a per We quarter. of that free operating through cost results accomplished running that our and above We we positive operating Overall, in revenue, and supply lot chain commodity on and are earnings today. and were freight our Steve. for first the cash flow margin, generated share. profit, Thanks, guidance the operating delivered midpoint the based
manufacturing gross are We’re XXXX. in and that at margin products XXXX levels line with early
gives and dollars this on cash confidence run year exit of we higher the of for that of meaningfully generating margin to are flow operating track paydown rates thousands debt. million deliver All us we the year as
thoughts from today’s on call year. as the quarter some on touch For provide the as highlights of the the our remainder I’ll outlook for well
document. quarter I’ll and and details to our on news results For the you guidance, point additional FAQ our release
driven in the includes macro primary constant decline XXX Canada, the billion XX% brand of down consumer spending sales of rates. due basis at In XX% which to year. the $X.X Australia in strong prior was for to year’s more from foreign which prior On left basis, brand the America Europe, Latin results. sales the and Japan. as Champion versus by U.S. year quarter impact The activewear cost headwind other decline declined U.S. activewear slowdown primarily declined we as currency offset the than point First exchange and our growth XX% a of and last year-over-year was currency sales of compared driven
and doing levels U.S. performance spending outlook. the inventory Champion’s as with Sales was channel by sale of the expected higher as The retail, in the was we’re within activewear cleanup the Our than lower more consumer other decline brands in in driven work activewear slowdown point our Champion at consistent in the strategic resulted quarter. which declined in well our
experienced growth business. our On in collegiate we another year-over-year the quarter of side, positive
U.S. well our we as point a with shipments expectations business of Our balancing of above innerwear sale. saw performed
consumers We younger seeing also the national at expanded distribution initial of behind results aimed as our Hanes attracting we’re original which bond launch. is good media
sell-in sales consumer sell-in declined spending by Australia Shifting With pressures lower towards our year drove on respect currency which in International Champion Australia, shift mixed sales driven X% sales and constant of last by year in shipments well lower business, in to in as shipments to to as were constant to China. down prior Business, a stores impacting wholesale. lower declining are our China. compared X% Champion inflation-related compared innerwear driven International traffic currency In
in sell-through of China point We last sale quarter double first expect year. shipment as to growth or over in up was digits low the improve
China’s to reopening, Australia, constant Americas growth in currency and quarter. the we experienced in Japan, addition Europe, the In
remains So our business Champion international overall, healthy.
as and declined Turning line points our compared difference to product quarter the outlook, basis to air was infinite mix. well innerwear our These and margin was cost adjusted decline prior volume more The lower headwinds year. in last than gross partial which expectation margins, and freight expense, offset by lower driven in mix was XX.X% price XXX margin Relative with the by increase, benefits. primarily inflation of the of channel year’s cost to as wrap sales savings driven quarter. gross
to due expense to as adjusted SG&A, delivered SG&A sales was to XX.X%. lower of percent respect compared year points SG&A last a sales. XXX basis With as expense
mix. cost particularly discipline quarter, outlook. better XXX was for This is above as channel driven from of initiatives as within by this benefits well However, the result operating our management, midpoint expense of margin our X.X% the our in and distribution, than which basis points adjusted outlook an savings
as the of EPS million. in was our expenses Interest with line the refinancing were were our outlook. refinancing with both and as and And line excluding other of This guidance cost and tax $XX $X was expense in our pricing associated our expected. timing with million
flow, balance see which was notable cash used on quarter, the X.XX times in we half debt to sheet these second elevated the took our us flow benefits turn generated the reduce to in respect the Turning unlock to below is of as times. cash to our expected, operating and to which our capital positions actions because X% of units, XXXX. the at of quarter began basis, With of we declined inventory our debt, in actions We as historically we quarter in first a XXXX, in to covenant our inventory in first and EBITDA net sequentially million quarter. which working X.X cash was adjusted $XX leverage
refinancing free The was our the a our first on of year. we generation successfully to XXXX With we term cash leverage. step believe combination that In loan on the our quarter, notes. all cash lowering we a of positive down quarter, with our debt and pay deed to this use to are the flow refinanced maturities path track flow in unsecured
our of cash $X.XX approximately sales And $XXX now $XXX turning full year, billion to profit of to adjusted million. guidance, to to the earnings operating operating million net share reiterated of outlook per and $XXX we million, flows billion, of including adjusted $X.XX for $X.XX, $X.X
Our view to consumer macroeconomic our reflect environment, outlook the continues given demand the uncertainty. of immediate
We we sell inventory. cost first in higher as continue pressure to our margin half expect the through
last through move anniversary costs. as year’s we selling lower-cost quarter, we the particularly As half, margin improvement and expect we manufacturing timeout inventory year-over-year begin fourth the we second
based are this for confidence that manufacturing on and the currency exit year earlier, with net gross at our freight to on second XXXX, the chain are margin decline rates. track basis, gives us approximately levels basis. highlighted margin X% today supply we’re I that XXXX, at early outlook commodity for to As With and to visibility line respect through product midpoint, that on constant meaningfully on sales we costs X% running or the at the in a run reported the our higher quarter, expect and a
to a range $XX $XX profit, guiding million. to adjusted are For million operating of we
expense Tax a expense loss and We to break-even be million. and and of adjusted other interest million, range between approximately approximately $XX $X.XX. expect of to $XX EPS
including year a The expected, we deliver high year, flow closing, and our our margins unfolding XX% as as today. operating with we our million in delivered goals, our to down believe we’re exit generating lower track on to have the input in facilities through began working flowing started visibility So costs outlook. the $XXX levels margin and first-quarter cash year to we XXXX We is flow through we as paying debt. unlock are return and generating as operating cash product results we capital, of line positive gross
call with TC. And that, turn I’ll to the over
