you, Thank good and everyone. morning Chris,
share excited we'll you our my remarks areas. am and on I morning results this focus three key to with
including quality First, savings efforts. model our global projects, progress to-date on our our sales implementation transforming and our our cost ERP of
potential for for fiscal quarter impact initial finally fourth our XXXX and on and Second, coronavirus the results our our quarter. outlook first XXXX
let's so started to our have on We initiatives. get a an transformational cover key with lot update
expected savings is the Previously upon savings more completion. than we million yield that $XX and cost in annual program to announced restructuring
ahead We been exiting and all actions unprofitable manufacturing and closing These are and savings in $XX operations, in phases half first operations. have XXXX significant including we for executing in of first relocating two results. three million accruing $XX second with chain annualized and schedule supply phase this to actions projected facilities included our completed. benefits markets, We the million phase from XXXX streamlining consolidating of and are
million Phase in are processes global X drive cost begin systems to to be XXXX anticipated as efficiency savings of improvements. $XX and million global began $XX to implemented to
projects to cost XXXX regional our will with investment regions go-live technology go-live ERP investment. continue in to XXXX will savings are Phase of the and significant The as be In the global scheduled in infrastructure remain information our begin effects with enable mitigating first we mid-XXXX. a aid the one-time to planned, on the X Our in globalization and XXXX. The incur will technology of two largest scheduled will that track remaining in cost business. implementation we associated the
we the variety since undertaken sales Finally, of of have actions quality spin. a
creates and and our our headwinds foundation committed to establish actions, long-term this line results affect near-term TSR half Although our to pursuit strongest XXXX anniversary success. we the first our remain evolving our approach continue to business until for in we will these top
to get comments model unless to quarter let's noted. otherwise our transformational refer fourth business Throughout we to our from the changes will Now restructuring results. and All have review to quality cost fourth sales of XXXX, in efforts. of savings changes quarter undergone organization results the
of performance, external will variety of for the growth. long-term and the All a factors, improve stage set and internal changes address a
these highlight changes impacting will how results. our our through are as we performance We go
The impacted revenue three factors. was revenues. revenue by adjusted compared global decline X% Our with decreased XXXX significantly
including India. select and points points other quality country, of three contributed in actions an channels model taken initiatives changes, strategic sales actions proactive exit including the distribution of global to to business These First, decline. underperforming
another finally, X decline. the lines a U.S. bankruptcy And major margin lower point impacts of fourth retailer of sales. These of business XXXX this Second, certain in quarter the actions of reduce of drove represented lower and X of sales point headwind. the distress
As revenue first actions largely margin these will anniversary to you'd story. both to our of expect, the half strengthening two we dates, XXXX first in are but which see headwinds are their from continue contributing until
regional points the revenues with approximately select the of mentioned non-core X% XX% by as The U.S. X than the was as softer exit On adjusted that driven primarily represented acknowledged our anticipated driven a the previously Scott revenue rationalization declined of basis or factors. retail which in balance U.S. environment earlier well quarter by programs.
International previously represented revenues further which represented X XX% South of points America exit market three declined in of India for business sales Europe proactive accounting to approximately of the decline. decline, select distribution changes of our exits points. revenue XX% X drove in efforts, points while points actions the in with the of and delineate quality quarter mentioned To the model and
timing on shift additional drove shipment an in Lastly, X a a headwind. China points of
the was the X% shipment. due year, to For previously the full quarter business X% mentioned our increased while fourth down China
was strong shipment, quarter store in up and the continued digital Excluding see China sales we this comp to X% as growth.
to channels. Turning our
driven business wholesale increasing In channel, the mentioned strong Our of we digital X% XX%. represented wholesale U.S. our by wholesale declined our previously our XX% the quarter, performance in with factors. revenue continued channel the which U.S.
