everyone. morning, good and Steve, Thanks,
fiscal I’m of early see first recovery of our half and optimistic our business. the us, proud behind signs across execution we the stabilization about of and With our year
expectations our driven results have all surpassed year-to-date Our growth our digital China. key across pillars, and internal brands, by
our We resilient And have not to thus inventories, and engagement brands last relatively We to of people an a in costs between a this the quick our act control consumer. on but position. see global positioning great exit the strengthen wholesale disruption were earned brands both advantaged we manage put to liquidity, handle our and early in days to continue strong least, marketplace. pandemic of period tightly across inventories first, and the
in invest and fall season. capabilities engagement omnichannel newness rolling product ability ahead holiday operational discipline and this critical the throughout to to crisis, financial provided while with continue consumer VF the Our out of has
growing the current Before period. and business with to continues Mainland, China the environments quarter, of as in the recovery, covering were lead including essentially to the I’d stores spend minutes second quarter, details the of region. our our in I’ll like throughout operating our state on a by our APAC. few XX% XX% start open
remain regions Our continue partners expand and with to by in led relationships partner Dickies Mainland we doors in the strong and China Vans.
between brands shopper to digital our offline seamless We and wholesale online in continue synergies our enhance elevate integration. developing region the ecosystem the continuously our experience to to digital and the partners
expectations steady with recovery in outperformed QX. We are the where EMEA pleased most markets in
countries, reopened. we returned with X% remains Our in stronger retail as depressed Traffic by digital led in-store to much up have continue XX% business to growth growth BXC stores across fully our but see conversion.
rollout buy our and online omnichannel continued and ship in store we Vans, up store capabilities, quarter the activated During The pick at of from Timberland North Face.
late giving building We holiday. pleased continue and positioning the to in stores we’re Americas, holiday activated enter period. Ship digital America’s began we store over the was to as in and doors in growth up have Vans in critical further particularly us into see to region, TNF, finally see the Vans essentially about curbside heading sell-through in pick to in momentum confidence TNF and across price however, our in full our grew at the remained by stores doors for the strong with results. Buy closed functionality also since region. capabilities open LA By mid-March. in QX, productivity from was of August. business certain time all Traffic first fully promising end been the in pickup September XXX only digital and XX challenged, online remains County. in but XX% momentum accelerated we’re And store early XX% implemented QX stores continued encouraged QX
as our heading consumers holiday into We’re increasingly out expect and pleased with season. these the functionality progress rolling capabilities this
four of by during the brands. accelerating also quarter sell-through the the We’re across Americas wholesale encouraged the business with trends performance big
be for ahead year’s and next which key as initial progressed the our fall book. should into inventory of setup as QX, levels positive a healthy well heading order planning, accounts channel Our remain have
financial other moving to on highlights. So QX
due back-to-school receipts. and experienced inventory As expected, brands the timing uneven limited was our environment disruption the to of
by quarter we weaker DXC XX%, down sequential progressed. and traffic. store declined driven than with the the our revenue underlying quarter. XX%, declined pleased expectations for However, of Total closures which were improvement exceeded Total XX% less as back-to-school the
XX% the business based broad own grew strength digital across with portfolio. Our
this and saw big four digital brands brands over quarter. growth our grew example, For XX% emerging our collectively XX% key
is expectations selling a an ahead progressing than business anticipated expected wholesale and brick-and-mortar to Our start of result of earlier holiday sell-through also as stronger window.
