Release Date: March 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: In the fourth quarter, you noted higher repeat order rates. What were the underlying drivers for this increase? A: The increase in repeat order rates was primarily due to improvements in the core customer experience, particularly the expansion of third-party assortment. This provided customers with more options, making it easier for them to find enough items to build a box more frequently. Additionally, aggressive inventory movement and discounts on Grove products contributed to this trend. (Respondent: Unidentified_6)
Q: Can you discuss the pipeline for third-party assortment in 2025, including the number of brands or categories of focus? A: While expanding our assortment, we aim to maintain high standards for product quality. We are focusing on wellness, with the recent acquisition of 8 Greens marking our entry into this space. Our strategy includes expanding into categories like kitchen, home, baby, and pet, emphasizing products that are good for families and the planet. (Respondent: Unidentified_6)
Q: You mentioned shifting from a focus on being beyond plastic to human health. Are there plans for branding or marketing campaigns to support this message? A: Yes, we are not moving away from our sustainability stance but are expanding our messaging to include human health. We plan to enhance content, education, and storytelling, especially after the Shopify transition. Our marketing will consistently emphasize human health, from upper funnel to bottom funnel strategies. (Respondent: Unidentified_6)
Q: Could you provide some insights into the financial outlook for 2025, particularly regarding gross margins and operating expenses? A: While we don't provide specific guidance on line items, we anticipate both accretive and dilutive impacts on gross margin. Exiting brick and mortar, which has been more dilutive, and the accretive nature of recent acquisitions will influence margins. We will continue to manage expenses carefully, focusing on channels that deliver the highest return on investment. (Respondent: Unidentified_7)
Q: How do you plan to manage advertising expenses in 2025? A: We approach advertising by focusing on paybacks and returns rather than as a percentage of the P&L. We aim for full-year positive adjusted EBITA and will manage advertising costs actively, investing in channels that are most effective. (Respondent: Unidentified_7)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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