Thank you Roger.
quarter successful our line. taken comps third promotional positive generated a result top as Our of to activity protect
digital Roger to As mitigate with top levels, line enabled the shared, inventory and quarter exit clean this drive us traffic, weakness.
earnings by external was overall factors, several performance our and both However, damped internal.
long reflection we be business we believe mentioned, this these but for remain in the and while. felt to items a disappointing impact was our and strategy, nonetheless is continue not Roger our confident As a of quarter of do will the term model
recorded of otherwise. GAAP exclude financial will during under Please results remainder specified unless note we the the call certain that today’s adjustments reference
a complete GAAP earnings, press of reconciliation For reference adjusted please our to release.
the revenue all throughout with our categories to million have weather notably million, included versus comps driven the our industry-leading X.X% U.S. In in businesses two-year Total our impacted versus other consolidation. revenue comps total Sales which last the year country, continuing quarter. were warmer comp of quarter, business intersegment year. this across business of X.X% underperform we a at eliminated start $XX.X XX.X% two-year caused year last was all third increased up seasonal our the of the in in unseasonably the negatively DSW that were to $XXX.X and by X.X%,
later in proactive exit we taken with quarter. inventory we inventory successful and able highly were position offset initial around were the pleased top clean steps weakness turning promotional manage the Our that line the levels. to with activities are to We quarter a and have in the
U.S. X.X%, the last comp sales comp growth a were segment, At of year’s delivering versus comp X.X%. flat of retail two-year
kids Despite comp We still on by XX% up in athletic respectable driven an we as in a categories activity. continue posted by pressure weather related boots such business that in grew traction to X.X% seasonal see X%. and our to acceleration promotional issues,
new across quarter, leadership is our category. in drive helping As mentioned merchant the recovery the last men’s
in we saw posted comps expect improvement quarter, X.X% and we a spring we comp XXXX. decline further men’s although fact, in in In for flat the turn October
performance our comp, our this of our that XX% with items X% sales X% last which of key pleased items year. were expectations. a in were is versus These We with line reported year
merchandise approximately non-key saw XXX growth get the in sandals. level grow such we we items, better penetration continue of As into is item better categories of dress, is The We the to as for balance XXXX. basis margin average items. and cost. This points softness key accessories, these expected than
at combination drove to sales significant investments U.S. promotions increase quarter. further the volume The U.S. was consumer committed increased segment digital remains the quarter. omnichannel the experience demand online retail and and The strong of the activity. an during higher in during Digital agile
members program continue VIP growing We active over year. grow Rewards X% last to our with
our program customers in increasing us focused efficient a with and way, are more growth on the interact top of this and We line. allows conversions bolstering rewards as our targeted the to
sales operations Canadian scaling successful strong bright retail comp segment. segment, spot U.S. the grew demand. to as and Canada apply we our DSW remains a Canadian newer digital At our our banner driven by at from learnings our comps X.X% portfolio in the
As of in Canada. a Digital technology upside digital this live late U.S., went which the U.S. penetration remains in rewards their to platform, DSW, channel This re-launched expertise DSW’s reminder, to the continue program Canada we rewards site below QX a reap so in re-launched leveraging and re-launched Shoe good and we November. program digital Company continues at new the have benefits The business a at during operations, see and infrastructure. Canada for
into now bit. Camuto I’ll the business dig a
we DSW, reminder, at is which purposes were a during the only. own As Camuto last was Total net sales were reduction level informational The $X did of year. ROI. decline million, sales November closed which depressed third last Camuto, acquisition therefore, after any generate in million quarter below as reference of X; year transaction last the year primarily consumer did not to in an on marketing sales to including to a last pull-back not direct-to-consumer acceptable year solesociety.com $XXX a for
for We continuing operating proper the evaluate and this are brand. model marketing to
which saw expertise in the At were year, traction, million. income own to from XX% million, on leveraging $XX.X own Commission our $X.X retailing to last increase totaled we retail saw to $XXX.X and to X.X% the digital segments quarter. segments exclusive sales $X.X retail or similar continued versus increased decline sales from sales income which DSW gain slightly, solesociety.com totaled sales wholesale camuto.com million, to million. and approximately including last earned an down trend business our XX%, that $X brand saw million, including
weather continued declined This as to ABG at customer. largest struggles warm at related Finally, ABG’s comp decline X.X%. unseasonably sales well as
exploring exciting soon innovative opportunities details some this share are and We to as channel new as and it will grow appropriate. is
retail our As primarily sourced for increase arm Sales Camuto of quarter, of grew from still the brands by private representing label sales. we to DSW products XX% that are of million by referenced, leverage working segments exclusive to party produced a approximately third $XXX the Roger at business.
