Thank you, Jack. Good morning, everyone.
XXXX. some I will our then our and my provide fiscal of quarter thoughts commentary results for remarks begin with the review second around
Total in $XX.X quarter. net transaction as from of our successful advertising to performance growth ticket internet behavior. showrooms while increase $XX.X and both XX Comparable showrooms. up shop resulting strategies, new repeat sales sales, as and also helped quarter sales prior drew the driven brand the our performance. sales was by strong of number customers the and quarter million increases. This which which XX.X% two purchase sales with growth QX include driving XXth also XX.X% positive showroom million internet We fuel showrooms An showroom from the ended and sales, consecutive increased Comparable represent with showroom, increased pop new comp increased to and sales XX.X%. marketing opened well in year showroom
other XX.X% our in Costco the increased Showroom channel, $X.X includes at XX.X% internet results quarter. pop $XX.X increased which to by million, million. $X.X sales Looking our million, locations, second XX.X% up sales to for to and channel increased our shops
sales, decreased the blankets product from and compared as include sales increased sales prior to in our accessories, our $XXX,XXX pillows, and category our the $XXX,XXX XX%, year Sactionals other quarter which Sac to second By category, decorative increased XX.X%, quarter. other
second quarter. the to dollars Gross profit XX.X% in million increased $XX.X
by points in from year. by offset Sac reduced Lovesoft decline last to primarily our gross the to period expected, and year-over-year of Sactionals driven partially a from cost XXX of manufacturing Vietnam our margin in XX% our China. As This an and shift ongoing tariff costs XX.X% by sourcing percentage was reported and impact, of primarily same countries down change products, the of savings XX.X% related outside basis to decreased other fills blend the and
second quarter, year. from total million second of the and For advertising the to expense, SG&A, quarter in marketing $XX $XX.X last million excluding X.X% increased
higher rent, other related equity and Excluding expenses overhead was in expenses variable a employment nonrecurring detailed increased to offset increase SG&A in approximately by costs our release. as The as $XX.X and of compensation, sales, SG&A $XXX,XXX press as increase total driven partially by well largely in the million. decrease to which in were expenses,
SG&A percentage a total largely by compensation stock driven and as described of sales, As decreases expense by decreased above. XX.X%, IPO-related in expenses
in advertising and million which investments $X.X periods, prior or increased marketing QX benefit over year. XX.X% extended Our
As a related to expenses sales, Memorial of quarter, largely to very increased Day, XX.X% to percentage marketing had in advertising ROI. positive due basis points an increase advertising XXX this and which a
period year remodeled Depreciation increased $X.X and from prior and to principally $XXX,XXX showrooms. million, capital amortization to investments the new for related
$X.X adjusted excluding million, second loss In second of quarter million approximately was million, the of expenses. of adjusted was the million operating XXXX, million operating second excluding $X XXXX, $X.X XXXX, of was the last of loss non-recurring expenses. fiscal second quarter quarter approximately operating $XXX,XXX $X.X in fiscal quarter fiscal loss of In the nonrecurring compared year. In $X.X operating to of loss an
and the to minimum Net quarter financing. is XXXX related Tax and interest income of and than of to XXXX share in XXX,XXX, primary IPO which income fiscal second tax state was $XX,XXX the was less liabilities. our expense other relates impact
point adjusted per Before income income metrics these focus like as attention share adjusted to EBITDA, the net today. to would that I and will earlier my on for of each and net our adjusted directly our costs, and Please and income, we income turn net in between per release GAAP discussion financing net and EBITDA. reconciliation out IPO comparable the to terminology our metrics measurements refer most of well their earnings other as share issued
financing in was fiscal of fiscal for of loss costs was IPO in adjusted second quarter loss XXXX, and per to compared Adjusted the an $X.XX net second the net share million was Adjusted XXXX. XXXX. year. loss of EBITDA loss the second the a of $X.X of second quarter in million Net quarter the as $X.X adjusted in quarter of $X.X second fiscal of and to in million quarter fiscal compared of $X the $X.XX last million, XXXX a loss
equivalents. higher Turning sheet. $XX.X our with to in increased as balance investment driven channels costs inventory the all of warehousing increased relative of quarter across the the million enough well investments, to growth charges. freight by to inventory XXX% our Ending weeks supply marketing as inventory hand in ended and cash of We an in year-over-year, sales build success to and sales, of cash an and includes capitalized the support advertising increase and agile be to and tariff support on
