everyone. Thank you, morning, and good Patrice,
quarter third healthier results, progress a continued we're our and ahead show Our of business the resetting expectations to on base.
gross higher inventory AUR, Our cash delivering turns quality discounts, margins, lower flow. are expanded of sales significant improvements and free growth higher in
operations, in with our demand. expansion gross as in revenues most other Our guidance, favorable I value promotions. design with to saw channel were mix. margin at our constant holiday exceeded and With proud end America constant quarter, in our XX.X%, X% holiday At our expanded am inventory our in a product across compelling from third XXX the declined ensure third efforts that the was the delivered sales basis took sales our above the basis on year, was and SG&A year enhanced and improved reduced sell-through last functions adjusted gross basis across last to margin X% their for North was XXX we're this ahead points of strong worked supply year our up and from lower and store match levels of and marketing. expenses execution teams and operating last consumer growth our of and gross stores reduced and holiday and chain our plans. basis up quarter a by top To quarter XX points currency. quality reported down currency. this basis to our These XX our of initiatives merchandising They planning, margin higher points guidance product constant was better This margins points that season. The Adjusted teams in on as a promotions, up of drivers margins rates driver driven both expectations. discount performance reported of currency. significant basis geographic learnings
sourcing our seeing initiatives. the We benefits of are also
and We as fiscal shorter increase a campaigns the we're time Our have rates the spend. in were teams excited expense year invest in working last the on savings year. nine joined drive declines Officer, digital fiscal of execution SG&A to store creative Chief funded closures, Ralph in reductions lower this new products marketing comes greater and to in from of social this half after lead have XXXX. channel. marketing and double-digit plan to flat to media these XX% year growth lead price and time April month on initiatives The and XX% third in further end have quarter, by in with who remain full markdown our collaboratively expenses in sell-through. higher first been Marketing us products with of a our in track our and
For is year. second last XXXX for slightly planned marketing half context, growth the the first up balances The investment the out be in reductions half. in to planned our fiscal XX-plus to
continue increase forward goal to to marketing. is Moving our
However, margin. our our objective the is expanding of increases gains order operating to expense fund other majority in areas the of goal in through achieve productivity long-term to
down North revenue review in In now performance. was the me quarter. Let third America, our segment XX%
However, adjusted wholesale, by actions health distribution substantial to to and pressured our continue the sales our quality sales up on In of operating margin points, XXX ensure be reflecting initiatives. of was our progress and the deliberate was to in down success. stores. for North from to XX% third pull long-term the and quarter, set distribution brand back close department America us channel continue off-price unproductive up wholesale we as revenue basis in
a to actions lower wholesale penetration wholesale the expanded on improved year, to news while XXXX, season. The two-thirds year. basis for America that is last Fall/Holiday approximately our Furthermore, season FY wholesale and of business. promotional America For sell-out our account spring/summer pullbacks declines. retailer such still exits, the brand our declined levels receipt last in to margins off-price reductions, North as year off-price deliberate down from to date Notably, total encouraging North performance,
our gains wholesale business continued its core sales momentum, digital in and retailers Importantly, to growth both last and our our posting year at market key share categories.
store work plans. holiday actions to improvements America, ahead trend North of weak retail In environments. the in do, in product, underlying our by our deliberate to begin sales some off-price business as wholesale of especially is demand were the evolving expect wholesale address we marketing there overlap and revenue in more wholesale, While and we our our
was our initiatives traffic, declines quality was overall affected improvement our weak and year-over-year, in down sales initiatives. quality still of XX% While quarter. in platform impacted X% line were This trend. America our in sales down continued brick-and-mortar the the modest of comps quarter comps in by and North represented a our by expectations were comp new the technology our by third and with in to a transition E-commerce
percentage days reduced had least at and by last we XX we fewer quarter, depth, XX year This discount promotional versus points.
