I think to your last question on the $45 per share, Dana, I think I'd direct you to talk to Yehuda, Stanley, and Effy at WHP as to why they made that. On a completely separate note, I'd point you to page 10, where we looked at what a potential monetization event could be in an exchange. Scenario two is an incremental $38, which if you take that with our share price right now, puts you above that $45 threshold. That's how I would look at a number like that. Again, I can't speak for them. I think it's a conversation you should feel free to have with Yehuda next time you see him. I think it all underpins the incredible amount of value that I think is achievable within the greater Lands' End world. Also, as I look at it, the opportunity that shareholders have is really to invest with Lands' End and participate in WHP's event. It's a great backdoor in for a regular investor that isn't necessarily available with WHP being private and part of a private equity company. There's some upsides in there that I think merit further exploration that we feel really excited about. Dana, just one last follow-up to one of the litany of questions you asked about the DC status. That is behind us. We have completed that implementation and are back on pace and shipping on time. Dana, we switched WMS on, and how many of these calls have you done where someone switched on Manhattan and they found themselves backlogged by weeks? We were backlogged by one week, and we've taken care of that. Thank you. Thank you. Thanks, Dana. We will move next with Marni Shapiro with The Retail Tracker. Please go ahead. Your line is open. Hey, guys. Before I ask about product, which is really my favorite conversation, could you just clarify one thing about the JV? Any licenses that Yehuda will do for the brand, do you have, I don't want to say control, but at least a red stamp so that we don't see something crazy, or they don't set up shop with a huge display in the front of Walmart selling Lands' End grapefruits or something weird? That's a great question, Marni, good morning to you. Good morning. We have a 50/50 joint venture, which is our IP company. The licenses are within that. It is controlled by WHP. There are some instances where we have rights over where the brand can go. They should address exactly what you're talking about, that if things went crazy, we wouldn't end up in a place where we didn't think it was right for the brand. I think there's an understanding that bears reiterating that has come through that we very much see the world in the same way. We see growth opportunities for Lands' End around the world in categories and in channels. I think that there are so many of those to go get that we're not really going to get into a conversation about the brand being diluted. Again, I come back to it. Lands' End was an important deal for WHP to do. It's an important marker for its portfolio. The stepping stone from there was to a Marc Jacobs. You can see the trajectory that Yehuda and his team are taking. I think that speaks volumes to the ambition that we have for this joint venture. Is Marc Jacobs part of the joint venture? I understand that the joint venture would participate in WHP's success, and Lands' End then gets a percentage from that. Is that how it works? That's right. Okay. If WHP has an event, whatever multiple that they have that event at, our 50% of our joint venture will convert at that EBITDA multiple, and then we will receive that back. Okay. Just one more. Just to be clear, may convert. Right. Yeah. Right. Just to clarify one last thing. If you're watching your stock, you don't like the valuation it's trading at, you now have the ability to buy back shares and/or at some point, if you feel like the valuation has not been fair for six months, you can turn to WHP and say, "All right. Let's do the sale." Is that an opportunity? Is that sort of the floor that you're putting at for the company? No. We specifically, we've given ourselves $100 million to go out and buy our stock in case we think it's undervalued. We look at it, and I point you to page 10. We think that the exchange mechanism for us is worth an incredible amount of money. We don't necessarily believe that's reflected in our share price right now. We do want it to be reflected in our share price, and we have the ammunition from our board to go after it to get that value for our shareholders. Got it. In terms of the ability to somehow back out or buy into it, no, this mechanism is a one-way mechanism where we will stay in partnership with WHP. We believe in this for the long term. Okay. That makes sense. Perfect. Could we just talk about two other things? You talked about the marketplaces which you have with Target, Macy's, Nordstrom, and then B2B as both growth vehicles. I guess if I was ranking the two, is the B2B the bigger opportunity right now, or is it kind of equally split? B2B is an amazing opportunity. Yeah. Don't get me wrong. I'll take all the opportunities out there, Marni. I think that we can continue I'm going to be greedy and ambitious for Lands' End. I think that B2B, we never give it enough air time. The reality of it is, that's an incredibly powerful business for us growing forward, and it touches so many different avenues because we split it into a couple of pieces. The school uniform continues to be really powerful for