we XXth with complex environment, performance, expectations. a financial say to I of results ahead deliver of QX quarter pleased to consecutive in-line that the to results strong marking Thank you, continued global am Sue.
In the
and update global this on the with how environment. start difficult are Let's backdrop supply we through navigating inflationary and an
bottles, chain caps and limited. constraints key resulted been in supply As we supply felt The have been in the fragrance of continued though last has pumps spoke quarter, biggest for glass the about in also fragrance components. demand robust shortages fragrances industry-wide
team by third suppliers chain to a supply by in discussed by levels. well exiting additional industry by driven significantly and below reaching we percentage capacity improved component As address points as levels as coming service months, systematically our targeted constraints This the recent improvement high-XXs efforts online. a quarter level only Prestige few in quarter, strong was our the qualifying
As a on inventory restocked the QX. result, trade depletion fragrances following retailers during
sequentially quarter, in inflationary Turning over the In of line to to X% rose with backdrop. the sales, expectations. inflation our COGS third
We further inflation such, the in approximately a increase continue estimate year revenues as we inflation approximately expect X% COGS to of 'XX. to fourth of fiscal X.X% and quarter, COGS in in
to COGS the of year 'XX, X% half 'XX, moderation half fiscal Looking the fiscal inflation in year, second we fiscal in observed the be the closer COGS first with second expect in a to 'XX. fiscal of of with in inflation year currently consistent half the to levels
-- in In pressure higher addition, somewhat inflationary SG&A. expect someone we
inflationary-backed helping on this us strategic Our management impact. revenue savings, pricing execution and is balance
an in majority continue evaluating our consolidation update simultaneously in transition To year-to-date as fiscal to approximately we of Win QX, from now first In continue savings fragrance savings analysis, including savings of program. the fiscal to to delivered and of million. pricing All-In expansion.
I value target ramp will be year round carbon-captured $XX our category while ethanol more approximately we 'XX year as our We another using and up quarter driving And of million, provide for products, material on our million we $XXX calendar key to bringing cleaner fragrance $XXX 'XX. plant are savings value sustainable including currently our 'XX, produced portfolio by portfolio end of approximately the initiatives, of
of savings $XX to of our fully 'XX, we year processes to in million positioning of 'XX more Phase all equipped QX. In X announced both the invest the delivered $XX Coty thereby put are life-to-date, and enablers having million priorities. in supplementing strategic we over be across $XXX flexible of savings initiatives. expenditures, in fiscal savings transformation million target to sustainable continue approximately we our growth savings markets, of as to and and year And optimize importantly, now fiscal reaffirming entering also and in brands targets sum, place We continue our in our
reported we our turning adjusted quarter. in the Now to strong momentum EPS, where
to we $X million in the know, locked year which stock our and adjusted entered EPS in calendar below adjusted in income As net an future you of calendar price calendar and the 'XX, for in on changes 'XX close $XXX include to obligated we swaps buybacks 'XX. effective mark-to-market year year equity are
impacts are these we excluding be noncash and both equity impacts our stock performance EPS the quarter-end are including based the the nonoperational on from measuring which and and swaps. price, will calculated tracking As mechanically
call guide will therefore including the easily to on swap explicitly We report in earnings EPS performance. our out impact both our to to operational swap understand the and investors and excluding enable
from was necessity adjusted our will $X.XX, be shown diluted QX $X.XX swap. figures, the analysts, equity that EPS on operational our releases.
With which which context: As include benefit the Our earning the the EPS includes mark-to-market by a swap EPS EPS inclusive recommend, EPS for models result, the of investors excluding and we X your the in swap, and a to noncash in of
a increase $X.XX, On year-on-year EPS reflecting swap our effective operating growth substantial versus growth adjusted including excluding or of the basis, well operational driven the XX% year. was $X.XX XX% swap by year-to-date reflects And very excluding as tax a lower swap income fiscal Our rate. was a adjusted EPS our almost EPS the year-on-year. $X.XX, higher was $X.XX which last the as
to the the more I adjusted would context different of provide EPS. Looking ahead 'XX, some remainder of fiscal on like year drivers to our
depreciation expect be mid-$XXX to in million. continue we to First, the
of tax XXs. fiscal we an expect high to mid- in of high 'XX, below the net be XXs, for little expect outlook year equity the now also mid-$XXX excluding for the to our swap, Second, interest We continue to effective million. a adjusted rate previous
to based provisions around diluted shares million XXX continue 'XX to on XXX at GAAP on count, share the million range. Finally, expect accounting we fiscal anti-dilution,
the quarter. to for our delivery Moving profit
investment grew profit impacted our which around Beauty to This strong over $XX key transactional delivery particularly million.
