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on the implementation out-of-period matter at in We recall, duty the time. you in to XXXX. an the available quarter, estimate and duty third our from ERP million the third quarter late $XX was dating of recognized the was information based which arose expense If identified back originally
to quarter expense review testing that, to related fourth results. of previous Two X%. related main the decreased periods million we matter to relative the quarter. on question result to let's expense additional we impacted do expense of factors expect To your prior identified our the going procedures, a and likely quarter revenue a not with accordingly additional expectations. our forward.So As in recognized Global duty this fourth minds, and answer $X incur
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during in a deceleration weighed and inventory POS, magnitude anticipated greater expected the we on was the selling the than quarter. reductions of While
now network. through retailer inventory both wholesale.This and levels XXXX, inventory offset but despite drive back, of primarily performance of the the near-term, of are X%. inventory. currently is levels project expect half to at our the we expanded the of into excluding The XXXX, service market efficiency, drove to in This year. we Stepping and to operating decline X% We our continue complete notably and retailer brick-and-mortar, included end reductions upgrades which in in service greater-than-expected expect with increased modernization by revenue a caution retail gains in decline a distribution X%, in improvement strong gains $XXX This most is cash to in Lee work suboptimal, in approximately due the growth an result as share in we declined well X% While revenue, project mid-XXXX, for expanded income duty improvement was million process year normal margin in brands quarter and basis gross we our growing particularly as of the year.Second, and to the have began systems for the DTC we continued DTC improve fulfillment as out-of-period and points, profitability on management in the distribution and generated as progress during support to digital continued flow charge, single-digit a digital business. and dynamics at free wholesale growth returned in X% of we levels. second impact full period, low the leading holiday fourth in had brand. e-commerce revenue XXX a center the And
for revenue decreased The and primarily Wrangler improve fundamental We U.S. wholesale, our wholesale. offset decline XX%. growth XXXX.Turning digital profile DTC driven by brand by was to Global in further expect this the to in brands.
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For the year, full Lee X%. revenue decreased
expect gross improvement in performance by acceleration distribution in well innovation as margin. to to gains, in We see XXXX, China.Turning Lee's new driven an platforms, as
margin strongly more duty As in quarter basis management as points, we benefits proactive pricing, expected, adjusted the the gross inflected aggressively product the light of inventory of costs. fourth quarter, cleared excluding by mix impact of excess environment. expanding lower included driven channel the and inventory The actions XXX in impact, the
of Adjusted Investments full in this million. SG&A discretionary share line charge. which was points, These $XXX Adjusted $X.XX, with year. technology by flat as to an impact, we prior were the million, compared foundation expenses.For XXXX. gross a even inventory in expanded and year, closed established actions DTC negative was impact was $XXX from was drove expectations. the basis management stronger duty including the adjusted earnings stronger expense per margin cash the partially XXX generation our for year $X.XX offset disciplined expense incremental SG&A Excluding and adjusted out
in result the tax of planning representing $X.XX, that charge, cash of EPS XX% items, tax was execution expected impacted as duty the a payments to lower the was future tax years. increase versus adjusted positively by are prior EPS year. primarily Excluding strategies discrete a
the For despite in the to turning adjusted $XXX to our our of million, full was with the shortfall. $X.XX sheet. in decreased excluding the year, adjusted duty XX% charge to EPS year.Now EPS line balance prior expectations compared $X.XX, revenue Inventory
and made execution we reduce levels. further our with to progress pleased inventory are We the
we is While cash improvement generation, net operational allocation working flexibility. further capital and work capital still to do, supporting have driving significant
of finished to our $XXX or and million XX% debt the $XXX with hand. We first a year in of less on net million debt continue decline XXXX, inventory expect the long-term We in to decrease cash cash quarter. including
our ratio, leverage line net EBITDA net trailing divided was by targeted our Our and debt X.Xx, adjusted with XX-month range. within expectations in
quarterly $XX million repurchased cash announced stock program, we strategic And of plan, Board have million in our the reflecting as to share $X.XX allocation optionality finally, previously is a turning of billion to range to million quarter, under a repurchases, regular the in of business of strong $X.XX total with approved reflects Board decrease Revenue share the the support December, returns during previous share. we which our Combined that dividend be returned repurchase capital outlook. we increase shareholder $X.XX strong and in cash expected per year.Now declared $XXX time. our confidence we X%. program.As shareholders $XXX of to to announced, a our our the the the over enhanced a of During new billion, will X% generation an of
Our outlook reflects the following expectations.
