and welcome. Stefan, Thank you,
key the I'll for thrilled section are with to begin have board. you We my highlights on the financial quarter.
trends our are sales third to First, marks the of improved as reported quarter quarter improve Michael noted, and our trends. consecutive year-over-year continuing third net
quarter For the quarter, net year. sales were $X.X billion, down X.X% compared to last the same
an FX, a while QX have impacted Second, by was point to negatively unfavorable cost be year to contribute XXX third basis as additional well XX basis headwind which the gross and headwind of drove pricing mix the we compared to actions point over impacts as sales and to continue year-over-year. input quarter last of of gross inflation points led which margin each basis approximately XXX of we benefit taken year, profit XX.X%, an to profit past margin the have
previous the actions million XX%.
Fifth, year an in margin shift program by XX.X%, incremental realized announced to previously which have the primarily saving EPS for actions savings due decline rate anticipate through our XX full in profit $XX and impact to bringing point XXXX expected we an costs Fourth, transformation was to in EBITDA which we of partially of $X.XX related of program. was least rate, negatively XXXX, now our of was was for Based cost effective $XX we unfavorable driven from of cost continue year QX now on $XXX XXXX basis mix million mix initiatives. expectations. year at XX, expect implemented on take from this diluted Third, continued full with by margin, impacted our XXXX, to a X-month $X.XX a tax input QX offset our true-up adjusted strategic primarily adjusted million, gross by We upward tax at of $XX was deliver September adjusted savings to million which revision QX. a country our sales
savings XXXX of cost million productivity we profile gross SG&A. expect an $XX highly initiatives We total we beyond.
Despite perspective, continue margin from continue that in to and rate input least are at run program to focused our through on experience to challenges and overall deliver and profit
productivity transformation has will organizationally program our address we to opportunities While flagship program to on press more be initiatives, been our continue effective. to
retention to to During million separation the SG&A primarily in million. from third related employee we pretax related program the expenses These our to to date recognized quarter, cost $X expenses results. adjusted an bringing incremental costs, our $XX are total of excluded and program,
total the an incur dollar continues seventh, sheet reflected to a we have to earnings of to results, expect in U.S. the negative quarter and on also secure pretax a took our FX had as tailwind our the our see convertible during to QX least versus And further at in XXXX to at discount. we call, million notes quarter, million.
Sixth, program we expected $XX repurchased approximately met continue our We of impact strengthening $XX expenses actions fourth the during When of XXXX. profitability. the foreign of balance currencies
headwind now U.S. then, of to an the the in strengthening FX due since quarter. However, fourth we the are dollar expecting
for FX X.X% tailwind approximately currency basis same in Moving declined peso $XX or an movements net the third the Mexican year. to versus X. point Slide XX million Reported Favorable quarter primarily period year-over-year. the approximately resulted sales for last
improved and gross net consecutive to on continue This indicators quarter return third to to to trend $XXX unfavorable and We we trends.
Based to is continued pricing that EBITDA input growth higher margin on higher Adjusted growth. cost to partially point year. offset this continue our have costs and by internal reported XX.X% our was top margin, our for initiatives. sales the million, others, sales this of deliver quarter quarter saving on by with the commitment and fourth line return was year-over-year the impacted mix in third
per XXXX diluted full share our upward $X.XX, impacted of by adjusted Third $X.XX of diluted revision with EPS a year for was quarter was an negatively earnings rate. $X.XX X-month tax which true-up
were our of the third working our along $XX current commitment represents adjusted million Operating capital, amounts As noncash for continued million for June the a September on true-up to $XXX favorable quarter.
Cash the driven $XX of full $XX a our was against half cash to approximately reminder, approximately from million $XX portion XXXX. XX million first expectations million year quarter early million income in primarily flows impact of the of net period, the reported the by the which previously in repurchase hand down with items contributed reflecting XX, optimize our notes. in at of XXXX convertible $XX approximately
implemented local by see of in X. the drivers in approximately sales and year-over-year price India XXX pricing result sales to mix a generally Turning markets increases increases. and to approximately months partially an the our CPI U.S. were benefit sales. points in as XXX benefit in to market-specific address China unfavorable portfolio. sales the change basis past of Slide Pricing point lower offset line the provided net over with our The to relative increased basis We period due conditions certain in country overall XX in net was and of
basis EBITDA points year. Adjusted quarter points the EBITDA over on below margin basis Slide adjusted last XXX approximately we from margin have margin of resulted the XX.X%, of bridge increases the a EBITDA third past pricing XX. benefited XXX Adjusted of by $XXX year. the to implemented million in Moving
which negative related actions. approximate to and improvement in increased of approximate approximate SG&A, However, an in costs during basis margin. headwind impact benefited spend The program accruals versus the continued higher on salaries an XX to within versus are point manufacturing impact adjusted in and promotional primarily costs quarter margin QX from to an XXX approximate on spend efficiency period basis resulting year. due adjusted the bonus material savings of by point cost SG&A, benefits point basis EBITDA current QX overhead Also bonus an an basis were the transformation headwind. our timing XX and approximately was we point the headwind realizing 'XX.