The operating expanding while an both QX reflecting impressive ForEx coupled year-on-year. our initiatives, X% Our with A&CP costs. negatively certain income in quarter, income spring Consumer operating the the double-digit strong $XXX operating the with headwinds a ForEx given operating saw XX% division income in growth adjusted stepped-up Prestige division year-to-date was loss by delivered million, year-to-date the
QX strongly was year-to-date XX.X%. As year-over-year, with at to adjusted our by basis XXX up relatively margin stable operating points X.X% a our result, margin
continue growth we expansion to strong divisions margin Importantly, in and in 'XX. income year both fiscal expect
was prior Our to the year $XXX adjusted X% million, stable growth with million. $XXX EBITDA at year-to-date with
adjusted point basis year-to-date last XX.X%, reached EBITDA up margin XX result, a versus As year.
last margin of XXX year, basis adjusted by points gross the ago. from XXX our margin a XX.X%, X bringing up year-to-date adjusted XX.X% year-on-year basis stable gross years and by margin to which very to points performance. versus is decreased gross Moving significant QX
was which of of from impacts, sales; transactional and execution quarter, gross and mix the the over have TSA of expansion in and COGS end ForEx. continue a in to gross from the the exit benefits headwinds, points sizable at impacted offset to positive close will increases in productivity.
Despite X% pricing by the margin these fiscal the margin gross inflation partially increase QX to chain in modest basis QX were benefit margin supply These to an impact expect gross margin including QX; Our impacts 'XX, more negative in further additional prior with year; expansion the year Wella XXX by a years. of benefit we onetime from following negative on the and
our gross multiyear our drive forward, the executing Going on beyond. we and attack will gross multi-pronged, we margin mid-XXs margins continue to plan as
expectations. Let me XX% brings line continued with A&CP year-to-date with through approximately support as the and initiatives. key approximately our year, stable In of A&CP in investment our marketing level you XX%, now we QX, the with to This QX walk prior our represented to levels investment. sales,
As with space Prestige well opportunities. prior behind as our and was white in key marketing Beauty quarters, Consumer as spend concentrated launches
high-XXs the 'XX resulting fiscal full of also quarter, we level sales, expect ending A&CP to A&CP sales. remain level For high-XXs of the the in fourth in in
flow to fragrance free cash period midst consistent of fall quarter. in active our flow. inventory secure season remain years. in Year-to-date, our over persistent efforts key coming of to $XXX constraints in was our steady free million with on free cash with Coty's weaker deliver guidance, prestige outflows previous to and cash components. of fiscal Consistent we the in the free to 'XX, have Moving generated expansion of cash This with 'XX million we $XXX track fragrance flow. holiday seasonally had cash the We the $XXX in flow build million
use deleveraging advance our flow to is asset opportunistic intent agenda. and to continue to actively reduce debt cash and monetization free our our strong Our
translational structure. QX capital ended the the ForEx $X.X free cash with debt negative in and debt approximately reflecting billion, our on quarter to our negative strengthening flow the from seasonally of the euro. net Moving impact We
of consistent quarter quarter of our QX result, Factoring retained book and the of billion, Wella X.Xx a leverage with in As we up billion. our of end stake, net from with stake X.Xx, at economic our end at ended remained the was the expectations.
The the with XX% our value approximately $X.X $X.XX around around QX. consistent Wella debt
expect to by fiscal our stake attractive return continue divest We Wella when we an 'XX.
the In of interest to currently it our is rising fixed. is addition, note debt environment, important that approximately given rate XX%
Looking debt progress the environment. expense decline interest and on leverage coming 'XX paydown confident support expectation leverage years target to continue are sum beyond interest continued we in in major We for up: calendar deleveraging rate 'XX, as currently milestone rising our strong to with despite the Xx. towards our our next steadily exiting To
Europe time, a exchange with and in progress back potential Sue, with Paris Coty's business announcement our on reach an Coty additional dual issuances will market. the on our in France will listing to structure hand comment it to we listing and to will that strategic Coty's the contemplated. exchange. call existing anticipate provide investors on stock Paris want to the exploring share in untapped turn back The this Sue At Europe.
I dual a our I strengthen quarter. in additional I are now review vehicle over-XXX-year will recent further listing to stock the substantial no being in Such Before presence the shares aligns heritage we footprint
