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yield savings by a number that Beyond in success. the of program announced future strategic the the spin, set global than spin-off completion we will upon actions a as our standing completed cost to teams of new savings our successful for a annual that our independent $XX have foundation million XXXX. Prior end restructuring and company, more and key
the to savings. to $XX it annualized produces to We’ve expectation XXXX, We savings savings second in an XXXX. strengthen $XX will million all in began delivering phase and improved the global profitability. being accelerate world and of simplify, achieve half by the already with of end complete first that results, the during some these of while Actions will are that company’s of just the million regions we stabilize expect taken
markets of depth our highlight in including closing and distribution select the and the facilities including specifically, already supply our the international to internal taken, breadth operations, America. locations, domestic and exiting announced Mexico, right-sizing manufacturing trucking to Europe details chain and fleet one in eliminating profitable and in of our and a centers. at Streamlining exiting I actions South of pre-owned illustrate some want shift
commercial relocating from initiating North ERP select U.S. and and organizations Canadian and business Carolina, implementation closing the the Lee system. office. the operations. and relocating headquarters and Including Consolidating Kansas Redesigning our our the to facilities new of Asia, global in
our but Some actions the sales. these will right-sizing near-term of long-term quality changes that of and strengthen operations, all with create including and performance associated we our market headwinds, assured exits improve
to early savings annualized second an anticipated in The and generate phase this $XX XXXX $XX additional expected of to late to savings. million is is million in XXXX, or begin cost work
and efficiencies. systems generate As we processes further improved to leverage, global
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revenue factors. decline XXXX revenues compared decreased primarily Our with the adjusted quarter by The in same driven global revenue X% quarter three XXXX. was for second the in of
retailer of QX U.S. in major decline. a bankruptcy two of impact the represented the points XXXX First,
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model outlined we from will financial All include their distributor in to direct or here our direct date. licensed to and headwinds up see headwinds factored additional outlook from Obviously, year Turkey, and changes into Chile, line our shifting were until roadmap. in continue The operations Russia some a Israel. XXXX anniversary exiting top three in model revenue these actions business
quarter, a were the regional revenues for On down basis U.S. X%.
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three by factors. were following International down revenues the XX% driven
decline. of changes First, the the planned model about and business points represented the exit seven
additional Second, continue decline. Europe, of of points. negative softness six points to timing third, three including shifts India, in the an and And which demonetization, shipments second of we quarter see the impact in impacts revenue by to contributed
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Our area are international focus. of an great operations clearly
the way. to our have opportunity the more right company, independent to get our markets the placing healthiest which and innovation now we geographic leadership an behind to As in globalize investing that in growth we the scaling is meaningful have historically Choosing confined effectively operate, specific businesses. efforts. opportunity this and platforms This creation talent to supports after demand global first had a regions,
General both to To in that finance end, and Manager, leaders we’ve lead key installed Asia and fuel a Europe outcomes. new improved other
launch apparel see We as set. we remains track particular well well Wrangler on the of to in only continues continue the to our was focused China revenues in first our branded strategy our expansion to platform. digital. to go-to-market China, significant international globally. quarter on the maintain retail XX% International Lee quarter, key distribution represented digital development of the grow wide in peer And position our in a below leading substantial expansion in incremental, in with strong strategy. XXXX, pillar China a in as of remain both opportunities further brand space
will continue global our lens determine where We using to choose conditions assess to invest. focused market to TSR we help
represented quarter I was the in in X% leading quarter, our to of our revenues non-U.S. to strategic quarter. wholesale our the wholesale reported partnerships Due down mentioned channel, increased U.S. digital which XX% in before the represented A XX%. bankruptcy. proactive up X% quarter of reflection was our down the revenue second believe longstanding our customer which XX% platforms. but we wholesale in as primarily actions, with in Turning Kontoor’s of the channel, revenues excluding U.S XX% channels. digital wholesale reported,
brick-and-mortar represented Our branded quarter, XX% revenues in digital offset European by of operations. weakness direct-to-consumer down channel, the strength our with U.S. which was slightly, in
Our XX% up digital quarter. was owned.com in U.S. business the
positive investments an We the prioritized. area has our U.S. from are seeing results in been platform, that
digital in our we index accretive, further of grow distort learnings in channel, these will this to apply area. this investments will continue globally. We Even the enhancing nature platforms under to
X%. revenue to let’s the X% brand U.S. Wrangler previously shifts bankruptcy. brands. due our and declined declined Now timing mentioned revenue customer Wrangler Global turn to
impacts, the the international India business in down XX% up exit well up these in modestly Wrangler and Also, was first quarter, the in timing the in Europe. negatively revenue results. was our the business X% U.S. strategic continued impacted half shifts Wrangler of of and Excluding quarter driven XXXX. demonetization second during model as changes by as effects the
impacted X%. Wrangler by in market. negatively by will important strength driven primarily the international we in accelerate the second that this It global FX continued to of is Wrangler half year, sales U.S. note, anticipate
revenue the in Lee, timing by offset was increase benefiting X% a U.S. with that U.S. in Lee increased Asia. from revenue extent region quarter, declines by more the Global the in and Europe lesser X% to declined somewhat mentioned customer during the X%, offset a than bankruptcy. previously shifts,
benefit negative quarter X% have Lee’s will the half moderate the first timing of of in second and would been impact business the half shifts, U.S. the Excluding We results X% of the in up XXXX. bankruptcy, in of U.S. and anticipate the XXXX.
