Dillard Watt's questions to HG Holdings (STLY) leadership • Q4 2015
Question
Dillard Watt from Stifel inquired about the expected timeline for new product floor samples to be placed at retail and the basis for management's confidence in a subsequent rebound in orders. He also asked for details on the company's inventory stocking philosophy.
Answer
President and CEO Glenn Prillaman explained that new adult and Stone & Leigh products are currently in transit and will hit retail floors during Q1, with a significant retail impact expected in Q2. He noted that confidence stems from the new products offering a 20% lower retail price with improved style and quality, a benefit of the new Starwood manufacturing alliance. Prillaman clarified that having inventory visible in both domestic and Asian warehouses provides the necessary confidence for retailers to place orders.