and Steve, good morning, everyone. Thanks,
compared sales last up quarter, $XXX $XXX of For XX%, to year. million, net reported the we second million
segment XX% million segment sales last sales Our our at year million. Retail $XX.X to and Direct to flat grew essentially were $XX.X
XXXX was primarily and stores driven shipping year. quarter, opened the in revenues were million last new compared in $X.X growth XXXX. The to For $X.X million by Retail
Connecticut, first stores Alabama, we gross and feet, them compared of Arkansas, square XX,XXX new with XX the with of ended stores. being the quarter, each of stores, prior During of year We added a to and XX over Georgia. the our quarter the states four total stores in
we Sluggish and In especially store the quarter, the to the trends the direct volumes May, the in in overall year. sales expectations. of the in second existing traffic experience our in markets face deepened continued channel and sales second of falling beginning short challenges quarter, with we
In men's global and spring on to extended took items. drive web traffic, our particularly and markdowns an effort more products, core on we and store summer promotions deeper
points profit basis a margin of the million. As declined gross result, gross $XX.X quarter our for for XXX a
business continues growth growth rate online. an mid-teens with the of and XX% women's to overall Our rate quarter outpace over men's, for
of current of will trend. business, continue of skews. positive increased this new of launch an increased Warriors items half and the collection, more To items, with We launches the a in back challenging Workday year of number the trend an have the the men's expect women's greater expect assortment also new and new we we product plus-sized address will that number reverse our
margins half expect gross of and the fall half clearance but second of negatively we the first see pressure unavoidable up year, the we fiscal gross by margin for impact in of the Looking short the China and will activity August of early Two areas to improve, for estimate basis will XX full-year. are September, making which out declines. impacts heavier points to tariffs,
we total is goods by out apparel XXXX, our sourced impact. now, expect with a margin less the transition our but exposure amount product China remaining all with than accessories small to have minimal we'll of XX%. to of And As of country,
in expenses, to million $X.X and general administrative last $X.X expenses in and million, increased compared XX.X% million million year. Selling, increase general administrative $XX.X expenses. and in an to expenses This advertising included and $XXX,XXX selling $XX.X marketing of
of net XX.X%, last to to increased sales, expense basis points compared percentage XX.X% SG&A year. a XXX As
advertising to quarter net last a XX.X% of mix to sales, higher points sales. of percentage XX second to basis from compared a primarily marketing leverage costs As and in gained due advertising year, retail the decreased XX.X%,
fulfillment by attributed an to compared The last costs, points is as XX.X%, expenses store sales decreased labor year. and in offset Selling in stores. additional XX.X% to decrease a net partially shipping increase due improved to percentage basis XX to
retail primarily XX.X%, basis the to XX.X% General compared in of last net expenses an growth depreciation in of administrative the from an in to and increased an investments and in cost to a business. increase technology facilities, year, expense the support of corporate due costs as increase increase sales to to added due occupancy personnel stores, growth percentage points due in and number to the XXX headcount
cycled by to XXX last and over store compared expect support and percentage a year, past year. SG&A incremental associated we In now we in forward. Despite larger year, of the expected the points, earnings business the in growth have from the with mostly the half as basis expenses, investments fixed second lease cost decrease we'll of going sales last the
of year. income the or net compared diluted share quarter, income $X.X For million we diluted to second of $X.X million share, per reported last $X.XX per or net $X.XX
EBITDA to last year. million compared adjusted $X.X million, $XX.X Our was
balance quarter $XX the ended million the and credit. and outstanding liquidity, on our million, balance $XX of to Turning working line cash capital revolving with sheet we of a $X.X million second net of
of called you'll debt $XX As clarify In a to the related side notes roughly of TRI. filings, on balance note, to third-party debt I'd long-term the see our entity of a like sheet. our million, presentation
of are guarantor, under exclude debt. variable In accordance a this we The are it the a our for repay offices accounting tenant. this as of not to bank we Duluth with entities, which are obligated the where ASC loan to corporate interest relates entity is required Holdings this consolidate XXX, development covenants here covers loan. line nor Topic to our we credit
the $XXX.X million compared increased to clearance inventories million, increase to stores, additional The higher year. goods. last for due slightly $XXX.X to XX% levels on, inventories plus Moving period comparable the of in
year mentioned third on quarter our result year the for goal in ending plans our DCs a receiving several with a inventory and issues had dislocated higher we earlier we half our inventory of to balance. our This As the in store of goods last call, mitigate weeks will channels. back reflects last
Our expectation sales year-end. growth have line to expected back inventory by is in with
$XX.X $X second Capital the and quarter last new were were store primarily year, million, the compared to million for openings. expenditures for
stores, focus the driving capital and While of returns expect rebalance cash we XX into model we XXXX capital driving on as on pace outlays the flow. we complete XXXX, invested our business moderate free will positive to will new going greater with
continue new footage to to the plan last years. few we'll for XX% expanding less but stores plan by square likely markets, have over We opening we in XX% than
We to expect needed for moderate, infrastructure deployed also capital and scale omni-channel investments business and the growing as systems in will the foundational place. our much are now support of
our technology our and next warehouse. Two to include key re-platform to will driving POS a remain roadmap customer benefits. data on of systems upgrade year, revenue be implemented our expected Both and store are tangible that have an initiatives
on plans direction further when provide expenditure we guidance XXXX. updated will We capital for provide our
softness. the for outlook the our adjusting the are based half half we mentioned, on first year Steve As second of
sales main We by growth of expect XX%, drivers. year-over-year to deliver supported roughly second half four
First, new stores. market expansion with
open new track XX stores on XX XXXX We are in new markets. to in
Second, online strong we rates digit by our the growth anticipate growth mid continued low-single in online sales markets. supported range, established in in
both house inventory whenever Third, our messages women's categories tighter from by lastly, positioning the satisfy and sale and in want. flow And new for newness. website. to marketing to drives and products that completing men's customers' and growth We'll improved advertising they see whole supported and traffic our expectation stores wherever
cost The most we've expense In also focused the getting addition line, advertising been leverage our fixed expense top steps to already and are gain taken efficiencies variable yielding spend. keenly to on we've including growing management, of out results.
that half the fiscal the for an of the year, year color you here's second given Now full I've guidance around some XXXX. updated
sales $XXX million roughly deliver net million to growth XX% basis XX-week expect of XXXX. between sales and of on We or $XXX a in
down margins selling, be expect XX%. administrative percentage to and expenses XX% to net points the and of We range of to basis a sales XXX as basis gross XX in be general points, to
share be We expect which diluted million of tax shares last a to to a share average $X.XX rate and on basis. and assumes earnings weighted full-year XX-week between XX.X per a $X.XX year count of XX.X%. compares diluted XXXX $X.XX, This
capital half margins million. line expect $XX turning But and in. point roughly EBITDA We our results be we've expenditures bottom between delivering in $XX the growth of planning to second XXXX we and adjusted and growing most importantly, million $XX investing be of expect and for operating on to million been the
open we'll Operator? questions. line for the that, With