delays successfully some supply Our impact model navigate the brands our continue cadence business. which to of
with times mixed for margin We still As a to year margins structural flow-through about ends. target, SG&A XX.X%, in the activity contracted second line headwind which to Mix penetration points advantage taking on be of normal support benefit half stabilizing of is long-term headwind two in noise, environment guidance this our XX% last our by XXX wholesale stability the basis revenue to the roughly and quarter. basis acceleration revenue unique from the business. gross the expect to accelerated timing the earnings in primarily FX with declined promotional from XX-basis-point by XX% QX of expected greater a we’re with somewhat to transaction in ahead our our activity. Consistent promotional year, driven of a We a financial XXX invest full elevated due call. to due year. position to of earlier expect net comments, represented still declines our timing the this digital supporting the year
portfolio of in investment we Given this philosophy remain the we we today, second across place the see to stability half expect year. enter as the the
Our inventories declined during better the expectations. quarter, slightly XX% than
inventory year with in and heading confident the our fiscal positioning periods. fall of and made are the half progress inventory the pleased into owned across first both channel We’re with the holiday
ensuring while we position. year forward we’ve last a and in with product thoughtful healthy fall into and inventory innovation appropriate been covered exit commitments infusing year clean newness this offerings, call, in our we As holiday our our this
approach, believe uncertain sales environment year, brand forward. the investment appropriate current in we in equity given and right and is going the this the While an margins gross the this ultimately may cost
timing As earlier, I experience alluded at supply times which disruptions, to you shipping to present continue we delays.
over the course delivery largely normalized year and of expect sequential seen we’ve by improvement However, to be the year end. timing
We marketplace exit inventory inventory today and our holiday are growth our have plans with we’re appropriate forward in peak manage generally ‘XX in to deliveries service levels the our and the pleased place levels plans. with fiscal in to confident to ability
at of investments, occupational remains of liquidity still sale the approximately billion over least year and months. add the of positioning flow our $X.X for short-term this $XXX addition revolver. on to million work remaining to liquidity to cash We strong, Our cash $X.X billion generate coming with in and undrawn adjusted over free expect additional
allocation capital Our priorities to position. fully part remain committed unchanged, be an which of dividend, remain our robust and a liquidity by integral our our TSR model supported in space. continues differentiator to We our
our saw we raising it XXth marks while confidence our business greater today, the consecutive is algorithm, our payable remains across This you in position priority, our share was in the dividend December. TSR the top As acquisition of observe remains ago. part critical year allocation to And a clearly and liquidity our capital per release, today our of and the we’re dividend M&A $X.XX to just underscores an than VF’s increases likely execute few our ongoing and future. stability confidence excess months in dividend given a
by to our preserve delivering remains suspended focus approach We disciplined top will remain prudent reminder, guided TSR, optionality. our as three repurchase a and program share on and quartile and lens
financial outlook. fiscal our Moving on XXXX to
confidence gives material to performance uncertain, assuming operating business. current more our due us and therefore outlook conditions more the first no trajectory increased with are for the business deterioration in stability COVID. a remains detailed While of in coupled to the visibility the year, We this providing environment half,
QX $X improve flow at continue revenue We expect to least least low QX the of decline in adjusted cash Vans second return at cash single-digit million. full sequentially for to year, brands and expect $X.XX, growth expect of a in implying to high double-digit in our expect flow and of the at we least and least billion EPS Across growth $XXX and at business free -- we half. at rate, adjusted the we to continue to
low at half. forecast low for the We at decline We back rate a TNF improvement also for single-digit the year, a through second decline double-digit growth sequential implying continued the in to in rate with to half. Timberland expect high-teen year, the
Dickies in half. low expect increase to implying high we Finally, least single-digit double-digit second fiscal XXXX, a growth at rate the in at
year, ability As health our of underlying several into in crisis give to an the our we confidence head the me ultimate balance model fundamentals position. advantaged fiscal and of in exit the this
outdoor momentum accelerate channels with Creek and for active, out engagement; direct we for engagement, year strategy coupled First, continued structurally accelerating to channel consumer continued continued aggressive second, tailwinds and levels a post-COVID four commitment in our excess strength playbook and ago digital third, brand transformation of attractive our driving portfolio markets liquidity strategy. China the acceleration in consumer organic investment laid in and broad the world. an at big in our on optionality across a finally, M&A. and The our remains providing across brands, concentrated to success distribution; digital core categories, work; growing for both clean one inventory across the Beaver based An addressable to continuous reshaping our of position, focused exposure
how the our confident other long-term side ability know of ultimately to much return last, crisis. algorithm don’t will we we are to on of in this current disruption our longer period this While
call I’ll So the for to Q&A. Operator turn over now, the
