thanks Good joining Emily. and the for everyone afternoon discuss our call second quarter. Thanks to
deliver operating strategic which continued in execute improvements have enabled cash our expectations EBITDA our We made quarter. to us significant and initiatives and our against to flow on the efficiencies, for
US balance new the omnichannel initiatives. We importantly, in and we And debt. by customers also our our way market, through to paying strengthen particularly down our sheet our inventory direct-to-consumer are continued introducing our of and brand our strategically reducing addressable by increasing to
the $XX sales, basis. on was a million second The expectations XX% two-year quarter were increase net in Net US and million. which our $XXX US the sales delivered represented The for line and a with of largest and with awareness we robust are increasing progress. our continues in presence brand's remain keenly to very and market pleased this focused ongoing we on expanding and be region our most
we're that macro by in challenges and region. Australia US pressures was consumer facing performance the in dampened in-line continued the The
addition I'll that have environment, the a identified addressing, aggressively which further to provide on macro in opportunities In minutes. we color we are few
than very there of Despite million adjusted anticipated we in I'm highlights green from quarter. pleased softer million the EBITDA sales a and in $X.X with to that line cash are take shoots the of operating delivered flow, $XX lot net away and expectations. Australia, in
structural despite operating last year, were have able Importantly, incredible the teams level model, quarter deliver our to EBITDA, and build the discipline declined to controlling testament the sales across our net expenses. while is which work second efficiencies from of a same the to done we
continue of year-over-year As to inventory, which I from mentioned, we is strategically XXXX. the XX% down year-end XX% reduce our and down
incredibly second further also from a We our we're with initiatives we're or our a the as in of reduction pleased payment XXXX. quarter end And brands with $XX.X and omnichannel particularly million our new attracting reduced around customers debt buzz the US. the XX% creating in
customers have As to we will through the brand through new our we newness, fashion year, of priorities; first, our increasing omnichannel the and half marketing move expanding awareness build three we initiatives. continue chase back key and next-generation tactics, attracting demand through
of the by Second, down strengthen for further. and across and and the inventory improve additional execution paying greater we of I their continued operations our by our to we I'm focus commitment third, thank will through year. will very continue driving efficiencies initiatives team's debt and drive. balance to And continue remainder the our want bringing to them sheet down proud
to our on-trend marketing continues brands I next-generation highlights from few customers women's activations. to largest and Princess fashion a through with brands. will walk our our share appeal I'll and financials. Starting Now, remains the you then with Polly brand and
aimed are newness fashion refining quarter, loyalty we These last new customers. at and both customers our across attracting marketing spend increasing mentioned and our are among efforts As fostering brands. existing
Based supports week of beginning and second fast XXX They test and Princess reception, which expanding of positive reorder strong very be launched the merchandise brand this and Polly per year, styles in affinity the success Polly and new the year. released styles in rate branded in the efficient the their on quarter approach, new the Princess XX strong release collection and back dresses. will sell-through loyalty. will in they and customer merchandising particularly Given half saw a logo-branded the
homecoming. the campuses success summer On and its Jeep Polly tour relationships. coincide across and events Princess spring college meet school, for they're tours, targets on in customers California customers; sorority Jeep marketing key the back-to- approach marketing the front, to to face-to-face the of fall their as merchandise with and build launching and Based we rush drops moments break a
next-generation As their presence their grow TikTok Polly they Princess reaching on the laser-focused platforms experts, across efficiency. multiple marketing remains to continue customers and fine-tune and
