Release Date: March 13, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more detail about the mass channel softness and the momentum in the e-commerce channel in early 2025? A: Robert Kay, CEO, explained that consumer shopping patterns shifted later in the season, favoring e-commerce due to quick delivery options. While the first two months of the fourth quarter were slower, December saw strong performance. The company lost some share in the KitchenAid segment but expects this to be a temporary issue. E-commerce momentum is expected to continue into 2025.
Q: What is the current exposure to China regarding tariffs, and how do you plan to address it in 2025? A: Robert Kay, CEO, stated that the tariff situation is fluid, and the company is moving production to various geographies to reduce dependency on China. The goal is to move the majority of production out of China by the end of 2025, focusing on high-volume products.
Q: Can you provide an update on the International segment's performance and expectations for profitability? A: Robert Kay, CEO, mentioned that the International segment had an EBITDA loss of just under $10 million in 2024. The company aims to achieve a breakeven run rate by the end of 2025, with full profitability expected in 2026, supported by Project Concord.
Q: How is the Dolly Parton program performing, and what are the expectations for 2025? A: Robert Kay, CEO, noted that the Dolly Parton program exceeded initial expectations, with $7 million in sales in 2024. Dollar General delayed some shipments to 2025, but the program continues to expand, with strong sales velocity and plans to roll out to other retailers.
Q: What is the company's strategy for managing potential tariff impacts on pricing? A: Robert Kay, CEO, emphasized that the magnitude of tariffs necessitates passing costs through to consumers. The company plans to implement price increases over the next few months to mitigate tariff impacts, while maintaining a buffer to protect against immediate financial effects.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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