Thank you, Woody.
I the fiscal like the address speaking larger for of we items financial would specifics some forward. the see impacting those as to us affecting and quarter, how move of year Before the we
a to growth we progress down during will profitable make we transition steps believe significant and that XXXX. year took in path generate we discussed, to Kirkland’s can Woody model that As the
the and out and significant in of merchandise. quality made new categories rolled improvements both We design our
to promotional still pressure to in increasingly design, improve Our the full performance assortment year environment. quality XXXX reflects and margin while rebalancing recognizing competitive our related
Christmas. positive sales immediately ended January year quarter, growth of pushing up consecutive of e-commerce start holiday fourth XX% for our and with the strong the new X.X% after During We experienced a with had the quarter. comparable two and store we sell-through merchandise months
us compete to enable our to us addition include that the to our our future. landlords profitability fiscal a out allowed locations, with were we number locations an streamline model XXXX initiated closing to of better in which in that and at negotiations In exit be first we’ll of unprofitable, We to merchandise the of aggressive our changes, results negotiated XXXX. initiatives improve the quarter
much the XXXX. reflected costs The of quarter expense the in be benefit was will occupancy majority but in the XXXX, the of of fiscal fourth realized of reduced
will the reduced benefit We our new omnichannel to generated XXXX, in implementing partial Dallas, year center management We were to store footprint stood refine saw a transportation continue lease which and our benefit of XXXX. annual second We and distribution of throughout remainder our miles the fiscal we'll up We system, an will portfolio optimal which outside net to pursue realize in model. negotiations two first and the were but the support of will capital but in warehouse XXXX. XXXX, half savings. and allow us full to improved reduction the costs, fiscal of in quarter in fourth will distribution centers hubs the orders. consolidate for This SLAs of result benefits XXXX. e-commerce the two half Jackson, Again, of in in Tennessee our reflected impairment a begin distribution fiscal costs and first up charges stand e-commerce most of a ship-to-home shipping center
when included areas our of by with We compared prioritize stores, XXXX operating across which costs. to business, costs reducing the model our store all approximately million all of flavor initiating reduced high $XX corporate review overhead revisiting to and contribution operating operating a
XXX million penetration basis to $XX impact those sourcing, reflected approximately of and sourcing we also on have results us Our fiscal an our of fiscal our points increasing benefit will XXXX Direct margin help direct implemented And have finally, as growth. will of in margin sourcing China. roughly XXXX, outside begin diversify savings. product we'll which
for Our versus year adjusted to appropriate filed which loss explanations in The $X.XX for $X.XX our today. GAAP $X. is reconcile per to are an was guidance basis. table pre-market the release, The on was adjusted to most of included a following the loss earnings all share measure our
change sales of year. decline. In Net prior single-digit of million sales, brick-and-mortar decreased fourth that's in store high in revenue driver a increase the the decrease or continued and shop store sales brick-and-mortar comp of the the $X.X for up sales comparable top decrease combined The and quarter in stores, to decline XX.X% X.X% sales X.X% the fourth Moving the year. X.X% e-commerce in on our of to traffic of quarter and the made prior in the e-commerce quarter. comparable compared includes increase primary was XX.X% and
million by in which quarter, during E-commerce revenue our a was decline accounted significant of in revenue. offset saw for total XX% average ticket. approximately or a XX.X increase transactions, in We partially the
were sales sales the holiday Both store ecommerce years. over higher to for sales. prior we of provide accounting last this than profitability quarter, For at relevant weren't able a in of in allowed our the shoppers to be XX% direct of XX% in at a solutions minute for e-commerce and to offer our us fulfilled level consumer quarter, level
was Gross mix decreased to adjustment the prior And points prior we had profit basis year. in product favorable margin in the and from a from incremental to decreased Merchandise both points basis XXX margin that XX.X%. a by driven product the the year quarter XX.X%. fourth XXX year in discounting, decrease and by margin from damage prior
was due year during net of shipping, to compared due e-commerce sales Deleverage but and increased of quarter. freight the flat sales year. sales lower e-comm negotiated mortar XX asset Store a as increase by basis percent Outbound and decline to savings points remained sales. to the decreased include the occupancy a rent percentage from impairments costs, depreciation in in as by XXX,XXX, the costs prior brick offset which
