Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you elaborate on the factors contributing to the decline in net sales for the fourth quarter? A: Steven Miller, CEO: The decline in net sales, which were $181.6 million compared to $196.3 million in the prior year, was primarily due to persistent macroeconomic headwinds affecting consumer discretionary spending. Additionally, unfavorable winter weather conditions, particularly in our southern tier stores, impacted our winter-related product sales.
Q: How did the different merchandise categories perform during the fourth quarter? A: Steven Miller, CEO: On a same-store basis, apparel declined by 1.3%, footwear was down 5.4%, and hard goods decreased by 8.7%. Overall, our average sale was down 2.3%, with transactions down 3.8%.
Q: What strategic initiatives are you implementing to address the current sales challenges? A: Steven Miller, CEO: We are optimizing our store portfolio by closing 15 stores in fiscal 2025, including eight already closed in the first quarter. This allows us to reallocate capital and inventory to our best-performing locations, driving cost efficiencies across our network.
Q: Can you provide more details on the financial outlook for the first quarter of fiscal 2025? A: Barry Emerson, CFO: We expect same-store sales to decline in the mid- to high single-digit range due to ongoing macroeconomic headwinds. The net loss per basic share is projected to be between $0.75 and $0.85, reflecting no tax benefit for the period.
Q: How is the company managing its inventory levels in response to the current sales environment? A: Barry Emerson, CFO: We ended the quarter with inventory down 5.6% year-over-year. This reduction reflects our efforts to align inventory levels with sales, enabling us to deploy inventory more productively and maintain flexibility for opportunistic buying opportunities.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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