Thank you.
of merchandise to our cost delays, in generated headwinds impacting Historically, As year. infrastructure the year which profitability heavily has structure first weighted weather contributions quarter, February. profitable abnormally from supply footprint and and the changes evolution Woody half chain a mentioned, the tough our store included our in full the and our second of in some been significant
first seen the fourth for is quarters, earnings as to of the more execute have in we to to and we expect we room and third continue improvements believe in improvement half profitability continue this see, the there real transformation. year, While in
other sales last sales get I comp and comparisons year-over-year we in the into sales, details comp pandemic, decline impacting skewed with quarter, the to the the I had trends of weather shift for make during the the a the year of e-commerce middle. comment, percentage and existed Before finish start extreme took of the with by then within necessary quarter, the X% heavily month, metrics that in a closures, channel the the we two weeks overarching to in now. store southeast strong wanted Breaking the and that macro actions the but for are and down February
And last e-commerce XX% in of increase a and in closed on the quarter, April. in of middle XXX% comp XX%, increase a in in remainder year included of the the resulting XXX% year. stores increase remain increase comp closed total Our the an of for The prior of March. XX.X% in most March
we of the impact of closures store the COVID-driven the approximately impact sales comp shortages from and in total million. year, a increase The February the had prior weather inventory $XX Excluding under, quarter XX%. just was the of within
the softness in spike entertainment some do As travel, the of in elevated to the macro reopens, expected, second as to short-term year and a to economy expect demand see we fully of we May, further some and be in wallet towards the quarter started due half last headwind. back share by which year-over-year shifts in
the traffic with as and year-over-year the to line tough quality us to see a in in expected in to as quarter. a compare we ticket and the sales in improved was furniture, and ShopperTrak in impacting in with outdoor first to our in later Improving be home elevated continue throughout to from businesses our growth to planned merchandise will key assortment ticket of segment retail has slightly increased inventory wall did the our categories closures we outperformed to sub-segment. return May, in June. to traffic furnishing our of compared converting stores. Average design The improve continue reaching categories store of priority level. continue prior But transformation. limited the Our of to levels down inventory more existing year, it's the prevented main store and store high made part We have brand those and to single-digit we see differently expect changes inventory the traffic benefit traffic the the sales increase
our continues shift the third-party the is XX%, comparison made e-commerce. driven quarter. channel e-commerce to channel our within tougher the of closures up significant revenue be almost Our forced over prior considering increase e-commerce channel which the year up when by half store sales from with This comp towards drop-ship
the as fulfilled remain e-commerce levels. inventory quarter has continued Lower importance of to to were We and we XX% of our sales e-commerce profitability stores Our to over the year. as upside return to and of nodes does those channels delivery for profitability. in-store restrain to there for compared in our prior these XX% XX%, just sales our committed volume limit in-store the XX% the is
stores negotiations new a five in February. the early and two and of the closings, opened relocated quarter, from year-end stores, closed closed resulting Of were rollovers count we store, XXX three one stores. in During lease
of and leases, incremental quarter. deleverage the The with inbound One points prior openings profit prior to the XX.X% the locations Pier Gross stores. approximately in the that year XXX in compared includes was previously costs. year were X store store sales, opportunistic significant the current freight shorter-term closures XX.X% included of of relocated new store negotiated year were we and basis
We expect We impact back of to throughout expected. half with QX year do see a of the than quarter half year the not have of QX of the to and the that the impact continued freight impact second rates softening we be in expect balance level the but in unknown. first the and the impact similar have to yet the the higher degree in
With year, was freight also push the product quarter of the simplifying and XX.X%, quarter, significant benefits, upside the with sales from the and were struggled to levels. the of the long-term gains stacking inbound shows profit margin as impacting half gross of especially driven first elevate sourcing continued The Delays the and in absorbing of China the Landed direct XXXX, to impact. growth use store in in freight years. our couponing. and in second pandemic, in promotional of inherent the entire offers in shipping we the rates quarters first while India, consistently country expect that message continue production and rates that which freight the be coming in the reducing fourth by depth first