us. We're the largest player in the school uniform market. We service over 5,000 schools. I think the opportunity is almost unlimited to grow that, and particularly as we see school uniforms being such a strong future trend. It's important that we stay with that and we really refine that model. I'm going to put a plug in for the team now. Everything we do for the school uniforms is done with OEKO-TEX. You can send your kids to school in the knowledge that they're not wearing any chemicals in their uniforms that haven't been tested or could harm them. These are the best uniforms in the market. We have a similar approach when it comes to the commercial uniforms, the goal there is to continue to build with our big partners and then offer a full service, self-service model increasingly to mid and smaller-sized companies. I think that if you look at the growth in the market space of B2B, there's one thing that is really absent, brands. We bring a really strong brand and have a really strong brand positioning that I think can really enable and empower us to grow. I'm greedy for both, but I do really want to call out that B2B business. It's an incredible business. Then can I sneak in one more? Go on. The product is greatly improved. The women's has looked so amazing this spring. You guys are right there on the trends, but with a lens from Lands' End, which I really appreciate. I'm on your site all the time. Sometimes I question, why are you so promotional? I know it's very hard to pull that needle. There are times where I'm on the site and I'm looking at some of this great product and I'm thinking, "You don't need to discount this." Is it a process to get away from that? Or is it priced with the intention of that? At the end of the day, in the U.S., people want a deal. Thank you, Marni. First of all, it's great that you're on our site. It's great that you like your product. I know you and your mom will both wear it. You are perfect intergenerational customers. That's exactly what we're looking for. I put everything into a two-by-two grid. There's new and 5X customers. The 5X customers are the ones who've been with us for 20 years along one axis. Along the other axis, there's full price and discount pricing. It's the weighting of it, Marni, in that we've got a lot of customers who've been with us for years. We do tend to adopt more of a high-low strategy. It's not that we build the product. We suddenly find we have to discount it and give it away. When you get on the site and you see those offers, part of the secret sauce is that we've built our margins around that. That 5X customer, who's the preponderance of our customers still, they really like a deal. They get a great deal and w e make plenty of margin out of it. Can't say that we don't work on it every day to improve it. We do. That's the model. Makes sense. Congratulations. Best of luck for the spring season. Summer season, I guess. Yeah. Hey, thank you. Take care. We'll talk soon. Yep. Thank you. We will move next with Eric Beder with Small Cap Consumer Research. Please go ahead. Your line is open. Good morning. Hey. Morning, Eric. Good morning. Can we talk a little bit a few things here. First of all, we've seen continued emphasis on kind of leveraging the embroidery and the customization for the consumer to get them to kind of, I guess, buy more product and kind of shift even more to a lifestyle brand. How much are you looking upon that? I know you've always done it with totes, now when you look in the catalogs, you can see it pretty much with every product and a push. Is that bringing in a kind of a different or better customer? Okay. I'll take that one. Is this you trying to complete your bingo card and get me to say sausage dog again? I would say that we think that we have a competitive advantage in that we are the largest embroiderer in the U.S. We think that personalization is one of the most important trends out there. Our choice has been to lean into it. Actually, what we're really doing is we're putting machines to work. I think you've been to our distribution facility, Eric. We have hundreds of these machines. We have a staff that are well and smartly able to use them. We have started to run basically a light manufacturing process with our systems and our processes that allow us to get more throughput. It's value added to the customer. It's value added to us because there's an incremental cost that comes with it. I think that it gives the customer choices in how they want to be seen and how they want to present themselves and how much they want to spend. The entry price points for a tote bag may be great, but you can certainly make it into your own with a whole customization kit that actually goes beyond embroidery, and we can give you chains, pearls, doodads, whatever you want to put on it. Yes, it's a concerted strategy. It has incredible reach. It takes and it works on both the customer groups that I was just talking to Marni about. It's our new-to-brand customers, they tend to find it in social. That's become very powerful for us, social is about your own personalized feed, how the algorithm interacts with you, and you interact with it. We're able to really give you that breadth of personalization that you're seeking. For our 5X customer, who tends to be more of a value seeker, that's that long-term customer, again, we give