Scott. you, you us And Thank today. for all thank joining
with in last quarter. morning's delivered QX from As you saw commentary we results release, this consistent our
a While supporting the heard, you uneven, tremendous the in just macro have Kontoor-specific drivers as of marketplace. number remains brands we environment our
going For call, three cover balance the I'm areas. to of the
I First, from quarter. key first the will highlights discuss financial
operating provide what gives model with in year and near-term environment. to year our expectations our update Second, our the I full finally, back-half close uncertain us will outlook I'll full an And including resiliency an confidence to and drivers. of reiterate
Starting were as DXC, to with in and revenue China the the prior COVID and expectations with to compared as X% quarter, previously year offset gains changes. consistent due U.S. in well wholesale provided. global Growth policy from decreased International first softness wholesale impacts by in Greater the U.S.
a continued by decreased DXC A quarter. driven a growth XX% few in basis, the revenues momentum and respectively. previously more driven DXC. which XX% shipments, revenues additional regional International in modest In revenue owned.com, on points increase China, mentioned in wholesale, see X% China. increased outpaced impacts continue in than the increased in offsetting sell-through by X%, XX% On to U.S. resulting and we
partners the quarter. First, in inventories meaningful our made progress improving retail
our a near-term success. this impact brands believe While best positions revenue, for long-term had we this on
double-digit from expectations direct-to-consumer, the EMEA, In to trends offset quarter, QX we previously our anticipated. quarter, with the than most stronger wholesale. to with and consistent we improving second Furthermore, growth year-over-year decreased mark in revenues declines significantly significant notably last with in anticipate X% by continue
strong healthy momentum Brand mortar. XX% brick DXC as in evidenced including growth remains by and gains,
weigh However, as as tight region. to inventory inflationary retailer macro controls and headwinds, ongoing the continue well on
our to and initiatives, our brands. accounts QX increased category now strength XX% Wrangler global revenue for revenue. extensions. by Wrangler of diversification strategic in and Non-denim growing Global X% in increase brand in double-digits driven to Turning fueled by our of continues DXC penetration
driven X% Wrangler growth revenue work, increased double-digit in gains In both and tees, in as and DXC. direct-to-consumer. outdoor, the revenues wholesale across XX% well driven X% as gains by U.S., by increased International
Less U.S. in Turning driven to XX%. double-digit by decreased Lee revenue International growth revenue decreased X%. flat Lee, was revenue owned.com. global
X%, in business, COVID EMEA, offsetting discussed, fueled wholesale China had DXC. a As increased impact impacts in changes of on XX% policy double-digit continued in growth Lee's more DXC. growth In than significant by revenues China
in increased owned.com Lee global XX%, global decreased an revenues increase including wholesale perspective, margin. Excluding consumer from increased And were XX% now a flat. China, non- X%, U.S. U.S. finally, to XX% gross direct channel on and wholesale to
production costs points actions inflationary rates. pressures weighed with input in margin comments China and basis Gross quarter downtime consistent last managing on XXX internal decreased to mix XX% margin proactive our on including
in SG&A as offsetting Somewhat a million headwinds relief or and expense decrease were costs $X such prior $XXX these the was strategic versus transitory pricing million air year. freight
to $X.XX As same a per controls the in the offset expense compared XX to basis percent in XX.X% and DXC of revenue, lower by prior tight compensation points share was SG&A decreased period investments earnings year. were expense in $X.XX partially
our balance to turning Now sheet.
First quarter XXXX, inventories inventories to improved XX% quarter. fourth Compared from sequentially compared year and last to increased increased XX%. the
balances, to production and are internal feel and on the with domestic down between while lags goods, inventory work in placed our nearly actions inventory improved proactive, about we good times levels. sourced receipts combined core of pressure prudently lead We styles. adjusting leveraging quality continue to being shipments has XX% on And upward POS with
sequential We of But quarter. current I with in growth to the expectations inventory based over quarters. result of on expect the by couple the next progress third will we anticipate and this in revenue our line in inventory end discuss year-over-year levels be margin visibility, to outlook.
quarter first with $XX and long-term million or cash debt less the finished and equivalents. in million debt $XXX of cash We net
divided Our Board targeted announced, share. quarterly within to net net And $X.XX by first the declared a XX-month Directors our dividend leverage range previously our Xx. Xx end debt as per regular ratio of cash of EBITDA was quarter adjusted at Xx, of of the or trailing
under share repurchase remaining authorization. quarter, Finally, $XX we million end had of the our at first the
to our over second anticipated relatively increase percentage outlook. low still is on at XXXX, single-digit half with to first Now Revenue and a balanced.
