Duluth Holdings Inc (DLTH) 2024 Q4 法說會逐字稿

Good morning, and welcome to the Duluth Holdings fourth quarter 2024 financial results conference call. All participants will be in listen-only mode. (Operator Instructions) Please note that there will not be a Q&A session following this presentation. Please note this event is being recorded. I would now like to turn the conference over to Nita McKee, Senior Associate Investor Relations at ICR. Please go ahead.

早安，歡迎參加 Duluth Holdings 2024 年第四季財務業績電話會議。所有參與者將處於只聽模式。（操作員指示）請注意，本次示範之後將不會有問答環節。請注意，此事件正在被記錄。現在，我想將會議交給 ICR 投資者關係高級助理 Nita McKee。請繼續。

Thank you and welcome to today's call to discuss Duluth Trading fourth quarter financial results. Our earnings release, which was issued this morning, is available on our investor relations website at ir.duluthtrading.com under press releases. I'm here today with Sam Sato, President and Chief Executive Officer; Heena Agrawal,, Senior Vice President and Chief Financial Officer; and Stephen L. Schlecht, Founder and Chairman of the Board. On today's call, management will provide prepared remarks.

謝謝您，歡迎參加今天的電話會議，討論 Duluth Trading 第四季度財務業績。我們的收益報告於今天早上發布，可在我們的投資者關係網站 ir.duluthtrading.com 的新聞稿欄中查閱。今天我和總裁兼執行長 Sam Sato 一起來到這裡； Heena Agrawal，資深副總裁兼財務長；以及創辦人兼董事會主席 Stephen L. Schlecht。在今天的電話會議上，管理階層將提供準備好的發言。

Before we begin, I would like to remind you that the comments on today's call will include forward-looking statements which can be identified by the use of words such as estimate, anticipate, expect in similar phrases. Forward-looking statements by their nature involve estimates, projections, goals, forecasts, and assumptions and are subject to risk and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements.

在我們開始之前，我想提醒您，今天電話會議上的評論將包括前瞻性陳述，可以透過使用諸如估計、預期、期望等類似短語來識別。前瞻性陳述本質上涉及估計、預測、目標、預報和假設，並受風險和不確定性的影響，可能導致實際結果與前瞻性陳述中表達的結果有重大差異。

Such risk and uncertainties include but are not limited to those that are described in our most recent annual report on Form 10-K and other SEC filings as applicable. These forward-looking statements speak only as of the date of this conference call and should not be relied upon as predictions of future events.

此類風險和不確定性包括但不限於我們最近的 10-K 表年度報告和其他適用的 SEC 文件中所描述的風險和不確定性。這些前瞻性陳述僅代表本次電話會議召開之日的觀點，不應被視為對未來事件的預測。

And with that, I will turn the call over to Sam Sato, President and Chief Executive Officer. Sam?

接下來，我將把電話轉給總裁兼執行長 Sam Sato。山姆？

Thank you, Nita, and thank you all for joining today's call. Let me begin by sharing our fourth quarter results, starting with the significant challenge we face in fulfilling orders which we addressed with immediate corrective action. I'll then highlight the foundational progress we made in 2024 on our big damn blueprint initiatives, strategic work designed to transform the business and unlock our full growth and profit potential.

謝謝你，妮塔，也謝謝大家參加今天的電話會議。首先，我想分享我們第四季的業績，首先是我們在履行訂單時面臨的重大挑戰，我們立即採取了糾正措施。然後，我將重點介紹我們在 2024 年在宏偉藍圖計劃方面取得的基礎性進展，這些策略工作旨在轉變業務並釋放我們的全部成長和獲利潛力。

After reviewing our key focus areas for fiscal 2025, I'll turn it over to HIA to provide a detailed financial update and our outlook for the year ahead. Our fourth quarter results fell short of expectations due to processing delays at our legacy fulfillment center. Net sales declined 1.8% to $241 million, with direct channel sales remaining flat, with increased mobile penetration, while retail store sales decreased 6.9% as traffic declined and shopper conversion held steady.

在回顧了我們 2025 財年的重點關注領域之後，我將把工作交給 HIA，以提供詳細的財務更新和對未來一年的展望。由於我們原有的履行中心處理延遲，我們的第四季業績未達預期。淨銷售額下降 1.8% 至 2.41 億美元，其中直接通路銷售額保持平穩，行動滲透率提高，而零售店銷售額下降 6.9%，因為客流量下降，購物者轉換率保持穩定。

Adjusted EBITDA for the quarter was approximately $9 million. Although we experience improved performance leading into Black Friday week through Cyber Monday, resulting in record sales during that period, we subsequently reduced promotional depth and frequency to address the order backlog and maintain sales quality. This decision, while operationally necessary, constrained our top line growth. Let me address the processing delays at our legacy Belleville fulfillment Center. Following the surge in unit demand over the Black Friday weekend, we significantly depleted inventory units housed in our highly automated Adairsville Center.