our and of direct-to-consumer Additionally, we retail million through sold approximately national in vincecamuto.com we addition sold segments $XX to the our $XX nearly of in solesociety.com. channels brands million Camuto’s
year. gross markdowns and again U.S. due activity rate profit due XXX majority promotional This decreased POS associated to X.X% million decreased profit the retail for basis activity, with gross was last mainly rollout. XX.X% rate $XXX prior versus versus to to to for quarter in promotional to quarter the our XX.X% including this increased XX.X% consolidated year. the Our of gross the XX.X% points A in margin declined new quarter. increased was
benefit to XX.X% for installed in quarter and legacy having mainly business profit U.S. to fresher gross year the due with disciplines the much XX% increased operating rate prior our Canada of and the Our leaner of continued the from inventories. inventory
of As we over goods segments, retail we our continue penetration our to Camuto-produced increase to margins across continued of time. believe all benefit will that our
million must million like at looks be to direct it may that are basis it on absorb but to to Building we Designer our approximately $XX of been $X tariffs, in proud tariffs to anticipated on direct our previously Roger’s XX% be on able we of direct an million thus costs comments mitigate XX% approximately costs $XX the we that of retained. closer will includes FYXX impact of versus XXX%, revised guidance have Brands, annualized
to find such planned the even as million to of to help will mitigate million to production scale identified We XX $XX feel dramatically million, roughly leveraging from Camuto this is over pairs. pairs XX to ways million increase we shoes eventually continue of as growing $XX
of anticipated. may Camuto extent materialize from not upside this the originally hoped gross some we However, to extract had margin to
had for of as current impact tariffs and some our and efforts Additionally, us the to have and mitigate continue to will time. associated the indirect the real discussed, impact results implications focus Roger very
targeted operating to million added basis last our XX% reductions expenses which on Camuto lower Turning driven total by XXX control. Designer than consolidated businesses to about Brands improved for disciplined Camuto Designer versus and and all X.X% last SG&A, Brands’ expense of similar year, operating sales. consolidated their $XX.X decreased by points excluding expenses, was SG&A expense year
$XX.X compared the amortization prior Depreciation in and as to quarter year. in totaled $XX.X million the million
the profit challenges XX% for The in down from operating while year. Adjusted successful at $XX.X performance DSW came the legacy Brands for offset million our business million Designer by in decline time Canadian since last QX, in of at contribution $XX acquisition. brand profit a operating our first portfolio the income recent our for acquisition, with in turning a contribution segment our XX% and from operating increase positive the the accounted segment
million share, XXXX primarily for acquired $XX.X of of the share income expenses or Net per and quarter per charges $X.XX $X.X or after-tax to included charges integration related million which net was businesses. third associated $X.XX and diluted restructuring impairment the diluted with
share. adjusted was $X.XX charges, EPS per these Excluding diluted
tariff of POS quarter by at some and associated offset look reductions rollout headwinds P&L, issues, I the consolidated As our partially and expense third favorability. story tax consisted weather, with mitigation rate
Moving $X.X $X.X on, in year. interest expense was of million million the versus interest income prior
XX.X% total outstanding versus to Our XX was compared million effective was average year. million shares and tax XX.X% last last diluted quarter weighted XX the rate year, during
in two share cash to the of with and driver and investments repurchase fiscal the in $XXX change ended primary The Turning XXXX drawn quarter the funding million $XXX.X was million million to acquisitions our activity. sheet, we last of $XXX.X the the balance cash year. and compared revolver on on borrowings the and in no investments revolver and
to shareholders, and the in $XX.X have in conservative our sheet repurchased our returned long-term We nearly strong share million are dividends quarter track a consistently are we year-to-date healthy a capital and structure, $XXX focused of and for to shares and for million a through shareholders return dominant on balance and stakeholders. repurchases value position. solid creating million With capital our record X
In with Company opened ending Shoe the and we Shoe DSW three stores. with we the seven U.S., quarter, stores, During the Canada, stores XX the stores quarter ending XXX XXX. in DSW Company opened quarter
additional not year, expect the of open we Shoe are store. balance one any and Company stores the closing to do For
The muscles strong to our as their our have in guidance into customers to model their planning shift shortfall resulting more evolve lowering nearly are whereby inventory extremely QX, are the digitally-heavy throughout continued us our Camuto’s in legacy to increased cadence. supply the required further impacting quarter Also, sales related like promotional their guidance. developed being inventory of QX down would the of pronounced shipping I QX in year. someone they and with in continues that most the for addition in of to to equally headwinds Most we QX risk of like holiday combined which are headwinds not pressure one additional and vendor, more of Lastly, year-end chain. peers this the share faced in QX
have such, As on an they found themselves over-bought in situation a items. few
We have set skill changes at DSW. their to made this highly leveraging planning several the organization infrastructure, developed since Camuto help bolster at
pressure headwinds of roughly the fourth benefit and QX third our accrual of tailwinds quarter now reductions, unless the third in occurred anticipate incentive incurring inventory; reversal of more compensation than we fourth that the quarter as little However, we we the quarter a from of thus, we liquidate see quarter. the expense in $X.XX in won’t saw be given this in
$X.XX now sales Comp that, the and year lightly. double for low this to flat we year expect seeing EPS With we the digits. are total between share. to Roger’s and I full take echo be per coming that revenue are up in reduction we not comments be expected do $X.XX
and laser focused full our guidance execution are delivering We new for on the year.
I that, Roger for it turn remarks. some over With final will to