While to somewhat continue shipments to to U.S. first strength faster will more expect continuing assumptions. China prior recovering be by revenue by our in than outlook, compared is QX second while be be relative to modest tempered previous This is to we result to revenue half primarily versus China lag will expectations, expected. POS, quarter driven now prior performance domestic previously expected domestic while stronger
open-to-buy which work Scott discussed, and inventory with will to continue retailers their impacts. As towards equilibrium have near-term levels,
on share our our strong growth combined in U.S., in channels based POS the gains us are DXC visibility, and However, year with full seeing own the momentum in we gives current guidance. confidence
as A think margin the Gross expected XX.X% year. in to range to dynamics to is in the XX% be about XX.X% few of the XXXX. of still consider compared to you rest
managing First, including as will internal we the help the quarter. are downtime This increasing support proactive in actions by in of normalization production, inventory second end QX, discussed. I previously
expect, adversely term, greatest pressure would impact you margin gross and this back in the drives in will near year. the but of in efficiencies year-over-year half resulting actions greater QX As the reduced
favorable but second degree be inflecting Similar geographic half through margin as finally, expect significantly we quarter. Second, previously to headwind, we flowing on peak fourth is greater inflation Based P&L visibility, mentioned, than to to near-term a to see than the actions, quarter. China mix production a planned. a expect And the tailwind second a rates expected the recovering to in before anticipated. in QX will bit this in ease current faster is support to
and expected production compared SG&A When of combined anticipate margin quarter. a the the to at with in SG&A year-over-year inflation, easing is in cadence the adjusted rate still mid-single-digit greatest gross increase XXXX. expected we to fourth gains actions
include capabilities and creation, in longer-term we to international brands demand discussed, and revenue Scott in will invest As This our profitable continue of expansion. growth. support will DXC
in investments greater discussed. our relatively second outlook, creation from of half during controls. second with expected between be programs the be first balanced offset spend This and second in tight demand reductions the SG&A will benefits in to halves Scott of growth many now nonstrategic by cost Compared prior to quarter support the is and amplified more
to $X.XX EPS is with still range consistent to expected the be the prior in $X.XX of outlook.
charge a with a quarter We European the related relocation continue onetime remeasurement to associated second approximately weighted tax in expect headquarters. $X.XX dollar to second to we assets on of tax of EPS half the more due of to to gross the basis Furthermore, deferred be our the margin. year anticipate of primarily the
in are points advantage both market, in a owned the brands. the an uneven leverage we operating an ability Wrangler structural mentioned, for clearly DXC are are share and great but in resiliency manufacturing the at strength Scott and we proof gains Further, our of POS Lee seeing momentum uncertain backdrop. to is As
recovery, in While proactive starting managing impacts, China in owned and on better-than-expected have we us all actions internal our the near-term gives full second year half, production channels guidance. will momentum have confidence relief visibility to reaffirm the in inflationary retail
working highly long-term are the disciplined remain we a and across controls measured our proactive that, will to support and entire also further resting taking for combined support expense gains improvements strategic with year, business, Even all cash of efficiency in operating and second focused actions reinvestment with significant These foundational driving which generation is on that the the not future optionality view, playbook. half TSR and fuel capital stakeholders. our in in initiatives superior
teams also thank around To want close, our world. the I to
environment confident to our results While another in build strong towards while the macro I remains ability deliver to the future. dynamic, year of continuing am team's
This our I prepared concludes Operator? back call to our remarks, turn now will the operator. and
