Duluth (DLTH) Q4 2024 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Wed, January 7, 2026 astatine 9:18 AM CST 18 min read

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Thursday, March 13, 2025 astatine 9:30 a.m. ET

• President and Chief Executive Officer — Sam Sato

• Senior Vice President and Chief Financial Officer — Heena Agrawal

• Founder and Chairman of the Board — Stephen Schlecht

Sam Sato: Thank you, Nitza, and convey you each for joining today's call. Let maine statesman by sharing our 4th fourth results, starting with the important situation we faced successful fulfilling orders which we addressed with contiguous corrective action. I'll past item the foundational advancement we made successful 2024 connected our Big Dam Blueprint initiatives, strategical enactment designed to alteration the concern and unlock our afloat maturation and nett potential. After reviewing our cardinal absorption areas for fiscal 2025, I'll crook it implicit to Heena to supply a elaborate fiscal update and our outlook for the twelvemonth ahead. Our 4th fourth results fell abbreviated of expectations owed to processing delays astatine our bequest fulfillment center.

Net income declined 1.8% to $241 million, with nonstop transmission income remaining level with accrued mobile penetration portion retail store income decreased 6.9% arsenic postulation declined and shopper conversion held steady. Adjusted EBITDA for the 4th was astir $9 million. Although, we experienced improved show starring into Black Friday week done Cyber Monday, resulting successful grounds income during that period, we subsequently reduced promotional extent and frequence to code the bid backlog and support income quality. This decision, portion operationally indispensable constrained our apical enactment growth. Let maine code the processing delays astatine our bequest Belleville fulfillment center.

Following the surge successful portion request implicit the Black Friday weekend, we importantly depleted inventory units housed successful our highly automated Adairsville center. This resulted successful a higher level of orders being routed to our Belleville facility. Belleville's bid process capableness is considerably little than Adairsville, which yet resulted successful a important backlog successful orders being filled. We've since implemented enhanced operational protocols and readying processes to guarantee that we person optimized portion inventory organisation crossed our fulfillment network. Moving connected to our afloat twelvemonth 2024 results. Net income were $627 cardinal and adjusted EBITDA of $15 million. While we saw benefits from our sourcing initiatives, these gains were offset by little mean portion retail prices.

We maintained our strategical concern successful marketing, supporting our absorption to pull caller customers and fortify relationships with existing ones. We proceed to marque advancement against our strategical initiatives, which we judge are captious to driving maturation and profitability. Let maine commencement by elaborating connected the advancement we've made connected our ongoing translation journey. Our merchandise improvement and sourcing initiatives are delivering meaningful benefits exceeding our archetypal expectations. The displacement to direct-to-factory sourcing is not lone reducing our merchandise costs but fundamentally changing however we bring products to market. We are present capable to present innovative products much often and get them to our customers faster.