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: Michael Baker - D.A. Davidson & Co. - Analyst
: Okay. Great. Thanks. A couple of questions. One, on the GLP-1 study that you did, which sounds really interesting. Anything, did you learn anything
about, are customers losing enough weight such that they drop out of your big and tall sizing or get to a size where they can shop elsewhere? Just
wondering if you learned anything about that.
Question: Michael Baker - D.A. Davidson & Co. - Analyst
: Yeah. No, that sounds like a great program. Can I just follow up on that then? In the past, you've talked about share and you have some good data
on that. Can you talk about what you're seeing your results this quarter relative to competitors or market share or for the full year, et cetera? In
other words, if you're seeing this GLP-1 issue, both positive and negative, are others in your space seeing something similar?
Question: Jeremy Hamblin - Craig-Hallum Capital Group - Analyst
: I want to start with talking about tariffs, and it's obviously been a big topic du jour. So it sounds like the owned brands, you have fairly limited
exposure, 10 basis points to gross margin. At this point, you've noted some shift in terms of where your customers spending and the types of
brands. But where do you stand in terms of third-party national brands as a percentage of mix today versus your own brands?
And then as you look at those third-party brands, what we're hearing and seeing is that most are indicating they're going to need to take some
price to account for those tariffs. But is that your expectation? How have the negotiations gone thus far as you're looking at 2025?
Question: Jeremy Hamblin - Craig-Hallum Capital Group - Analyst
: Just to clarify, what's the portion of -- what's the part of your mix today that's third-party national brand?
Question: Jeremy Hamblin - Craig-Hallum Capital Group - Analyst
: Got it. And then I wanted to come back to the commentary about you had some success with some promos that were run in December. And you
indicated that it sounds like you might be a little bit more aggressive on that this year in this environment. But I wanted to get a sense for balancing
that challenging environment versus getting some benefit from the promos to traffic trends.
What do you anticipate the potential impact to gross margin to be from -- in 2025, from maybe a slightly more aggressive approach on mixing in
promos along the way?
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MARCH 20, 2025 / 1:00PM, DXLG.OQ - Q4 2024 Destination XL Group Inc Earnings Call
Question: Jeremy Hamblin - Craig-Hallum Capital Group - Analyst
: Got it. And then wanted to come back to just understanding the new rewards program that you're launching here and just get a sense for how
you're going to migrate the legacy program into this one and how -- from the perspective of how this may manifest with your customers and
through financials, any additional color you can share on that?
Question: Jeremy Hamblin - Craig-Hallum Capital Group - Analyst
: Got it. Last one for me is just on your new stores. So it sounds like not quite meeting the metrics that you expected when you made those investments.
Can you provide a little bit more detail on what you're seeing in terms of year-one sales from those new stores or what the run rates look like?
And then also just from a cost perspective, what the average investment or cash outlay looks like here as you get those up and running?
Question: Jeremy Hamblin - Craig-Hallum Capital Group - Analyst
: Got it. Thanks for the color and good luck this year.
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