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