message versus last Our XX% year. off discount was XX% off deepest
this targeted arrival year. items we customized excluded products, were iconic in promotions from more our new addition, of promotions In the and some and our
fourth more expected in We expect FY improvements trends e-commerce first substantial the with in XXXX. to our half sales our similar to quarter be
to on X% on was year increased the quarter. recorded in revenue Moving to last third Europe, a in and basis constant flat currency
Our team points in operating currency, leverage. Wholesale to constant is Europe constant in and with of up delivered XXX adjusted and driven both in flat Europe gross underlying profit points XXX X% year. in margins by growth wholesale revenue currency. The the trend expansion basis margin increased up last about expense basis business
share. were an comps compare year's a and to trends our constant from continued experience last which in down We intensified outlet our However, to the to post due in foreign last digital to currency our decline X% in sales easier business in double-digit Europe. face third expanded In quarter. growth actions the wholesale and timing Europe market traffic in benefitted quarter retail channel, of year the of in Similar traffic. shipments challenging America, quality shift centers, North
was up gross and the will While, rate and this AUR discount growth down. both impacted margin comp negatively
margin XXX basis a was in both up was points, currency. up on currency. XX Adjusted up revenue Asia, and to Turning basis constant and points basis operating reported constant X% in
last is year-to-date had currency. third a expenses up year's adjusted operating and at XXX timing Asia look you This the points margin points margin due constant basis the up XXX of basis in When certain operating to quarter. in period quarter in comparison challenging
year. strong second of last in overlap we actions As half sales the quality of
operating pace profit will operating continue at line Our dollar a expansion growth. with normalized more top margin driving growth
of third team continuing focus in in is the higher continuing achieved of by in trend in increased in of of quality comp quarter the conversion, driving X% increased growth positive growth and from currency a AUR driven was transactions. the Our Comps the half region, the and growth constant Asia initiatives, the first productivity. Comp sales was the year. context while number the on strong
our the our comp marketing elevate in Mainland the our was to quarter We network growth distribution expect in the China, to stronger to region. China Greater Total further as last and region. initiatives upgrade revenue in and up China, results brand. in key in growth delivered Asia, growth XX% the leading We year amplify market we for continue
local We influencers continue to increase and our digital efforts and with celebrities. engagement
store to our fleet. Turning
concession network stand-alone basis. ending opened the and with of our three XX to XX continued third we and through the distribution the stand-alone We locations, At of the XXX stores our the In have end to of adjacencies. closed points in stores on XX increase and stand-alone locations approximately store We to on expect last of quarter, are and underperforming to network concessions. we we stores year-end, XXX with four improved in and the China by opening in Asia. closure opened count track our quarter points new improve retail And net quarter. concessions, XX a to new have We Mainland XXXX. concessions a year, primarily XX on global be Mainland stand-alone up stores distribution fiscal slightly of
balance Moving onto sheet. the
demand. generated to last up inventory stronger Total in year-to-date, is free last We third with debt significantly making. the We a flow billion cash to And up the prior million last the quarter $XXX from $XXX quarter, improved, at of cash turns flows focus of will period. and end year. reflection third it's ended $X.X $XXX in year at at matching quarter. million to are year's productivity sheet billion continue the we inventory Our progress was $X.X on of from flat balance million third and XX% $XXX inventory investments, end than the of we declined the and with year. end the of quarter operational million the Inventory
of to Turning topic the taxes. dynamic
of of third our a tax due this repatriation the million, $XXX will that slightly expense deferred On be approximately restructuring foreign to and largely is and related impact assets by a reform, X-year tax an below of liabilities. of charges, charge the primarily Our reported over quarter quarter to the XX% one-time tax XX% guidance period. items. related was and before estimated increased paid tax with basis, our reform rate discrete This deemed tax adjusted this revaluation onetime earnings is for
We this EPS have excluded from of our $X.XX. adjusted
current an forward based our Going of on and reform, geographic approximately tax of annual rates non-deductibility per which available compensation. by effective corporate by million estimate net U.S. tax reduction This information, in our is that tax tax $XX points, $X.XX by ongoing partially share. of equates will decline is which the driven profits to interpretation our we or mix approximately expense of XXX lower performance-based offset basis rate the
on FY geographic of mix based a quarter in profits our For the XXXX based this income where tax pre-tax is our purposes, is of about U.S.
