Release Date: December 10, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide an update on the AVG Vince licensed products and what new categories we might expect next year? A: The licensed products, primarily shoes and cold weather goods, have been performing well. For next year, we will introduce belts and leather goods in the spring, with handbags expected to launch in fall 2025. - David Stefko, Interim Chief Executive Officer
Q: What is the potential for expanding the store base in the US and UK, and how does this impact profitability? A: We see significant opportunities to expand in the US, particularly in the Midwest and Pacific Northwest, based on a study with Cushman & Wakefield. In the UK, we are opening a new store in a prime location. These expansions are expected to drive profitability through full-price selling and strategic inventory investments. - David Stefko, Interim Chief Executive Officer and John Szczepanski, Chief Financial Officer
Q: How is the men's segment performing, particularly with the expansion into Nordstrom stores? A: The men's segment has exceeded 20% of total sales, with positive results from Nordstrom. We are also evaluating the performance of our standalone men's store to inform future strategy. - David Stefko, Interim Chief Executive Officer
Q: Can you elaborate on the financial impact of the transformation plan and full-price selling strategy? A: The transformation plan and full-price selling strategy have led to significant margin improvements. We are investing in the right inventory, which supports balanced offerings and enhances store performance. - John Szczepanski, Chief Financial Officer
Q: What are the expectations for the fourth quarter and full fiscal year 2024? A: For Q4, we expect net sales to be down mid-single digits to up low single digits, with operating margin increasing by 200 to 300 basis points. For the full year, we anticipate a low single-digit decline in net sales and a 25 to 50 basis point increase in adjusted operating margin. - John Szczepanski, Chief Financial Officer
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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