Release Date: March 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you discuss the performance of the SKUs added to Target Plus during Black Friday and your plans for adding more SKUs? A: Arturo Rodriguez, CEO: We are focusing on a marquee SKU concept for Target Plus and other channels, emphasizing our best SKUs to understand their performance before expanding. Our Steam mop performed well on Target Plus, and we plan to ramp up more SKUs, especially seasonal products like humidifiers, in the second half of the year.
Q: How does your inventory management work across different platforms like Target Plus? A: Arturo Rodriguez, CEO: Unlike Amazon's FBA model, Target Plus allows us to distribute inventory nationally through our network of nine warehouses. This flexibility means we can sell products across multiple channels without being locked into one platform.
Q: Can you explain the dynamics behind your guidance, particularly the weaker first quarter and stronger fourth quarter? A: Josh Feldman, CFO: Our new product launches and expansion into new marketplaces and brick-and-mortar stores are scheduled for the second half of the year, making us more Q4 heavy compared to Q1.
Q: How are tariffs affecting your pricing strategy and transaction volumes? A: Arturo Rodriguez, CEO: Tariffs have led to a 7-10% price increase on our products. While not all products saw a 20% price hike, we are confident in our ability to adjust and maintain healthy contribution margins despite these challenges.
Q: What are your expectations for long-term growth, and how do new product launches factor into this? A: Arturo Rodriguez, CEO: Our growth strategy includes continuous product launches, channel expansions, and entering new geographies. This approach, combined with the momentum from new products launched in the second half of the year, supports our long-term growth targets.
Q: How is consumer confidence affecting your business, and have you noticed any changes in consumer behavior? A: Arturo Rodriguez, CEO: We haven't seen significant changes in consumer behavior affecting our brands. Our diversified product range across different price points positions us well to handle potential market volatility.
Q: Why does Aterian have a limited presence on eBay, and why allow third-party sellers to sell your products there? A: Arturo Rodriguez, CEO: We focus on other channels like Target Plus for better upside potential. While we do sell some items on eBay, particularly open-box and refurbished products, we prioritize other platforms for new products.
Q: Why is Aterian not more engaged on social media platforms? A: Arturo Rodriguez, CEO: We are ramping up social media efforts, focusing on brand pages rather than corporate accounts. This is part of our roadmap to leverage social media's power for brand strength and consumer engagement.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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