for all Blake, you joining thank Thanks, and us.
one retail of quarter. conditions, light with pleased U.S. for impact business very relatively of in fourth in delivery key our quarter some the delays workbook especially of customer, and growth late We're X% international weak the
strong broad quarter. diverse a reach deliver in multiple Our portfolio, distribution allowed geographic channels us to
international As grew and nearly our comments, largest Blake delivered grew our mid-teens XX%. in our own businesses two brands noted DTC XX%, his businesses over growth,
the coupled in expected the improve gross reduce at and of stores. negatively for and was channels. inventory during margin quarter's expected the promotional see trends across nice margin was for quarter higher holiday regions impacted XX.X% e-commerce which the and than brands to entering mostly also fourth retail This and lower season, Saucony, A gross Gross expansion margin. retail positions our with did quarter. most shift due inventory sales than helped to FX mix close-out us activity We
were general Adjusted support lower selling, administrative year-over-year growth new significantly to expected, expenses in Italy. advertising higher $XXX.X million in than and and of business despite DTC our increase a
The incentive compensation disciplined was of a management costs. lower expense lower result structure quarterly expense year-over-year and
a rate lower prior-year these factors, was margin from the As tax tax and quarter. benefited state income XX.X% adjusted effective result mostly XX.X% was and discrete other adjusted the The of operating from X.X% versus expense items. in
quarter. Fourth diluted per a quarter record fourth earnings $X.XX, adjusted were for share the
Company. the litigation State million related $XX in with Michigan, were recorded local costs of matters XM legacy related to the of QX, resolved and tannery meaningful company operations. settlements two During two to the QX townships, its Net
other and share was loss non-recurring and reported The items. costs includes these settlement per $X.XX
currency revenue and full-year, for other XX.X%. adjusted XX.X%. effective was $XX.X Net margin Full-year of were operating adjusted $X.XX the growth tax constant the expenses rate represented million X.X%. and the For interest billion was year of
Full-year per a earnings adjusted for company. the share diluted were record result $X.XX
were charges. Our litigation earnings settlements full-year $X.XX per reported the other noted reflecting and above one-time share
cash healthy of operating consistently $XXX generated of cash cash flow which matters. in spend environmental has model operating $XX XXXX, generated And we Our includes legacy million on flows. over million
organic further invest which our directly momentum the growth businesses sheet, generation, accelerating continue year in benefited and cash to biggest Given our brands. DTC of strong balance we and our throughout
turn the let's sheet. to Now, balance
position new built support to the business, up our in sock inventory throughout tariffs, discussed mitigate potential stores new prior and As new holiday our quarters, Italy the stock of season. year for impact in the we our
fourth in levels. quarter the liquidations normalized growth proactive reduce us Strong coupled close-out to to with inventories allowed down
This business, than impact inventory over in of XXXX. for X% position prior-year, XX% Italy our new was cost incremental only to higher and the help also and the less the new stores, of in inventory the markdown exposure As strong quarter improved but tariffs. when expected, the up generation reduces contribute up cash adjusting
We shareholders, ended we last strategic $XX $XXX million year value and million, under investments paid up $XXX shareholder in share million of strategically the enhance opportunistic just dividends versus growth. of year $XX with capital to debt net to was which deployed capital to including drive repurchases, as million
At the XXXX, bank the previous down leverage was nicely from defined end quarter. ratio of our X.XX times
return The billion. drive will to Total execute ratio significant that throughout liquidity was and our has actions expect we flexibility $X.X XXXX. improve leverage to approximately company future total shareholder
balance encouraged leverage, the revenue We're strong resulting finish with flow, by to accelerated a cash strong XXXX growth, very healthy earnings and sheet. good
trade transition than on from tariff Now incur imports China let in and significant of XX% to new on from to current sourced U.S. during XXXX less tariffs, in China footwear the U.S. and our countries our XXXX including XXXX, costs will outlook Despite imports be China remains source will schedule. health of from U.S. some other China our the production industry crisis. the estimated impact still topics, me coronavirus negotiations QX, positive important shift two
XXXX associated of migration our of $XX expense, expect this incremental incremental million cost incur this about efforts, sold million tariffs incurred at be of the includes nut in incremental in XX% expensed higher to won't about on is until XXXX. rate that related $X costs. tariffs $XX China we costs including in discrete dispute trade million with to QX still This were initially $X and Despite million proactive inventory XXXX product
minimize have teams these price selectively costs, Our on throughout the while year. to sourcing increases initiative implemented continue brands work to our
is and related this commercial China As health will the sourcing direct China market issue. developing Blake our relatively limit reliance small coronavirus noted, exposure situation, reduced to a the risk crisis help to on
near-term position channels. for in exposure, wholesale Our especially core help to on should also mitigate DTC our own healthy the product inventory
is However, implications especially the to a and fully the difficult situation future of year. half the this measure, are dynamic beyond first
$XX present of million estimated which full-year on is $XX into pre-tax now. impact The first will of our incorporated revenue half profit outlook, I and million cover
