Duluth (DLTH)2025-03-13 17:29Financial Data and Key Metrics Changes - Net sales for Q4 2024 declined 1.8% to $241 million, with direct channel sales flat and retail store sales down 6.9% due to decreased traffic [7][36] - Adjusted EBITDA for Q4 was approximately $8.5 million, with a reported EPS loss of $0.17 and adjusted EPS loss of $0.04 [36][40] - Full year 2024 net sales were $626.6 million, down 3.1% compared to the prior year, with an adjusted net loss of $23.6 million [44][46] Business Line Data and Key Metrics Changes - Direct channel sales remained flat, while retail sales decreased due to lower foot traffic and average order value (AOV) [37] - Mobile sales grew 4% year-over-year, accounting for nearly 70% of site visits and 58% of digital sales [15][37] Market Data and Key Metrics Changes - The company experienced a gross margin contraction of 410 basis points in Q4, driven by an AUR decline of 8.9% [38] - Full year gross margin ended at 49.2%, down 110 basis points, primarily due to deeper promotions to reduce excess inventory [44] Company Strategy and Development Direction - The company is focused on a transformation strategy called the Big Dam Blueprint, aimed at unlocking growth and profit potential [6][12] - Strategic initiatives include direct-to-factory sourcing, enhancing logistics and fulfillment capabilities, and revitalizing the retail store portfolio [12][18] - The omnichannel strategy is crucial, with plans to enhance mobile experiences and open new stores in priority markets [16][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges in fulfilling orders and emphasized the importance of improving logistics and inventory management [6][30] - The outlook for fiscal 2025 projects net sales between $570 million and $595 million, with anticipated gross margin expansion of approximately 300 basis points [47][48] Other Important Information - The company ended 2024 with no debt and $103 million in liquidity, providing flexibility for operations [30][43] - A leadership transition is underway, with the current CEO announcing retirement effective April 25, 2025, and the Chairman taking over day-to-day operations [32][55] Summary of Q&A Session Questions and Answers - There was no question-and-answer session following the presentation, as noted in the call introduction [1]