you, Chris. Thank
improved performance through operational drive sales building we top-line in discussed proactively long-term action the took read-and-react Chris momentum quarter, and during success second fundamentals, our enhancing With to a in both advanced near-term to quarter, renewed we his were able data deliver analytics. margin. retail As on second gross by the and capabilities including focus in remarks, both
year, cautious this believe with our outlook. operational remain our year positioned about excellence, half we leaves deliver full While and on the combined of leveraging focus well we us approach, our to read-and-react the on back momentum,
year by to me in sales totaled quarter represents of third since million, sequential first sales, In the quarter, results. quarter fiscal performance comparable This quarterly the quarter a XXXX. compared second decreasing consecutive our turn $XXX.X with that, second comparable let year, X%. to our total sales X.X% and improvement With year-over-year the best decline net of last of
sequentially Within the as quarter, improved well. sales
we quarter, persisted a from first saw improvement July. the and in softness of second month-over-month beginning into While some June quarter the
best the five win quarter. was unique point This to Chris and impact representing to apparent forward capitalize due, pull of reached to Halloween some positive in sales read-and-react from improvement a our basis had last in approach, comp of this impact drive we utilization sales our JOANN. quarter, analytics in XX of in we were six which in our acutely a that our second saw back marketplace assortment, the to textile data months. of mentioned, in fueled approach core and July opportunities on part strategic were advanced comparable the which categories As large XX comp comp positive our The the on sales ability related half sales weeks positive, of month the was as positive
positive underlying other top sales a as our technology is In data textiles line performance momentum, category, engagement to forward. see sewing core continuing which to this and strength core result choices for This addition we in approach our space our serves customers way. to direct includes customers consumer and our core right continue in we performance meaningful the products leading categories provide to healthy and businesses. for of indicator sure reengage sewing a driven a in craft This make moving the are in our and related
category quarter strategic due basis second sales the XXX As non-Halloween a was point significant to expected, in seasonal reduction. our comparable to our headwind inventory
technology continue to craft as comparable to we sales. see headwind Additionally, a
and performance marketplace, XXXX craft decline fiscal down move for risk in this as While of a the in anticipate we managing is across as dissipating sales the year. to have to it account points we been of strategically comp second technology deeper into we fiscal serve will continued continue the basis XXX headwind and a quarter
was our quarter freight by costs, forward. X% of largely increase last $XX.X continuing This the out basis, We improvement not fully excess second profit gross gross had which same costs was inventory costs impact on freight year. increase decrease now $XXX freight the cycled GAAP a import second going of positive period the point will These million, excess last a XXX margin. of compared import and recognized driven an import quarter On to in continue second of million our year-over-year quarter, in basis $XXX,XXX our from of have a the in year.
quarter, a from On cash benefit cash ocean of second in $XX.X realized we lower basis, freight the rates. million
basis GAAP of point by margin XX carrier capitalized last gross to quarter the timing XXX domestic offset XX.X% basis decline GAAP basis and improvement decline an quarter, and point improvement XX second freight a This improvement surcharges, increase in the XXX was comparisons. basis freight year-over-year previously quarter a in the improved Our by a point due sequential costs. of partially gross activity. year. to all margin from partially a This the domestic was of offset clearance margin of fourth XXX by The the cycling basis was points of increase represents rates in point timing freight, driven second in of our on XX the basis described consecutive associated merchandizing continuing ocean basis due basis and point
merchandising to experienced quarter increases the XX margin, additional To year. inflationary we prior provide same to second color our last cost of on basis compared during the of decline the can lapping some period year be the continued the of points attributed
quarter quarter second the what this to we year. X.X% up first an improvement last were of of costs year, unit average Our in is from saw which the
to our retail unit last these the our on same Average cost throughout inflationary X.X call, as As year. points sequentially increased year quarter we the increases. to mentioned relative average the cycle comparisons of improve we course first we anticipate unit period
to Turning expenses.
