morning, to three us. everyone, topics Good this thank and you, joining like you cover I morning. would Thank for David.
discuss Then, the review second our outlook year. the I Firstly, for will results. will I rest of our quarter
questions. and After happy any outlook. hand respond to Thirdly, the details, to to financial walk I longer-term will will talk about we over then will John the to that, through I be
for year. sales XX%. Comparable top about comparable last Okay, was on let's XX% results. the of This decreased second growth talk store our quarter sales store
describing three-year geometric comp trend, During comp going but from effect simple year-to-year. call, just comp compounding three-year to when stack I'm the this our accounts stack. is a for like This use a
numbers large meaningful provides our defined and last in in this X%. three-year geometric a was This comp detail X%. press May, plus was it we more metric In our trend. indicator release. our minus year, think more of in stack today's comp Given June, In is July, flat,
enough. especially customer not move executed QX. did a it have do, low And a look we these or we numbers. external matter these you QX in an disappointed. do minus this. These positive are looking relative in drives expectations. a results X%. we stack. in we But This the that me results. I there how say is in It's comp on about these mystery about the our for. clear For the when On performance categories, before these headwinds our business are geometric whole, no is offering no look to single-digit poor, it's and business, But value our three-year we to that let guidance brands, price contributed that external There as face, was describe was in and a When our than at detail. below better factors at and were for below best results well is absolute you very basis, styles moment, results, on will our far basis, I what points This that fast what comp a are relative
there environment. We our impacted trend that now the were Let to two in QX. factors external me believe turn that major
customer under plans. customer. drive than under of $XX,XXX. is have significant all, money less with economic last moderate-income now, to of Approximately low of our growth of spent part incomes to at helped Low XX% they customer less is right shoppers comes moderate-income our Burlington household the remain considerably pressure. spending. last from core low extraordinary to shoppers versus moderate-income But First economic severe for growth the an stress. year, And and are discretionary year, future our they they money The important
to serve that was in The among low second that to our QX factor that moderate-income retailers activity, especially contributed trend promotional shoppers. weakening
seasonal imbalance QX that of wave is turned there glut inventory tidal retail. the cause to in sales normal emerge tends to root is we not that a supply styles an Third, QX. now demand such that massive retailers In are have most that to is there promotional times, seeing into in well. and and levels between is be of The this what a inventory across started activity right having aggressively between merchandise are that to sold clear imbalance limited But inventory. and
stores In was value that retailers. offer is other Our better this reason customer our shop value QX, key we than the proposition, differentiation squeezed. to
customers described the limited to on heavily their about funds looking deals. best as focused earlier, Our heavily spend They of they a and have are, options where for lot I shop value. cross
us. promotional the our footwear forever. But does, by activity it it will a very current Target. for apparel destination create The customers, Walmart, for level headwind For top and shopping while not significant is for followed will of last
advantages. buying we external shift Let this but we we that serving under QX. the retailers There Again, trends these are fast in sales not is economic headwinds stress to enough. far supplier can deliver customer and into or weak, use promotions. we the do what better. balance categories. that our quarter. is We slugged we move be to great The factors together did value show low in areas me moderate-income the in were these customer can can is did customers as overall off-price These draw results that but for and may QX, so our are the real, these with trend retailer, The have contributed trend an
reasons me talk the let Despite outlook, were expectations. for this. to margins I just the came Before of earnings. on ahead trend comment on two in weak QX, our in There move about
very close managed our to we in-store Firstly, plan. inventories
So we excess other could on markdowns. driven of We our meant quarter have taken but seasonal the were markdowns necessarily many earnings. excess and that This modest have have might not retailers. lot we deeper merchandise markdowns sales didn't inventories. compared broader ended very cleanly. a to and focused Instead, This
controlled plan that factor second that sales the drove with is The aggressively expenses. we above trend, weak our earnings
result, this. Later guidance details in guidance were earnings call, sales, above a the below end high although in came As our range. John for we more on our of provide our the will
happens current to the that the believe on sales and year. retail a my move outlook, significant near-term environment the going and we of characterized We do through the trend I will think out. the by next? i.e., activity to the what is split and promotional rest outlook, us I'm rest year So remarks weak with further then be of likely the to into
We the Based also every delay to to it, are sale. any think shopper. Think the half there on down we of activity year. retailer that down these guidance trade emergence is trade for likely the about when promotional our is is significant on really lowering factors, major this back of no need
XX% This X% Our updated one-year of X% for minus back to range stack. guidance geometric a to is to the X-year minus comp translates a on minus half. minus based XX%
the half reminder, back As XXXX of positive growth comp was for our a XX%.
merchant but pressure assumes originally in had fall in increase half, back the the for for significant merchant this. plan We have now an Our on pulled margin. margin planned back we on
in we assortment put our value make that earlier, important sure of sales driver the said in value. to the most the the of is I we As every need offering customer. best hanger are We challenge front and
and to and expenses. But, below all During drive tightly year be this accomplish the years. this below time, buying expect over that full results and aggressively believe opportunities pursue net for control effect down we next our normal expectations we the couple what to carefully well is we managed well we can will of the our liquidity, inventories of
this consumer Let by situation and spending actually couple we about situation merchandise next significant as that stimulus described fueled describe talking Last the completely government of the constraints, me year, years. current we to strong of supply segue then on a call, unsustainable.
think, we the next to to have out merchandise to work months, is describe support at point, is for we situation the on know retail look process, unsustainable. few start like trends say, XXXX. based our plans massive sales sketch this started believe we the In now could I'd oversupply current we equally that scenarios XXXX. will likely. most of this me upon we that what environment the and what like To in retail weak Let for scenario
the retail overhang we industry is likely the several inventory Firstly, to next the months. believe clear over across
activity overhang this once XXXX, declined early by that significantly. has will promotional have expect cleared, We
likely and think will weak will environment Many the supply channel. been but to pull the Secondly, with back supply have there imbalance be we anticipate merchandise are by we current demand, that off-price somewhat. vendors for of the tighten plenty hurt they still consumer
reserve expect also carry We XXXX. into inventory to attractive
especially Thirdly, to There we are environment freight this. in significantly, of believe XXXX, for signs expense changed some that is have rates. the already likely early
then, wage that think we also that have by Fourthly, pressure We rates. likely softened, it labor is the could the will anticipate on economy ease which slowed. have market will
our value, low inflation shoppers economy moderate, And driving drive heightened thereby may happens, easing this shoppers. this should also moderate-income stores. down slowing on on focus As to pressure some to consumer trade
have may potential close think Lastly, These to up free share closures several bricks-and-mortar stores. real retailers market weak that would and estate. we financially
have a Forecasting at I've in years. after some But, the undertaking, last the it's isn't the we we future possible, lived slightly especially believe just risky what scenario, three over just described, very is through point XXXX.
about optimistic next year. are We
start the We more on to in our over to would on sales back like longer-term our details results, expect towards QX and to now earnings to I objectives. provide and recovery John our turn of guidance. year get and rest track drive call to
