morning, good everyone. and you, Thank
I moment a our incredible begin, take to dedication hard for also work like members during their challenging to thank and Before times. I’d team these
coronavirus Our expectations to all exceed emergency well in we pandemic that is face. situated business the an such as
and a well We embracing our and our members role our high capable managed important their while communities. to services providing environment, extremely this one-stop through serving has great our heightened are COVID-XX demand members. shop volumes, for in value of products team
strong. our first extremely a was As result, for performance the quarter
sales, quarter the by equally were expectations comp and gasoline, were driven which and for sales by significantly $X.X our XX%, traffic. exclude billion. Merchandise exceeding ticket Net increased
digitally-enabled was growth comp. of BOPIC. merchandise QX pick XX% in three full XXX% points and quarters About up the approximately or sales in-club buy and driven about percentage X sales by by grew delivery same-day our Our digitally-enabled drove of online,
We As an to much limited environment efficient. we average economic a significantly with be others. here higher the advantage noted compared tickets, in which SKU past, warehouse more we in to us have allows operate
clubs. same-day partnership through same As has a a our Instacart, BOPIC sale as delivery a the reminder, our sales items. And ticket towards with tend margins sale higher skew to in
me turn for quarter. cadence sales our I on give comp comps, a you merchandise divisional our to little Before let color the
February, For March, the we month. comps were in the of comp to growth comp for our level. XX% to ramp first north line plan. acceleration three In the continued with in weeks low-teens of the saw week of where February, accelerated This sales fourth
by March continued days in April’s comp increased sales EBT company’s driven was history. our provides highest and the stimulus payments. XX%, three merchandise demand and
of that strong on Sunday negative number April adjusted was for Importantly, comp not the this being impact closed year. Easter
reporting slightly. we quarter, comps to with our revise this Let’s now turn to business. our have Beginning by divisional decided
Going will reporting divisions. we forward, be comps two for
First, non-edible grocery, and includes edible which perishables, grocery.
services, our merchandise The cell and include will businesses and general be phones. as and second will optical service such division merchandise which general
saw very non-edible sales goods all of and fresh rates sales meat, categories XX%. comp Grocery of edible strong dairy, essentials, all grocery incredibly XX%. frozen, packaged north paper in growth expect, you saw would comp robust grocery beverages. Perishables, the products, and We saw fresh produce, cleaning
noted, quarter. we to by as worked with our grocery And Overall, Lee great provide essentials. continue hard working members business team ensuring the to remained we as distributors stock in in with about our position on exit the the alternative we feel these
and a turned of we services off our decreased and decline as approximately merchandise division sales saw general of Our services businesses. X%, apparel
electronics, small We in apparel saw and healthy categories, that TVs growth products. consumer and recreational including Our business of other appliances the other drove decline. bulk
by first X.X% the MFI, Membership during $XX fee grew to or million. quarter income,
we for in the increase which noted, Lee a in bode saw us significant new members, As future. well will
know, is we you of into future. the income fee of membership given lagging indicator the the amortize membership, a the fees As health that
MFI, growth door, unamortized more come. growth quarter XX%, presents XX% member the was by over new Cash This should first a to for members in at which acquisition for the in view. MFI us last is year’s up cash Cash the current that an came driven new in years benefit quarter. look
of we these and do. at Renewal we despite members what of than for success. our members, in and at and is as In the now number gains are ourselves addition, we growth penetration higher of attract Easy tier XX% members, position more heart we retain maintained Membership the And in new our enrolled Program. our more XX%
Let’s move gross now margins. to our
margin points merchandise Excluding the year. XX gasoline by last over basis business, our gross rate declined approximately
CPI as in well of points improved rate salvage initiatives, execution Continued tailwinds. XX rates shrink and basis approximately as provided
headwinds from basis of areas. experienced We approximately points XX three
we next, basis basis outstanding in associated was inflation like That points; took inventory basis points; in our eggs, in XX some XX commodities, meaningfully were markdowns were to provide order points. on experienced to distribution apparel incremental lastly, First, COVID-XX we about worth expenses with approximately worth as XX members. approximately worth invested we investment significant price value
Both demand sales for gasoline quarter, of lower. decreased our driving the and during gasoline prices
profitable of share that However, we of the decline gasoline meaningfully. provided estimate during was in gross a continue dislocation first market be quarter. quarter approximately Offsetting sales, business gasoline gasoline the the to to in margins. grow market We the all in net robust the The $XX unusual very margin million. benefit the
quarter, expenses $XXX year. SG&A were to million prior compared $XXX million the during the first in
approximately with included expense of million costs SG&A total Our $XX COVID-XX. associated
safety total Let protective million $X bonuses, invested costs million main into million team me in in such security. three as break wages buckets: was that and other $XX down for and and in $X member operational equipment, you
to great not costs, earnings. EBITDA points, been Please XX the note additional have costs our that adjusted adjusted these these of flow-through basis SG&A of enabling in approximately by In we out calculation spite leveraged metric.
to a the of continued we ago. this term million decrease repricing which decreased The by $XX first during delevering expense Interest January. and loan, year lien million was driven our past $XX completed from
from compared stock tax of For was $XX quarter, million of by options between our tax rate the this period. reported windfall benefit we rate $X expense the of recorded The to primarily tax XX% million XX% income of prior-year quarter’s an and $X.X normalized driven in exercised. million, variance
$X.XX offset our $XXX the income grew was per than team XX% XXX% investments directly first their share. $XX considerable share Adjusted year’s This first quarter in by safety. the per quarter in sales basis. a million, by in last and million, members greater performance Net reflecting was continued on to beat, or incredible EBITDA
sheet. the balance to now Moving
to inventory our was AP providing spun inventory inventory approximately considerably X% than less We We quarter-end. XX%. working strong quicker capital our at benefits. year, approximately Our with ended last quarter ratio last than the
quarter Typically, not first generative. our cash is particularly
quarter example, cash million an first year’s As free $X last provided in flow.
