Release Date: March 04, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you elaborate on your top strategic priorities and any areas that may require structural change to amplify market share? A: James Conroy, CEO, stated that the brand strategies for Ross and dd's are sound and will continue to be pursued. He emphasized learning the off-price model and making evolutionary changes rather than abrupt ones. Conroy highlighted opportunities to enhance the store environment and marketing efforts, particularly in amplifying the brand's presence in the marketplace.
Q: How did regional performance vary in Q4, and what regions drove the slowdown in February? A: Michael Hartshorn, COO, noted that the Pacific Northwest and Texas were top-performing regions, while California and Florida were in line with the chain. He mentioned that the slowdown in February was partly due to weather impacts and macroeconomic factors affecting consumer confidence.
Q: What is the outlook for merchandise margins in 2025, and are there changes in the buying environment post-holiday? A: Adam Orvos, CFO, indicated that merchandise margins are expected to be relatively neutral for 2025, following an investment year in 2024. The company is seeing more close-out opportunities due to softness in mainstream retail, which could enhance buying margins and add excitement to stores.
Q: Are there plans to increase investment in store environments and marketing expenses? A: James Conroy, CEO, acknowledged the potential need for investment in these areas but emphasized a cost-neutral approach or proving ROI on additional spending. The company has been upgrading its store fleet and may enhance its marketing program over time.
Q: How is dd's DISCOUNTS performing, and what drives confidence in its future growth? A: Michael Hartshorn, COO, reported that dd's DISCOUNTS posted healthy sales gains above Ross for Q4 and 2024. The chain's fashion and value offerings are resonating well with customers, and the company plans to rebuild its pipeline for expanded growth, particularly in newer markets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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