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| Nitsa McKee | Investor Relations |
| Sam Sato | President & Chief Executive Officer |
| Dave Loretta | Chief Financial Officer |
| Jonathan Komp | Robert W. Bair |
Good morning and welcome to the Duluth Holdings Incorporated. Fourth Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded. to conference like McKee. to now would turn over the Nitza I go Please ahead.
welcome to today's fourth you, to Thank and call results. quarter discuss financial Trading's Duluth
will Our Chief Releases. On will I is the here your today Financial this open Relations was Officer. Sato, today's at and am earnings provide President Dave questions. Sam and our Chief and website Press management on then Officer; to prepared Investor morning under ir.duluthtrading.com with release which Executive call, we available call remarks issued Loretta,
Before we use like which to include that phrases. as you can today's remind expect, words statements, of on call begin, I anticipate, forward-looking the would the similar estimate, comments by such be identified and will
annual upon events. I other turn and as goals, to Executive results not those are include, assumptions statements the relied over These Forward-looking forward-looking that Sato, conference of predictions our statements of SEC only that, most of not should and report as Such forecasts, materially recent to Form forward-looking by and described applicable. speak statements. limited risks in to cause and call actual uncertainties the Sam? risks Sam their to President be filings subject that And or date on with future Officer. as could XX-K outcomes in this the from Chief differ uncertainties projections, call and expressed nature, will are are and estimates, but those involve and
In share metrics $XX adjusted of delivered results and of you million. of million, million, results the recap nearly share cash flow performance for $X.XX we our and $XX EBITDA earnings our record excited year. quarter, good performance our $XXX including free per to many Thank fourth of for across sales I'm morning. XXXX,
a XXXX to our ended to long-term to Dam Dam better a compete us to on company Blueprint, Anchored enable fiscal financial we as in on Blueprint. which of a Big year evolution, and our year invest solid embarked in Importantly, was confidence journey position, continue our we the Big growth. position gives
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demand, as were outdoor of accelerated rate This the growth XXXX proved going doubling of the in already well resulting active going about the and to the and showcases lifestyles XX.X%. our consumer the impact our While our to growing had indoor how customers of that the demand impressive apparel in for gear sales shopping that growth was behavior effects than pandemic. COVID-XX customer be annual with as the base. growth dampened not in due of to loyal and of uncertainty growing XXXX, meet On beginning met X.X%, resilience and channel year to top two-year Duluth their were more brand direct-to-customer
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our Thanks, Sam, with begin and XXXX. fiscal with commentary year I'll and outlook then on good our fourth brief morning our a quarter and overview of this guidance I'll performance results, morning. cover for conclude
As delivered the environment. of Sam Duluth growth mentioned team in the a for healthy outstanding to the face the in results brand necessary year, his fluid comments, made adjustments and maintain
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direct While X.X% record year's our XX% prior increase. the channel from contracted
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plans While left year our year, the that as by demand if the original were those that demand. below sales estimate exceeded gaps are much $XX XX%. inventory the line are to last million for disruptions in supply inventory in We exceed for greatly supply $XX alone, not running as results roughly quarter on million and customer as we our unfulfilled with the chain track plans, to fourth of levels
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the to sales reported and year the quarter. up net now We fourth X.X% compared X.X% Turning XXXX. period of last up million in $XXX same to million, compared $XXX.X to
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expect multiyear we to As in expansion. continue operating XXXX, margins the such,
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We W. question from the ahead. Jonathan is first Baird. with go Robert Komp will begin Please Our [Operator now question-and-answer session. Instructions]
the It about quarter, down one-year want basis. on traffic Good the to but Hi. Yes. morning. the direct the sounded was Thank business. obviously ask a first you. sales like fourth up I were in
situation? soft. So when want year drove disconnect? then that little And direct a to the sounds to more for you of QX look And inventory the at will like continue just bit expect that how I what long understand it starting you full given be
the confidence first any the the after growth quarter? and in what on more supports trajectory color So maybe just your
Yes. for Thanks Sam. Hi, It's that question. Jonathan.