本季調整後的 EBITDA 約為 900 萬美元。儘管從“黑色星期五”到“網絡星期一”，我們的業績有所改善，並創下了該期間的銷售額紀錄，但隨後我們減少了促銷的深度和頻率，以解決訂單積壓問題並保持銷售質量。這項決定雖然在營運上是必要的，但卻限制了我們的營收成長。讓我來談談我們原有的貝爾維爾履行中心的處理延遲問題。隨著黑色星期五週末單位需求的激增，我們高度自動化的 Adairsville 中心的庫存單位大量減少。

This resulted in a higher level of orders being routed to our Belleville facility. Belleville's order process capacity is considerably less than Adairsville, which ultimately resulted in a significant backlog in orders being filled. We've since implemented enhanced operational protocols and planning processes to ensure that we have optimized unit inventory distribution across our fulfillment network.

這導致更多訂單被發送到我們的貝爾維爾工廠。貝爾維爾的訂單處理能力遠低於阿代爾斯維爾，最終導致大量訂單積壓。從那時起，我們就實施了增強的操作協議和規劃流程，以確保優化整個履行網路中的單位庫存分配。

Moving on to our full year 2024 results, net sales were $627 million and adjusted EBITDA of $15 million. While we saw benefits from our sourcing initiatives, these gains were offset by lower average unit retail prices. We maintained our strategic investment in marketing, supporting our focus to attract new customers and strengthen relationships with existing ones. We continue to make progress against our strategic initiatives which we believe are critical to driving growth and profitability.

展望我們 2024 年全年業績，淨銷售額為 6.27 億美元，調整後 EBITDA 為 1,500 萬美元。雖然我們從採購措施中看到了好處，但這些收益卻被較低的平均單位零售價所抵銷。我們維持了對行銷的策略性投資，支持我們專注於吸引新客戶並加強與現有客戶的關係。我們繼續推進我們認為對推動成長和獲利至關重要的策略性舉措。

Let me start by elaborating on the progress we've made on our ongoing transformation journey. Our product development and sourcing initiatives are delivering meaningful benefits exceeding our initial expectations. The shift to direct to factory sourcing is not only reducing our product costs. But fundamentally changing how we bring products to market.

首先，讓我詳細闡述我們在持續轉型過程中所取得的進展。我們的產品開發和採購計劃正在帶來超出我們最初預期的重大效益。轉向直接從工廠採購不僅降低了我們的產品成本。但從根本上改變了我們將產品推向市場的方式。

We are now able to introduce innovative products more frequently and get them to our customers faster. This is a critical strategic unlock for our business that improves both our financial performance and our ability to serve customers with fresh, innovative products more often. The challenges from the fourth quarter underscore the importance of continuing to advance our logistics and fulfillment capabilities.

我們現在能夠更頻繁地推出創新產品並更快地將其交付給客戶。這對我們的業務來說是一個關鍵的策略解鎖，它既提高了我們的財務業績，也提高了我們更頻繁地為客戶提供新鮮創新產品的能力。第四季面臨的挑戰凸顯了持續提升我們的物流和履行能力的重要性。

Our state of the art Adairsville fulfillment center has become the cornerstone of our optimization strategy, now processing more than 60% of total volume at a cost per unit that is 66% lower than that of our legacy facilities. This investment has yielded tangible customer benefits through faster click to delivery times while significantly expanding our network capacity.

我們最先進的阿代爾斯維爾履行中心已成為我們優化策略的基石，目前處理總量的 60% 以上，單位成本比我們傳統設施低 66%。這項投資透過縮短點擊到交付時間，為客戶帶來了切實的利益，同時顯著擴展了我們的網路容量。

We've also successfully completed the planned closure of our Dubuque facility, generating approximately $5 million in annual cost savings. And we are improving cross-functional processes to maximize our network investments. These strategic initiatives represent structural improvements to our business model that will deliver incremental value.

我們還成功完成了杜比克工廠的關閉計劃，每年節省約 500 萬美元的成本。我們正在改進跨職能流程，以最大限度地提高我們的網路投資。這些策略舉措代表了我們商業模式的結構性改進，將帶來增量價值。

Our mobile first digital strategy is delivering strong results and continues to be a key growth driver. Mobile now accounts for nearly 70% of our site visits and 58% of our digital sales, with both metrics growing year over year. Importantly, our mobile conversion rates remain significantly above industry averages.

我們的行動優先數位策略正在取得強勁成果，並繼續成為關鍵的成長動力。目前，行動裝置佔據了我們網站流量的近 70% 和數位銷售額的 58%，而這兩個指標都在逐年增長。重要的是，我們的行動轉換率仍然遠高於產業平均。

Mobile is our customers' primary gateway to the brand. And we're seeing the benefits of meeting them where they prefer to shop. In 2025, we will continue to invest in enhancing our mobile experience while seamlessly extending it to desktop and retail stores, creating a holistic omnichannel customer experience.

