The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Josh Herrity - Telsey Advisory Group LLC - Analyst
: Hi, good morning. Just wanted to follow up here on the gross margin performance, continues to be impressive. In the fourth quarter of that
550-basis-point improvement, how much do we think about is driven by full-price selling and better assortment and response to that assortment,
and how much is more external factors, supply chain, freight, et cetera?
And then as we think about FY24, what do you see as the gross margin opportunities in the year ahead? And then, I guess, as perhaps a corollary
to that, how should we think about the shaping of the new licensing businesses flowing through the P&L as the year progresses, and how that
shapes the top line and the margin as well? Thank you.
Question: Josh Herrity - Telsey Advisory Group LLC - Analyst
: That's helpful. Thank you. Good luck.
Question: Eric Beder - Small Cap Consumer Research LLC - Analyst
: Good morning.
Question: Eric Beder - Small Cap Consumer Research LLC - Analyst
: Hi. Can we talk a little bit about the marketplaces? A, is there potential to add other marketplaces to the business? And b, how are you seeing the
returns as you start to segment? You previously talked about how you can now shift product between the different marketplaces. What are the
opportunities there in terms of margin?
Question: Eric Beder - Small Cap Consumer Research LLC - Analyst
: Actually, a little bit of a related question. So, you talked about controlling the inventory and having it in your warehouse mail to ship it. How does
licensing flow through that? How do you control the licensing product and how they show themselves and how the product goes through as you
expand the categories and other pieces here?
Question: Eric Beder - Small Cap Consumer Research LLC - Analyst
: Right. Last question. Inventories, you've done an incredible job producing the amount of inventories. How should we be thinking about, a, what
is ideal; and, b, what should be thinking about inventory levels into 2024? Thank you.
Question: Eric Beder - Small Cap Consumer Research LLC - Analyst
: Okay. Congrats, and good luck for 2024.
Question: Alex Furhman - Craig-Hallum Capital Group LLC - Analyst
: Great. Thanks, guys, for taking my question, and congratulations on everything you guys have accomplished in 2023 and so far this year. I was
wondering if I could ask a little bit about the licensing business as well. Just thinking about your outlook for the full year of a low- to mid-single-digit
increase in GMV, is that more or less consistent with what you're expecting to see in footwear and kids, or should those categories perhaps accelerate
more over time in future years as your licensees start to explore other channels for those categories?
Question: Alex Furhman - Craig-Hallum Capital Group LLC - Analyst
: Excellent. Thanks, Andrew.
Question: Alex Furhman - Craig-Hallum Capital Group LLC - Analyst
: Great. That's really helpful. Thanks, Andrew. And then can you talk a little bit about what your license business might look like in the club channel?
Imagine that would be across other categories beyond just footwear and children?
Question: Alex Furhman - Craig-Hallum Capital Group LLC - Analyst
: Great. That's really helpful. Thank you very much.
| 