them opportunities to buy the product at a price they like, but then customize on top of it. That allows us to build margin, gives them differentiation, and move the whole customer cohort upwards. Eric, we also create leverage because, we require to have all that infrastructure for our B2B business. By then leveraging that into our D2C business, we're just getting extra benefit from those machinery. Great. It's a great leverage tool. You talked about the freedom to now pursue quite a lot more share repurchases than you were before under the prior debt agreement. I guess the other piece here is that I know Lands' End hasn't done this, but you now have, I guess, the potential to acquire other brands and look at other companies to invest in also. Is that part of a long-term kind of playbook here too, that you can leverage kind of the infrastructure you've built that way? Yes, as we build away from the transaction, build our cash. We've never been in the position really where we've been able to reach out and deploy capital where it might make the best sense for the best return for our shareholders, and we now have the latitude to do that, and we will do that. If it makes sense to buy the stock, we will buy the stock back. If it makes sense to go out and acquire a complementary company, we will go out and acquire a complementary company. I think that that's a great place for us to be in that, many paths to valuation have opened up for us. You sort of layer on top of it, we've got this option or exchange component, if and when WHP has an event, is a third stream of value for us that I just think is incredibly powerful for shareholders and potential investors in the Lands' End stock. Obviously with the WHP partnership, you have the same ability to use structures like the recent Marc Jacobs deal they did with G3. They bring that flow in there, too. Yeah. I think that retail is obviously changing a lot. You and I have talked about this before. Things in the industry are not so cut and dry as they were. I think that we're all looking for different ways to unlock value for our shareholders. The deal that we did, and then I think subsequently a version of it has come to pass between WHP and Marc Jacobs. We'll see more of that because I think that we all bring certain skills to the table. We all have certain investor profiles. I think the opportunity is to look for like-minded partners and like-minded companies where we can amplify that and drive shareholder value. Great. When you look at the international business, I know that you've been expanding in France and Germany. How should we think about, A, the potential of those and how that's moving forward, and the potential now in the new structure to continue kind of the European expansion or is that going to be part of the licensing? I think it's going to be a hybrid. I think that, in fact, it is going to be a hybrid. We have certain rights to markets, particularly digital marketplaces in the countries that you've mentioned. Our joint venture with WHP has rights to different components of retail in some different countries in there. It doesn't mean that we won't go to market together. It doesn't mean that we won't assess some of those opportunities to take within the four walls of Lands' End. I think that there is opportunity, and if we call it out specifically, it has been a very strong first half so far for Germany. We've been very pleased to see what's going on in that market. The customer has really embraced where we're taking the brand. The brand looks different than it's been. We've really made a conscious decision to get away from our traditional cataloging roots. That doesn't mean that we're not sending catalogs out, but it means that we're coming to market in a more branded way, attracting newer customers, and really looking to leverage our brand strengths versus maximize with the customers we had. If I contrast that, the U.K., it's been harder. I think the economy is a little more challenged in the U.K. There is more uncertainty in the U.K. Even in saying that, we've continued to see positive comps in there, through the first quarter and into the second. I remain quietly optimistic that we're going in the right direction with our franchise product that we have in place. Geared towards new and existing customers and really being a more aspirational brand that fits a consumer's life, much as we've done in the U.S. Again, as I've talked about in the past, elevating it along the way so that it creates a halo for our brand in the U.S. Great. Last one. You've talked a lot about the changes in the DC and how they negatively impacted you. What, going forward, will the upgrades that you've done in the DC drive help improve the business going forward? Thank you. Okay. There's a lot of questions this morning, Eric, they're all good questions. The DC, by moving to the Manhattan warehouse management system, we've been able to make the distribution center real time, we can actually complete and fulfill orders within the day. We pick up a day for our customers, that's really important because that cuts down our delivery time for a standard order by 20%-25%. I think that's an important enabler. It also opens us up to a future where we are able to, for example, prime badge our product on the website, I think sort of really leverage the Amazon network as we