行動裝置是我們客戶接觸品牌的主要途徑。我們看到了在他們喜歡的購物地點與他們會面的好處。2025 年，我們將繼續投資提升我們的行動體驗，同時將其無縫擴展到桌面和零售店，創造全方位的全通路客戶體驗。

We're making significant progress on revitalizing our retail store portfolio with a comprehensive strategy focused on both existing and new locations. Across our 65 store fleet and as we evaluate new locations, we've established higher productivity hurdle rates. As we approach lease renewals for about 25% of our stores through 2026, we are thoroughly evaluating each location for remodel, relocation, or exit based on these enhanced performance standards.

我們正透過針對現有門市和新門市的綜合策略，在振興零售店組合方面取得重大進展。在我們所有的 65 家門市中以及在評估新門市時，我們已建立了更高的生產力障礙率。隨著我們約 25% 的門市即將續租至 2026 年，我們將根據這些增強的性能標準徹底評估每個門市是否需要進行改造、搬遷或退出。

Regarding new store locations, we've identified priority markets to meet our target customers where they currently shop and are on track to open two new stores in the second half of 2025. The omnichannel strategy is crucial to our business, as evidenced by the fact that our customers who shop across multiple channels make purchases over twice as often as those who shop through a single channel. Our physical stores remain central to our omni-channel strategy.

關於新店選址，我們已經確定了優先市場，以滿足我們目標客戶目前購物的地方，並計劃在 2025 年下半年開設兩家新店。全通路策略對我們的業務至關重要，事實證明，透過多個管道購物的客戶的購買頻率是透過單一管道購物的客戶的兩倍以上。我們的實體店仍然是我們全通路策略的核心。

Let me update you on the progress of our technology roadmap. Our initial focus is on building foundational platforms for data and e-commerce, which have been completed. In 2025. We are implementing the product information platform, mobile site redesign, and completing the warehouse management system.

讓我向您通報一下我們的技術路線圖的進展。我們初期專注於建置數據和電商的基礎平台，目前已經完成。2025年。我們正在實施產品資訊平台、行動網站重新設計，並完成倉庫管理系統。

Connecting these platforms will optimize omnichannel fulfillment and inventory management. The final phase requires a unified promotion engine, loyalty program enablement, and our core ERP replacement. For 2025 we're committed to building on the progress we've made on strategic initiatives and structural improvements while enhancing our operational execution.

連接這些平台將優化全通路履行和庫存管理。最後階段需要統一的促銷引擎、忠誠度計畫支援以及我們的核心 ERP 替換。2025 年，我們致力於鞏固我們在策略性措施和結構改進方面所取得的進展，同時加強我們的營運執行力。

A key focus is on enhancing our inventory management approach, ensuring we have the right products in the right place and at the right time.

我們的重點是加強庫存管理方法，確保我們在正確的時間在正確的地點提供正確的產品。

Our assortment decisions are leveraging deeper customer insights and linked to strategic growth categories. These changes fundamentally improve how we operate and set us up to deliver stronger financial results. As Heena will walk through shortly, we are resetting our business model to support higher full price sales.

我們的產品組合決策利用了更深入的客戶洞察並與策略成長類別連結。這些變化從根本上改善了我們的營運方式，並使我們能夠實現更強勁的財務表現。正如 Heena 即將介紹的那樣，我們正在重新設定我們的商業模式，以支持更高的全價銷售。

Higher gross margin flow through and cash generation driven by working capital improvements. Moving on to the current year, we have exciting new product innovations launching across our brands. In Duluth Men's, we're expanding our successful armadillo cooling technology with new double flex pants. And our backyard line expands, including a new barbecue shirt that is 100% cotton and breathes easy when behind the grill.

營運資本改善推動毛利率流轉和現金產生率提高。今年，我們旗下各品牌推出了令人興奮的新產品創新。在 Duluth 男裝店，我們正在透過新型雙彈性褲子擴展我們成功的犰狳冷卻技術。我們的後院產品線也得到了擴展，包括一款新的燒烤襯衫，該襯衫採用 100% 純棉製成，在烤架後面透氣性好。

Continuing to build upon our successful collaborations, we're excited to be partnering with Leinenkugels this spring. Our outerwear offering expands as well with the new Norwester, a soft shell transitional jacket that takes you from winter's chill to spring showers. Within AKHG, our new Wanderwear bottoms offers stretch and sweat wicking performance, which is just what you need from a dependable pair of active pants when you're on the move.