in organic Based content Polly's they on the TikTok their to over XXX Princess that reach PacSun gives quarter. views stores and PacSun and excited and success grow sequentially early from success and initiatives successful as the paid internationally. across Polly initial over engagement Princess customer increased the the strategies, up is will in relationship significantly as their announce XXX% compared have of tomorrow ability partnership expand I'm refreshed reach exciting, Princess in The live business beginning confidence to on time initiatives. both direct-to-consumer Princess stores community wholesale US go their great Polly TikTok the and and its market expanded and test. by PacSun Polly's the first to to Equally US us omnichannel the with XX in
in Los Angeles Century forward the store month. next Princess Polly's opening of City first also the Mall looking to in We're
is perfect daily. location we the store volume open Millennium first air a and fit shoppers for As the Z mall believe the reminder, Polly's Gen of this Princess strategic high given in
our retail the stores. plans We develop Century continue Polly to more the future use for for store locations to evaluate from we'll Princess and learnings City
marketing, sell-through and making impressive is see & both additional to quarter, also the direct-to-consumer new sponsorships brand large-scale a new at in Petal June. and XX% their events newness. omnichannel Country and both for Similar strong and Poly in reach They tests. styles sales Festival the quarter engaging launched Awards second initiatives versus their & using Nashville the in-person awareness social more quarter to the events their existing in and second to Pup and continued also and in including influencers Petal media Pup on their is broader customers, progress in Princess and to building customers activation Music first
influencer Nena US-based Evans, Pup and designed Pup's our they initiatives omnichannel in content collection August. by a US also that traction Petal to are & the are curated creator in continues popular expectations. gain We're as excited their Petal exceeding first launching & also capsule
brand the and marketplace, the live on demand As is currently demonstrating announced performing Petal & for Target last well strong. Pup quarter, is
and customers encouraged to to our through & the the new leveraging marketplaces boost the and marketplace across marketplaces success tests We're We continue very opportunities and to brand wholesale by inform Petal learnings we're portfolio. to pursue awareness in select engagements. attract other Pup's initial with brands
Vegas expectations where the in unique they're embodies with of Kings brands. the momentum are collision streetwear the gaining disrupt activations, Shifting in equally that to Culture through we bringing and and Culture is streetwear We ahead pleased The with signature the had on our life their continues and US store partnerships in to has it of to positive stores. our pleased culture Las music, US this industry. remain US the and impact retail it online Kings ethos the marketing fashion sales. performing is our
events. a is quarter great the in-store second The the brand testament Kings of power the Culture beyond just to
Culture June. beyond across Lemonade As momentum in Lyrical the Coast Kings the US builds, in their Summer first with with began marching Chicago Festival Music West the Smash partnership
stage, Culture of collection Kings and the exclusive an and court event. curated at they an basketball further iconic official enhancing merchandising presence their sponsors As activation impact the
the event. Rolling shop the on festival the grounds on the branded the Miami the Loud designed brand streetwear they Loud collection website. expanded a goers on court over based available store named than the Kings were the year, at in Rolling the Festival which Additionally, full-sized July. to festival exclusive was Culture Music capsule basketball success and sponsored was Loud which also L.A. Kings brand and in in open official earlier in stage and for partnership sponsorship Rolling a Culture to XXX,XXX pop-up The more an of
and well sports quickly immersive a in showcasing out during International In both facility as hours brand's their the deepened with Culture for more their sold Culture and speed our to Kings and showcased replenish partnerships print Kings chase experience merchandise furthered Kings Las in incredible June. demand X, selling and the design leveraged Culture XX a in second the was few boot at week top flexibility also Vegas the as inventory overnight print UFC fan under in team to fight the hours. and UFC. in-house collaboration quarter, and Their UFC fully
for The Las date MMA second where Vegas in-store event. Chito a In fighters and held up Vera the incredible one-of-a-kind quarter, the activations. marshall an the popular fans Oliveira attended featuring marketing events XXXX most the event brand mixed Charles can flight flagship and showing host is over machine arts in-store to exciting page XX-foot with