This perspective. quarter that from much was different
working of team our our this the of million capital of the flow strength metric result free and results for than our we performance our other better record business, and highlights quarter. No $XXX accomplishment one. generated of outsized a As cash benefits, the
In small addition, we deferral to had have we under of clearly while of Act, any programs this the a payroll quarter. flow benefit cash taxes not a the in participate the from need provided did CARES
and the stock the the we on managed began our in cash. ABL We buybacks, the quarter, our Early pivoted in buyback on markets, pre-COVID, focus began When trades liquidity. first a the we our crisis stopped executing show drew quickly in program. aggressively to to
portion began X.X revolving and EBITDA to balance it cash quarter As build that funded we ABL We $XXX down ended to the strong allowed adjusted our the a of normally, leverage became with and fully function sheet. our more and clear debt net times. on the in ratio balances, of markets was the business paid cash to million
our turn outlook. to Let’s
Let have me more landscape variables stimulus, external start on to track. economy, evolution of tremendous interventions and effects will has levels and by behavior current consumer unemployment crisis, business. health The saying entire government the public that our the the so including many
uncertainty the today’s extremely year it for difficult to predict environment, of how us will and Given nature play out. unprecedented is the
we this we speak about have qualitatively rather to near you the future that made are and in seeing than guidance. the updating expecting trends the reason, decision to currently For
next that into and believe built we growth future. healthy and business few well may the our the weeks lean strong, We us for predict, but positions and hard ability have is that be capabilities for our The months poised growth. to to
while. something It’s persists a like behavior expectation our that current consumer for the current
begins to strong we our As We a resume. see activity even environment, in operating merchandise footprint to recessionary comp result, growth. anticipate expect geographical a in as
during becomes more our recessionary even where important. very value Historically, well business environments, comped has
to home, And much in driven to the safe, regulation, or eat desire our continue. higher just basic crystallize. at comps overlay human by expect stay need expectations higher when you stimulus desire to government We or the for a government business
exit was on should the year, comp rate for Well, our comp that north I of not XX% and guidance I expect is say the wouldn’t of annual digit has earlier, noted As considerably think of comps slowed. we we merchandise low. that low-single balance our rate QX that previous May do
will also membership be quarter into past this beyond. joined line We of will and new members membership to in continue Further, acquire thinking, that we that the from for year invest environment, and strong this see will perspective. a this result Following to believe new analytics. that we in considerably to growth members easier acquisition benefits and expect
Given the fluidity of the will margins where land year. environment, it’s predict to for us difficult throughout merchandise the
addition strong revenues, include and gains, In rates the our reopening timing categories, of further near-term and provide of product will label we to benefit pressures private Potential CPI from apparel certain expect on continued business. mix, expansion. our impact our service contribution the perishable the process negative businesses, inflationary
merchandise general also our economy recover about expect It’s in business good gallon sales as as the what to to has business. difficult begins to to it gasoline positive do We feel We comps the reopen. May. predict in happen returned will
below margins QX. contract expect we and levels. This periods see also to the following outsized planned like normalize in margins We in possibly is case with those often saw
expenses. Let on me touch SG&A
expect COVID-XX the million to run we $XX expenses of think rate QX, As approximately about incur go-forward million to $XX costs. of incremental we in
that members, we’re expect. sure We and level the health our expenses to of members with our team manage prioritization the our and will level of providing continue safety on making the service of high
mentioned earlier, of noted. previously track we are in the we be on All business, year. this as back reinvested from Momentum million will savings Project to deliver As $XX savings
of turn to outpaces to desire to we Lastly, in Despite and a expect company. for multi-year results year them our we with in achieve growth QX’s the the for significantly our into to original beat phase take long-term high-end into these of the a order business spend range will costs continue growth and algorithm. profitability uncertainties, the invest that our
our strong in that rate. look at that in business flows, cash capital prudently our inventories liquidity to quarter It’s generates results ability and turn we important only to needs manage our to at when an especially extremely our accelerated to feel confident this note One environment. first we understand
accelerated a as In to this QX reverse. that of do performance. QX benefit not fully We fact, balance, in benefits recur inventory benefits this QX. portion in rate working we Further, capital the cash expect some may rebuild resulting drove significant our working of free capital flow
deferrals expect tax flows Lastly, approximately cash from by in CARES amount our the we the of $XX benefit to Act full-year million. provided
environment. will be perspective a and opportunistic our We capital allocation from adapt to
earlier, said our we I medium-term leverage As met have target.
generation, addition that be cash to robust in business our considering a investing behind to in to position flow are growth, capital shareholders. aggressive returns strong allows in Given us we
in are In over us And trends conclusion, environment. our favor. ever the built before. our years behavior business is we have more today’s in last than enable relevant four capabilities to Consumer the thrive
trends growth the are long-term. look and from this of take meets that we opportunity our team future. challenge bright comp serve here to the go heartening Our strong, for members toward forward with and We a as is advantage build member our our business a everyday to
all of the members our outstanding go Finally, our hearts to to thanks challenging times. out And these work pandemic. offer we their during those affected team our for by
Q&A I’ll the to back the over to call the begin session. Now, turn operator
