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April 26, 2012 10:00 am ET
William L. McComb - Chief Executive Officer and Executive Director
George M. Carrara - Chief Financial Officer, Chief Operating Officer and Executive Vice President
Edward J. Yruma - KeyBanc Capital Markets Inc., Research Division
Corinna L. Freedman - Wedbush Securities Inc., Research Division
Kate McShane - Citigroup Inc, Research Division
Mary Ross Gilbert - Imperial Capital, LLC, Research Division
Robert S. Drbul - Barclays Capital, Research Division
James Andrew Chartier - Monness, Crespi, Hardt & Co., Inc., Research Division
Good morning, everyone, and welcome to the Liz Claiborne First Quarter 2012 Conference Call hosted by Chief Executive Officer, Bill McComb. After the opening remarks, we will be taking questions. This call is being recorded and is copyrighted material. Therefore, please note that it cannot be recorded, transcribed or rebroadcasted without Liz Claiborne's permission. Your participation implies compliance with this requirement. If you do not agree, simply drop off the line. Please note that there will be a slide presentation accompanying the prepared remarks. The slides and earnings release can be accessed at www.lizclaiborneinc.com in the Investor Relations section. There are separate links to the slides for webcast and phone participants. Please note that statements made during this call that relate to the company's future performance and future events are forward-looking statements within the Private Securities Litigation Reform Act. These forward-looking statements are based on current expectations and are subject to the qualification set out in this morning's press release, as well as in the company's 2011 annual report on Form 10-K under the captions Item 1A., Risk Factors and statement regarding forward-looking statements and this first quarter 2012 Form 10-Q under the caption statement regarding forward-looking statements each filed with the SEC. The company undertakes no obligation to publicly update or revise any forward-looking statements whether as a result of new information, future events or otherwise. Also please note that during this call and in the accompanying slides and press release, sales, gross profit, gross margins, SG&A, SG&A as a percentage of sales, operating income, operating margin, interest expense, net income or loss from continuing operations and EPS are presented on both a GAAP and a non-GAAP basis. EBITDA; adjusted EBITDA; adjusted EBITDA excluding foreign currency gains and losses; adjusted EBITDA margin and comparable adjusted EBITDA excluding foreign currency gains and losses are non-GAAP measures that are also presented in the accompanying slides and press release. The company presents EBITDA measures because it considers them important supplemental measures of its performance and believes they are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in its industry. Reconciliations of adjusted results to the GAAP results are available in the tables attached to the earnings release and slides captioned Reconciliation of Non-GAAP Financial Information which will be posted to the company's website at www.lizclaiborneinc.com in the Investor Relations section after this call. The company believes that the adjusted results for the first quarter of 2011 and quarterly and fully year periods in 2011 represent a more meaningful presentation of its historical operations and financial performance since they provide period-to-period comparisons that are consistent and more easily understood.
Now I would like to turn the call over to your host, Mr. McComb. Please go ahead, sir.