在繼續鞏固我們成功的合作的基礎上，我們很高興今年春天能與 Leinenkugels 合作。我們的外套系列也得到了擴展，推出了新款 Norwester，這是一款軟殼過渡夾克，可讓您從寒冷的冬天過渡到陣雨的春天。在 AKHG 中，我們新的 Wanderwear 褲子具有彈性和吸汗性能，這正是您在運動時對可靠的運動褲所需要的。

We're also introducing an additional new pant named Alpine Flex, which offers versatility, comfort, and practicality for any outdoor adventure with its ultra stretchy and quick drying fabrications. And the expansion of our successful after sweat fleece collection continues with an improved fabric that's even easier to care for.

我們還推出了一款名為 Alpine Flex 的新褲子，它採用超彈性和快乾面料，為任何戶外探險提供多功能性、舒適性和實用性。我們成功的汗後羊毛絨系列產品不斷擴展，採用更易於護理的改良面料。

We're elevating our first layer business with an improved bullpen construction featuring greater comfort and support as well as a new butt naked cotton offering which brings the no pinch, no stink, and no sweat our customers love to a naturally breathable cotton blend.

我們正在透過改進的牛棚結構來提升我們的第一層業務，該結構具有更高的舒適度和支撐性，以及一種新的裸露棉質產品，為我們的客戶帶來自然透氣的棉混紡，不夾痛、不臭、不出汗等特點。

In women's, we continue to build on the success of our hero heirloom collection by expanding the offering. We're excited about our new coveralls which provide a bit more coverage than our heirloom overalls for those sticky and prickly situations out in the garden.

在女裝方面，我們持續擴大產品範圍，鞏固英雄傳家寶系列的成功。我們對我們的新工作服感到非常興奮，它比我們的傳家寶工作服提供了更多的覆蓋範圍，適合花園中那些粘稠和多刺的情況。

Within our famous NoGA collection, we've introduced NoGA Air designed to reduce heat buildup as you move. This new technology features a feathery li fabric with moisture wicking, odor fighting properties to keep you feeling fresh all day. Additionally, our newly introduced French Terry collection has been met with great response from our customers.

在我們著名的 NoGA 系列中，我們推出了 NoGA Air，旨在減少您移動時熱量的積聚。這項新技術採用羽毛狀的布料，具有吸濕排汗、防異味的特性，讓您全天感覺清新。此外，我們新推出的法式毛圈布系列也受到了顧客的熱烈歡迎。

We're really excited about our robust innovation pipeline this year, which is the result of our strategic focus on product development. In addition, our new media agency is bringing fresh thinking to our consumer centric strategy with a refined focus on full funnel media, efficiency of spend, and traffic driving initiatives.

我們對今年強大的創新管道感到非常興奮，這是我們對產品開發的策略重點的結果。此外，我們的新媒體機構為我們的以消費者為中心的策略帶來了新的思路，重點關注全通路媒體、支出效率和流量驅動計劃。

Through this partnership, we can now measure brand lift monthly to track awareness, consideration, and purchase intent among both existing and new customers. The holiday campaign was successful with aided awareness of 9 points. Overall visits were up 2%, and first-time visits were up 19%.

透過此次合作，我們現在可以每月衡量品牌提升，以追蹤現有客戶和新客戶的認知度、考慮度和購買意願。節慶活動取得了成功，提高了 9 個百分點的知名度。總體訪問量增長了 2%，首次訪問量增長了 19%。

Strategic partnerships and product collaborations including Yellowstone, Good Morning America, Bush Light, and Hams drove brand metrics like awareness and purchase consideration higher, attracted new customers, and drove social commerce growth. We will build on this momentum in 2025 with fresh collaborations, partnerships, and social initiatives that engage consumers and drive sales. These efforts balance brand building and immediate sales impact, attracting more of our target audience and staying true to our authentic can-do spirit.

包括黃石、早安美國、布希之光和火腿在內的戰略合作夥伴關係和產品合作提高了品牌知名度和購買考慮度等指標，吸引了新客戶，並推動了社交商務的成長。2025 年，我們將在此基礎上進一步加強合作、建立夥伴關係和社會舉措，以吸引消費者並推動銷售。這些努力平衡了品牌建立和直接的銷售影響，吸引了更多的目標受眾，並忠於我們真正的敢做敢為的精神。

Let me update you on our inventory and financial position. With the strong unit sales between Black Friday and Cyber Monday combined with our strategic decision to pack and hold certain core fall winter products, our sequential inventory position at the end of February improved with high in stock on year-round items, higher newness levels in our assortment, and percentage of clearance inventory in line with last year.

讓我向您通報一下我們的庫存和財務狀況。由於黑色星期五和網路星期一之間的強勁單位銷售，加上我們包裝和保留某些核心秋冬產品的戰略決策，我們 2 月底的連續庫存狀況有所改善，全年商品庫存充足，產品種類新穎程度更高，清倉庫存百分比與去年持平。

Looking ahead to fiscal 2025, we're focused on driving higher quality sales, which means reduced unit sales matched with lower inventory receipts, driving improved inventory turns, AURs, and margins. Importantly, we finished 2024 in a strong financial position, debt free with positive cash and $103 million in liquidity, which gives us the flexibility to manage the business.

