Thank for as Brands Fortune and you, you call earnings today our Innovations. first Leigh, thank us for everyone to joining
growth company Advantage. our underpinned and secular recent Investor and supported Brands Day, by As Brands by channel we is innovation tailwinds, Fortune our by detailed a management Innovations powered Fortune leading brands, during
thousands and to to team excellence. begin, thank Brands dedication globe the of we Innovations Before commitment for your continued want Fortune I across members the
the you people our built foundation drivers growth. our the are upon business of Our and are phase of which is next
to Fortune so Brands. MasterBrand exciting to well I on your associates ahead. We recognize journey like who you the would wish much contributed Additionally,
on want becoming to also Dave Chief to next congratulate our I Financial take Officer. a moment
our part teams. gained a to has well-established has excited Dave to and closely be our distinguished for leadership of throughout process, company working As us experiences succession and himself me as I'm true the planning partner finance together.
to missed, Pat as his over I in want thank I will for years you and Dave. with the be great we friendship that Finally, Pat, sincerely leadership know six while CFO. hands last are
the Cabinets the Our a value The several teams also face continued and enable business in Brands our executing Innovations' operating delivered creation. initiatives. an environment model, long-term our growth separation impressive key of reorganization and including Fortune sustained will challenging took, we year while aligned into a of actions highly
about XXXX fiscal through Cabinets me results full the for inclusive Let speak the a Brands Security, results of of & Home moment Fortune year.
billion, approximately delivered margin teams $X Full softening of net points XX% Our well basis of over demand increase increase XXXX. of a improvement a reductions. $X.XX, and versus channel X% XXXX environment XX an EPS was year inventory as sales as amid
U.S. single-family, in following construction inflation as interest and slowdown businesses. new higher we to typical returned rates and there was affordability Labor said, R&R a As and previously seasonality Day, the significant demand impacted
preserve teams fixed decisive reduce and actions the base cost took our to response to to In slowdown, our margins. our
critical digital growth. our brand transformation, we our to However strategic including long-term investments and also in our maintained initiatives, capacity, building key incremental
in the abrupt initially the expansion we as shift rate XXXX, margin full the year was are dynamics of impressive start in marketplace at light margin results a not actions. Fed's targeted of our of the result levels our While at the
the $X.X from the XXXX. company Brands year, Fortune sales generated the on for billion now Innovations X% Focusing of full businesses, of XXXX down performance continuing
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organic during Our sales against an CAGR CAGR X%. this X% estimated of market time was
our expanded basis points margin XX.X%. we operating XXX Notably to also
face reflects outperformance our future. am guidance to environment, down our for we drive expected to market I the growth. of in ability an long-term confident XXXX, as and value our regardless Even shareholders our continued and in excited for I'm commitment the external
particularly XXXX, are face we the of the ahead, Going year. aware we half in the challenges into of first fully
in our the preserving continuing while proactive focus We headwinds will investments. short-term margins, to market, on any prioritizing cash strategic response outgrowing remain generating to and
of as housing we within in are in deliver long-term on focus ability excited medium to the We confident the to market our categories. our and the supercharged opportunities potential results, remain outsized growth
capabilities Advantage and products. strategic to margin our Brands reducing our cost, journey strategies growth connected and our focus by continue will enabling growth Fortune Our pricing and advance areas higher informing like
and channel and more aligned in deploy accelerate quickly more us efficient structure remove Brands capabilities innovation brands, and Advantage newly our allow Our will across to portfolio. unnecessary leadership our Fortune is the to intended duplication,
as our right continue pressing innovative safety we to and doing help address that world's products evidenced focus culture by of our on also Importantly, sustainability records, ESG the be leading some industry-leading thing, by issues. of most driven safety the programs and
our consistent levels performance, Day. signaled Turning demand abruptly to we our Labor saw what decline quarter, fourth businesses with following quarter last
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sound deploy acquisitions, In Aqualisa. us of completed and inorganically. repurchased we strategically shares capital capital XXXX, Our namely to three enabled $XXX and advantaged organically Innovations Solar strategic million structure and sheet both Flo, balance and
end last would door business. locks a expect Also, the purchase premium residential two as Emtek be product from and This have businesses we strong smart world-class ASSA and announced signed connected August we portfolio and to luxury and a at the disciplined our and accelerant to midyear, Yale year, acquisition, close Canadian continue strategies. to around which agreement of and U.S. business acquire we ABLOY, hardware luxury the to
our remarks Turning today, key what seeing year markets. to highlight in from and will remainder are our the results. I will our end full we share takeaways fourth Then first, I of quarter
EBITDA goal anticipated of previously XX%. growth a operating our through CAGR to will period performance financial and X% provide around XXXX, highlights net of share Pat of including balance and and financial communicated sheet the the of Finally, will for Dave on while expectations intend XX% margins to advancing P&L future results, our how thoughts long-term softness to XX% we of achieving XX% margins to sales our manage X%, our
the Now on turning some products. for thoughts to our market
fourth as continued consumers As anticipated, seasonality reductions quarter return the our on across paused year as patterns. accelerated versus well new in was demand of prior demand Orders destocking typical precipitously new as to home channel a purchases. for single-family have marked dropped and by homes inventory
previous the a reminder, we is to levels this of two As new adjust of currently four typically to rate affordability, mortgage increases, in and periods to consumers quarters builders and take believe underway. adjustment
as the depressed remodel, returned continued the through patterns In at slowed a pace activity repair Labor Day seasonal to normal demand quarter industry. following fourth and and