go forward that we haven't been able to do before. The third part is it really enables us to do a lot more work around embroidery and personalization that we've not been able to reach. There are immediate improvements for the customer, I think they'll only continue to grow. Thank you, Eric. Great. Thank you. Thanks, Eric. Thank you. Our next question comes from Michael Kupinski with Noble Capital Markets. Please go ahead. Your line is open. Thank you. Good morning, everyone, and thank you for the comprehensive detail on the company's transformation. A couple of quick questions. You mentioned the CapEx will be $40 million. What additional investments are required to complete the warehouse transformation? I guess if you could just tell us what would maintenance CapEx look like? Sure. Welcome, Michael, to our calls. Most of that $40 million is actually our investment in SAP, which we will go live with next year. Then of course, the WMS, which is helping prepare us to be able to go on SAP going forward. From a maintenance standpoint, we will be setting a new baseline once we have SAP in place, and then we will be able to set that baseline. Our expectations are after SAP is in place and we have that fully run rate built in, that we will be at $20 million or less. Got you. Thank you. The gross margin decline of 400 basis points, how much of that was attributable to the distribution disruptions, tariffs? What gross margin level should investors expect once the operations are fully normalized? Right. As you would be aware, IEEPA tariffs were not in place in the product last year in the first quarter. All tariffs are extra in Q1. There's a run rate there that is affected that we have now hopefully mitigated going forward. Then, of course, with the distribution disruption, there was costs that were incurred, but the revenue was not recorded. We will expect to be flat on a like-for-like basis. Now when you build in, if you look at the resetting the baseline, then you build in the royalties from the WHP deal, you'll be able to calculate what that variance will be running forward. It was 500 basis points, 600 basis points, when you do the resetting of the baseline. That will be an effective rate for the most part going forward from the effect of the WHP deal. I think, Michael, if you look at page seven, that's what Bernie's referring to. We recast 2025. We have the 43% margin in there. I think that sets the new base from which we'll work. You should plan for your model for improvements on that annually. Got you. Then the increased inventory levels, how much of that was timing related? I know that you said that you think that there's a shift into Q2. I was just wondering, I know there's some seasonality and things like that, but is there a way to kind of tell us a little bit about the shift that you were thinking of? Sure. It's equal parts timing from the DC. It's equal parts tariffs compared to last year, it's equal parts, we took a very conservative approach when tariff risk became part of the situation, and we reduced our inventory buys through that period. We are now resetting back to our normal purchasing levels. Okay, perfect. In terms of the tariffs, are there additional mitigation actions that remain available, or is that largely now complete? We will continue to look at pricing opportunities to the consumer. We've passed, I mean, roughly, I know we haven't had the chance to meet, Michael, but we took the view, and we've continued to take the view that the vendors would take about half the tariffs, then we would split the remainder between ourselves and the consumer, that continues to be how we think about it going forward. There is a piece of it that we're definitely going to have to eat, and it will flow through the P&L, but that's reflected in the margin guidance that we've just given you. Okay, perfect. I just want to go back to the stock buyback one more time. I know that you indicated that the stock is currently trading well below intrinsic value. The repurchase authorization is nearly one-third of the current market capitalization of the company. What determines the pace of buybacks? Under what conditions would you become aggressively buyers of your stock? I think that's something that we'll view in future calls. I think that's too early for us to get into at the moment. What I would say is that we have the ammunition. We're ready to use it. We believe that the stock price should be higher. We will continue to make judgment calls on how we buy into that. I think it's better that we spend more time on a future call, but that we have more time under our belt where you have seen the buybacks. I would agree with you, $100 million would be a significant buyback. It would change our flow materially, and actually, it would change the valuation of the company. As we made comments in the main body of the presentation, we really would expect this to be something that drove our multiple. As we saw the EPS increase, we'd expect an elevated stock price coming out of it, just based on looking at how this has happened or transformed other companies. Okay, we are out of time. The market opens in five minutes. Michael, we will look forward to speaking to you offline. Thank you. This does conclude our Q&A session as well as our conference call. Thank you for your participation. You may now disconnect.