Financial Data and Key Metrics Changes - For the full year 2024, total sales were approximately $611 million, with comparable sales growth of 1.5% and gross margin of 70.4% [18][26] - Adjusted EBITDA for the year was $107 million, while adjusted net income per diluted share was $3.47, reflecting a 4% increase [26][27] - Free cash flow for the year was $47 million, with cash from operations generating $65 million [27][28] Business Line Data and Key Metrics Changes - In Q4, total company sales were $143 million, down approximately 5% compared to the previous year [21] - Direct sales accounted for 50.5% of total sales in Q4, down 6.8% year-over-year due to a shift into markdown selling [24] - The strongest categories in Q4 included bottoms, outerwear, knit tops, and sleepwear, supported by marketing campaigns [9][80] Market Data and Key Metrics Changes - The retail channel saw a 1.9% increase in comparable sales for Q4, driven by strong conversion and average unit retail (AUR) [22] - Store sales for Q4 were down 3% due to calendar impacts, but new stores contributed approximately $1.1 million in revenue [22][23] - The company ended the year with a total of 252 stores, reflecting a net increase of eight stores [30] Company Strategy and Development Direction - The company plans to continue investing in new store growth, with expectations to open 20 to 25 net new stores by the end of 2026 [34] - The implementation of a new order management system (OMS) is expected to enhance omni-channel capabilities and improve customer experience [31][32] - Marketing strategies are being diversified, including geo-targeted efforts to drive customer engagement and store traffic [12][56] Management's Comments on Operating Environment and Future Outlook - The management noted that fiscal 2025 has started slowly, with consumer sentiment and adverse weather impacting performance [14][15] - The company is taking a prudent approach to its outlook for Q1 and the remainder of the year, considering macroeconomic uncertainties [15][19] - Management expressed confidence in the brand's potential for growth, emphasizing the importance of disciplined operating principles [16][36] Other Important Information - The company initiated a quarterly dividend and share buyback program, marking the first such actions since its IPO in 2017 [10][18] - Total reported inventories were up about 15% compared to the previous year, but normalized inventories were only up about 3% [29][84] - The company expects to spend approximately $25 million in capital expenditures for fiscal 2025, focusing on new stores and OMS rollout [35] Q&A Session Summary Question: Can you elaborate on the Q1 headwinds? - Management identified three main headwinds: adverse weather, consumer sentiment concerns, and the OMS implementation [40][41] Question: What benefits do you expect from the OMS? - The OMS is expected to provide operational efficiencies and enhance omni-channel capabilities, starting to yield benefits in the back half of the year [43][45] Question: How do you view gross margin trends for the year? - Management indicated that Q1 will be the most challenging comparison, with expectations for flat gross margins overall [50][52] Question: What are the traffic trends and how are you driving digital customers to stores? - Traffic has been challenged, but the company is testing geo-targeted marketing to drive store traffic [54][56] Question: How are promotions being managed in the current environment? - The company aims to maintain a disciplined promotional approach while responding to consumer price sensitivity [66][70] Question: What differences are observed between stores and digital channels? - Stores are more full-price oriented, while digital channels have shifted more towards markdowns [74]

Financial Data and Key Metrics Changes - The company achieved record sales of $13.4 billion for the full year 2024, with comparable sales increasing by 5.2% driven by growth in average ticket and transactions [7][22] - For Q4, comparable sales increased by 6.4%, with consolidated net sales reaching $3.89 billion, marking the largest sales quarter in the company's history [8][24] - Earnings per diluted share for the full year were $14.05, a 10.5% increase on a 52-week comparable basis from the previous year's $12.91 [23][26] Business Line Data and Key Metrics Changes - The footwear business is highlighted as a key growth area, with a focus on enhancing the athlete experience and increasing market share [16][74] - The company reported growth across all business segments, including soft lines, footwear, and hard lines, indicating a well-rounded performance [46] Market Data and Key Metrics Changes - The company commands just under 9% of the $140 billion U.S. sports retail industry, reflecting a 50 basis point increase in market share from the previous year [9][10] - The company gained approximately 7 million new athletes in 2024, with 2.2 million added in Q4 alone [48] Company Strategy and Development Direction - The company is focusing on three key growth areas: repositioning its real estate and store portfolio, driving growth in footwear, and accelerating e-commerce [12][41] - Significant investments are planned in digital and in-store opportunities to enhance market position and athlete experience [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategies and the strength of the consumer base, despite external uncertainties in the macroeconomic environment [48][100] - For 2025, the company anticipates comp sales growth in the range of 1% to 3%, with expected gross margin expansion of approximately 75 basis points [20][29] Other Important Information - The company plans to open approximately 16 new House of Sport locations and 18 Fieldhouse locations in 2025, continuing its innovative store formats [33][40] - A new five-year share repurchase program of up to $3 billion was announced, alongside a 10% increase in quarterly dividends [36] Q&A Session Summary Question: Can you discuss the impact of tariffs on your business? - Management indicated that existing tariffs have been accounted for in guidance, but new discussions are evolving and not included [51][91] Question: Can you provide more detail on pre-opening expenses? - Management stated that pre-opening expenses vary based on new store openings and will provide clarity in future calls [52] Question: How is the footwear strategy evolving? - The company is focusing on high-impact marketing and enhancing in-store experiences to drive footwear sales, with a penetration rate now at 28% [74][76] Question: Are you seeing any signs of a weaker consumer? - Management clarified that they are not seeing a weaker consumer and that guidance reflects caution due to external uncertainties [100]