everyone you, and you today. us Bruce. thank Thank Good for morning, joining
the financial detail Blanchard, productivity our long-term plans quarter progress review call sustainable to CFO, in reviewing questions. gives begin open-up I outlook growth. and and more results then to and key confidence results will us which strategies, on Interim call, before then operational today's first our we our profitability, including in by your improve achieving Terry sales During will discuss discussing our our
our turning results. to first quarter Now,
reflected performance the macro was discretionary our spending. very had impact on improvement first challenging performance home difficult backdrop and our expected, quarter As the
operational In addition, impacted we continue the first to experience and results. pressure quarter brand challenges that awareness from
Despite results areas growth and on focused the improvement stabilize long-term our help opportunities. near-term volatility, that we will remain drive of
our As one, consumers three, priorities. actively ensuring a costs, omnichannel experience conversion; traffic; working across among and by drive to a investments growing reminder, top areas network two, awareness growth to and reduce consistent further efficiencies brand our on broadening improving are: customer these to while focusing our operating improve
during which Importantly, discuss we continued areas to shortly. these on I'll the quarter, execute
For decline driven consumers the quarter, combined versus sales. by with were year our total by XX.X%, comp store lower down last spending a sales in Pro
higher consumer spending mentioned and operational pressures we rates As coupled from challenges. continued discretionary lower inflation earlier, believe with brand and interest reflected the awareness sales on
on drivers, March. and an increase down Notably, per we price saw significant a the average the in we retail the driven pullback consumer starting first X.X% Conversely, lower from X.X% a of units in in demand. sold, merchandise first increase a XX.X% inflationary Drilling XXXX, to transactions, quarter to in we saw sales early due quarter more first the decrease saw average XXXX. quarter consumer by ticket average compared higher retail was the price pricing. compared The of primarily for
Pro in the to consumer by our strong consumer large less plan ticket we our driven dynamics. region, note, canceled we for very investment demand in or long-term largest Pro Nevertheless, we the from experienced outperform confident while the we our remain larger projects the to and regard strategy quarter, believe during business. experienced West declines projects. as postponed Florida performance our Pro Of the of sales transaction where continues concentration market stores, In
adjusted we million the and SG&A reflecting making margins a an GAAP basis, On investments loss On basis, an we of we sales slightly during challenges XX.X an reported adjusted loss X.X%, improved the operating negative of sales XX.X or are reported million negative growth. XX.X%. support gross the lower long-term to Despite quarter, to operating X.X%. or our
We liquidity XXX with total sheet of the strong and balance million. quarter ended a
XX end of ended we our XX results from first with was debt, Terry moment. which of QX QX. discuss at million of quarter details a down in million Importantly, the financial will the
a the with our growth. of To end, retailer, that we national deliver execute as facing, we continue the external convenience well touch Despite to as in value, profitability, flooring on on and productivity to high our service improving on sales delivering headwinds assortment, confident combined focus we initiatives independent that remain we're an ability and the of sustainable strategic as brand. long-term
initiatives growing customer building Pro products. experience, innovating to awareness, sales customers, new the brand These are: improving
Pro to sales growing First, customers.
Pro sales growth core for remains pillar LL. Our a strategy
a we we decline category growth. Pro While experienced quarters previously the eight slight in in generated QX, have of consecutive
which national We sales strategy, inside build execution account continue our to being with is and outside momentum our driven by teams. through
will to customer management, capabilities our these Pro develop retention We new achieve in we strategy at relationship increased to further continue existing driving scale aimed platform integral goals. with will be that to and As we helping our invest implementing ahead, CRM Pros. look believe in
and system a only key triggers contact know wants. future ensures points shopping But experience. information, not we single CRM their how best meet repository customer to Our their for also key of so during needs enables
Pros unique texting entire We material store it with pick-up. understanding our them team on store their with engaging chatting or objectives, that online customer's each focuses have project's and story in we're our priority about customers a made whether
our Pro CRM by help for fourth consumer The quarter. ensure and customers early have by for targeted consistently quarter execute third will the for We customer. we tool customers every completed to more plan roll-out
we're drive in that early improved of begin to targeted expect confident half from to marketing the the second We and XXXX conversion. more benefits efficient implementation and combined acquisition this with realize customer will
inspiration long-term. Liquidators, national expertise broadened flooring performance focus installation. offering appeal our awareness, awareness to to have our who building Since the from shop increase as brand for key service from improve to on of a a as over opportunity Lumber and destination Second, drive brand to our building seeking area we one-stop continue rebranding consumers traffic conversion sales are we and
tell market us we're continues product new higher gives on LL confidence as versus traction. assortment, expertise, such that scores significantly Lumber Flooring us Our brand and Liquidators which to the quality, store key research metrics gaining that associate
we said As awareness before, our brand low, however. unaided remains
media creative of result, on And refine investing increase brand to top broadening intensely as a to relevancy we're strategies in efficiency that to funnel focused and our increase evolve approach awareness expand our marketing increase by reach campaigns the exposure. our
Expanding on these three strategies.