Kings a store Arike All-Star Q&A New with in Culture and the US, live its DiJonai hosted Era and relationship in deepened Carrington shopping Additionally, the stars sports collaborated who they in as weekend. WNBA Ogunbowale, event the during
exclusive an Culture and Kings merchandise excited collaboration its in-store the collaboration and J.I.D. side, Hip licensed upcoming event licensing and with Tunes. Looney print and for and an EarthGang. the revival fan favorite, hop XXs Greenville, with Pokemon extended with with And we're duo On colabs
which at Culture in-store. MNML, margins We Kings' Kings' the of in-house and online which with remains come performance gross brand XX brands, top remain pleased at the higher Culture including
to also is new Culture activations. MNML Kings' continued that Culture integrating MNML bringing be marketing and and Kings encouraged customers into products to We
MNML WNBA MNML WNBA ring In Sheppard, outfit strategy Las gifting MNML Aisha the and XX received Player, over the have and been across her wearing full quarter, social spotted launched in Vegas players second WNBA for since. a media championship
you three on regions. want provide I more more detail our give P&L, Before the color I on to
and the part of growth. growth the and continues be and for driver year, last portfolio be comparable the As continues of profitability. the revenues, important XX% first of year mentioned, the most US an region I our US total from the to period to will more half In from the strongest of significant increasingly accounted XX% our region up be
net Beginning quarter million, to forward, sales the Australia but New of going countries. our year adjusting this Zealand to proximity the on up financial were a region, two-year last quarter two $XX Second the XX% was the given down X% we're which slightly interconnectedness structure US compared and in reporting in and stack. include
the historical now financial can in updated find information for filing. region You our
In basis. quarter for of Australia and currency year million, second region, first half the for sales the XX% in region down the half down accounted were the from of first a XX% net Australia XX% XXXX. down revenues, of year, In total on last to $XX compared XX% the the constant company
the has US, challenged the been Australian to Similar post-pandemic. consumer
has However, over remained consumer of majority the particularly XX more mortgages challenging pressure the impactful, environment the through gone which increased have rate anticipated. than increases the there XXXX. months, last leading XX country we've rate variable to They've we as is interest as had
areas In the challenges, we in the identified across of opportunities our addition to region. macro brands have also
Our our manage philosophy our expectations. teams aligned keenly are forward below with inventories to demand
operational efficiencies further in honing initiatives. on creation building are and demand We we're
streamline will fresher operating allow SKUs, initiatives selling which merchandise and SKU on to season holistic completed and have effectiveness faster focus after stronger overall season. for improve We
and footwear third-party Clarks. Importantly, Kings productive Culture adding brands SALOMON such also as is
While while good on select into their Australia also our brands through about to remaining quantity strong seasons. profitability. we overall we head as and inventory and retailers We're women's faster, of quality evaluating move with summer spring off-price in focused feel aged inventory the and partnerships newness our
the the XXXX over anticipate Australia to that that While we enabling longer-term, business the for XXXX challenged will remainder we're these the demand will remain us actions while current the into manage and the benefit consumer confident environment. of in appropriately region
the XX% the of rest the net prior from second quarter sales, which down in was $X world The year. delivered million in
dollars marketing US Europe year focus is our continues of on last UK the from trends decisions to strategic impact our the the and short-term, As these in regions. quarter the in third shift in to
give I'll more on the you detail P&L taking Now before your questions.
to were sales basis, constant $XXX quarter stack for last down lower of Total sales last year. lower second second to on or Order compared the was in net orders to a second net quarter, quarter overall last On a decline XX% the a impacted conversion flat were $X.X two-year volume XX% currency year. million, across down were demand compared XX% the For Australia million by and region the and regions. year.