Our pre-opening expenses. the our increases costs. of than particularly labor, increased The stores, locations year. to second closing from and efficiencies, the severance by optimization continued on labor operating compensation SG&A increases our other the improved in quarter the the partially drivers asset management and were insurance initiatives, pressures our These which year-over-year upfront primary general X.X% offset advertising reinstitution incentive reduction of lower fiscal by hours cost store offset at of costs second more and SG&A and spend programs, strategic of expenses last XXXX other quarter of and and our include, impairment costs, implement including store inflationary
loss loss period Our was year. million, $XX.X net in million of second a the compared in last the $XX.X quarter to net same
adjusted Our $X.X $XX.X the last quarter million in in in loss year. of second the loss a second compared EBITDA of to quarter million was
the our sheet, million balance and equivalents $XX.X the at second our quarter. cash of cash end to on Moving were
of revolving actions base and borrowing XX, inventory on we import excess XXXX, efforts, of to $XX.X lower our costs inventory our due optimization July had receipts. higher freight our to lower facility strategically tied million is which As cycling to availability including a credit
increase at net adjusted ratio million $XX facility billion. credit the finance obligations by basis. quarter on face as net an trailing from Our period reflects the This of relative X.Xx of year measured value leverage and EBITDA of the of $X.XXX a of debt, was a last same to XX-month end cash, and the fourth lease debt
and last optimization inventory compared quarter period the the of reduction of freight due costs. same to import Our to receipts in XX.X% was at the the excess down the second end year inventory
of us We of leverage X% capabilities than continue our less drive to leaving maintain a react and low growth. read to clearance positioned total, further inventory to well
continue chain, Focus, that conjunction In we targeted fully work, expenses. On Simplify identified to and this our with reduction we of SG&A $XXX call, drive cost last cost shared Grow all million we the savings of supply product initiative. had our and across
and We are beyond. these meaningful on cash improvement to executing year identified flow drive savings actively fiscal in XXXX
of can we challenged million that With deeper of $XXX and on initiative, ourself sight the this have over-deliver to success the target. original go share we we now have line
position As part the that annualized have we cost of cost new with of chain us reductions. these savings, million now a targeted put will finalized agreements over-deliver on vendors strong our $XXX ocean in to supply freight
over-deliver giving expand initiated of This price product all to continue to we to of confidence initiative $XX work and our us agreed concessions can cost product we this categories, savings. will our into reduction. significant the and across broad-based our have vendors already product giving us million domestic targeted business. reduce assortment a cost product yield we Additionally, import effort A wide costs
implementation to in-store hours out experience is shopping to we effective and represent also how this to technology. the results, the the staff and only the our deploy we a stores rolled of labor that on these in-store and meaningful our our to a expanded already including we positive activities during sales third costs selling are and to information savings the are our beginning our during strategic Through effectively more saw the designed true rightsizing a customer-facing efficient more hours selling store second enhanced reductions in-store converting where our and the to reduce while this did better with that of evaluation not by to labor in At pilot more cost, labor program the To busiest fleet savings. and SG&A quarter, to staying entire hours. work movement saw focused significant pattern customers. align priority high resources it in to related generating of end, we our better, pilot support labor quality quarter, new quarter, us. finding customer second of to online ways way Also experience more providing These pilot the
these the In mentioned savings information labor quarter. no potential cost an taking target. to over-delivering we sight action working systems and for exceed created to enhancements our continue of performance. have technology on of This of to as unturned execute as processes reduce SG&A infrastructure improve initial addition of on likely included us and in-store million we help Across labor from organizational our working pattern, believe now and second standpoint new Simplify million Focus, $XXX in earlier, third-party reduction to ways savings line the additional ways leave look our new to expenses, redundant eliminate to and and these $XX initiative, stone target. the Grow entirety we we We
our to fiscal turn let’s Now, XXXX outlook. full-year
our were with and of in of fiscal environment. uncertainty continued back the XXXX the we pressures because we half the broader persistent are pleased inflationary quarter While approaching cautiously second performance, retail
cost capabilities our full implementation arise. deliver control opportunities and on and using fiscal as that We believe read-and-react line capitalize ongoing we in us the what performance new year are to quarter with position second top on our initiatives, our our We a can reduction this leave XXXX of they approach, outlook. to control combined
cost fiscal week X%. instead we to and which year focuses free and reiterating Based and performance, initiative inclusive and approximately our that part XXXX, over between Driving we worth XXXX, the quarter. top-line remainder will range in and down we are of the is to a year-over-year In meaningful on that actions, and expenditure be net X% This on and will XXXX, capital million first full on of the a key fiscal capital in of believe year our implementation cash XXrd Simplify between benefit of deliver flow precise of million. outlook $XXX our relative more down X% sales we be of will $XXX year-over-year X% cash anticipating free improvement working and outlined as terms XXXX, our our is a fiscal X% cash fiscal of based are updating year for significant flow cash line between outlook year performance the year Grow fiscal in remains Focus, the of full our in and XXXX. see and we improvement large optimization and year-to-date for sight year improvement fiscal reduction
To capital our for million. year contributions, support this, be to we between lowering outlook are landlord $X full by net expenditures, of and $XX million million, $XX
and benefit As Simplify will be the will heavily until P&L described cash benefit XXXX realized due time year are our XXXX felt outlook $XX be mostly and fiscal the year fiscal million Focus, inventory annualized Grow sheet. earlier, to takes cycle our of it initiatives With and our and in related adjusted we that full reiterating million. between being $XX the EBITDA for to costs said, balance through year not for
XXXX of our benefit that shareholders. headwind is fiscal XXrd the compensation by a on the includes partially offset delivering In reinstituting for the value which incentive Note remain conclusion, we program from fiscal week. focused
focus and factors including uncertain emphasizing strengthening today, significant we As have the our enhanced that we and on deliver address, delivering Based the and discussed categories driven focused shareholders on the positioned to Focus, our reduction full continuing move historically winning data of well and in by market corporate are to in implementation initiatives Simplify hit continued offices, line our we stores, leveraging an we year XXXX, we through that are core team distribution of believe driven and our our cost consumer read-and-react fiscal top improvements capabilities, success. our we positioned outlook. and value to have working our are flow the our members cash the Grow fundamentals year environment XXXX on fiscal dedicated opportunities centers uniquely the
to be we'd take questions. your that, Operator? With happy