展望 2025 財年，我們專注於推動更高品質的銷售，這意味著減少單位銷售額與降低庫存收貨量相匹配，從而提高庫存週轉率、AUR 和利潤率。重要的是，到 2024 年，我們的財務狀況良好，無債務，現金為正，流動資金為 1.03 億美元，這使我們能夠靈活地管理業務。

As I said earlier, we're not satisfied with our most recent results. I want to reiterate the team's commitment to improving our results and our steadfast in executing our strategic initiatives. These initiatives are beginning to yield measurable benefits. And while there is much work ahead of us, we've made significant progress on our foundational investments. We are seeing tangible improvements in our logistics network, product development capabilities, and digital experience.

正如我之前所說，我們對最近的結果並不滿意。我想重申團隊對改善績效的承諾以及我們堅定執行策略措施的決心。這些措施開始產生顯著效益。儘管我們還有很多工作要做，但我們在基礎投資方面已經取得了重大進展。我們的物流網絡、產品開發能力和數位體驗都得到了實際的改善。

I remain incredibly proud of our team's unwavering dedication to operating with excellence, agility, and a customer first mindset, always celebrating the can do spirit that defines our brand. We'll continue to focus on driving operational excellence, maximizing returns from our strategic investments, and prudently managing our business for profitable growth.

我仍然為我們團隊堅定不移地致力於以卓越、敏捷和客戶至上的心態運營而感到無比自豪，始終頌揚定義我們品牌的積極進取精神。我們將繼續致力於推動卓越運營，最大限度地提高策略投資的回報，並審慎管理我們的業務以實現獲利成長。

Before I turn it over to Heena, as you might have read in this morning's press release, I've announced my retirement as President and Chief Executive Officer and as a board member effective April 25, 2025. To assist with a seamless transition, Steve Schlect, founder and Chairman of the Board, will take over the day to day operations effective March 14, 2025.

在將權力移交給 Heena 之前，正如您可能在今天早上的新聞稿中讀到的那樣，我宣布將於 2025 年 4 月 25 日起辭去總裁兼首席執行官以及董事會成員的職務。為了協助順利過渡，創辦人兼董事會主席 Steve Schlect 將從 2025 年 3 月 14 日起接手日常營運。

It has been a privilege to serve as President and CEO and member of the Board of Directors of Duluth Trading. I'm humbled and proud of what our team has accomplished and the progress we have made. Working with such talented and passionate team members has been an honor, and I believe the future of the company is bright.

我很榮幸能夠擔任 Duluth Trading 的總裁兼執行長以及董事會成員。我對我們團隊所取得的成就和進步感到謙卑和自豪。能夠與如此才華橫溢、充滿熱情的團隊成員一起工作是我的榮幸，我相信公司的未來是光明的。

Finally, I want to thank Steve sincerely for his support and partnership over the course of my tenure. Now, I'll turn the call over to Heena.

最後，我要真誠感謝史蒂夫在我任職期間給予的支持和合作。現在，我將把電話轉給 Heena。

Thanks, Sam, and good morning. I would like to thank Sam for his partnership over the last year, and I wish him all the best in his retirement. As Sam discussed, our fourth quarter results did not meet our expectations. Promotional adjustments after Cyber Monday reduced top line while limiting gross margin pressure. However, we finished the quarter with higher quality inventory. No debt and $103 million in liquidity.

謝謝，山姆，早安。我要感謝 Sam 在過去一年中的合作，並祝他退休後一切順利。正如 Sam 所討論的，我們的第四季業績並沒有達到我們的預期。網路星期一之後的促銷調整降低了營業額，但限制了毛利率壓力。然而，我們在本季結束時庫存品質更高。無債務，流動資金 1.03 億美元。

Looking ahead to 2025, we will leverage the advancements made to our strategic initiatives and are sharpening our focus on execution to enhance our operational performance, now providing further details on our Q4 results.

展望 2025 年，我們將利用策略舉措所取得的進步，並更加重視執行，以提高我們的營運績效，現在提供有關第四季度業績的更多詳細資訊。

Today we reported fourth quarter 2024 net sales of $241.3 million, down 1.8%. A reported EPS loss is $0.17. An adjusted EPS loss is $0.04. Adjustments to EPS include $3 million in software impairment charges and $1.8 million valuation allowance on a deferred tax asset. Adjusted EBITDA for the quarter was $8.5 million.