newness of flow the and efforts traffic. we marketing normalized, up saw ramped we As in improvements
We lag customers in conversion a continued purchasing XXXX. to somewhat quarter their on behavior. the year selective of flat XX-month is trailing active as sequentially more which However, customers X.X prior basis, million rates first to serve trends, remain
value of to a flat last order the constant Average in compared reported $XX basis on year and quarter decreased currency. second was X%
remains Our return peers. was XX.X%, rate one among for the of our the which second quarter lowest
profitability. Gross above of or in the points last up to second to Moving was quarter last compared to in expectations year same period margin year. our roughly XX.X% the XXX basis flat XX.X%
This the upside was pleased with very efficiencies freight newness the increased XX full have at improved incredible been due the the And over gross in margin expenses. our teams operational by sell-through progress The made. price work driven I'm lower hard US months. improving particularly and last we've to
Selling million sales XX.X% the XXX really year. carrier points basis finding to efficiencies XXXX. shipping proud compared throughout the million, expenses quarter $XX and leveraged quarter second work the and the incredible last team to were chain. second I'm XX% declined expenses supply improving cost compared has net of optimization the on our of $XX done, of Selling in to labor
Marketing $XX.X in quarter driven to the to of million sales in net compared expenses expenses were were XX.X% XXXX, rate XXXX. basis, by $XX.X marketing second of lower the quarter a million, second compared in net On effectiveness quarter in sales of Australia region. XX% of the the
expenses, to up XXXX. X% General we million line declined compared in to Throughout line top increased administrative the to continued in the $XX.X across the in newness by marketing of second investments $XX.X the, brands. the in with quarter, second and improvements million quarter ramp our to assortment drive
to in On XXXX. of primarily sales, lower by change XX.X% and second It sales in the this is our will a volume, sales prior rate note of compared sales base of improvement were nominal expenses opportunities basis, is leverage the expense fixed, G&A rate incremental quarter expenses line year. basis net G&A in The to compared require to the that net important largely to on driven supporting XX.X% future. was
million period Adjusted of $X.X compared quarter quarter for in XXXX line second guidance, of XXXX, million same year. was in to was to lower-than-expected last our sales. X.X% per in in in net compared EBITDA year. the million share EBITDA $X the net million $X.XX share X.X%, loss quarter or expanded or compares the period to last Adjusted margin $X.XX second with despite the This Net $X.X second loss slightly of the $X.X per year. last to same
cash that Turning the and very for balance to a priority the quarter million million balance sheet, I over want to our levels to actions strengthening We in and I'm equivalents and quarters ended inventory last few working debt proud the lower reiterate sheet in took improve cash levels with the us top of $XX $XXX and debt. and is we capital.
debt bringing $XX million the of In year-to-date. of end our additional approximately to repayments the make total debt million. liquidity had quarter At second to paydown total the we continued we $XX quarter
to shares cost stock. up June Directors million to second in common company's the XXX,XXX our of repurchased of total the for authorized we program Board a $X of quarter, repurchase repurchase of approximately share a Additionally, shares $XXX,XXX. In
last XX% mentioned, with Total at were down million inventory the of end and really XXXX. the down As inventory $XXX compared quarter to quarter pleased were second our the year. to million, compared which I'm of of totaled dollars at XX%, end $XXX the levels, units
XXXX constant We see feel and quality and confident in units on fiscal our the overall newness decline of dollars inventory currency expect in a basis. continued composition, and in inventory to
to this the we below expect returned to encouraged quarter. the I'm dynamic growth growth run in business we forward, sales Going that inventory with and
strong the priority second us. balance cash is to operating which, generating for sheet, in $XX.X cash the XXXX. quarter we key In flows healthy of used $X.X another of Along with quarter million maintaining of generated a cash second compared million
cash million. This we generated $XX EBITDA $X.X operating by and quarter flow cash was of million increase the driven year-over-year In free in primarily improvements. inventory positive flow
the expansion heightened excited beyond, initiatives drive awareness. brand's we and and we're opportunities channel XXXX As by strategic our look at to brand of the remainder
with current consumer to the environment. pressure our we're trends However, seeing the lowering primarily based consumer half region, back continued the on the on expectations we're Australia the in the reflect
to the deliver between sales $XX EBITDA million and $XXX We and of in between million expect net year. $XX million now $XXX and million for
expect deliver quarter million third the million. For $X adjusted the we to to range between sales net $X and $XXX of $XXX million EBITDA and in of million
selling the in we gross year. in in marketing color to P&L, To the rates margin of rates the middle and the the be this second expect quarter give more third to quarter expenses similar of
let to your but medical continues take issues, want appreciate everyone's questions, and to I I know Jill she's you doing her well through Before work that regards.
year for clear. of Our remainder the priorities are the
are remain necessary even managing and omni-channel the even driving diligently delivering initiatives value our and opportunities pay more improving by We creating focused demand down to future through through And committed more debt. and profit. taking new expenses. and strengthen customers confident are reducing direct-to-consumer We the brands efficiencies our growth and expansion our balance potential sheet long-term plans. reaching on our shareholder We're inventory our growth we're of and both finding and the in to operating and steps
Now for we'll it open up questions.