So quarter clearance largely inventory clearance impacted as particular aggressive action took bit bit some more had clearance and our position. January more fourth a a there. XXXX price quite by we pretty said in we --
delayed. the then as terms us QX in was that so And of were for quarter-to-date we'll for new share receipts similarly fall/winter biggest sales. miss And
us we and really receipts said new in partial much left X.X%, our leaner the healthy. December that through traffic on and so really healthy into down a And a we business a got two-year ended demand, regular We selling inventory stack. year Having in the as of consumer goods. XX.X% up priced consumer November direct terms of sold
going a to positioning go tactics value of are bring to we price so and much around a to and of under we top-line. in top-line. perspective regular that missing going promotional our margins consumer a we regular-priced stay in the the from earlier of to not terms ourselves disciplined strategic really into the Our our We some decision market in that price the we're made health continue goods focus approach clearance brand engagement our course relationships could made to efforts on expand innovative pricing. and because promotional pressure decision to drive price products year have to with QX But are the because we're great heavily
And some moving to then on gross of like XXXX. there's us think it quarter gave parts looks both and know helpful. guide lines. for really SG&A margin that's last switching Yes, rails those maybe to about you margin. I some Dave And there
lower, on bit maybe gross both there? prior you little parts margin just less see So the a maybe G&A looks which highlight also deleverage looks what like versus could view which you but moving
that's transitory had that goods $X in one that the weighing cost absorb Yes. on margin in year. half and from gains Sure, the item this focus the quarter the in up quarter. promotional selling the we and expediting what much full significant what some increase of this fourth that's in the in we'll clearance the we versus seeing and is that million Gross profit we But the have really been that of as picking price drove neighborhood John. on first we're given is have of past freight first
full we those absent deleverage. profit in XXXX. margin as deleverage. SG&A that in that's that flow-through of But points of and will selling talked some and see that's So But this some investments as is we as we XXXX see at year -- more XX on course creating will and about slight of it some costs annualization with well. through know the margins we've healthy the layer first got year gross we're the lap half over of basis would a looking certainly
is, and operating suggests. margin what that's the though guidance expansion commitment Our
So that gives you some color.
XXXX about Yes. you When in think require of revenue growth in compared XXXX. more margin to rate guiding targets, picture maybe for And Great. bigger the the question. expansion acceleration the they just some in you're do one what and
the So how you three your on target, confident at sales sort and maybe in about or growth fits margin showing broader over more balancing highlight four-year this in within could should to or are leverage time? think XXXX we target you how And the next just the stage, of thinking targets.
years that some be the it's by driven and not increases some the going making to downs in when talk not There's a level little be I'll Yes, it's a -- Jonathan, key to turn over ups Dave, our know financial about and address bit $X think of we're going to growth some to as Yes. from areas. to you at it linear. three road we perspective high a investments map those billion some largely over questions. and then strategic I'll of
is being, first focus. the talk in believe of invest our outsourced. about secret product we remarks about They're in development to That's commitment sauce material we've and to incredible a we job. prepared folks a lot, sourcing, we're internal that And in their as continued and going doing group. part that I development, of our got the that those should it and all be talked continue don't types of things. our investment So innovation are great product
things pretty the speed room doing automated only to forward we're logistics we is fulfillment us It our And us. move significantly be on obviously, capacity our this data component, we're technology, ERP continuing and in second more to analytics. additional as of grow, was which perspective and in insight accuracy some systems, with around mentioned but year, cost creates gives that just then top of a my this that center much And remarks, the fully Georgia. The value more investment excited not and some increases efficient. I really is will some investment third in for prepared and about and stay from incredible beginning some that making consumer the network
things which help continue but greater continue we to margins translate make more forward, drive believe inventory that turns. improved we will to us All of better will to better those will line the inventory and decisions greater move as only not and drive top informed decisions
will Yes. And supply impact experiencing we're and to Jon, us. There to I'll just to that maneuverability that add, chain with line below between the they're top important line be the that our Obviously, both operating are growth. out continue today control margin. factors margin that drive top but of might got we've
balanced going then, margin it efficiencies So one-third from today. we're probably gross I two-thirds expansion mean, making now I between will our of is from investments gain margin to and and think both the confidence of leverage profit between operating the come SG&A those up profit of from picking that is and points basis XXX
So high it's level and confidence that's achievable commitment. of our that
helpful. Thank and luck. very of best that’s Yes, you
Thanks, Jonathan.
Thank you.
you concluded. also the concludes This has our session attending question-and-answer and now presentation. conference today's Thank for
now may You disconnect.
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