Financial Data and Key Metrics Changes - Total revenue for the second quarter was $294 million, a decrease of 7% compared to the same period last year [18] - Gross profit decreased by 6% year-over-year, with a gross margin of 49%, reflecting a 90 basis point improvement from the previous year [20] - Adjusted net loss was $1.9 million or $0.06 per share, with adjusted EBITDA of $14 million, representing an 18% year-over-year decrease [20][21] - Inventory at the end of the second quarter was $302 million, down 3% compared to last year [21] Business Line Performance Changes - B2B business showed strong growth, particularly in commercial uniforms and school uniforms, with revenue up high single digits [11][12] - B2C business saw a significant performance in licensing and third-party marketplaces, with the latter growing approximately 14% year-over-year [18][19] - Revenue from the licensing business grew 19% year-over-year, driven by increased brand visibility [19] Market Performance Changes - U.S. e-commerce sales decreased by 11% compared to the second quarter of 2024, primarily due to a slow start to the swim season [18] - European revenue decreased by 15% year-over-year, attributed to supply chain challenges and macroeconomic pressures [19] - The company is optimistic about the European market's recovery, with new website launches and improved sales strategies [16][65] Company Strategy and Industry Competition - The company is focusing on a distributed commerce model to enhance customer engagement and reach [4][5] - A shift towards an asset-light, low-capital intensity model is allowing for rapid deployment of new products [5][7] - The strategy includes weatherproofing the product assortment to meet changing consumer demands [10][32] Management's Comments on Operating Environment and Future Outlook - Management noted a noticeable increase in momentum across key product categories and channels [4] - The company is confident in mitigating tariff impacts through strategic sourcing and vendor management [8][33] - Guidance for the third quarter includes expected net revenue between $320 million and $350 million, with adjusted net income projected at $3 million to $7 million [22][23] Other Important Information - The board is exploring strategic alternatives, with no further comments provided at this time [25] - The company is leveraging AI-driven tools for personalized marketing and product recommendations [15][30] Q&A Session Summary Question: What are the product category trends driving the acceleration in momentum? - Management highlighted a shift in customer shopping habits and the success of the Lands' End Essentials line, which is attracting new customers [27][28] Question: Can you elaborate on the licensing business and its future potential? - Licensing revenues increased by 36%, with expectations for further growth in the back half of the year due to new licenses and holiday season opportunities [40][41] Question: What is the outlook for the European market? - Management expressed optimism about the European business turnaround, focusing on a distributed commerce model and new partnerships [61][64]