Thanks, Scott, and joining us all today. for thank you
outlook, results, driven quarter cash gross flow. pleased earnings our revenue, better-than-expected in margin which expansion We and our above by with are higher came second and stronger
We well the against uneven around an environment globe. remains what are executing
grew XX% points. quarter, expanded X%. EPS XXX the revenue basis declined XX% $X.XX. For increased Gross to margin Operating earnings and
as midpoint see strengthened closed out year. how first, some I we As first a details expected, quarter at will but of of perspective moment, the the like business of in the year. we the the the the of to our share fundamentals business half on the review I'd
to profitability have regard particularly flow. and We relative with seen cash upside modest plan, to our
gross we including and result, the outlook, we demand our As incremental flow creation today. earnings a margin, investments cash operating raised announced have
have our year. poised quarterly the phasing, further of our While are to in changes the the second fundamentals there of business been half slight accelerate to
$XXX and result management, been and Our balance return to million net working share repurchases earnings as dividends. strong remains through we've than of shareholders capital sheet and able more year-to-date stronger to a
$XX payment optimize million example balanced capital model In of quarter approach term voluntary the provides. another during against our our structure. the capital optionality and our debt loan addition, allocation we Yet made our second to further a
with half our We remain year. the second POS are the with accelerated the support quarter, are further increasing year. the X%. balance and the growth the through incremental second revenue that will To in X% entering for an the of largely occur achieve solid accelerating half for momentum creation both June and demand brands trajectory, track on good U.S. May million in to investing $X increasing of we in
conservatively confident We the accelerated these of light investments continue environment, growth. and plan support equity business increasing will the in fuel to brand but will are
in Revenue our X% offset by the declined wholesale. revenue second by third DXC So Global points timing the with from results. the X% approximately benefited quarter quarter as earlier that, let's shipments quarter was into X% review from X U.S. in in the second the decline quarter. a details of of growth in the
brand, revenue in revenue to Global above in growth points X%. outperform in driven with growth XX% category shift, direct-to-consumer the consistent decline previous both gains. timing U.S., by to a market of by Wrangler the Wrangler our leading was the Excluding expectations. prior slight female. year strong its Growth direct-to-consumer, XX% and largest distribution, with modestly continues revenue in was wholesale. of another was outdoor channel including in expansion, By quarter continued share offset POS and increased growth In and
Following and June the strongest the May with as a strengthened POS year-to-date. we've quarter POS April, displaying progressed, seen softer
management, helping posture conservative selling. consumer which pressure direct-to-consumer. Europe, markets In brand. macro challenging a double-digit the U.S. of in European to into is the was offset and is with key revenue wholesale, regard DXC driven the in remain in partially generated strength retailers conditions continues female increased remains by region. to inventory under X%, to International younger by cadence to our in The bring or impact translated in which increases anticipated, heat
Wrangler in as the due a However,
Wrangler in a ongoing for improved declined X%. XX% Now we international unfolded at and by revenue Global Europe, turning growth decreased business in brand the macro expected, quarter. declined offset are as new to offset growth quarter contributing by digital inflect POS in wholesale Lee. was from U.S. and platforms shipments largely revenue mid-single-digit first performance to the The the behavior reduced improving sequentially discussed, incremental wholesale we But sequential XX%. expected. actions Supported X%, with demand creation and decrease and as in to pressures previously XX%. In decreased progressed, as retailer we innovation and inventory quarter the rate.
Lee in XX% more management second the in shipments the pressures half. than globally expect investment growth cautious seasonals retailer Similar increasing Europe as in both the revenue reflecting U.S. and Asia. a POS improvement saw macro digital. June to
expect XX% the prior channel. remain of performance to digital, APAC, our We In the with consistent balance the uneven expectations. double-digit by varied with momentum with continued environment macro year, for In growth. revenue declined
as
In We of progress are set, driven make the quality platforms rate, wholesale, streaming we platforms seeing lease Douyin, a cooling strong performance which such and triple-digit grew such we network. like. on live improving as technology health by at to continue our retail innovation
During the actions a foundation moving establish quarter, these and took we accelerate to proactive initiatives stronger forward.
