call for thanks our and today. everyone, afternoon, joining Good Emily. Thanks,
on and call, as as continue questions. taking as will As CEO it's remain with behalf, her health time that. basis, in taking to release, She interim be The I through read you I today's her are my remarks. will some unforeseen financials commentary will Jill's remarks the on not the Jill before involved Jill will your acting in she saw the to on today's for on with issues responsibilities and business stay an prepared that her press on will taking then continue be medical unfortunately, on but and dealing work is I but board. allows following she will
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Now my on the let turn me comments to financials.
of balance we Our results the fourth our and during holiday the softer due than we than in macro profitability pull were environment to that decision largely to back on anticipated, half quarter. quarter spend we even anticipated the season more strategic second marketing became promotional the as
same flat to integrity our decision long-term brands. promotional made protect levels last our of the discount held year to to not and We also the and compete at peers as promotions roughly our the
in continue our sales we newness, registered to lastly, of the We sequential sheet expectations. X particularly inventory The in in back that And ahead top lower delivered said, gross which year, aggressively in make cash our these line lower in half of down our and at deleveraged the quarter brought combination resulted women's combined below a margin results operating came factors progress middle The the on strengthening with margins. improvements impacted the quarter. of quarter believe positive That brands, P&L. quarter-end inventory We hitting our implant on balance of we sales, the we gold fourth improvements flow. another our with continued in XXXX.
foundation the discounts, And our year. and We as remain outbound greater mentioned, which laid I the cost for limiting fulfillment front, continued and our on the disciplined brands. costs, efficiencies this promotional shipping our of we reducing depth breadth protecting
well year growing operating much positioned as we XXXX paid sheet. we are we and to I'm to our brands environment, that down the the model quarter balance $X for improve exit end, a our look subsequent of with challenging and Additionally, revolver. confident Despite stronger million upcoming
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halo of the with are Kings gives Culture us effect the the online it and in in store the the and brand mentioned, As in confidence we the sales, future performance of pleased U.S.
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XX-month to the X%. customers year and marketing a constant sales fourth $XXX up fourth declined mix basis trailing basis was reported spend quarter order down down X% year. sales $XX a to from XX% items. million last currency in down quarter, million. net last a On on basis, flat $X.X or XX% compared net of Active the was a to of For due were million price to full constant million at currency XX% average lower lower were $XXX on Total orders and value $XX
we pull from X back women's decreased fewer a including our look provide as -- the our from sales net last promotional I'll quarter demand In in new to environment, decision fourth through Now trends, through year, macro to U.S., few million, move our brands regions. half by on the highlights macro driven down XX% fourth quarter highly softness the factors, $XX inventory the in back marketing. in and styles
pressures decreased on the sales basis. Australia inflationary and $XX Notably, million U.S., pandemic. Australia quarter, area in a well exaggerated to returning Kings stores an business trends softer environment the including Australia. in impacted net fastest-growing customers as constant were the of post in to by XX% as sales the of XX% be Culture macroeconomic continued down shift or net demand were similar currency fourth to stores
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is of Additionally, outside pricing U.S. dollar. tied and the our to markets Australia U.S. the model for
expensive So strengthens, for dollar when become in the customers international our more regions. products
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to continue we we rates through elevated experience inventory. older Additionally, as work freight
quarter sales XXXX. by productivity. given of improvements of we've in The Selling to XX.X% sales were centers increase $XX was fourth volume net of the made XX.X% XXXX. outbound deleveraging expenses expenses to the compared cost million compared due lower shipping quarter in million our distribution net offset the $XX.X primarily were of fixed sales, fourth of partially labor on Selling in to and
sequential continue the selling quarter we progress, expenses. of improvement in make second was and to Importantly, this rate
marketing fourth million sales XX.X% strategic On basis, as were The compared $XX.X quarter net to of expenses XXXX. XX% our was expenses sales spend lower of in the to balance of reduction. of a marketing quarter $XX.X compared Marketing back percent in rate to we were sales of the on net million fourth a XX.X% as a to XXXX, due and pull profitability. sales both decision expenses