SKUs testing of We progress dining we outdoor the much the the and we our of While tables, part which half of scale items for but a window the to receipts of expect margin to We was recover year. on related had and the furniture will ticket that the don't learning sales. these in later expect the of outdoor be ticket from sales the late do collections, the impact upgraded a the collections improving early some inventory, missed sales average was included items, Also significant fully for also key larger progress arrival lower planned. the mix of in which not inventory for first higher impacted and lost quarter. quarter as part made not
have will due deleverage and to in to cash our specifically inventory, sales. occupancy our from order surrounding which X% flow. by were With pulling sales the sales a impact seasonal unknown are on will of from capitalization chain, categories, inventory sales timing, offset store short relatively DC expenses inventory stores to supply the Freight to quarter first which forward timing costs Store we increases. time-sensitive adjustment of purchase larger the improvement XXXX to additional deleverage We the reverse X.X% occupancy XXX XX.X% costs track on was expected. flat lower impacted less in as incomparable in in sales much same were basis with than by and XXXX move point an the the expectations with costs the in quarter remained and to DC XXX from was excluding benefit costs of remain our sales. relative the mid-term unfavorable reduced
inventory of the that the second would year. improved point quarter fiscal XXX this quarter For We noted of should in in two third quarters now, XXXX of the reversal with the basis levels. reverse see reversal unfavorability I've that
to cost added sales e-commerce increased continue offset the pleased improvements the year. pick E-commerce as X.X% ship-to-home and performance last at e-com and productivity to volume with sales and increased. year-over-year shipping two orders We infrastructure are see hubs the of we of of incremental the pass
X.X% which are price of for stores year-over-year $X.X were as expenses levels again utilize excluding minor was of fulfilled year is seeing lower sales improvement by ship fully rate closed some hub, prior improve year mix last Operating was excluding the XX.X% over in-store prior quarter improves other ship-to-home of were over sales due a here. the a to million some $X.X million at to distribution to inventory the reactionary an there we expenses $XX.X sales sales, leverage impairment taken average million year, of impairment and the impacted million. of of be the variable and increase and improvement costs. of percentage also closest we and While nonoperating measures the or fully gained EBITDA as e-commerce the able larger while are the we $XX.X was option, point
was year. year the Both For of the allowance. prior rate A the was reduction periods a a ended loss prior compared were impacted rate these XX.X% valuation of year. in in tax to items period. outstanding quarter, to The the by a in $XX.X our normalized QX or non-GAAP year. an is of in XX.X% quarter $X.XX increase XX.X% used was and compared the and in the which minor calculations share debt, $X.XX outstanding for including noncash compared and nonoperating other earnings increase borrowing million the the $XX.X year. excluding prior a of was for cash from including of tax and prior to the million GAAP the Earnings adjusted an current year $X.XX level year-over-year million We per prior in million XX.X% normalized adjustments rate impairment, the $X.XX loss of no with $XX.X $XX.X
to our million. inventory inventory based plan, XX,XXX facility we the on had missing quarter, position, million the purchase repurchased reduction to in in timing a Inventory more this $XX.X buys. distribution expected within a XX% of year, we levels the we call, XX,XXX prior the receipt gap to order the in was build year for credit inventory the $XX.X planned within quarter Combined and compared fewer timing quarter rebuild of we closures balance the larger a which with or the shares $XX.X million million, another In but to specifically X% million shares $XX. approximately the XXXX time-sensitive up cash lower. revolving elevated due balance to month the be significant chain closer the transit to total set $XX prior which offset $XX With May, a on levels inventory end million, from of the prior as of of down of constraints with supply We sales had availability $X.X quarter fiscal domestic the could levels. inventory on we within liquidity in continued at repurchased pulling The the million ended see from and our of our dates, with mentioned average year of million is impact We on with As for have first to seasonal our within a cost were appropriate surge we but end will store to and $XX currently stores. $X receipts for of million was million. the an $XXX risk we network. amount our store $X.X inventory at quarter
demand We transformational some aspects year, have which allowed since merchandise of our of the consumer seen has last us in accelerate strategies. to and early May of tailwinds pricing more
and seen We costs. delays chain supply have with significant also headwinds incremental
of remained have circumstances our and we focused have Although strategy has pace macro change unaltered, the adapted allowed. our as
We have market exists customers relative specialty retailers. and of quality a the the approve a higher level of a that where we the at moving brand meaningful other for Kirkland's merchandise curated within growing to space value are confidence,
Our set allow to to profitable as business is us results shareholders. needed model our still to pivot and deliver
questions. now your We are ready for
