of do morning, and right review Today, full the this Welcome, areas check-in and with are of Thank potential strategy a our where provide we Good you, I'll well, know doing now. we're you more our for extremely things morning. need joining the T.C. where thank to business a where everyone. call on we challenging
Before our second results. I touching dive begin by that I'll into on update, quarter
and I'll and of earnings per half on After our line revenue, we're second the pleased to of outlook. our are the pleased quarter key improving. margin the several with share We gross performance the remarks, turn metrics were basis operating Scott XX call We're outlook. profit details our quarter's in delivered discuss of that Touching to my performance, sequential improvement. over that points also
a the earlier debt generated we quarter million to And cash reduction continue cash than reduce year-to-date. because flow expected. XX%. $XXX strong achieving year-over-year or of We began paying generation, the inventory, We positive of operating and for down
international of and including a driven essentially consistent constant business, and environment. very Growth sales by in the Europe Australia in a challenging basis, offset growth performance Champion Innerwear U.S. of results decline which that our were X% quarter strong XXX a with stable delivered expectations, year. of in were was currency Champion macroeconomic prior Asia points margin over sequential sales last basis year, ahead with improvement. On
operating U.S. our from weigh In expectations. strategic to soft our brand-related the continue profit U.S. Activewear, and category near-term sales. dynamics sales combination were on and impact The actions of below Champion
which the for adjusted U.S. is and Looking second businesses our half. impacting outlook our the at Activewear of Australia for headwinds primary the the the driver rest year, increased, have
million high more margin in than strong That year the with we on XX% said, exit of margin to generate pay for track expect $XXX we million debt. of to to range flow down gross recovery, $XXX and operating and the cash remain
over is initiatives in XX% a check domestic Champion potential full plan, It XX% our our progress a that provide to are Champion beginning awareness opportunity. is growth and with of a global like significant I'd and on business. Now our great global part brand.
position business progress Champion on future the within us processes solid made and the operations improving We've growth. for that
However, brand is the growth. ramp-up most we're driving these timing results of the and Japan, launches in program advanced In and loyalty new has In our retail terms segmentation, product the combination of where actions shall financial in been our Asia, product of experiencing strength mixed. translating strong of the the to are business.
our to foundation within we seen footwear despite the build future And our with growth. localized for the is franchises business. stores, stable. In performance and headwinds, new to a We've continue new work macroeconomic launch solid in product and open strong partners retail develop to Europe, China, marketing business
by continues against leveraging This balanced the retailers and to footwear styles headwinds as performing top business wholesale build bringing we're orders. to momentum, to in a seeing performance more we're fall/winter approach is scale Our our U.S. our cautious global take the
sales. And at In be to is and the outlook. U.S., where This of will success believe Champion in brand. tomorrow. point design, which expected as and of is we better talent Champion steps taking we're new is result, drive a merchandising not results long-term a the this coordinated it in launched leadership, We've and actively new new our our We driving clear that the time. brought in our brand we purpose in
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additional margin from performance through natural product excess of the next expect benefits year We improve Champion's to and quickly brand recent taken preserves that we've actions a global way equity. to pop-up addition input inventory in we stores move recovery, the X Champion to and lower also margins costs the opened In U.S. platforms, in using
established drive successful doing of we expect in in We've by in to and pressured year. quick lot the with capabilities to kids our outerwear throughout collegiate the industry-leading to position licensees continue also our Champion brand for channel for progress, making partnerships adapt to in apparel the potential wholesale remain revenue rest to We're and the our business. categories. environment. the graphics a opportunities using the additional turn to incremental the leverage We're We're with U.S. beginning However, sales potential for continuing Champion We we're to the highly success. be of confident performance
Turning to Innerwear.
and our business full potential reflects is track the strategy. U.S. on execution of Our
the brands play recall, to and to out consistently goal connecting younger with regaining you as return and we're If was momentum. declining it we're seeing our business a take consumers this growth. And
Consumer-focused up innovation is year. XX% over last
permanent Originals. X% to supporting that our with will national of and pipeline such presence retail campaign including We're Our Maidenform space innovation We've this visibility product Hanes for full, this our our is the fall. back-to-school as new brand launches well off-shelf stories another launch a in through brand product our shelf by as fall. M recent set as increase we launches, displays telling XXXX, increased nationwide innovation providing from gained and us
on-shelf to times product has Our supply by that delivery a space our our differentiating and help make thoughtful efficiencies our gains availability improved brand segmentation less to proposition delivering and retail for also efficient on reduced partners. improve consumers analytics more work drive chain we're inventory a DCs focus partners fewer, over and investments. inventory, brands, We're enabling sales by executing pricing Innerwear long-term driven and winning from value in a XX%. SKUs, data retail profitable more our philosophy our ensures leveraging Asia And shelf
the long-term to doing respect on to previously job I is spending progress headwinds Innerwear to as interest continues outstanding international our strategy. their on rates macro challenges, as face categories. higher team With significantly our our are Australia an mentioned, in make executing weighing Despite consumer operations, and continues
to continue We to bring market. innovation
our We're and to positioned most products delivering return we've to pressures consumer, gained believe our are once well expectations, above products. is lineup share. the by to importantly, macro the Our value bonds the of We market business very led Australia Absorbency performing growth innovation in ease.
the the business regaining today. a outset, brands all from We're potential focusing Innerwear Taking our back, this opportunities, step many areas. biggest on and true making of and leveraging aspects about momentum. progress growth advantages, the been in is competitive iconic remains and full simplifying has
the as on year gross points to our Gross sequentially, range continues margins high roll as and recovery, for track sheet. margin exit basis We're we in strong XX% margin expect improved balance discussed. to XX previously with off inflation the
approximately to as leverage is outside a and chain XXX talent and our supply We by recent million. and costs roles relocated $XX business. take broad continue example to reduced agile structural make our of we organization most approximately reorganized well processes review of global the after expenses out The the operations our corporate as to changes U.S., pools standardized
as of we're capital for We're on year. generating track And unlocking operating $XXX year-over-year. deliver decreased paid flow down $XXX we're million and million $XXX by cash be action. in XX% track this Furthermore, cash million we these by and second proud inventory to quarter. year, are working taking debt we're already with of the or approximately done, reduce the work to but million than achievements, $XXX more left to there's on We're
debt we're In also additional organization. improvement. addition referenced and value. accelerate across our savings to revenue Champion, further options initiatives actively growth address U.S. margin includes looking to and to to simplify cost steps had the business the shareholder This enhance to identifying business the additional options I for the across We're
and work CFO, an dedication. hand take Before hard for a over the appointment forward CFO congratulate on to I weeks ago. did to I'll to turn him his that a our partner, announced as together. with And a to we and his to I'd want to and like look to I moment to excellent call interim few job that, great I Scott the him work Scott. call He's thank continuing Scott,