remove there as change costs stores. renegotiated from of compared percent opportunity costs. in our is We points mainly a closing basis year, the capitalizing by to lease and significant the to XXX infrastructure Central terms continue due sales both and distribution mortar costs to of prior increased to underperforming brick of methodology distribution believe a from
depreciation prior expenses percent corporate deleverage the points sales sales of of sales increased $X.X prior sales to for a XX.X% e-comm operating primarily decrease to quarter, of percent compared as XX to basis the of points sales, year decreased of year remain or store percent quarter And for as due the costs. expenses consistent excluding fixed Store a basis were due to and XXX quarter. XX.X% a E-commerce a impairment, of operating on leverage Operating million. fourth the in as store labor. expenses expenses of
points. X.X% $XX store charges We fixture were and million Depreciation to and softer excluded projects basis quarter. charge, related million the was adjusted of per $X.X share. recorded Of to and in impaired per the third impairment, quarter to allowance impairment the fourth quarter of impairment normalized $X.X decreased from the to charge compared in The These to which of quarter impact adjusted $X.X valuation impairment. fourth rate earnings XX% XX is share. lower million recorded impact our the of amortization rate, for continued an in in DC XXXX. The the million income favorable tax tax XXXX
diluted had per quarter adjusted of year of or diluted to we $X.XX $X.XX net a the per in share of quarter, for $X.XX the prior income income For loss net $X.XX share compared adjusted.
cash million repurchases of end in the revolving by balance had compared on in with during statements. availability And and on credit million all half our quarter, in share $XX.X cash the in year. the of to primarily line of driven decline borrowings expenditures decrease year-over-year we the The cash and repaid first the year the operating We moving prior was million sheet our the period. $XX.X We ended credit the onto facility. year of $XX the performance, capital At of flow quarter.
of the in quarter, period. third and effectively softer Further, There new is some excess $XX.X store categories. XX% inventory products to from balance during is at sales quarter. through XXXX. seasonal released was as we as inventory early as prior categories QX clearance The inventory million, an inventory includes closings of overstock the product in in funding inventory quarter risk non-seasonal well of obsolete first directed the Our of the year increase the increase end approximately which over moved minimal we the all the seasonal
by prior Capital by operations decrease to to and were supply million prior chain, and operating changes were in used was to due primarily in compared of cash $XX.X working Year-to-date, the cash $X.X the compared The capital. remodel. in performance year, in additions the store million and expenditures $XX.X in generated was year. e-commerce million million $XX.X and driven decline investments
shoppers, value she home return support strategy, fiscal choice become to As the the have our is look our to decor we seamless to our for a shop plan chooses to execute long-term to to forward infrastructure purchase continue XXXX, wherever to and goal customers of allow destination profitability. to merchandise our to on transition and
benefit in sales to versus further underperforming closing expect the We from e-commerce, stores. improvements, trend of the spend as marketing we assortment improve XXXX and continued momentum
generate We expect marginally gross stabilization margin EBITDA by in our positive in and fiscal to XXXX, expense driven controls.
from program, in as should chain benefit increase of offset store to more costs sourcing efficient margin the growth. Gross mix to shipping reduce supply business direct e-commerce our and the our an occupancy online by initiatives
towards will see XXXX percent basis of the acquisition. the funding directed expenses after benefit customer operating as points, $XX and We and reductions of a that's costs of to a in incremental of reduction approximately million spend sales relative marketing XXX
initiatives to ensure prior the have needed return perspective, levels of capital continue a runway to business we implement the the profitability. to cash From focus our of to we the on conservation will
of business generate on within Capital than which expect credit chain to million to from managing range to faster or and XXXX, the expected, supply the and our borrowings outlook And quarter. be end with approximately We improves of half in in either the to will facility $X unless contemplate COVID-XX. the third expect $XX $XX expedite this the million back be cash year. in the within us projects fiscal allow the of expenditures additional quarter finally, not million risk demand us does to low our will repaid
this providing those watching but and not at are impact we'll needed, estimated We time. react closely as are any
to final comments. some Woody back I'll for turn it now And
