GAAP Good quarter. Mike. first the X morning page you Thank I'll with income statement for begin everyone. on our
GAAP year refinancing quarter adjusting results some items our and detailed restructuring year items, in release Notable in material. unusual notes, the business transition first to this the our senior presentation model Our this of for China. are which last of and our and organizational included press related year
adjustments First bankruptcy. related “R” quarter Toys Us the principally XXXX to
information presentation. results greater exclude our of periods presentation to results release Please GAAP you for business review and in Today's both results. earnings adjusted of includes adjusted the reconciliations this unusual evaluate basis our Our items as these comparability.
quarter. Moving some with to first for page the highlights X
were the net We As channel. and the we to although persistent consolidated several had better Canada believe sales holiday due by were cold sales factors across than weather this wholesale quarter U.S. including equity sales Gymboree in liquidation affected mostly year-over-year, in demand the stronger Easter later expected, and the declined in planned year, marketplace.
in the to as sale. in Adjusted “R” we included us. to expected. in sales by and quarter, planned decline and than EPS our quarter and And forecasted, and which higher were retail than to mix year's U.S. $X.XX than we was than Bon-Ton, Toys of lower less good stronger reflecting down helped again last top offset The the was lower tracked which changes Canadian profitability but control profitability of of channel businesses. for relationships Us sales high-margin had planned spending, sales first line good customer Our had in wholesale
year-over-year were $X sales Moving by $XXX the first declines approximately net X. sales few retail, exchange which modest more about three compared segments; in saw mix XXXX. cover to provisions X% Movements business on in in against quarter reflects in reducing page quarter changes for detail and XX.X% rates e-commerce a This foreign Wholesale of million. We some our down P&L currency customer quarter were XX% last sales first to year. the the margin adjusted inventory in international, Net of quarter million, us our versus shipping higher in the our was wholesale Adjusted U.S. U.S. our in gross business principally costs. U.S. minutes. and and I'll each within
stronger gross X% balance the of particularly half. to the performance year, lower was we Adjusted expect in move approximately than year. We second last margin as SG&A the
Our retail earlier good did a in job in given sales businesses especially the spending particular quarter. controlling trends,
market from licensing debt the in businesses as our and operating wholesale elimination to benefit bad new model. now expenses in the We in expense lower also this of China has transitioned
versus last year. notes. interest rates increase a ago net expense related interest expense quarter the higher incremental refinancing some and interest of compared was our to year million First $X and $X senior margin This reflects million to other
first quarter XX.X%, effective in greater benefit to the rate a increased stock-based ago. quarter to tax from tax a principally XX.X% year to XXXX, of compared Our due first compensation
Our average our X% last share reflecting year declined to share repurchase compared activity. count
quarter was compared EPS year. $X.XX So adjusted the line, last bottom $X.XX again on first to
page We we quarter sheet off strong utilized existing senior the balance senior best outstanding been recap saw achieved and sheet for already unfortunate revolver cash took proceeds transaction notes. choppy our We demand steps further a the and refinancing our in our and flow. outstanding by X our bolster our of and with in our one the high-yield market. balance debt what to of pay rate Turning transactions down borrowings. to We to a of notes pay has very packages to covenant of interest the
been of profile million. has current facility credit under on Our $XXX meaningfully available substantial capacity and hand debt cash we liquidity maturity and extended have our approximately with
year QX at was due position increases the part each later year X% to end single-digit ago increase forecasting compared retail Easter hand count up the and in quarters believe to mid higher the inventory the year. last a unplanned XXXX. demand quarter on This due the reflects we've cost. for peak net planned inventory remaining Our modest the growth and to of for that increase hit of in year-over-year are versus higher a We holiday, the in only inventory store of in product the inventories
our of of lease now liabilities our accounting accounting related note Adoption we've As $XX support also income. including has have flow right-of-use impact relate of about press the Easter the grossing assets. end balance noted our obligations up leases locations. morning, The compared in as million and at release and million the net was our to store vast new $XX lease first leverage, that principally this sheet The a standard, standard consider majority QX have which adopted our to planned the balance lower P&L effect always inventory quarter the new X.X this in for shift not of did lease end material of times retail year. a the quarter stood higher part reflects our last at decline at demand, Operating of the quarter. cash we overall the which first in and
fiscal For million we're range $XXX operating flow forecasting strong in of cash to XXXX, million. the $XXX
$XX In million. the returned capital We year of to in are $XX investment and million million dividend. in total in of expenditures repurchases year a approximately also comprised the good another with planning we quarter, $XX $XX million business, full share of shareholders first of
was past our an call, in our As we paid increase to share March. authorized per dividend in quarterly this for dividend last which our $X.XX announced XX% the Board
results at important and our margin year. sales consolidated page I'll segment quarter. the each our business with operating quarter. but in first our performance the first the operating the X.X% business detail, some last of in reductions to in go adjusted the Overall, Now Each overview an for it's X.X% quarter more of in look first for was balance to quarter. in seven of compared of income expectations posted year's segment to turning our first segments through
in improved to segments margin our of year. solid of deliver second each expect half operating We the performance the
operating We as year our improvement consolidated expect the see for margin we'll in full well.