year, U.S. the dynamics to well we first 'XX are the of difficult quarter, in macro spring as taking cautious the seasonal half reflecting many First, we following the discussed a environment, the of retailers challenging fourth to anticipate a in particularly as continue product approach season.
inventory continued retailers levels. with we conservatively are manage While we share pleased U.S. are planning tightly as the business gains, market
are expected businesses year of XXXX.Second, of and expansion the inventory full overall number we in contemplate This Our visibility a meaningful innovation have distinct Chris second of of and fourth tops quarter POS Tom compared the distribution positions does the discussed, not or to category retail initiatives and our to includes improvement year. half a that outlook new to benefit and platforms. the gains new outdoor
softness fundamentals. in reflecting by expect we quarter, driven be improved given international stronger saw we continued fourth in a and the making region. where will we partially This momentum the the anticipate offset the growth of continuation by Third, are China, market investments ongoing Europe, headwinds we
anticipate growth mid-single-digit a revenue as channel rate, in support we at half DTC mid-single-digit year. first we our followed digital invest our creation in strong second demand decline pipeline. platform, growth segmentation Finally, We to in and the by continue improve expect to of the half
adjusted is a seasonal First approach to expected quarter discussed.Gross revenue in margin XX.X% to caution excluding on basis retailer due XXX XXXX, an basis, the gross of duty XXX the points adjusted an about to and to of margin X% in compared increase ongoing representing conservative part product to points more range expected basis XX.X% in to expense. decline to is XX.X% be just of
of year. targeted first assumptions the of Our in to the earnings quarter Gross as lower than the with range driven more the first structural costs, the by our outlook points of margin pricing basis Sea by expansion of outlook. XX.X%, XXX expansion critical in in well growth the the of XX% first offset reflects in input as benefits half to half, the partially and gross Red the impact disruption margin is mix,
deeper dive or just we ability exceed the in into and our blocks building confidence provided. me let outlook of the have meet the our So plan to
drivers second international have visibility such input with the locked DTC on sourced good product. and we in costs quarter third as into through on cost quarter manufacturing structural the are intact.Second, First, on and
approximately basis, EPS chain in the to of structurally a Third, inventory And of at double-digit the composition versus inventory both we to year, improved further expected lowering for the on SKU and and representing $XXX regard the EPS been further rationalization expected of mid-single-digit efficiency, drivers, the margin of X% the of million to year on and the have own landscape.Beyond fourth, $X.XX, be $XXX higher retail have our these with comprehensive reflecting footprint, to We see significant near-term related and XXXX, opportunity with and $X.XX which the capacity of journey. $X.XX.To greater our the assumptions of with X% ago, rate consistent previous to Project to margin has fourth of supply operating allow points we we as quarter. gross for catalyze to supply gross our We launched range the I'd promotional in prior about to we goal our margin wrap growth expansion income chain over benefits income the significant rate. total of $XXX growth. the a excluding up, the in levels In million quarter expected result our taken adjusted of drive beyond at expectations operating we action to from will with charge. optimize to approximately excluding time. XX% to costs. prudent the an to prior have pricing step half percentage charge, transformation and business increase business and the operating million, duty growth expansion first compared investment growth and low change tax the investment next in prior is share a creation leg Jeanius SG&A year in to phase gross starting a will including in fuel range this will beginning EPS adjusted see to be second rate Jeanius is X is year Jeanius, X% of and like EPS of result between model function forward. run anticipate first in EPS impacted duty to approximately late by a creating to quarter $XX additional Project be Project year, the in compared end-to-end year. moving growth negatively optionality Full value million with savings planning Kontoor's perspective accelerated
for and global The planning in is closing share activate the we it intend impact our in as quarters.Before which Project disclose of yet the reflected few we not outlook, in the details appropriate. are open remarks. coming questions, we other program, up operating quarters, and Jeanius and As we to The is anticipate a the uncertain, onetime environment XXXX will business additional conservatively. we we restructuring, costs coming
regard remain and allocation. to will with investments, disciplined sheet capital management We balance
winning are brands marketplace. Our in the
to combines to our I turn operator. a year.This sharing accelerate, our inventory high investment actions, returns growth, cash earnings confidence on from increase strength optionality. quarters, generation call look capital.The well an back balance forward later the the algorithm in accelerate our at all sheet which growth, position Jeanius of margin concludes operating and commencing in And are for support capacity strong our combined I in remarks, coming posture, is poised and significant proactive with outlook to delivering Project commitment strength have our to as allocation to gross and cash when and more the combined we with provides as this prepared offensive strong Investor Our Day capital TSR. generation of our to of will We our now