Lee Changes have of been as India shifts strategic results demonetization staffing early business international encouraging. our platform, demand Lee our the been effects and in have the our XX% the decreased as digital continued driven excluding international impacted these recent exit results. revenue in European planned and was in and by Lee down strategies, made XX% from Europe. model quarter, FX. China commerce changes timing softer recently changes, Also, well during and
X, the constant China Tier front currency. cities. to in important positioned up further with low that Lee growth further X this also of regions in in year, was in digits existing and both single half brand note, Tier the with penetrating well It’s X significant are Tier opportunities, We into China, expanding while
our onto approximately XX%, impacted margin margin. gross Now margin XXX gross mix by as basis cost adjusted FX product increases. points to basis primarily as to channel negatively gross Total points. XX due declined well about
previously mentioned, inefficiencies, levels. the move manufacturing as bankruptcy we’ve inventory and term have capacity As near adjustments we customer through elevated caused related
capacity adjustments to distress improve. fully begin we are As the margins achieved additional will and stabilize and clear gross goods,
or great prior levels We year. with inventory below at year at expect end, in progress the
quality begin Benefits And improved half, Our comparative second to will gross quarter. are further take reduction the year-over-year hold. of shifts gross term restructuring materialize margin to the such mix further international performance mix and accretive will sales initiatives first digital second higher in fuel strengthen skew from channels and channel Longer confident structurally efforts improves. quarter, margin rationalization as we of as margin and expansion.
a sales million control. Net Adjusted delivered as in compared decreased sales in quarter. million percent with million adjusted XXXX. $XX $X.XX Adjusted was expense second of rate XX.X% to The were with points sales by prior primarily XX.X% year. EBITDA improvements was year. was from in profit XX.X% tax tight and X last was of compared million or year-over-year down effective of XX quarter, basis operating interest of XX.X%. driven the $XX SG&A our We Adjusted the the EPS quarter of XX.X% expense the second or $X $XX approximately million
levels and with build balance improve year, elevated Inventories in the be relatively of our period last year to as closed. end, the plants inventory up flat X% compared are we sheet. ended were the to year. to Turning below quarter to prior at inventory expected Again due primarily anticipation expected same as
efficiency, inventories, working $XXX to opportunity improve have to across with conversion We million cycle and up cash payables. enhancing significant our receivables from capital a
coming efforts hear over about you are this, the will all these quarters. We in more
and robust years strategy, free two for is sheet. superior deleveraging supports allocation our flow our Significant on focused paying our balance next capital which the cash dividend, generation
per of declared regular July our On cash dividend of Directors a Board quarterly share. XX, $X.XX
we down In $XX addition, of second quarter during debt. the paid million
onto our year our now outlook. XXXX And our reaffirmed morning, outlook. This earnings release full
revenues is year are year full to to targets offer that in to additional The first reflecting beginning half company. billion, benefits expected second improve and decline the are we be We confident I’ll of a $X.X realized. strategic year insights. on independent with exceed revenue. will deliver compared some initiatives an XXXX digit beyond mid-single the Revenue our adjusted of as
QX first improve Second should from customer strategic half revenue fourth bankruptcy relative quarter with comparison. actions, and to the the half, benefiting XXXX the most
EBITDA. digit and full is between low-double XXXX to expected EBITDA Adjusted a to $XXX with digit range reflecting mid-single $XXX year million, compared decline million of adjusted
and improved restructuring performance to expect We from savings hold. to begin second half benefits as take see cost
built of are remain anticipation As quarter due anticipated to levels plant’s during the inventory of quarter planned, close. elevated third second inventory the year, during to the the the in
weighted half We EBITDA the quarter. expect more second fourth be adjusted to to
stated, year. to million, the reductions in enterprise system. improve resource $XX the to be the planning full XXXX $XX expense million implementation in second $XX between an expenditures and or previously As and basis. include approximately should half million interest Capital $XX approximately to million rate of margin and gross are global million year-over-year including annualized tax expected approximately of effective range support design $XX Other year a should XX% an of assumptions million $XX on
back it’s to the call turn Operator? With time that, the for the question-and-answer discussion. operator to