Total Retail first on eight. Turning Retail page segment segment to X% quarter. the the sales in U.S. U.S. declined
comps in quarter believe which retail our adversely We were total timing we stores. retail affected most reflecting and first e-commerce holiday by comps down factors X.X%, declined number the sales Our Easter in growth of quarter first comp a by the points. comparable estimate the comps in about two challenged of notably
assortments suppressed focus weather results. year. refunds activity also across Gymboree the in tax We believe consumer which first the earlier of quarter in weather weighing for delayed and factors warmer demand and consumer our lower our on cold international were likely country likely the liquidation apparel also that demand
we've April arrival the weather of teens. high U.S. improvement in With in retail a the and in significant seen warmer demand. Easter, consumer were the comps up
and the On first the In U.S. quarter a up ending are opened the quarter four currently with Retail we closed basis stores States. XX new year-to-date stores comps United X.X%. the in XX
year, performance higher open full as approximately in X.X% well first quarter now compared XXXX. expense planned and the margin in of the was stores reflects to store deleverage shipping Retail close XX as XX. to comparable costs sales, we negative from segment For This U.S. e-commerce. X.X%
store in-store from are we've page our encouraging. planning second capability delivery especially On to tested the e-commerce customer current retail store successfully this our This times roll we of orders shorten out in year. orders, fulfillment for nationally their provides which e-commerce been away to year. to furthest stores. with of located Initial live capability from distribution service for half in customers base nationwide in is the this to second same-day orders. customers online initiative And our intended reaction service. online, the Georgia. We're has of about. the half leverage new here We testing initial several This In the plan our initiatives omni-channel of we our quarter, bottom in also this excited that of who online listed of is the developing conduct buy directly to our first we're fulfill pickup center capabilities beginning
to Diego. year good the store page U.S. digit, have new earnings we're low a in our planning growth well. On as co-branded fully grow sales we nine, of segment in included Retail the San with single net For relatively XXXX, photo in
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noted, believe going seen good XX performance Mike As forward. the we've years. that the locations or in And more there's us over to malls past in we've opened potential for mall store add so selectively stores few
marketing We adorable its will American this and iconic Demand progress up will design new included first On insight our And summer. strong PJs great known of think our into on Oshkosh Skip natural a three and good year. products these heading gain for XX, for new recently performance. XX summer market. page images unique initiative experience for and Travel quality, rooted an with consumers our we strong additional XX highlight last sales industry-leading our compared shortly. for start. the product On denim white report XX, are the and Carter's introduced products red, these brand, Topper is are designs. is B'gosh to continues QX product as we Hop On quarter of we We on Center here. in and On and to OshKosh a brand, Skip blue double-digits The we've very Carter's we to show our Activity authentic bring and Zoo possessing of into Crib, Scooter Hop Each pajamas. have for products features. and and summer. Oshkosh pages fit off to recognizing heritage. page especially XX, OshKosh. some is with value, innovative innovation was The page in launch
profit Hop For in meaningful forecasting along XX% for the contribution. brand's XXXX, approximately with sales, brand with Skip forecasted growth we're improvement up good a
last Bon-Ton, wholesale loss in sales in to declined of sales totaled U.S. which for driven inventory Wholesale to $XX XX the that sell-through in our additional QX, Segment resulted to changes was the operating by XXXX. spring with our spring Segment with business million lower earlier of which XX.X% good our the customers plan approximately were offset million QX compared $XX This higher the and customer growth debt $XX Turning year. versus Toys Us, of inventory in margin some performance product, quarter first with first which provisions brands able their last Plenty the commitments of reflects the margin results year. combined shipment. expense. in exclusive “R” sales U.S. million by we quarter, profit was for in bad page quarter in conservatively, in Wholesale X% XX.X% mix first was of in sell demand to operating sales,