COVID strategies continued market continued to Finally, the investment. and on China, weighed consumer housing be as mitigation in confidence Chinese soft
starts macro channel of in spending turnover, partner and challenges into expect and parts reduced housing continue the select continued by new XXXX We these normalization inventory construction to consumer depressed driven business. temporarily
However, products we've market fundamentals stated, in consistently our positioned confidence as we housing underlying of brands are and the uniquely have the believe outperform. and to
more repair our and market-agnostic, smaller are ticket Fortune is less more heavily now cyclicality. Brands remodel our Innovations portfolio in towards or, weighted the exposed As business, of market the are to case Security items products
Additionally, market have with growth those supercharged is portfolio due the Innovations of their tailwinds. the previously focused as discussed, on highest product potential we our parts to secular Brands Fortune categories, increasingly for
in Our matter, challenging categories quality loyalty inspire leading brands brands and and where confidence in environments. products especially
provides brand value proposition. innovation unique Our and service best-in-class power, a
Our focus innovative enhancement and on expansion. productivity growth, operations and are drivers of products margin
our and enables trends customer finally, pricing and customer behaviors consumer and discipline. consistency give And into us relationships insights management category and strong that greater expertise
anticipation of challenges aware we be significant Let are we action taken are in that already the me facing the have and of meaningful XXXX, in we clear, and well environment.
and in thoughtful are Importantly, way. a doing we so disciplined
has team before. successfully similar through management experienced Our headwinds navigated
to continue set while the of business strategic investment for prioritizing a to our tight priorities in will win key protect long We term.
performance. sales Now reductions, declines These continued a a the well full of X%. aspects down normal let me company China sales slowing recalibration quarter COVID improvement fourth year to environment, products, down respectively. turn an year, and were due for sales Total for continued the quarter, as as seasonality efforts. decline X% XX.X% reflect return the channel to for our market the XX and in full basis to points results points, mitigation of were and of our XX.X% fourth quarter inventory including year fourth macro many full Operating a with XXX of a the in basis margins
forward, Looking normalize housing headwinds that inventory to the levels. inflation as believe levels will market manageable and we stabilizes, to dissipate decline more these continues
growth. challenges, additional returns and ability optimistic prepared we disruptions are we in outperform believe to expect are it still the and we as the normalizes come to While for our to market
and Innovations, China Now with lower-than-expected the for volumes, beginning and businesses, X% in lower destocking sales declined driven turning inventory Water quarter individual year in sales and our including X% performance. the partially by to the Fourth impact the following rapidly channel, were service fiscal the week which throughout of by the Aqualisa acquisition, XXXX level extra our being is integrated. industry-leading quarter offset declines
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market priorities. consumers segment, which and help critical may during about margins proposition be selective in our innovation and investments resonate investments a more time this growth and in highlight to make These our to on with consumers preserving returning product choice. focus value we key While above across we in their continue our branding
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time. CAGR during net Our organically growth same X%, market around is to of performance compares X% the inorganically, three both which sales year and
points this saw basis period, three XXX year we margin expansion. During of also
will remain performance its We business the market-leading over time. appreciation confident with line top maintain that margin
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to these future we drive We're exploring which expect between offerings incremental product synergistic new growth. brands,
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our significantly Security expected, streamline actions demand Outdoors softened As the positioning for the future. quarter. this us past & already brands to businesses, We've well faced taken
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is Our three same compared performance basis for the year X% XX% an during net sales or of organic X% segment time. growth CAGR around the to on market
took business impressive everything also of achieved also in our teams increasingly XXX immensely proud we while an past remain During saw preparing of that delivering results expansion. We also a basis and time, reiterate, the to appreciation. To same the macro expected We the steps produce downturn. while was reshape period, confident over Brands. an year will of points business environment. this challenging Fortune year above-market sales margin XXXX transformation for margin for I'm
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to in ahead challenges preserving margin speak generating we set during and forth deliver and will These focusing which navigate expect face cash. will the long-term Dave we Day short-term and to detail, also the on In year navigate ahead. growth driving will the XXXX, above-market will the enable us help our Investor while challenges us successfully targets we that transformative to in on margin greater changes growth,
even while manage business expect to markets efficient and return short proactively when the the be Fortune stronger, Innovations Brands through will We positioning an term future the actively for strength. to more
our our proven confident I'm perform already the ability have perform last to including years. ability three we cycles, all to in over because through
believe a has above We Our of monumentally disruptive including exceptionally through period. the that well, a digested from market disruptions. have deal team growing the company great these we executed impact already
In return challenging we're more short, As in XXXX, inventories to chains starting XXXX. we environment begin normalized expect supply seeing we to and customer a levels. external
focus, However, ambition. the for fundamentals alignment we in of Fortune market returns the are We're long-term facing the into confident it growth. and with Innovations' market and housing both Brands potential when accelerated to outperformance
the then turn Pat? summarize about our I outlook. XXXX now will XXXX and to over Pat results, our talk will to call Dave