Our growth in to this distorted investments on this provide we partnerships opportunity. returns and remain continue accretive bullish area and
the Israel Chile points shift rationalizing approximately and which channel, channels XX India quarter, well contributed of represented as business initiatives as in wholesale points. Our to Russia, non-U.S. Proactive the decline. strategic The such China declined revenue as in roughly X XX%. contributed in also in the model previously timing mentioned select shifting XX%
the strength XX%. in digital were increased very which branded our that represented S U regions all X%. strength Asia increased owned of XX%, XX%, our XX% seen and increasing was Our X% channel, the up direct-to-consumer We of revenues, up that business pleased the global Europe behind with digital
under Given to channel, the invest in this area. important index this will we of heavily growth accretive nature continue
due large the model second In of of our Global accelerate of Wrangler XX% revenue part to declined declined in improvement in global our domestic in mentioned and the global of declined anticipated to our driven India Europe revenue, QX U.S. XX% taken brands. business. revenues in the part half brands brands that South which to we represented due global we would turn Wrangler Wrangler and America. year the in sales, XX% business large X% in represented the factors. U.S. actions X%. brand revenues, changes primarily sales International let's Now which by the previously indicated
were results. the in finishing our previously second down to to our half, coupled retail the taken anticipated the softer year-on-year India comparisons landscape sales half X% global around as higher X%. half half Although first with compared softness the the holiday the actions of we year were in finished our second compared first than The announced down impacted in U.S. the
earlier, as as U.S. declined Global the to three represented mentioned Lee our well brand reduction in revenue declined America. revenue programs. environment XX% of and changes the softer non-core and Lee XX%. model driven taken in U.S. brands global or revenues, factors by Europe declined South retail revenue, India which select international XX% the business of exit market and XX% actions access Lee due and the the of
which due of also the India. margin, each in of to quality quarter. mute was gross channel approximately mix, product continue cost than including in of Cost initiatives pressures. actions more sales increased gross onto and offset impacts to last savings initiatives negative XX basis the inflationary last primarily the two. favorable of improvement impacts positive a have improved points gross Year-over-year Now comparisons margin for the inflection four The adjusted quarters during total the margin
to Moving forward, such structurally as fuel digital margin accretive gross shifts margin channels higher mix expansion. and further international will
or control as sales our of drive to we of a declines, percent to initiatives SG&A revenue as to XX% of with costs well the Despite to savings cost in able reduce due anticipate and product Adjusted initiatives. we expense improvements addition, benefits SG&A cost deleverage as basis In $XX were fixed XX from points tight cost. revenue. decreased savings million restructuring cost
transformational profit in changes XX.X% by compared was sales, from million quarter. Net increase sales earnings an margin or approximately business. million XX.X% The $X.XX took $XX expansion XX%. we SG&A of rate per improve of the or delivered approximately million in Adjusted the last year. expense in approximate prior year made from the with adverse $X operating actions We was interest X% an $XX million $XX EBITDA was Adjusted India $XX and the impact drove million of the was driven adjusted of reduction to share adjusted our quarter. effective tax and
in a highlight as we'd perspective, X% Inventories like to from performance. inventory Finally, the declined sheet mentioned balance year. our
or During softer $XX U.S. drive inventory given delivered the quarter commitment retail on than we over year our the the we XX%. Despite reduced below prior and inventory to anticipated by million more shipments levels. environment than holiday,
We the with are pleased results.
have more and work to inventory in XXXX. we remain a debt will However, do focus reduction
earlier Scott pleased commitments our as we Overall, our with are and performance meeting were year financial in financial April. outlined that full outlined
spin model, initiatives, executing global enhancing global accomplished operating new just to of complexity We the Given brand a is infrastructure in implementing of a a regional the transitioning platform. of and transaction, and savings XXXX building journey great a multitude a the ERP deal including restructuring, from cost a global but developing beginning.
what's results, and us structure we first been to opportunity sequencing very way our for actions the also greatly. deliver intentional highlighted, near-term As do while year, giving a business in matters We've us on to the during allowing shareholders. the Scott long-term our best
shared additional this by news covering providing our outlook XXXX detail, for we now our in let morning, the some outlook In me before context. And release begin XXXX.
