Financial Data and Key Metrics Changes - For the full year 2024, total sales were approximately $611 million, with comparable sales growth of 1.5% [24] - Gross margin was reported at 70.4%, while adjusted EBITDA was $107 million [25] - Adjusted net income per diluted share increased to $3.47, reflecting a 4% rise compared to the previous year [38] Business Line Data and Key Metrics Changes - In Q4 2024, total company sales were $143 million, down approximately 5% compared to Q4 2023 [31] - Store sales for Q4 decreased by 3%, primarily due to calendar impacts, while direct sales as a percentage of total sales were 50.5% [33] - The company saw strength in categories such as bottoms, outerwear, knit tops, and sleepwear during the quarter [12][110] Market Data and Key Metrics Changes - The company experienced challenges in traffic, which was reflected in the overall sales performance [76] - The direct-to-consumer channel showed a shift towards markdowns, contrasting with the full-price orientation of store sales [101] Company Strategy and Development Direction - The company plans to continue expanding its store count, with expectations to grow by 5 to 10 stores by the end of fiscal 2025 [51] - Investments in new stores and technology systems are prioritized to enhance the omni-channel experience [19][45] - The implementation of a new order management system (OMS) is expected to unlock new capabilities and improve operational efficiency [20][45] 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 [21] - The company is taking a prudent approach to its outlook for Q1 and the remainder of the year, considering the current economic uncertainties [21][49] - Management expressed confidence in the brand's growth potential and the effectiveness of its operating model despite challenges [22][53] Other Important Information - The company ended the year with a healthy cash position, supporting a recently announced dividend increase [15] - Total reported inventories were up about 15% compared to the end of Q4 last year, primarily due to strategic shipping decisions [41] 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 [59][60] Question: What benefits do you expect from the OMS? - The OMS is expected to provide operational efficiencies and enhance omni-channel capabilities, starting with ship-from-store functionalities [64][66] 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 [73] Question: What are the promotional strategies moving forward? - The company aims to maintain a disciplined promotional approach while responding to consumer price sensitivity [92][95] Question: How did store and digital channels perform differently? - Store sales remained more full-price oriented, while digital channels shifted more towards markdowns [101]

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 a 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 a cash position of $35.4 million at the end of Q4 [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 company saw strength in bottoms, outerwear, knit tops, and sleepwear during the quarter, supported by marketing campaigns [9][10] Market Data and Key Metrics Changes - The retail channel drove a 1.9% increase in comparable sales for Q4, while store sales were down 3% due to calendar impacts [22] - The best customer cohort continued to show consistent growth, contributing to overall performance despite traffic headwinds [10][11] - The company experienced challenges in traffic, particularly in Q4 and early Q1, attributed to broader macroeconomic conditions and consumer sentiment [40][72] Company Strategy and Development Direction - The company plans to continue investing in new store growth, with a target of opening 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 omnichannel capabilities and improve customer experience [31][32] - Marketing efforts are being diversified, including geo-targeted campaigns to drive store traffic and customer engagement [12][55] Management's Comments on Operating Environment and Future Outlook - 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 the ongoing macroeconomic uncertainties [15][19] - Despite challenges, management remains confident in the brand's potential for growth and the effectiveness of its operating model [16][35] Other Important Information - The company ended the year with a healthy cash position and announced a quarterly dividend increase [10][28] - Inventory levels were reported to be elevated due to strategic shipping decisions, but are expected to normalize in the coming quarters [29][82] - The company has initiated a share buyback program, with $24.5 million remaining under the authorization as of the end of Q4 [28][74] 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 implementation? - The OMS is expected to provide operational efficiencies and enhance sales through new omnichannel capabilities, starting in the back half of the year [43][45] Question: How do you view gross margin trends for the year? - Management expects gross margins to be flat, with Q1 facing the most difficult comparisons due to prior strong performance [50][52] Question: What are the trends in store versus digital sales? - Stores are performing better in full-price sales compared to digital, which has shifted more towards markdowns [72] Question: How are you managing promotions in the current environment? - The company is focused on maintaining a disciplined promotional strategy while responding to consumer price sensitivity [65][68]