Ann, you, morning everyone. to Thank good and
in partially includes the quarter, average our increase For transaction to stores comparable quarter, and and sales The of store the in a comparable by $XXX.X by sales year sales average value. rate a in the an million declines million result increase count $XX.X X% driven and first decline offset compared store was decline X.X%. prior both net which store online, our an in traffic conversion customer in largely were
slightly the quarter year-over-year to of stores prior a the small compared year a shift performed on e-commerce channel in than saw quarter. e-commerce sales the total in XX% We during XX% was better basis. quarter as
decrease Breaking a in down of X% followed sales within and the increase an February, of quarter, comps by X% down X% were April. in March in
to family insight Midwest into prior Southeast successful relatively message During helpful in April, results and for we consistent ran how comp events but sales Store event in friends the in and the results positive occur for was a and of not Upper better Northeast. and rest across promotional the we performance the weaker event year. a providing driving the year. were geographic and Florida that also did regions with promotional The in the month
the These and floral From a product outdoor and by offset perspective, we showed results in seasonal increases decor. categories. in wall decreases furniture were stronger
relevance. mentioned in better these Ann value that that opportunity back highlight in and move our our we year. as the earlier, invested categories we last felt As also was a of the depth we investment categories within half missed into in We've as have increased proposition key year, seasonal items
margin promote in area XX.X% frame Further, sales time we declined opportunity to prior the last year entertaining of Thanksgiving more to another of plan XX.X% points gifting basis to missed and that and profit Christmas, Gross products introduce the compared between during XX quarter. year.
change in XX.X% The basis product five margin freight year-over-year in to this increase of with quarter; are margin. rates, prior increased as lower combined versus components first, drove the lower XX.X% points XXX costs, year merchandise follows; the
reached India discussed, in near Vietnam since freight ports previously we've inbound rates then. have early either during and steadily origin rates lows. key are China, of have in Spot As and spiked post-pandemic declined our or XXXX
margin throughout expect from merchandise to freight the inbound our decline in XXXX. We costs benefit
capitalization sales Second, combined XXX led Deleverage distribution We the the incurred year high comparison the and quarter. levels year sequential cost of increase. during in central capitalization decline the sales, prior from year-over-year the in quarter. to X.X% center from distribution were our X.X% operations basis cost in costs excluding QX the with effect, the from of improvement increased down quarter, saw prior during the to in points
operational flow of this to Our because continue expect a product and and efficiency inventory of the decline we is better levels in the year. for improving balance
in XX.X% of base. sales due from to XXX the Third, XX.X% deleverage costs a prior basis to store points lower from largely increased quarter, year sales occupancy
expenses, points to freight deleverage increase. primary from X.X% Sales store reason and outbound basis both prior was quarter. year costs, the the XX sales in of ecommerce Fourth, including for shipping X.X% increased the
included in sales decreased in X.X% X.X% of points year from cost prior And the XX sales lastly, to depreciation of quarter. basis
the This was the to prior decrease lower of quarter retirement the primarily the million sales that's of to deleverage XX.X% related XX.X% $XX.X or million versus the X.X% of quarter. X% of sales were expenses sales sales decrease recorded and operating $X.X a points. prior Total approximately severance was XX was offset in quarter. million basis of which or quarter of $XX.X the of for sales decline, expenses, result from year of million The marketing prior CEO's $X.X compared charges CEO's charges our retirement, during impairment our by for somewhat year
excluding for impairment, and million $X.X other compensation EBITDA, stock Adjusted and minor year quarter the negative was the quarter. prior current expenses,
prior operating to $XX.X million the million loss year Our versus quarter. improved $XX.X in
Our the compared XX.X% of XX.X% year income benefit expense the for in an of a prior was rate tax quarter. quarter to
within we may income our metric reconciliation we net adjusted as including noticed, have you dropped this reporting. are the no longer As
our business, greatly Given the depending rate results progresses, the year and our forecast. of actual will seasonality tax on as fluctuate
and reason, internally we that profitability progress metrics through operating this to gauge adjusted the For EBITDA profitability as year. the use are income will we
levels $XXX.X $XX.X are our control our line a million, of We had under inventory to quarter credit $XX inventory expectations. plan. the million with outstanding From in prior according of of year under We in flowing borrowings perspective, versus balance which was the and ended with sheet our line quarter. revolving million
completed in additional season. credit announced borrowing we capacity we that As X-year peak extension during our a revolving facility provides April, to our
certain macroeconomic lack of to Moving 'XX, we of to for and key year however, around guidance the business. areas given provide the do for environment customer conversion providing on visibility traffic for some and the the not around our its impact color our we are specific trends, outlook expectations want
challenging both stores part traffic second to in online. In see and the continue quarter, early of counts, the in we trends
Second negative. quarter remained sales comp trends
XXX thus changes meaningfully providing to be be in lead earlier, higher execution, factoring QX transition expected represented QX. that merchandise are running we quarter, than and range they the and However, far until quarter. promotional point basis an times the prior in mentioned to XXX offset, a the in Merchandise Ann assortment year margins won't the
as expect to quarter We the that grow progresses.