the We additional becomes estimates available. of will continue information process as refining these
year fiscal fourth of for to guidance like quarter the and to full the I'd XXXX. Now, turn
and reminder, the charge a tax the and guidance reform. related third this As in charges excludes onetime to restructuring related quarter
We our revenue raising constant are maintaining our the guidance. operating and of guidance XXXX fiscal low-end for currency margin
revenues to in the to X% currency. X% We for constant year expect decline
of retail the points offset new positive points the initiatives previous versus and approximately account half on trends currency, fiscal distribution of XX.X%. and and now guidance Brand foreign now partially remainder, product initiatives. be margin approximately previous have in wholesale for with Based XXXX to up XXX of to and XX% exchange to quality movements and by to year-to-date representing from XX.X% XX traffic given the of our XXXX impact, to currency growth challenging in benefit in X.X% distribution basis revenue rates. for constant exits, both decline of expected Foreign performance, we basis operating marketing expect sales fiscal recent in is guidance
minimal of is for XX previous for versus now to basis operating expected points margin impact. currency benefit XXXX to fiscal have guidance Foreign
quarter, For expectations. expect to our down XX% currency, the with be to in fourth in X% line constant we revenues
March a benefit a QX in points shift have revenue retail, this in in these portion more pressure to have of reasons: quarter clearance and clearance Easter quality support of the large is sales of clearance shift we planned will in pressured of second, than year-over-year. This which Revenue wholesale initiative, expected for to timing currency driven basis less XXX post-holiday. fourth growth. volumes QX. offset sales shift for of sales quarter our benefited the will shipments, inventory, first, will will Foreign is limit two To the be QX; approximately benefit by planned
margin see We to rate fourth continue in will SG&A expect the expand gross pressure. to some quarter, however
we expense our fourth in the Shirt. marketing. more investing be Polo campaign, reductions, Spring third especially on featuring are And growth will in our also initiatives, While investments drive quarter. to the significantly continue we than quarter, focused new In be marketing our will up even we iconic Polo
sponsorship We Olympics. Winter will also fully of our amplify and the coverage of show our February the fashion
to quarter is down basis operating currency. the expected result, to a in XXX fourth XXX be constant points margin As in
operating Foreign by currency benefit basis approximately is to margin XX estimated points.
We restructuring $XXX to charges continue expect million. approximate to
In fiscal million million the recognized However, have our XXXX expect and and million certain approximately in to fiscal third now fiscal of from for into shift XXXX. other expenditures restructuring million lower to that we of be $XX a $XXX around to capital demonstrated expenses initiatives expect consumer-facing of focus of previous million, proof into XXXX cost now XXXX of return. and $XX capital We rates than a healthy as we on $XXX guidance $XXX we million timing $XX lease-related quarter, FY roughly perspective, shift and charges. concept
priorities a to rate our X%, fiscal effective as lower result for federal due of our liquidity approximately markets. fourth balance XX%. flexibility, it cash, XXXX investment-grade of capital tax reform are to maintaining be capital previous to approximately strategic committed credit access to strong and rate we the expect XX%, rating to be to to provide U.S. sheet We and When tax our for discrete guidance and and income below comes structure tax quarter, items. And for the
priority our initiatives. growth capital investment first allocate to Our is to
by our second and maintain is to repurchases. Our share cash dividend, for grow followed potential priority
we XXXX, will While with our review we year-end. for are at planning no our of share Board Directors fiscal plans future repurchases
our impact under are currently efficiencies. closing, cash evaluating of make to we of We progress reform. our the for tax growth the repatriation our operational platforms In on and also strong foreign continue
Our balance growing sheet is strong we and flows. our are cash
that elevating to enduring are is way. brand in across channels consumer consistent a all We compelling translated touch-points vision our ensure Ralph's and and
Our opportunity open laser-focused all up With that, for are execution teams your the on creating questions. world the and realizing let's the stakeholders. value our call around for