Within wages we drove results XX raw Currency offset of $X last cost from and million our EBITDA contributed
Slide to Turning XX.
up. our are We leaders sales trending active that encouraged average are
reminder, their from their sales of either the downline. customers a those metric own number average this or of purchases As nonsales leaders shows have activity monthly or preferred that leaders had
second the the third over and we average approximately up quarter, 'XX XXXX. For active leaders, which sales was quarter quarter had the XXX,XXX of of third from X% X%
the non-sales during product to leaders number in and customers unique XX. of of Moving the that trend quarters. see each Slide can We the have respective preferred purchased
our have in see which fourth continued and We are throughout active trend upward also the steadily from and declined 'XX non-sales in customers preferred leaders, up XXXX. the on actives the our encouraged been XX% Whereas XXXX, year. quarter to are of increasing
well that reengaging continue the what believe We quarter. us we financial underlying confidence and to are And are customers. growth that net to as innovative DMOs the return business that new root. this our distributors our will trends evidence distributors the is sales gives trends in by introduced our taking with fourth are their are being as The organizations
leaders. active to Slide demographics average highlight customers our non-sales along active with XX. leaders, Moving and the of preferred sales age We
on are healthy being We're and opportunity of generation. centered on this and customers and our preferred and younger active Gen approximately our of introduced XX% engage new XX% to recruit the leaders Gen with by and lifestyle and span DMOs age resonate also us customers particularly retain distributors active by highly demographic. Z.
The with to distributors focused across helping continuing nearly connect We millennials with represented this innovative those generations, products X leaders, believe our non-sales and Z. our Millennials Our business evidence and and active that sales is
regional Moving results quarter. to third our for the
net sales and X% EMEA this that improving. up in Mexico was our basis, reported market year-over-year compared we said, price result a impacted X prior than and quarter improved both X% in supply reported experiencing local impact a Three favorably on were declines the on had net America, XX% Latin sales up while year-over-year Year-over-year up is currency have more June. were in implemented basis local basis. government Mexico EMEA third of of increases year, the the were we by importation currency quarter, volume sales Mexico's year-over-year are which up trends.
In offset the our timely of year, our X% sales reported growth As a began this by has on in regions local net primarily as and in third the trends permits, Mexican X% currency. reported the January FX, X% reported the on peso. in future consecutive a and to In in in mid-September, delaying may approval future inventory delays importation our market. Mexican by a
support continues continue and to government approvals and minimize disruption necessary be reported due were return region, the is team new X% initiatives growth. for drive actions fluctuations to reported unfavorable a X% to to productivity in obtain Mexican and North try reported focus of market's region, sales growth currency the us. U.S. primarily up and decline. with local the timely highly recruitment, on basis decline The sales to in up launch to net the by was numerous Pacific sales taking the driven net a currency.
In We net continues our the to in regional closely XX% work while year-over-year, the risk FX. a market year-over-year stimulate local market.
In U.S. engagement, engaged The was importation XX% be XX% up which basis the improve Mexico to the America, Asia in India were in on in driver primary
of see of in a key as some to initiatives. result beginning these signs positive are states We our
working accelerate groups to of practices. sharing We also the place have best distributor have in
X% August, 'XX. strategy our regional consecutive take this While were distributors with see XX%, of which market closely back sales tough to is the will China sales local meaningful to gain reported implemented been Year-over-year improved reported comps traction, team currency and for August results.
In to on it is increase Net net us net track. due very year. are quarter joining key sales turnaround were down due beginning XX%. laser-focused to a get Stefan in second that year the another to China, in versus identify prior efforts price develop the working primarily time we down in has market on.
Since are to growth opportunities key to
cash Turning position. structure to and our capital
comes the and to million approximately in principal our balance between debt now a quarter $XXX and plan XXXX, cash any with we reduce remaining to due notes free in with generate and the we nominal March of line and discount. $XX we cash XXXX levels, to million continue objective park our During use the flow The then, to our revolver convertible of repurchased cover difference. at
for our of the was compliant CapEx We XX months expect One, undrawn. a total $XXX million of million, One. approximately in debt remains with around fully our million inclusive to for X We in $XXX our million, quarter Herbalife come fully $XXX below Herbalife estimate. previous investments the Our $XXX now to including ended year leverage September ended moderately credit covenants.
CapEx revolving the facility were with X.Xx gross ratio, all we and
Our of unchanged. use priorities remains and cash long-term capital allocation
service X.Xx, debt Our please remarks. line targeted levels metrics a investment-grade gross is concludes we our and our prepared approach as for and our #X leverage towards the target.
This reduce nominal to continue priority open ratio that as debt opportunities work to we to questions. seek we of debt will Operator,
