Financial Data and Key Metrics Changes - In Q4 2024, net revenue was $347 million, up 0.9% year-over-year, but comparable growth declined by 6.4% due to prior year backlog fulfillment [41][44] - Full year 2024 net revenue was $1.271 billion, down 1.3% year-over-year, with a comparable growth decline of 8% [44] - Q4 gross margin decreased by $2 million or 1.8% to $139 million, with a gross margin percentage of 40.0%, down 100 basis points [43] - Full year net income decreased by $57 million or 45.3% to $69 million, while adjusted EBITDA declined by $70 million or 34.5% to $133 million, resulting in an adjusted EBITDA margin of 10.5% [47][49] Business Line Data and Key Metrics Changes - Demand comparable growth in Q4 was 5.7%, driven by strong product assortment and marketing initiatives, while full year demand comparable growth declined by 2.2% [15][44] - The company opened 11 new showrooms and relocated 5 in 2024, marking the largest expansion in nearly 40 years [10][24] Market Data and Key Metrics Changes - The U.S. accounts for the largest share of net revenue, with a diversified global supply network [23] - The company anticipates full year 2025 net revenue between $1.36 billion and $1.40 billion, reflecting a comparable growth range of 0% to 3% [49] Company Strategy and Development Direction - The long-term strategy includes increasing brand awareness, expanding showroom footprint to 165 locations, enhancing omnichannel capabilities, and investing in growth [24][25] - The company aims to open an average of 5 to 7 new traditional showrooms annually, alongside design studios and relocations [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to execute long-term strategies despite macroeconomic uncertainties, emphasizing product innovation and customer engagement [50][51] - The company noted that while the macro environment remains dynamic, its debt-free balance sheet provides financial flexibility for strategic investments [51] Other Important Information - The company introduced a new product line in 2024, focusing on expanded wood furniture selections and customizable designs [21] - The promotional strategy remains aligned with previous years, focusing on quality and value for clients [59][63] Q&A Session Summary Question: Can you speak to the line of product newness in 2025? - Management indicated that the 2025 product lineup is solid, with expectations for new styles and designs [55][56] Question: How did demand trend across price points in Q4? - Management noted a solid performance in Q4, with a focus on quality and value in pricing strategies [59][62] Question: What are the plans for store openings in 2025? - Management confirmed plans for 3 to 5 new store openings in 2025, with flexibility for design studios [79][80] Question: How is the promotional cadence planned for Q1? - Management stated that the promotional strategy aligns with previous years, considering calendar shifts for key shopping periods [135][141] Question: What is the outlook for gross margin and SG&A in Q1 2025? - Management expects slight deleverage in gross margin due to showroom occupancy costs, with increased SG&A expenses related to strategic investments [91][92]