今天我們報告 2024 年第四季淨銷售額為 2.413 億美元，下降 1.8%。報告的每股收益損失為 0.17 美元。調整後的每股盈餘虧損為 0.04 美元。每股盈餘調整包括 300 萬美元的軟體減損費用和 180 萬美元的遞延稅務資產估值準備金。本季調整後的 EBITDA 為 850 萬美元。

Starting with the top line, our Q4 2024 net sales declined 1.8% to $241.3 million, including a benefit of 230 basis points from the fifty-third week. Direct channel sales were flat as a decrease in web traffic was offset by a 30 basis points increase in site conversion and 3% growth in AOB.

從營收開始，我們 2024 年第四季的淨銷售額下降 1.8% 至 2.413 億美元，其中第 53 週的收益為 230 個基點。直接通路銷售額持平，因為網站流量的下降被網站轉換率的 30 個基點的成長和 AOB 的 3% 的成長所抵消。

Retail sales declined 6.9%, driven by lower foot traffic and lower AOB, with sharper conversion flat to last year. Mobile sales grew 4% year over year, driven by a 50 basis points improvement in conversion. Mobile also continues to be a top sales channel with a penetration increase over last year.

零售額下降 6.9%，原因是客流量減少和 AOB 下降，轉換率與去年持平。行動銷售額年增 4%，這得益於轉換率提高 50 個基點。行動裝置持續成為最主要的銷售管道，其滲透率較去年同期有所提高。

Moving on to gross margin for the fourth quarter, our gross margin contracted 410 basis points driven by an AUR decline of 8.9% as we drove unit sales and reduced inventory levels. Importantly, through our direct from factory sourcing initiative, we continue to realize improved product costs.

談到第四季度的毛利率，由於我們推動了單位銷售並降低了庫存水平，我們的毛利率下降了 410 個基點，原因是 AUR 下降了 8.9%。重要的是，透過我們的直接從工廠採購計劃，我們繼續實現產品成本的改善。

Our SG&A expenses in the fourth quarter increased 1.5% to $110.7 million. Excluding $3 million of software impairment charges, adjusted SG&A decreased 1.3% to $107.7 million compared to $109.1 million in the same period a year ago.

我們第四季的銷售、一般及行政費用成長 1.5%，達到 1.107 億美元。不包括 300 萬美元的軟體減損費用，調整後的銷售、一般及行政費用下降 1.3% 至 1.077 億美元，去年同期為 1.091 億美元。

As a percentage of net sales, SG&A expenses increased to 45.9%, and adjusted SG&A increased to 44.6% compared to 44.4% last year, primarily driven by lower advertising spend offset by deleverage in overhead costs.

作為淨銷售額的百分比，銷售、一般及行政費用增加至 45.9%，調整後的銷售、一般及行政費用增加至 44.6%，而去年同期為 44.4%，這主要是由於廣告支出減少，但間接成本去槓桿化抵消了這一影響。

A Q4 adjusted net loss was $1.5 million or $0.04 per diluted share compared to net income of $6.8 million or $0.21 per diluted share last year. Adjusted EBITDA was $8.5 million.

第四季調整後淨虧損為 150 萬美元，即每股攤薄虧損 0.04 美元，而去年淨收入為 680 萬美元，即每股攤薄虧損 0.21 美元。調整後的 EBITDA 為 850 萬美元。

Inventory increased by $41 million year over year, ending at $166.5 million, a 32% increase. We are comfortable with the quality and level of our inventory position entering the new fiscal year with 90% in core and current products.

庫存年增 4,100 萬美元，最終達到 1.665 億美元，成長 32%。進入新財年，我們對庫存品質和水準感到滿意，其中 90% 為核心產品和現有產品。

The key drivers of the year on year increase were 68% or $28 million of the increase was in core year-round products. And $7 million was in in transit inventory due to our strategic shift from using a sourcing agent to buying directly from factories. We ended the year with a healthy and improved clearance inventory mix of 10% compared to 11% last year.

同比成長的主要驅動力是 68% 或 2800 萬美元的成長來自核心全年產品。由於我們的策略轉變，從使用採購代理到直接從工廠採購，因此有價值 700 萬美元的庫存處於運輸途中。今年年底，我們的清倉庫存結構健康且有所改善，為 10%，而去年為 11%。

We invested 4.4 million in capital expenditures this quarter, primarily for systems infrastructure, down significantly from 8.8 million in the prior year.

本季我們的資本支出為 440 萬美元，主要用於系統基礎設施，較前一年的 880 萬美元大幅下降。

We ended the quarter with zero borrowing on our line of credit. We had $3.3 million of cash and cash equivalents at the end of the quarter. We amended our revolving credit facility from $200 million to $100 million to match our needs for seasonal inventory bills and a more normalized rate of capital expenditures. Our balance sheet remains strong with liquidity of $103.3 million.

