Release Date: January 30, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide an update on the trends in written sales and overall business performance since the election and into the first two months of the new fiscal year? A: Robert Spilman, CEO, noted that there was a brief period of increased activity around Black Friday following the election. However, since then, sales have settled back to previous levels, with a slight improvement. December sales were up mid-single digits, indicating a modest positive trend.
Q: How many Bassett Design Studios are currently operational, and what are your expectations for the number by the end of fiscal 2025? A: Robert Spilman, CEO, stated that there are currently around 43 or 44 Bassett Design Studios. While he did not specify an exact target for the end of fiscal 2025, he mentioned that they have been opening about five studios per month and expect significant growth in dealer participation.
Q: Will you be highlighting the true custom upholstery program more in your marketing efforts? A: Robert Spilman, CEO, confirmed that they plan to emphasize their custom upholstery capabilities more in marketing, including trade advertising. They aim to communicate the strength of their custom offerings, which have been a hallmark of their retail concept, to a broader audience.
Q: Given the impressive gross margins in Q4, how should we think about potential gross margins in the future, especially when the housing market recovers? A: Robert Spilman, CEO, indicated that while current margins are near all-time highs, they do not expect significant increases even if the housing market recovers. The focus will be on offering value and leveraging volume to improve operating margins rather than further increasing gross margins.
Q: Have natural disasters like hurricanes and wildfires impacted your business operations? A: Robert Spilman, CEO, mentioned that the North Carolina hurricane in September caused temporary closures of operations and affected their dealer base in the area. However, the California wildfires had minimal impact, with only one store shutting down for a few days.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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