like showrooms fiscal year fiscal to as Now, outlook. in XXXX items discuss on fiscal we XXXX a XXXX, with open for the half showroom a I our of From X. relates this full would are XX the perspective, and to year remodel openings few to it new track second continue showroom to expect to XX
road Costco We pilot as the to shows Macy’s our the shops, referring as pop given of in nature shop up setup. shop shops and are our now
with As mentioned as our in to road shop fiscal three up in-store Costco, XXXX, shows for as in Macy’s. shops operate Costco with up addition pilot will four shop pop well online we
levels We continue full XX% fiscal strong XXXX. between deliver growth sales of in expect to to XX% to
high low be revenue this below end expected items. of However, approximately do with XX%, is expected growth we This QX be annual end of significantly whilst following of QX to above target our annual to the expect range. to due growth the cadence is the
sales comp see comps slightly significant QX. expect QX sales with to expected with We total deceleration a total ahead sales comp to increase be total a in QX in in of growth QX in
being in sales made total and fiscal on with seasonality the marketing quarter, our investments XXXX. late basis growth. of working point QX have advertising with a greater business be on However, the planned are media important QX ROIs being of to two-year in which projected cadence QX with line out largest of volume Normal in that comps impact to QX and strategically greater investments QX, in
be Costco of fiscal openings QX, in by and will addition, total revenue of QX. heavily showroom showroom In more QX the timing significant most to The pop and the of half the number increase weighted over than prior in shops up number happening XXXX new pop during increase fiscal year. is impacted up the compared continued prior number year QX first as of in to which this shops with the
XXXX XXXX. productive Costco are first to those of half in fiscal revenue half Second pop shops of projected as the be as
new that shops costco.com The Macy's road pilot amount include Jack in to initiatives impact mentioned QX of shows fiscal and the XXXX shop the on four greatest have new revenues. will
the with cadence, in reported improvement Consistent expected a sales larger followed discussed than growth a loss in we just by substantial QX. QX QX, expect EBITDA we adjusted
Given the positive generate for fiscal we've to continue process to discussed, adjusted we Shawn XXXX. EBITDA as significant made, tariff mitigation expect
a to strategy, product and as distribution discounting offset reduced promotional being margin and accelerated XXXX well costs mix We offset sales. outside points an as for gains slight to mitigation Sactionals, which to related changes following: decreases well tariff pop by into support sourcing relating prior vendor mix is due shop partially initiatives; as up as by XXX to vendor related impacts continued product China. headwind rebates, to are channel and These future Expected towards from of product approximately sourcing shift strategies, in shift pressure, be actions full-year expect slight gross fiscal the a XXX the fiscal XXXX, margins our SG&A basis to to in infrastructure lower than growth; principally investments
given we excluding to of SG&A, SG&A and expense, previously terms our seasonality significant business. QX, advertising leverage the most marketing expect the in mentioned, be generated as In of
the net sales SG&A infrastructure, is across of year. QX over amount process enable the produce the on and volumes business prior leverage in making we As a greatest the our outlook our all investments reminder, embedded are in to investments these and us of people,
significant will rate efforts, have, we So, support business to and quarterly across generate deliver again our the and we XXXX. mitigation of due advertising all positive adjusted of opportunity continue investments the fiscal we a marketing while to in EBITDA sales a will anticipate to high our investments that the timing expect growth fluctuations areas growth tariff in we and summary,
remodel X management $XX.X incur relates to of legacy the vested Finally, X XXXX. into shift and pilot expect of prior headquarters opening as approximately showrooms, the technology of Macy's is logistics Sac in stores, XXXX versus Sac and being will manufacturing our facility be opening The CapEx to approximately vast the our inventory majority due of CapEx now a $XX the of timing it support CapEx spent approximately million to we our in to of on XX guidance capital fiscal of million, remaining expenditures, in investments being $X.X e-commerce million data enhancements, approximately fiscal. locations, spend shop for showrooms, of manufacturing to allocated shop The and this the systems. and systems, platform fiscal
release. related refer our press to details please earnings other all results, to For our
operator to questions. for like can the call back to turn it would we who open that, the Operator? up With