本季結束時，我們的信用額度借款為零。截至本季末，我們的現金和現金等價物為 330 萬美元。我們將循環信貸額度從 2 億美元修改為 1 億美元，以滿足季節性庫存帳單的需求以及更正常的資本支出率。我們的資產負債表依然強勁，流動性為 1.033 億美元。

Now turning to a full year 2024 results, we delivered sales of $626.6 million, down 3.1% versus prior year, including approximate benefits of 90 basis points from the fifty-third week and 70 basis points from Costco.

現在來看 2024 年全年業績，我們的銷售額為 6.266 億美元，比上年下降 3.1%，其中包括第 53 週約 90 個基點的收益和 Costco 約 70 個基點的收益。

Our full year gross margin ended at 49.2%, down 110 basis points, as improvement in product costs from our direct to factory sourcing initiative was more than offset by deeper promotions to reduce excess seasonal inventory.

我們的全年毛利率為 49.2%，下降了 110 個基點，因為我們的工廠直接採購計劃帶來的產品成本改善被減少過剩季節性庫存的深度促銷所抵消。

Our full year SG&A as reported, was $337.6 million and 53.9% of sales. One-time adjustments included a $3 million software impairment write-off.

據報道，我們全年銷售、一般及行政費用為 3.376 億美元，佔銷售額的 53.9%。一次性調整包括 300 萬美元的軟體減損註銷。

As a result, adjusted SG&A for the year was $334.6 million and 53.4% of sales, deleveraging by 170 basis points. Advertising as a percent of sales de leveraged by 10 basis points to 10.8% of sales, while shipping and fulfillment costs were favorable by 40 basis points from improved carrier mix and savings from the Adairsville fulfillment Center.

因此，本年度調整後的銷售、一般及行政費用為 3.346 億美元，佔銷售額的 53.4%，去槓桿率為 170 個基點。廣告佔銷售額的百分比下降了 10 個基點，降至 10.8%，而運輸和履行成本則因承運商組合改善和阿代爾斯維爾履行中心的成本節省而降低了 40 個基點。

This was offset by higher fixed costs from strategic investments. Our capital expenditures were $17.4 million driven by investments in technology infrastructure, including Manhattan Omni fulfillment software.

這被戰略投資的較高固定成本所抵消。我們的資本支出為 1,740 萬美元，主要來自對技術基礎設施的投資，包括曼哈頓 Omni 履行軟體。

We had a net loss of 43.7 million and adjusted net loss of 23.6 million compared to a net loss of $9.9 million in the prior year. Adjusted net loss of$ 23.6 million excludes $7.7 million of restructuring expense for the Dubuque fulfillment center closure, $11.8 million valuation allowance on our deferred tax asset, and $3 million of software impairment write-off.

我們的淨虧損為 4,370 萬美元，調整後淨虧損為 2,360 萬美元，而去年的淨虧損為 990 萬美元。調整後的淨虧損為 2,360 萬美元，不包括杜比克配送中心關閉所產生的 770 萬美元重組費用、遞延稅項資產的 1,180 萬美元估值準備金以及 300 萬美元的軟體減損註銷。

Sales tax from previous years was restated to those years and reflected in the 2024 Beginning retained earnings balance.

前幾年的銷售稅已重述至當年，並反映在 2024 年初留存收益餘額。

We reported EPS loss of $1.31 and adjusted EPS loss of $0.71. Our adjusted EBITDA was $14.6 million at 2.3% of net sales. Our balance sheet remains strong, with no debt on our revolving credit facility and liquidity of $103.3 million.

我們報告每股收益虧損 1.31 美元，調整後每股收益虧損 0.71 美元。我們的調整後 EBITDA 為 1,460 萬美元，佔淨銷售額的 2.3%。我們的資產負債表依然強勁，循環信貸額度上沒有債務，流動資金為 1.033 億美元。

Now turning to our outlook for fiscal year 2025, the full year net sales guidance for 2025 is projected to be between $570 million and $595 million. This projection considers several factors including macroeconomic and consumer uncertainty, adjustments to promotional strategies to enhance brand and price integrity, the closure of one store in the first half of the year, the opening of two new stores in the second half. And an expanded order from Costco for Father's Day compared to the previous year. Additionally, it is important to note that 2025 is a 52-week year compared to 53-weeks in the prior year.

現在回顧我們對 2025 財年的展望，預計 2025 年全年淨銷售額將在 5.7 億美元至 5.95 億美元之間。該預測考慮了多種因素，包括宏觀經濟和消費者的不確定性、為增強品牌和價格完整性而調整的促銷策略、上半年關閉一家門市、下半年開設兩家新門市。與去年相比，Costco 的父親節訂單有所擴大。此外，值得注意的是，2025 年為 52 週，而前一年為 53 週。

We anticipate approximately 300 basis points of gross margin expansion due to a combination of factors including increased direct sourcing from factories, less frequent and more targeted promotions, and improved inventory control. We expect inventory levels to normalize in the second half of the year with the rebalancing of sales and inventory receipts. SG&A is projected to deleverage by up to 200 basis points as improvements in shipping and fulfillment costs and reduced fixed costs from the Dubuque fulfillment center closure are offset by overhead de leverage from lower sales.