business of progress businesses. for The DTC key moving well drove bode performance half in including our momentum full-year strong made and ongoing in and in for the support brands international China growth. These accelerated will year the our in key largest regional The in made strategic Europe XXXX global areas investments forward. investments back
investments well-positioned agenda. have our the global prioritized refined for and We're key the we focused of And growth future. pillars on
growth our businesses DTC other mid-term We further to continue goal to we global markets mid-term look Asia-Pacific platform over expansion. as we and and the have of to annual e-commerce as a Europe made the also from international revenue and to investments own stores. to for businesses grow XX% leverage brand model leverage investments in double-digit in committed We're our our
see biggest our growth Sperry expect and stronger for brand prioritize the will much to brands recovery. path growth a Saucony accelerates Merrell and as consistent and We from its
are wholesale for first from our situation the in prospects the XXXX by and some channel. coronavirus tempered is in continued very headwinds While growth softness half promising, outlook U.S. the
in in We be expect billion range X.X% billion from growth and including This nearly of top negative the impact impact million at to the $X.XX the XXXX end of from first reported currency coronavirus revenue $X.XX currency. foreign half the million negative of constant $XX $XX of range. represents to
The Saucony. XX% international business, and from XXXX implications, negative most from very XX% combined global from coronavirus largest recovery by prominent growth our drivers from Saucony, supported brands, and DTC X% X% growth markets growth despite X% Merrell, a include Sperry to our our to strong the three growth for global
year. in ocean million Gross and three cost be despite headwinds strategic increase of costs, basis that plan related including costs prominent million tariffs, $XX offset this China XX% lower in $XX expected negotiated from higher to freight headwinds $XX June of of the margin improvement incremental increases migration related approximately these million to to to Strong XX year. most million be up versus price last with is starting points approximately areas, foreign related costs $X will surcharges. currency, to significant product a We key and
of expected expenses $XX Total in and to $XX ongoing costs venture. related increased million China of be adjusted business, slightly to comp stores, Italy roughly and flat the costs incentive million joint This our prior-year. of Saucony to in up and percentage benefit administrative compared a our over are selling, investment to includes operation additional revenue employee general and nearly as costs related full new the to
increase also will e-commerce our We global investment in platform.
XX last estimated a million an including over expected XX%, Adjusted legal company's is improvement expected Reported point and operating approximately environmental $XX to to is operating to margin be XX% matter. consulting representing approximately be the basis for manage margin costs year. legacy
We and shares. XXXX and approximately other interest net earnings The to rate approximately expected tax of approximately $XX XX.X XX% to diluted shares expected outstanding EPS million increase expenses of net expect is weighted be average The for to available is be projected million. ratio are effective to XX%.
$X.XX, adjusted growth. diluted leverage strong represents range end the which in expected growth XXXX X.X% range share Full-year to planned of on are at per earnings $X.XX top of the the revenue
Excluding at and or would from growth of be the the the of projected adjusted range. full-year approximately $X.XX XX.X% impact, diluted $X.XX, to top EPS $X.XX FX, of coronavirus in $X.XX range the from end
per to diluted $X.XX. share of Reported range earnings $X.XX the in expected are
in Our balance good year another expect is Year the strong we cash New generation very entering and sheet position XXXX. of
we our be these million, litigation up related included impact million multi-year on information expect positive Operating approximately table of cash cash approximately settlements on above, noted XXXX, flow projected an flow projections. website we've covering to recent settlements. In million from a $XXX is cash XXXX. in related $XX.X Based $XXX the to
the to between the million under ratio expected times $XX to We expect with and bank approximately million. be to range million are of year. amortization $XX defined expenditures leverage at Capital be depreciation forecasted $XX and our end two
update let you Before our on QX. outlook we for me conclude,
will from mid-single-digit Solid Sperry once the by again DTC Saucony the performance from of be highlight combined our quarter businesses. growth own supported and Merrell, XX%
QX the international impact However, from revenue in business. will our coronavirus flat result for
market softness has In the in U.S. continued addition, the into QX. some retail of QX
$XX revenue to expect quarter coronavirus health the the in we from result, an million a million, estimated $XXX direct be As approximately impact crisis. of including
margin of approximately expect and We approximately of margin XX% operating X%. gross
$X.XX. quarter from earnings moderate benefit future will expected to $X.XX and per including in higher coronavirus headwinds compensation higher certain incentive to from This share issue, from $X.XX reflects be costs, FX. health First tariffs, and $X.XX that $X.XX employee the quarters $X.XX from
stronger factoring after approximately Our we revenue for projecting and outlook much of is coronavirus growth in million. are $XX mid-single-digit QX the impact
allow growth is and platforms team focus our our us I primary to progress leadership that executing and evidence accelerate within brands, remains The is that we're incredibly largest seeing initiatives model focused closing, DTC our In that continues and the to activities and emphasize want on will be the growth. international working. to our that
global business increased operating agenda, leverage We the further be the and to growth managing and will continue of execute capital, well leading which will as working an position generation. flow costs on disciplined the cash in company to we earnings our
we over for this time back Thanks your and the to operator. will now turn morning, the call