mentioned, quarter, heightened given marketing I of lower levels, through return season. was promotion than levels the prior the As the as determined we spend we the went on incremental during holiday
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sales was adjusted period quarter to X.X% net was in million $X.XX the compared million same the net Net a the loss fourth net of million per XXXX $X.X fourth income or as or $X.XX sales of of last $X.X or per to share of or $X.X in share million compared X.X% XXXX. quarter of $XX.X EBITDA in year. Adjusted
and liquidity of the million We At end Inventory ended debt. was million $XXX total we the balance $XXX cash equivalents million Turning at $XXX the the to quarter sheet. the with XXXX. of $XX of the cash and approximately million million. the to quarter fourth of in of quarter end $XX quarter, the in had at end compared
the inventory While expense. in store U.S. Kings are fulfillment increase year. dollars opening primarily higher with center, units to up year-over-year compared The year-over-year, new associated inventory we was in freight down and were air inventory last X% Culture
to of decreased basis. Overall, with down $XX.X And second of are million on end $XX inventory since the of pleased million Compared the the is third quarter quarter, sequential down X% the and XXXX. a unit improvement X% inventory or is decline we composition, the inventory half we back XXXX to in inventory the continued fiscal confident in constant XXXX, on our in dollars sequential quality inventory and a currency newness in expect and and see feel basis. in units and of
flow. the flow. of In we In back $XX.X quarter the we flow, of half fiscal cash generated second generation of cash cash XXXX, operating Touching the positive in of generated marking flow cash XXXX. quarter, on fourth $XX million operating million
to outlook. Turning our
we're the XXXX As and these to potential, to we testing meet beyond, laid out. initiatives that build we want is continue their to to I look omnichannel long-term brands which why
in that, can we're going so our While optionality we're to strengthen business. sheet build balance doing we the reinvest also and
anticipating are half to expect and continue USDXXX the back year we festivals year side, the anticipating the performance year to in strong more the sales. a to another we comp the year, last to expense We're in We anticipate between we'll and as deliver excited as comps first of on prudently. perspective the was the half half. to and well go macroeconomic back Overall, net traveling, consumer million challenging million the consumer for both USDXXX business our to of to pressure side first due in when from easing the be of manage
mix improved we channels, see if and of the in units and as performance increase inventory top marketing an EBITDA the have to with line drive to dollars Importantly, spend better potential sales year in marketing our our progresses. level we
not -- guidance. in a performance impact will Our store baked represents financial initial material on tests new be have our our XXXX and initiatives, the omni-channel including are Polly and wholesale small Princess that into
of in and the channels our for reach market set testing XXXX expansion future on of focus distribution stage will Our growth over new time.
for we the supporting elevated past see improvements selling We'll in spend that saw XXXX. air we growth as overall about to For expect expenses, business and in with gross compared year-over-year while margin the the get the overall points XXXX. we due In lower we the freight growth year-over-year to opportunities. of year, rate we we year. last in XXX expect the anticipate basis see in driving year are be line rates year In volume future dollar in the we experienced first half to efficiencies the ensuring rate G&A, of higher sales limited across to rate rates
anticipate of these million together, million we All of the factors USDXX USDXX for year. taken EBITDA delivering to
XX% weighted expect rate million. average We tax of and shares outstanding of approximately $XXX
improvements also area. and want flows out call cash I this free levers to the expecting have in we that in we're
Firstly, in the down year, last expenditures we million from million. to range year's expect capital be to $XX this USDXX of USDX million significantly
improvements turns to X strengthen on Secondly, continued improving we dollars through our with go reduce inventory debt, our our leverage we areas, expect These will improve combined sheet. EBITDA to see this as balance year. us and allow lower inventory and
pay and we to to of XXXX. debt, As million we off we to end, through our debt expect paid continue subsequent $X mentioned, down go quarter as
the we're to anticipating first Looking million USDXXX million USDXXX and million. USDX.X net of million EBITDA at quarter, to USDX.X sales of
to current business our remain long-term continue model. growth the challenges, through our and business in of brands we and confident manage we the success While macro
Now, it questions. for open we’ll up