我們預計毛利率將擴大約 300 個基點，這得益於多種因素，包括工廠直接採購增加、促銷頻率降低但更有針對性以及庫存控制改善。我們預計，隨著銷售額和庫存收貨的重新平衡，庫存水準將在下半年恢復正常。由於運輸和配送成本的改善以及杜比克配送中心關閉帶來的固定成本的降低被銷售額下降帶來的間接費用去槓桿所抵消，預計銷售、一般和行政費用將去槓桿高達 200 個基點。

We have planned capital expenditures of approximately $20 million to fund store openings and systems infrastructure. To summarize our full year outlook, we are projecting net sales of approximately $570 million to $595 million and adjusted EBITDA of $20 million to $25 million. Duluth is undergoing a multi-faceted transformation encompassing strategic priorities, structural enhancements, and operational improvements. In 2024, we continued to realize benefits from our AUD additional investment and direct from factory sourcing initiative. Additionally, we completed a comprehensive benchmarking study, defined our real estate portfolio strategy, implemented fulfillment center network optimization phase 2, and enhanced our enterprise planning.

我們計劃投入約 2000 萬美元的資本支出來資助商店開業和系統基礎設施建設。總結我們的全年展望，我們預計淨銷售額約為 5.7 億美元至 5.95 億美元，調整後的 EBITDA 為 2,000 萬美元至 2,500 萬美元。德盧斯正在經歷多方面的轉型，包括策略重點、結構增強和營運改善。2024 年，我們繼續從澳元額外投資和工廠直接採購計畫中獲得收益。此外，我們完成了全面的基準研究，確定了我們的房地產投資組合策略，實施了履行中心網路優化第二階段，並加強了我們的企業規劃。

However, we faced operational challenges with inventory and logistics. In 2024 we are prioritizing two key areas resetting the depth and frequency of promotions through enhanced inventory management and improving operational execution. These efforts will enable us to fully realize the benefits of the progress we are making on our strategic initiatives and structural enhancements.

然而，我們在庫存和物流方面面臨營運挑戰。2024年，我們將優先考慮兩個關鍵領域：透過加強庫存管理重新設定促銷的深度和頻率以及改善營運執行。這些努力將使我們能夠充分實現我們在策略性舉措和結構改進方面所取得的進展所帶來的好處。

To summarize, we are transforming our business to achieve sustainable, profitable growth. In 2024, the team made significant progress on strategic and structural initiatives, ending the year with no debt, strong liquidity, and high quality of inventory. Our focus in 2025 will be on resetting price integrity, enhanced inventory management, and operational execution.

總而言之，我們正在轉變業務以實現可持續的獲利成長。2024年，團隊在策略和結構舉措方面取得了重大進展，年底時沒有債務，流動性強，庫存品質高。2025 年，我們的重點將放在重塑價格完整性、加強庫存管理和營運執行。

I will now turn the call over to Steve.

現在我將電話轉給史蒂夫。

Thank you, Heena. On behalf of the Board of Directors, I want to thank Sam for his years of service and dedication and wish him the absolute best in his upcoming retirement. Sam's career in retail began more than 30 years ago as a young sales associate on the Nordstrom shoe floor.

謝謝你，Heena。我謹代表董事會感謝 Sam 多年的服務和奉獻，並祝他在即將到來的退休生活中一切順利。薩姆的零售生涯始於 30 多年前，當時他是諾德斯特龍 (Nordstrom) 鞋店的年輕銷售助理。

His passion for people, the customer experience, product knowledge, and operational excellence have served him well throughout his career. Sam and I share a deep commitment to Duluth Trading Company's success, and I appreciate Sam's many contributions to our company, including his leadership in creating and advancing the big damn blueprint. These efforts have established important foundation foundational building blocks for our company's future.

他對人的熱情、客戶體驗、產品知識和卓越的營運能力使他在整個職業生涯中受益匪淺。薩姆和我都對德盧斯貿易公司的成功抱有堅定的承諾，我感謝薩姆對我們公司的許多貢獻，包括他在創建和推進宏偉藍圖方面的領導作用。這些努力為我們公司的未來奠定了重要的基礎和基石。

As Sam mentioned earlier, to assist with a seamless transition, I will be stepping in to take over the day to day operations while we move forward with our permanent CEO search. Thank you, Sam and Heena, and thank you all for joining today's call.

正如 Sam 之前提到的，為了協助順利過渡，我將介入接管日常運營，同時我們將繼續尋找永久的執行長。謝謝 Sam 和 Heena，也謝謝大家參加今天的電話會議。

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。