Avery Dennison Corporation (NYSE:AVY) Q4 2023 Earnings Call Transcript

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And so we’ve got two things factored into that, George. One is some of the newer programs that we’re seeing in apparel that started in ’23 and are rolling out a little bit in ’24, more likely in the back half ’24. And then second is the recovery in the apparel base volumes, which also has an impact on the base IL volumes from apparel. I’ll give you an example of just one of those. We’re seeing a couple of pieces, both in apparel where we’re extending beyond the base case of just inventory accuracy that historically been there. I talked previously, George, for example, Inditex is continuing to see the benefit of loss prevention from the technology. They will be continuing to roll it up, not just in that one single brand, but in other brands as we move forward.

We’re also seeing the extension of the technology from inventory accuracy in a large European performance brand and they’re looking to leverage that supply chain efficiency, specifically around case verification, that’s in flight at the moment. And is the third anecdote as well that Mike shed some light on this. It’s not just that the supply chain or case efficiency or an inventory accuracy benefit we’re seeing. We’re also helping connect consumers and customers in a better way. We have worked with a number of professional sports franchises around the world, as you know, under our Embelex or external embellishment platform. And one of those, for example, the 49ers, we are working with them to embed digital triggers and sensors, whether it’s UHF NHF or otherwise in their garments so that they can better engage with their consumers and drive more fan equity and franchise engagement and we recently had an example with them where we did an exercise that allowed consumers to connect on the patch that we provided, be taken to a website where they had personalized measures from Joe Montana as an example, linking together heroes the actual franchise and consumers in a better way.

So addressing all of these problems that we think are out there ranging from efficiency through waste in, for example, grocery retail, through circularity and sustainability and then finally on to consumer connection. I think we’re having multiple pieces in flight that will enable us to enable us to have great confidence in our ability to grow this particular platform substantially over the years to come.

Operator: Mr. Stander, there are no further questions at this time. I will now turn the call back to you for any closing remarks.

Deon Stander: Thank you, Frank, and thank you all for joining the call today. While the environment remains dynamic, we are confident in our position and prospects and our ability to deliver GDP plus growth and top quartile returns over the long term. I’m also pleased to announce that we’re planning to host an Investor Day on September 18 in New York City to provide a strategy update. I hope to see you all there. Thank you very much, everyone.

Operator: Ladies and gentlemen, that does conclude the conference call for today. We thank you for your participation and ask that you please disconnect your line. Thank you.

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