assortments of Hop we're business, the supporting in-store For the on offering, on balance our expand initiatives. strategy of Wholesale relatively growth focused our Skip our Simple several our improving We're beyond to Joys the key Baby growth. new to customer's profit furthering and also e-commerce U.S. drive XXXX, namely core and contribution presentation areas age-up focused improving
Wholesale Baby page from coming top we're business with growth the for earnings. On in Basics XX-month our roughly annual its of our is old a Little For the the Carter's planning XX, XXXX, everyday which born U.S. Basics latest providing full low-single-digit market child. to on a included brand comparable images assortment, line re-launch. is year we've new Little up essentials core Baby the
Baby refreshed fixtures, year's carters.com. will imagery, campaign, marketing be include multi-channel retail own a Mike in updated and customers Complementing Baby baby looks at by said, re-launch will our branding a assortment United the apparel apparel Little believe think This Basics accompanied in-store the our store great. represents new business which we which is Basics and we site and States, replenishment comprehensive online wholesale Little businesses. and the product As for the for high-margin best-selling experience
quarter. sales International segment first results a on grew segment basis, modestly reported basis. net on constant an X% for a XX, declined page the and currency International to Moving
of in business, cold-weather posted sales the in retail represent Our mid-single quarter operations the first digits. Canada was in international share sales growth sales the a first declined comparable Canada, comparable bright E-commerce quarter. spot of lion with which Total in the a our in for decline quarter, improved over store the adversely in with traffic the Consumer in persistent U.S. for of first experience the sales affected demand as the the Canada up XX%. comparable April the significantly Similar in month. to did holiday. timing mid-teens our has in Easter
On to Canada quarter. are growth retail the We in saw sales basis, the year-to-date in sales net comparable in last good year. Mexico first
which Our United in mirror the Mexico absence XX We're a which comps million, compared some States lower to International quarter and from co-branded $X the performance Mexico so forward operating adjusted X.X% stores in the had stores contribution year reflects in in in by new proven somewhat year. $X losses China. format has which last was This company-operated the Canada X.X% up margin million successful income Canada. later to this to compared operating first mid-teens. opening looking segment was the in of of Segment was XXXX. offset will
XX, wholesale net single photo in we've page XXXX, our Pages digits children encouraging. our our is opened recently in the highlight in partners. partners. with of our apparel. XX XX in This is first initiated in new page XX, attractive Carter's to and our On the store a and wholesale standalone sales included For we've but international a the we expect website. Central e-commerce and this Panama far On demand improved so This globally. for America. and of large It's store store distribution brands is global of page market Carter's growing Brazil a profitability. still low the one Brazil screenshot in been the of have XXth with early, by market grow business site traffic operations
past retail our with times Brazil retailer present several stores Brazil number on stores significant over the mentioned partnered XXX the [indiscernible], of of consumers retail from about in a Brazil. that We throughout represented in and to the have carters.com. years, For we've the demand brand in Carter's its years leading U.S. a
second year to on outlook our now XXXX Moving for XX. and full quarter page
mix, For second to net approximately sales share segments. X% X% increase the adjusted we business interest planning comparable quarter our to expect our second quarter, influencing customer higher in three forecasted the refinancing. of all timing good expense the of the. year last spending sales be with to due and to second include in debt We're Factors in quarter changes earnings growth wholesale per profitability to
the we are reaffirming year full For guidance. previous XXXX, our
customers repurchase. businesses with growth take demand including we're wholesale over U.S. contemplates of ready questions. year. to the X%. We growth performance growth our adjusted consumer share in margin between the SG&A retail and all share And status of of level disruptions and leverage, remarks, these X% X% our with United This approximately along The southern the the earnings X% States profitable improvement to the your international monitoring expect our and net the of sales strategies and of per balance to half, the gross and negotiations pricing trade sales of marketing border our outlook China. in approximately expansion second that continued in Risks in segments, we're operating margin include success of
