thank us. Good you for afternoon, everyone, and joining
about We for outlook XXXX. ongoing today be systems will speaking progress growth to initiatives and our and transition, results, business you impact strategic of our
to we experience. Our during unbeatable customer as first continue with deliver and an sales growth strong treasure remained value quarter exciting hunt the
and are delivering continued our and increases business are in fundamentals sales We traffic healthy.
since program transition. the and unexpected margins We've result IO resolving known ended impacts systems issues our expected our commission quarter both call, the and first low support planned. were last Our made as good progress have from of
end incrementally were the quarter. the of impacted transition results at our by that systems surfaced costs unforeseen However,
all to our very these and very committed soon. disappointed poor behind getting are are impacts with results, we QX system us We
transition. comment and on the start with then performance business me Let systems
Transaction remained our Food comparable remains high-quality exceeded a at accelerated growth count by X.X% expectations, increasing X.X%, quarter. sales high, increase continue first in X%. which strong sales, the store Our quarter we quarter driven and inflation to are vintage throughout new the recent line and wow to performance items deliver in X sales assortment well stores continues compelling We expectations. growth. traffic and in opened with and a driving of that ramp
First on quarter inventory, late expectations disrupted profit. and has XXX In data to months financially the over X was In our remaining XXX system to the our our large level basis points and related our other and past we of reporting. One from gross of our calls. issues reporting margin upgraded impact as XX.X% store February, warehouse was product operationally financial business related impacting were discussed last transition we includes This approximately below there transition points product, systems platforms. X X and basis issues. August, expiry
resolved gross about since of have first negative basis in and these XXX the to points. both expected at margin We came as impact quarter
program in the of and us store-level support through Lindsay second speak quarter. some will that end levels We've March. with shrink residual to extend expense data normal the reduced accurate the commission close about reporting support from better will end later enabled to the visibility program commission warehouse
visibility, catch-up disappointed are contributed the reconciliation impact. margin that not additional this this margin final was poor at processing of data While guidance. we the versus This of payment quarter. during Delayed encouraged QX, progress, we the combined invoice XXX points to are miss end by during basis we foresee with and processes did quantified
We standards. are this is disappointed forecasting as performance by our it and below
same levels consistency data have to visibility. enable increased these manage business margin to in our we new process and before. forecast also the We back us as the with improvements did historical have recently improved of our the Both payables system will and
great We our help of He system new already work COO, Ramesh remaining provided he us performance continue Chikkala. accelerate leadership has functionality and the under to in expertise to enhancements joined since January. through progress
many SAP on to third-party to capabilities. manage We increase new bring our additional expertise builds reliance in-house these going decreases our forward. on This resources consultants internal our systems also continue to and
The optimizing team throughout continues on and improving functionality for to operating focus efficiencies, to the systems data enhancing visibility business.
this frustrated recent disruption. this all costly execution duration right our We is of the expectations. are also and well and and are our on fixable, temporary path has and by But been the disruption It is below we size forward.
forward more since normal revert look to We progress soon. last levels completing year, a and have and of business work very tremendous the we seeing results made amount to back
customer reflecting Let next of selection, customer their product dollars inventory customers. continues variety now months. increases with Recent very me turn initiatives. all spending Net awareness increase, our income Promoter are business seeing is the and all-time that are all near surveys satisfaction Furthermore, XX growth fundamentals brand are intent healthy high. across satisfied and an spend more high and spend with to Score indicate among particular and show Customers a to more strength across higher to Customers to they our our in healthy we regions. in segments and even with middle us,
environment of are buying very across availability we seeing categories. great product closeout remains The all and strong,
only able and are a highly variety wider we we across in in were product to our selective the more the us our volume partner as And make fraction better decisions scale even we offered. an available growing of are geography. buy take We as purchasing size
elsewhere. We supplier conference, many of inventory to entering that Chapter held We've also bankruptcy. were with challenges with previously partners. as annual key our a We more we where recently opportunities surplus $X.XX directed recently seen forward met helping suppliers our of result look only XX
long-standing newer the relationships Some attendees were while were to GO family. others
engaged we integrated this and opportunities in more identify strategic During to form conversations to new partnerships. meeting,
well. are partnerships year, further our from away track very add and the that can conference over as number XXX front a the on strengthen we We opportunities in a the established to encouraged to that came new and attended conference grow suppliers us of we similar how New represent of with business. group this shared year we relationships last
our stores. Operators in great represent that results their their to localized to resonating growth. We sales WOW! and also truly model. merchandising job with with and shoppers count is experience selecting customers. a the value They engage executing now a unique way teams to and have doing shopping been see customer this this Transitioning to personalized strong in assortments
we levels has interested interest selective candidates highly becoming from operator of increased. less than X% income IO an Voluntary to all-time Becoming XX,XXX. as annual operator Year-to-date, a of our over high. continues low in remain an an be is at and leads turnover accept process
hear to together Our with is strengthen and business operators. during that with a opportunity This comprehensive unique. operators them selective training initiatives, business regional input, extends continues through all and being recruiting week. annual update our next process, roadshow program high-quality to feedback starts the partnership look combined an forward of on their this that We and all produce makes this Friday to so
to now Turning store growth.
