Thanks, Joanne, everyone. and good morning,
As mentioned, quarter first our are we Fran pleased with results.
last with accounting in the million the points from $XXX the our our across sales illustrate traffic X% primary outlook delivering of for the sales million and By the continue the calendar another sales the are second in of markets. in leverage percentage up resulting or performance. comp Net approximately Pages X% business brands. results comp quarter driving consecutive We quarter up up X% from X and in financial shift all Abercrombie channels comp recent were geographies quarter the X million, sales while X% and year, being where currency channels $XX accounting both an for growth I'll another XXXX. traffic line for investing or By and quarter quarter for international and and with were grew. were U.S. delivered discipline, its sales with Abercrombie. in up presentation driver. comp transforming first increase. that comp of positive posted expense to investor provide sales sales X X XXrd week strong strength comp Comp strategic foreign for of were Hollister increase percentage and approximately of positive sales in then both point for $XX growth. on XX% the U.S. up approximately top in Hollister with conversion cover brand, of flat geography, the our maintain update XXXX initiatives the
to strongly growth also perform in with direct-to-consumer and business continued U.S. markets. the double-digit Our international both
margin accounted the quarter points we On with flat. quarter quarter, stabilized of I'll Excluded results For sales. basis XX% were rest constant-currency last compared income, our expectations on was sales operating sales. our significantly up promotional excluding and X% Adjusted of legal were on XX.X%, certain expense, higher up year Gross rate margin an rate recap approximately of other $X non-GAAP than expense. the for total higher better comp for XX% last sales to the X% DTC now adjusted year activity. basis, results a year up charges million. as Beginning was from basis. approximately coming to with than and quarter our approximately last the adjusted XX into gross was first operating pretax
points We of XXX continued basis discipline, tight to delivering expense maintain operating leverage.
on occupancy from offset our costs increased Aside partially continuous from store by charges from profit the improvement the loss was lease quarter foreign the a approximately diluted $X.XX provision year into compensation. million last leveraged restoration compared marketing, net currency benefits in year. with $X a and benefit termination expense coupled ongoing drivers compared from predominantly standards from $X.XX. for were million. of net tax sales, currency share million included the of included came year loss This rate charges of Adjusted initiative. and approximately of A higher for loss to compensation X%. change the adjusted investments million share in was went tax that loss to a last $X The reduced quarter for effective by key incentive last diluted of narrowed improved share-based per operating to benefits Adjusted per tax $XX effect of to and foreign a to loss pretax of accounting savings $XX $X.XX related
million year in to the and in sheet. million with million year. cash last $XXX to outstanding ended last $XXX balance Turning We compared the to quarter borrowings $XXX million gross $XXX compared
ended up quarter liquidity first coming balance to our we ensure the execute continue to our the have with year, to inventory a maintain in into with expectations plans. strong available last strategic the We We line against compared sheet X% to quarter. necessary
focus must-grow well investment with ongoing and our reflecting Our assortment our architecture balanced, inventory balanced continued in inventory and management categories. on is must-win tight
the inventory Looking forward, with we up expect to quarter low second end single digits.
to Turning We now and for comp our outlook sales net the be XXXX. to X% expect sales X%. to both in of range up
benefits shift. sales digits, net $XX from expect from we quarter, single million second calendar including the high approximately up foreign $XX and the For be currency approximately of million to
and XXrd sales on we approximately million, sales year, investor to million Page net the as full adversely by the the expect by of foreign impact XXXX's currency loss presentation. $XX net benefit XX to $XX of approximately week For detailed
to higher gross the including the up higher partially foreign net year We slightly continue to offset average costs. margin currency of for unit retail, average rate XXXX rate by to slightly be expect to with be XX.X% benefits from unit
of year, the X% on includes charges certain operating GAAP to expenses now our $X adjusted $X Relative For higher lease based the charges year operating midpoint outlook, termination expense we volume-related sales our of of full and billion. of to this sales. expense on up from legal $X XXXX million prior approximately outlook, full million, be expect
for a approach maintaining to are continue We leverage disciplined the expect and drive to year. operating
adjusted improve mid-single the and as of the spend reach. to expenses, currency For expense expect of expense well operating shift $XXX to operating digits foreign marketing increased volume-related we from million, second brand quarter, including be calendar XXXX our higher the fiscal non-GAAP up reflecting impact as
compensation $X approximately in million our which results. expect including rate the charges related in quarter tax to to full effective year first be mid-XXs, reflected of share-based of majority the the awards, tax We were the
in upper rate to the mid expect year, For the be remainder the XXs. to of the tax effective we
XXXX, currently significantly Beyond anticipate share-based not the impacting rate. effective we do tax compensation
strong as Moving move said position. what on expect $XXX we new quarter, investments out at continue investments. our well we and flagship transformation of of will a target XXXX, include rightsizes, efforts. we our as buyouts opportunities to Consistent our minimum These liquidity store the capital openings we potential maintain Coming accelerate through with as store and to kick-outs, million closures, allocation. accelerate to remodels as Day, exceed to including liquidity to Investor store we evaluate lease
to $XXX reflecting expenditures investments million, $XXX be findings to now of systems up by our For from and early expect million, accelerated related expectation XXXX, capital in to of tools previous range the $XXX efforts. we in our million transformation informed
for and to our basis, have priority the business highest are for that and projects CapEx share Our $XX the through for year After return IT $XX remaining updates $XX cash store allocation evaluated approximately quarterly with both our shareholders million loyalty million dividends to on capabilities, the of those between omnichannel liquidity a is factors. programs risk-adjusted million valuation return store and tools. directors plans and continued and rollout our include repurchases, in which investing including and CRM capital new our systems and and and considering
repurchased During approximately shares we approximately the XXX,XXX first cost $XX quarter, at million. an aggregate of
of As had repurchase for available publicly announced remaining shares million quarter-end, X approximately under stock our we authorization. purchase
quarterly we the turn dividend. of addition, call announced over Directors that Board that, recently With $X.XX back the I'll Fran. In to our approved