last deep is return period from part costs inventory excess initiated we in rates quarter a the costs this product we to that to as year. freight of inbound of have In and also container reduce levels in repeat clearance through won't The order benefiting margin latter to a pre-pandemic second year, merchandise negotiations. the decrease vendor lower
inside our recently Las costs We've distribution by hub supply lower are increased off-site levels on reliance simplify labor our chain our Supply distribution and our reflecting efficiency. eliminating to closing and made Vegas moves infrastructure inventory ecommerce chain centers storage.
of impact the see bigger These for year. expect control, to peak quarter. over and comparisons changes by We as into the reducing be in to season. operating first reductions balance these about expenses the continue vigilant in are will And the operating positively $X a from we place year-over-year we effect progress expense million
levels Looking QX range at in peak to the end cycle historical follow million and we to inventory of our the $XXX a expect of balance at million. $XXX sheet,
this will credit and under We trade facility. inventory with fund borrowings payables investment our
we today, on $XX of with million $XX.X which borrowing. As availability, have $XX.X of for in million million available the is excess facility outstanding
line increase, season year's which to peak borrowing well range of does will flow. inventory Currently, fund last our and As we expect million, use $XX as capacity our borrowings the level. our additional we peak to in matches be inventories
mentioned value remarks, through generate the Ann for of As changes renewed sales in activities highlight our that assortment to merchandise our promotional priority XXXX our balance to and proposition. is her momentum
while momentum sales can generation, that return to adjusted XXXX. into Financially EBITDA speaking, positive a forward carry creating mean would this
EBITDA including is direct supply high and growth years, operation our importing single-digit Our historical several intermediate in chain improvements the in capabilities significant the margins range. to omnichannel goal adjusted return mid- improvements infrastructure. and average to to our last made We've in over our
we work and base We've real prudently. in done locations. effective of Recent tightened operating job and We've terms an each done portfolio our store analyze in continue the to that our remain up our leasing to competitive, our supports vibrant many we've also improved locations. store item fact reducing in manage estate line expenses
maintaining demand Getting assortment, the our during adjusted normal the macro can base with customer from on to attracted segment, furnishing EBITDA pandemic. factors historical in sales we ability getting of home surrounding rekindle back with shifts our a depends demand interest that we've pull after and the our to to sector forward generation period back some attract over core believe years. last We our merchandise in customer emphasis additional while few from those
the decor more and feature more depth home buys, across and quality gained seasonal We environment on stretched. are while, in points prioritizing in over key are years. we items style continue home the the consumers price All emphasis our an will few to that where accessible an categories last we've in improvements
on to opportunities of Finally, to a we'll valuable strategy push as That allocation forward. our focus to the capital have allows the future achieved, them been we Once use our reestablish our to and growth that is that some operate now priority has dividends Andrew, we're liquidity prepared business allocations, with achieved. reduce once Share and expect the and us And capital borrowings our again to business more been historically flexibility. remarks, and of concludes to ready in been goals level ROI near-term components Q&A. take repurchases have
