Financial Data and Key Metrics Changes - In Q4 2024, total sales declined by 5% year-over-year, but comparable sales increased by 1% when excluding the 53rd week from the previous year [7][40] - For the full year, total company sales decreased by approximately 2%, with comparable sales down 1.7% [7][40] - Adjusted EPS for the full year was $0.27, at the upper end of the revised guidance range of $0.10 to $0.30 [8][49] - Consolidated gross profit margin for Q4 was 39.6%, an increase of 80 basis points year-over-year, while full-year gross margin was 42.7%, a decrease of 40 basis points [44][45] Business Line Data and Key Metrics Changes - U.S. Retail comps were up 1% in Q4, marking a return to positive comps for the first time since Q3 2022, driven by strength in athletic, women's dress, and luxury accessories [13][41] - Canada Retail segment saw Q4 comps increase by 5%, with strong performance in athletic and kids categories [14][41] - Brand Portfolio segment sales increased by approximately 12% in Q4 and roughly 14% for the full year, achieving operating profitability for the first time [16][42] Market Data and Key Metrics Changes - DSW's sales growth outpaced the footwear market in Q4, resulting in a 10 basis point gain in market share [13] - Top eight brands saw a 25% increase in sales on a full-year basis, contributing significantly to overall performance [10][66] - Topo Athletic brand sales grew nearly 80% in 2024, indicating strong market demand [31][43] Company Strategy and Development Direction - The company is focusing on a customer-first approach, leveraging insights and analytics to refine brand identity and enhance marketing effectiveness [20][22] - Plans to enhance the omnichannel customer experience and expand store footprint for the first time since 2019 [23][24] - Emphasis on revitalizing product assortment through data-driven strategies to improve inventory availability and productivity [25][26] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious consumer environment due to inflation and rising prices, impacting discretionary spending [35][59] - Guidance for 2025 anticipates low single-digit sales growth, with expectations for gradual improvement throughout the year [53][54] - The company aims to return to consistent top and bottom line growth, with a focus on driving profitable growth and evaluating expenses [56][60] Other Important Information - The company returned $79 million to shareholders through dividends and share repurchases in 2024 [50][51] - Total debt outstanding was $491 million at the end of the year, with total liquidity of $172.1 million [52] Q&A Session Summary Question: Can you provide more details on the fourth quarter, particularly regarding athleisure growth and Nike's performance? - Management highlighted significant growth in athleisure, particularly among the top eight brands, which saw a 25% increase in sales [66] - They noted a slower start to Q1 compared to expectations, influenced by macroeconomic factors [67][68] Question: What are the expectations for gross margin and SG&A dollar growth? - Management indicated that promotional activity is expected to provide leverage to gross margin, with SG&A expected to increase by about $50 million due to new initiatives and annualizing acquisitions [72][74]