underlying how of coronavirus view considered macro to of very guidance in midst and make with presented fluid backdrop ongoing of sure the the situation emergence business. provide clear the dynamic we a the the of and fundamentals we our to wanted we As
including as sure we understand best the change of sight turn cadence, make some a business With all as again evolves. also transformative there coronavirus. color year background, underlying line impacts. operations the context is the for quarterly coronavirus our and model impact respect We we was figures exclude as the to want to provide of this to discussed to of potential outlook; while our of complexity with providing XXXX let's
with non-strategic which full and is includes year to to revenues while as contribute week be digits, XXrd to XXrd increase XXXX fiscal week XXXX, for branded other Rock Wrangler follows. our revenue for revenue consistent Revenue to adjusted expected anticipated XXXX, XXXX. domestically outlook expected a full to with full year is & half a is approximately expected revenue. adjusted the as Lee VF largely low-single brand sold Our through decline Republic of one is for non-branded year as Outlet point double-digits to products our The well compared the
full year quality-of-sales of with revenue The non-strategic the occurring of of to associated during negative the XXXX are year. revenue majority with half and of expected up strategic headwind lines the first exits, represent XXXX lower to points X business to business initiatives impact
is In to addition, and timing shifts between to the decline. expected revenue half first second quarter anticipated. Due are third reasons, quarter these shipments
expected actions, programs restructuring the from of Second half moderating is based shipments, and the and the revenue benefits quarter. to of headwinds strongest well quality-of-sales growth year-over-year of the is grow distribution, as revenue anticipated expanding on fourth points timing as in
XX.X% shifts to accretive DTC the XXXX be and by mix in gross range to full compared with well structural and businesses. initiatives, restructuring driven adjusted as to margin of more XX% international margin is XX.X%, ongoing quality-of-sales of as Gross expected year
share Adjusted expected adjusted compared EPS be of to per XXXX $X.XX. the earnings range full year $X.XX to is in with of $X.XX
interest EPS outlook XXXX approximately negatively additional adjusted impacts impact XXXX five will with EPS, half which XXXX includes full year Our an expense that months for compared by of first comparisons. adjusted $X.XX
will including to of significant be Cash continued and our best-in-class significant working support $XXX model greater aggressive repayment with dividend be cash strong debt flow global capital priorities. anticipated to financial is operating million, capital ample after million, be from expected flow Free anticipate in investment operations improvements. the and than our We flexibility. to $XXX our augmented provides generating excess which infrastructure is and in ERP funding opportunity expenditures durable
EBITDA We'll of and XXXX of to expect our and information million. to between the We in to full CapEx excess ERP expected debt long-term news to for total is million $XXX high refer reduction of you support level our $XXX with at greater guide technology EBITDA $XX adjusted infrastructure. we other $XX the to anticipate on compared million. range for in $XX including be detail, implementation million million design and to the $XX year increase year include: assumptions our digits midpoint some XXXX but full release thoughts adjusted mid-single of
accounts We XX% related effective program our sale XXXX. receivable of are roughly expect be expected funding an in million fees expense tax including rate to and approximately to interest $XX
providing I Finally, on remarks color will the for today first little with more conclude coronavirus impact a my the potential models. for quarter your
following outlook. reminder, the are our impacts from a excluded As
provide of operations on more impacted important market. impacts, let so commercial the our quarter, terms In during most has our context in me market first been this China
of as global as X% partnership approximately annual full-price including our outlet of and represents digital well operated consisting China stores. wholesale stores and channels owned and revenue,
we mentioned had start Scott earlier, January. in the As strong a year to
doors of approximately of while for the retail month, our we severe the saw number During in doors reductions of and of of remaining closed traffic open XX% comps, weeks, most very doors is increasing partner the today the few and owned February, doors past but the month the and are majority were at over open.
through Although as move will door we more occur March. openings anticipate we
the in will Globally traffic reflected we of other this situation also in we could and approximately impact previous Europe pressure just reductions not Again, China significant select XXXX and We X anticipate by in revenue quarter is a markets comps continue. first discussed. outlook coronavirus the anticipate points. potentially including
impacts, any to-date problems while In may citing terms experienced of supply have not have issues. you chain we other material
in our our the In competitive a with vertically distinct hemisphere. supply Western integrated chain manufacturing we creates fact, believe scale advantage
with As our time, supply minimal all mills product to of resumed our the At not this ability interruptions do anticipate nearly in flow we any market. operations have China today, of material issues.
the for now the discussion. time it's back turn call to the update, Operator? to operator that With question-and-answer