on impact for these our the long-term healthy in While success a a making investments with are on region we revenue, near-term are brands building position confident actions marketplace are will we growing and partners. the focused had our best
the region. for growth single-digit high expect we half, second APAC the For
plan. earnings expanded points Investments we costs, mix driven Adjusted and to gross volume-related freight our remainder in adjusted was SG&A and pricing distribution And representing through in the share Moving driving $XXX compared of to direct-to-consumer by are of year. per expense prior Adjusted the $X.XX, was margin by partially This X% up offset were P&L. lower benefits offset basis actions an was XXX increase input and compared partially XX.X%, lower efficiencies supply included technology chain. of by year. the to to the million, expenses. prior the targeted product XX% the
our and working Inventory is cash Turning contributed which priority generation to to than management to million, expectation. previous our was year-to-date. $XXX the better strong balance has top sheet. XX% decreased a Net capital
We expect to we X.Xx. half optimal to the of approximately our the mid-teen in second year our annual support in approach at decline low target a rate of as inventory levels of turnover
less the inventory unwinding strong further on for and our $XXX contribute cash finished the to debt net support $XXX long-term quarter framework. million in to hand. We allocation half of with expect million cash capital debt We our the generation cash and of of second
debt net Our XX-month net EBITDA our adjusted end ratio leverage low was toward of trailing or trending X.Xx, divided range. by the targeted
million $X.XX under cash a repurchased our quarter, as declared $XX dividend announced, our previously regular per the of we authorization, share. quarterly During stock and current Board of
on sheet our voluntary against the term a made trailing representing strengthening providing while increase capital invested flexibility Finally, million basis, we XX%, basis return points an year. and Additionally, additional further adjusted $XX payment was of We on balance prior a loan, optionality. XX-month to our our XXX compared
perspective of still Now Relative to X%. expected in $X.XX of our through pleased our balance to the let be revenue second year. of turning $X.XX share range an positioned with well additional the billion, our inflect With to plan, Revenue of is half to performance to the positively, the our outlook. the first on we billion X% reflecting a our for are of me to increase year. assumptions half decrease
through we the period. quarter, discussed expectation. QX to last this QX for approximately is First, growth X% There no change of expectations
shipments X%. the of of quarter, the growth expect third X% in half the we now given the timing between second into earlier However, X-point second and from from impact the quarter
shift, to the no mid-single-digit the our Excluding timing year. change the is of expectation second in half growth there of
momentum the good incremental continue revenue visibility in Wrangler expansion, Second, creation an platforms new are we of in demand brands second to and half. growth, well XXXX. our gains against Lee to both
To platforms for the as have fuel category balance $X accelerating investing as support the innovation to and these into year million we distribution and the
or for in year. plan the overall retail Third, balance business the inventory continue conservatively improvement no we the assume meaningful positions and to POS of
of a quarter, at third shift. and a conservative the retailers including from has retail inventory the consumer impact approximately expect of While in result environment. uncertain resilient remain X% the timing suboptimal, X-point as revenue million, In levels the $XXX posture we remain been representing the growth,
We quarter. fourth expect growth mid-single-digit the in
Moving to gross margin.
We our XX.X% are XX.X%. to from outlook raising approximately
excluding of Our in XX.X% XXX basis updated gross margin the points expense. an represents duty outlook increase out-of-period adjusted XXXX, compared to of
For following basis the expansion gross approximately our driven XXX implies assumptions. the the points second margin of outlook of half by year,
MIC is First, drivers to year. XX to This from to continue full points benefit contribute to [ expected we basis structural XX of the ]. the will approximately
DXC of Beyond we benefits expect scale year, we businesses. mix our this the and as continue international to
have products. the in we year locked Second, visibility manufactured costs of costs, sourced with on for input the on good and balance both
to front-half benefit over anticipate we in weighted, supply the lower We benefit a quarter continue were from and benefits benefit expect the limited points to largely and the modest XXX for a third costs product basis proactive lower of fourth These actions year our quarter. costs in between product and chain. optimize
promotional headwind by activity to impact full are the from disruptions. modest pricing, supply our these lower for Collectively, a negatively point assume and less inputs margin increased X expected we gross year. Third, chain than
Taken of together, quarter finally, expansion the a expansion of in to we to gross and approximately high confidence ability over drive third I continue the margin XXX
And of significant margin time, Project in points in points basis expect approximately our degree basis XXX have by gross quarter. supported expansion fourth Genius.
excluding XX% million, investments, reflecting expected of the prior impact be end planning share the Operating including as increase $XXX expected now higher on income the remain demand progressing earlier. the of X%, additional over details at demand charge. track discussed quarters. creation is including to investment growth the incremental year, the to to X now execution is Our expected, I XX% compared approximately duty and range of we $XXX the and is to additional million the to to X to SG&A of creation next work prior
EPS of incremental of excluding demand half prior a EPS expected including in to the adjusted creation income rate, increase now to investment, year to is will Full rate. double-digit compared from point X% range of approximate second second half. compares higher be at outlook negatively tax expect a $X.XX our year, in growth X $X.XX out-of-period representing headwind We the about approximately the EPS duty including charge. XX $X.XX, percentage points percentage $X.XX. impacted by growth to to prior a operating This
EPS approximately third We $X.XX. expect of quarter
million exceed operations cash now we $XXX Finally, to capital. earnings outlook exceed to a cash working net $XXX as our This compares million. improved of from expect operations previous for from result and stronger to growth
Our business to the capital cash-generative our the increased additional nature pursue capacity of highlights and allocation framework. outlook provides
and shareholder to will enhance cash continue sheet to We evaluate balance our effectively flow options to utilize value.
opening Before objectives. have like XXXX the to our questions, for it up reiterate we in confidence I'd
mindful uncertain pressures to manage momentum. we and the while second entering of business consumer. year are the the We we the will environment half continue are on conservatively, And the the of with
enhancing sight over Our of revenue of executing allocation the and operating sheet year. operations teams well, further and of the our strength have $XXX double-digit balance growth, cash growth and of and The TSR line from to are cash investments. support we accelerating million earnings optionality capital generation balance
are remarks, our Thank from continue and to position I now call We operator. you. I and superior ability returns to prepared a to operating strength, will stakeholders. our in concludes am This back turn deliver the our of confident the for
