Thanks, HMI down were Paul. million versus last QX sales XX% year. million, $XX.X or $XX.X in
our causes at primary the retail compounded the furniture all of Continued China the The softness business by five of sales decreases. channels traditional softness resulting disruptions with across tariffs, residential negatively retail down were retail four segments. from all units, of distribution, ongoing impacted industry across sales
up the new with as increased sales quarter business SLH, second reported in initiatives customers hospitality in unit, the in XX% sales demand our segment. growth and strong that new quarter sales
the the For the order order improved X.X%. flat end the versus for and quarter, year of backlog was Both incoming and have prior down significantly from at QX consolidated QX. trends backlog
QX. improved loss reported from QX substantial improvement the results operating also breakeven, to in a
direction performance, product the warehousing-related costs, product our Second lower continued other the in from continued quarter top while expenses sales, tariff-related return, a nonetheless by caused reduced disruptions income step line by operational right tariffs. and was QX
be follows. are initiatives and Major to as underway can improve well results summarized
strategy. exit China our Firstly,
as with manufactured from Our our as to as strategy as feasible. much country's on Prior is relationship XX% imports tariffs, from in to resulting reduce China from current uncertainty the trade products to well the China, were approximately avoid resource HMI China tariffs production away of China.
come of remains approximately of our will that China As to down. continue and XX% production number in August,
faster, and PRI percentage progress coming Vietnam less tariffs, is the to of progress to in upholstery has our and online We even PRI was manufactured than August but than move other to additional that. for as dramatic XX%. production capacity more production like would of division has Our slowly. production resourcing Prior XXX% that in decreased China, made countries
and Given is our as they positioned to longstanding become deep history new well HMI relationships Vietnam, business secure production in available. capacities
second Our is our PRI strategy turnaround.
PRI mentioned, is China, products providing then and returning out profitability. critical moving the is which to good production PRI competitive making As of progress factor in most target
loss forward increases select improved results. continue QX. net addition, these we PRI the on efforts in delivering move business. to In some increasing contribution price as where performance is net necessary contribution we in PRI to Further, implementing eliminating unprofitable The you from contribution are are of and QX positive track combination resourcing.
higher enhanced clubs in new our to who to process growth the front, are channel effectively channel, traditional topline normally premium accounts. retailers and profitability. are can On our mass efforts mega sell of products, the carry A growth grow sales better our through in initiatives which new the portion targeted prices, PRI
new will the an incremental of of this that October is new The launch and majority significant opportunities. growth profit market brand merchandise part at create exciting
with to endorse the line Meridian motion consumer. has retail of to Terry PRI an exclusive the a last week, signed public made upholstery As contract Bradshaw and trade promote Home and
motion carry commit expect all in ages enormous had to particularly markets, shipping demographics, fit for and entertainment upholstery is the perfect we products across he the Terry's QX. brand, entertainment we late retailers Terry the target Given we've Already popularity in sports multiple the believe to Bradshaw begin and major customer. the branded
Another is business. clubs clubs -- initiative our reorganizing is our
channel. We and restructuring our clubs we enhance performance deliver -- that results line control, are from to ensure organization expect bottom businesses the business
a Our will importantly clubs single consolidate with more P&L structure, dedicated operate and leader. to executive report a now will business and
direct channel into assume will big-box our May with hired he's as was for Jay business. entry who a in to this the the well Jordan, for clubs proven responsibility experience channel, mass leading stores has fit and in our as role. natural Jay Clubs
have multiple business core our fit our opportunities competences. identified procedures. focusing clubs and Furthermore, clubs that proven already merchandising sellers specific operational efforts to we and our improvements product on are are established We implementing are
Other strategies. growth
as well. growth growth In strategies in addition other to of sales, business branded have we clubs our in parts and
mega Although, product expect have over traditional conditions product $XX have developing and the exceeded in million generate mega new traditional nonetheless year, to slow sales retail multiple our we that in within accounts selling an account experienced basis. on annualized new all we placements channel
incremental, indicator While strength is not that is all it a of within of our business segment. healthy that still
with fast-growing up the focusing us This grow sales growth the and the faster are our best we e-commerce addition, In business more within and to on will business better channel. in will enable retailers profitable faster year-to-date players with result channel. in partnerships, sales focus XX% biggest the
category Furniture opportunity quarter, focus on and for This SKUs Market. approximately introduction developed channel. for October new new Idea, growth of incremental RTA retail to at the named launch division, Last Casegood company. significant the mass HM represent The planned we division for RTA HMI announced our XX has is a the
new and at now stores very category we are introduced well. selling year, last performance bedroom Another and collection dining retail product laminate
segment. products product We this will and continue customers in new to invest in
the Finally; we service managing container in a attractive while inventories mix model This Vietnam major values, to from particularly just warehouse product midsize container smaller service buy introduced in precisely. this product enjoy direct lot who service is year. prefer direct retailers retailers sizes and to to consolidated accounts that via more those is earlier container. their shipments a new This enables
margin ongoing is initiative Another improvements.
to initiatives as away as process include in from suppliers. have bottomline. the our margin aforementioned China, multiple We efforts initiatives to lower production resourcing These improve improvement cost resourcing well
to improve In cases, factories we Vietnam are Vietnam-based several production other resourcing to margins. lower cost
China increasing relative strong are in sourcing as We offer to that our Vietnam. to and continues Malaysia, base also values develop and country
government increases, are We cost production selectively freight-associated recent issues. in such various and counter higher raising costs freight and higher as also Vietnam, to compliance prices expenses directed
underway reduce a spending, we Finally, inventory and challenging overhead business with have comprehensive commensurate cost-reduction to climate. the exercise
Specifically, we're hiring our headcount attrition reducing X% through and freeze. of
Vietnam of our and exit in current tariff-free favor reassigning of positions. The largest Malaysia. responsibilities China of reductions will We have we country already in staff production begun to as pending cover staff portion and vacant in that occur
inventory our basis business. an for largest to the Our on is annual spend service
growing inventories result some Our sales. recently, have is e-commerce to of which business and of intentional lower our some service increased a as
inventory We will reduction XX% a and space year, warehouse which up by are targeting QX next eliminate free of allow cash. to of us
new, These a inventory. reduction programs reductions will the more from of off certain inventory excess process, selling and accurate come forecasting customer-based
Additional travel, distribution. photography, targeted printing, including; cost centers, and showrooms, spending reductions are product all occurring operations across
we forward, recently season. our Looking as positive action improved orders begin significant to gain have remediation expect Ending on retailers fall selling note, operating our as for improvement traction. in place results the consolidated a orders
reflect trends year QX. improvement of backlog August, were has of and X% increased QX end As the over orders last the versus and X.X% both prior within of HMI continued year, up
turn who back to on quarterly further call like our elaborate the I'd Paul time, will this over Huckfeldt, to results. At