highlighting Flooring campaign launch value. creative. on selection, First, to in communicates value months assortment, coming and the expertise, track proposition new our that the the We're LL
to the lineal Second, CRM conversion, in media. customer improve of efficiency, mentioned, help a and of spend And we're new the marketing effectiveness As costs. acquisition implementing third, lowering and presence will We're digital strategy process platform digital across expanding Reach. network while increase our our that
offer their omnichannel omnichannel to to Many Third, and We our a experience. solution. journey flooring wherever our that shop improving however customers to they flooring online experience customers customer allows like. them their navigate easily the tools purchase customers online, preferred start differentiated and and allow
and supply added QX to stores our order. selections in delivery chain place our and We to flooring utilize XXX additional services capabilities Make an network. home
[white any they store pick-up see from their Our glove] But our or and products now customers choose. the been delivery always inventory [ph] store able to allowing online we're to curbside have customers home. This to delivery when a their allows is be a distribution a same waiting week day same do center. or not able to to customer critical time and project the for from
party associates, offerings, provide customers, our an knowledgeable one-stop and installation product contractors. unmatched breadth including shop independent In-store, we third manage through of for a services that we network
addition, our center experience. In as serves call embark our an they their shopping customers additional resource online for as on
a across investing advantage omnichannel continue It's in widen to our improve and shopping important experience experience in This platform to our complete seamless our the we to customers that competitive by and over people independence. omnichannel our technology. experience create
We're innovating that It's creating well Duravana functional products that been value. on everyday a value. PVC both aesthetically living a XXX% received end, To has consistently fastest new by our our products. and will find well great brand as very pleasing, consumers' customers customers. brand our a great Fourth, growing at as free needs sold at focused
we proprietary us through from and year. investing surface our assortment Duravana this growing the fuse to the Customers love continue of technology in differentiate assortment features our that expanding and believe with continue flooring of We hard to intend will of waterproof competitors. brands proprietary
I our want talk new Lastly, about to category pilot.
solutions we that provide As Pro feedback we have from projects, comprehensive us their to including to received for our LL rebranded carpeting. our Flooring, flooring they and customers expected customers
by As a additional stores. We four pilot quarter. a to XX result pilot launched we've adding the our carpet of end of second to intend in stores extend feedback, that
of carpet hard aligns carpet, installation brand addressable current LL implies our billion, of category addition a Flooring, XX market XX this of broad the to flooring, grows result our for with driven to billion. of selection customers. services As by a expansion adding repositioning our which and Again, carpet,
very customers. still associates, engagement has our been initial While Pro consumers, from and positive early,
in Importantly, our product our is the any as to does or manufacturer into entry inventory the require chain, shipped carpet investment supply the not direct in from installer.
to pilot updated keep continue the you will this quarter. We next on of status
costs a to DC It third our support pleased supply levels in chain strategic priorities. and efficiency to and optimize our will opening chain in further Opening improve growth a we QX, announce which also Before further will optimize long-term. outlook, third transportation over reduce are distribution our turning network. center that I'm will our service Dallas supply the our
XXXX. a our Now, to discuss few for to I'd outlook like minutes take
First, related you flooring originating would from Vietnam. I vinyl the update custom on like to delays
detention the Forced U.S. as having due Customs of products, February in panels, the of solar cotton, receive flooring consequence discussed, Prevention implications and UFLPA UFLPA. industries previously Act, other Labor contain we XXXX, to customs As from delays. that the began Uyghur related is the notices Enforcement a broad company to to of flooring PVC across products
detain working are documentation in continued in product resulted approximately experienced During we lost U.S. shipments delays, which to of additional sales. incremental is provide customers X to they we that and the Vinyl QX, expenses category million million diligently are continuing and within X.X requesting.
be have to will we delays However, not held released. be as these will any when do and product visibility resolved when
We're that material could alternative sourcing the throughout mitigation at to continuing year. margins to geographies. in our Despite and believe impacts products alternative to our categories further featuring sourcing and and sales disruptions capabilities have work flooring progress as look we we by the assortment issue this on efforts, mitigate leveraging our current
of elevated and more higher the rates purchases. a challenging Next, we to macro visibility this backdrop inflation consumer discretionary the sales remain limited. drive near-term, more expect as makes ticket cautious pressure, higher interest In
However, the initiatives focused on are we sales discussed. just driving through
improve to gross relief merchandise cost in from of of we as terms second freight we realize continue expect XXXX. margin margins, In half that margins to the beginning benefits will the
with aligned on current strategic of sales. not calls. On cost will provide run to we've a and the our undergo recognize side, consultants cost expense is structure future end, our update of an we our structure engaged To that rate we comprehensive review
our In liquidity, sheet terms us the macro the of of challenging balance to strength environment. positions navigate
our XXX million, During our reduced and QX, have availability which bank be we by bank of we adequate. XX under agreement to borrowings credit million believe
looking stock in the to and for XXXX, tailwinds outlook supported strong long-term the Importantly, by the U.S. spending repair beyond housing such medium as remodel remains aging
millennials New growth backdrop, by work of household we we strategic With continuing sustainable each fundamentals to We're place. remain flooring focused baby remain long-term and specialty the leading boomers in that and delivering to of our confident desire a our a age business. of retailer. long-term on as on priorities formation the as in
first turn results outlook With will that, Terry? review in detail. over our to quarter I call Terry to more and the