of second are count increasing X new and performing quarter ahead X during in We've Our quarter, at new opening well are stores first for opened the additional the schedule year. the to stores positioned store opened end. openings the far XXX quarter locations to plan. We stores so second in are half our of and
on states. across United In April X, the addition, Grocery new X XX acquisition which Outlet we added stores completed
growth year. Given now of including XX the add remain store new store to over this health deliver expect XX in stores We opening XXXX. XX% year, our midpoint The strong of growth to schedule, of we last in this position store a to new represents UGO. XX% range
pipeline activities the and focused and XXXX are robust, XXXX is organic real XXXX our pipeline. Our estate on now building
organic efforts. evaluate complement to opportunistic as our We continue growth estate also to a real
are completed progress successfully is integration far. very and take integrating on and time, the will acquisition Fully but the UGO We encouraged rebranding the by well. stores proceeding so the X, business April we
many levers have Grocery to sales the United growth We Outlet in partnership with team. accelerate
Our the is introducing investing our store focus new and expanding programs fixtures Southeast refreshes to and of the in some marketing near-term region. integration assortment, on
distribution access We opportunistic to stores. center the Grocery UGO to product and more that also forward Outlet benefit can look multi-temp both leveraging
Next, us The during first to customers hunt we weekly to treasure deals our rollout the all Grocery completed allows their our quarter. app experience. communicate of personalization customize the app to and Outlet stores
the X%. Over We of initial sales over with greater the time, by engagement, drive customer share response total wallet. are encouraged and will we of penetration QX XXX,XXX create which help believe trip app loyalty downloads and far through so frequency will customer increased
excited very be private program in the are to label Finally, quarter. to our third introducing we stores
more a we value As on for believe have year, key is differentiator customers. our have that and the providing become another will previously excitement program this been even which past working we for we discussed,
items followed the household as be will in products stores to these grocery both in items These categories of be dairy, baking beverage first hit additional initial within as will categories. The the the categories. and by and well
In better Grocery year. an XXX approximately of addition will these private We margin SKUs our and value consistency by inventory the customers, for to initial Outlet introduce for better on deliver end new remain products track to IOs. label the
growth remain In very and fundamentals our ability closing, realize our to I in potential. long-term confident our business
be and continued model proposition our drivers to differentiated sales the growth. value of Our strong
of unique and discount line growth algorithm retailer our a with sales top are specialty future high growth, history intact. We long a consistently remains
grows. we for lives people positive have Our that as increases the business touching the mission is and better, our on impact
pursuing to forward and We space look are as of in tremendous over we operating introducing U.S., the white our us new to communities aggressively stores of front expand. we in the X,XXX brand
service say partners partners is to which through team great I our dedication This IOs to to to and IO on expectations achieve business, bright outstanding also want we their for and committed transition. for all us getting and support for to enable our patience we for Outlet entire our and results Grocery and to amazing their the the support value track shareholders thank perseverance, have customers. as thank are and customers. for back future growth. want our also their I a delivering Thanks partnership systems and you worked to GO to
Interim to to to Gray, And now of our discuss introduce I Lindsay like SVP financials. would Accounting and CFO you
