and afternoon, quarter third call. Emily. earnings Good our joining thanks for Thanks, everyone,
priorities review Before in our key U.S. growth We from to the important and I quarter. delivered want our results, the business. highlight discuss some I takeaways
offer strong. We the market in purchasing Our balance and action long-term we been in positive inventory and tremendous have believe financial value. condition quarter. position operating our cash our sheet which flow We're rightsize generated is the to aggressive taking in we Australia, shares,
priorities the year. laid out we've the of As back half on quarter, laser-focused for last been X
third, to progress continue that second, remainder through to I'm we'll our initiatives by improving the down sheet expanding and newness omnichannel X year. and demand inventory strengthening initiatives; against announce of and pleased by balance reducing awareness priorities, debt. building paying of operations these made the levels our advance additional chasing throughout we've all First, levels; and increased our our
introducing customers, newness we with our the and is including by evidenced new Fashion in our total September. to demand. first our customer by our our and resonating increasing As continue Polly we addressable channels particularly chase brands of Princess well in-line in store are U.S. to opening market, sales performance, customers, the
million a continue inventory, XX% in brings year. We additional paid debt beginning off down down which $XX million hard reduction the since And or I'm $XX to us want and against our progress initiatives, reduce brands $XX the our and and thank their customers. to team to year-to-date of million of lastly, which quarter, of proud commitment very year-over-year these is XX%. for the to we and the strategically debt an our I third of work
nearly sales growth X-year grew in making represents $XXX in line the second on region expectations. and U.S. quarter third for increased greatest Net X% quarter opportunity were of the as progress basis. in last U.S. expansion. was our which year the million, proud I'm sales the for to brand our the with compared a and the Net XX% we're
impacted by now the sales. third was a headwinds led to consumer EBITDA our XX% continued the Despite fact, total accounts growth the million. quarter $X.X which in U.S. In adjusted macro U.S., Australia, of for in profitability quarter of lower-than-expected
region, aggressive my detail in which improve taking overall mentioned I we're in operations will actions shortly. to comments, on our As opening more the provide I
generate to million. to of cash have we made Importantly, our model flow positive operating third improvements $XX quarter operating the enabled us
of a and highlights. our discussion now our Turning to brand initiatives omnichannel
through and well market the we're We innovative brand's with seeing our as addressable are initiatives our as pleased through marketing initiatives. total merchandising channel with success increasing expansion
was or including a marketplaces. that at Piper to teens Teens core and survey female further ranked has the popularity the of in demonstrating U.S., shopping top direct-to-consumer, according stores all its brand month, are for demo. today, brands of least as the in Taking website wholesale XX once among of our channels, released As Sandler's Polly active last Princess now With X again power Stock
Princess scale $X we an sales to to weekly. a in in feet Polly City, approximately store Westfield run In contribution in million a opened footprint. arriving more first pleased you we're projected customers. store brand with the store very XX%, response the rate store the physical Los the overwhelming Mall outperformed X,XXX store early way X-wall with opportunity tracking the of sales expectations, To effort in September at for accelerate styles Century financials, give awareness, excess current tremendous new is has for the annual Angeles. from context officially our The and positive the is square on our margin The features to that paving
for strategically very was hundreds personalized morning customers enthusiastic recommendations, Polly first engage life creation. shoppers a were the X opening with the weekend displays, content also Customers while product for at in and of lines with Instagrammable designed next-generation the experience forming moments, for digital store serving Complete real the to in waited to as as time. home Princess
community the college upcoming a Princess Yesterday, next Party the hold excited the life student Polly events in-store which starting versus workshops. drive hosted as off. And will such and special the sense event. grown greet through that will an the Block to of brand and store store launches, at product to USC for bringing and their events, We're connection influencers, media, has influencer the store Additionally, meet Friendsgiving week, social traffic. host about UCLA kicked recently
unique physical. brand. seeing us Importantly, gathering will the business, Polly's customer loyalty. while that through which brand in shopping behavior profitable e-commerce to our The various opening simultaneously Princess touch connections a digital effect opportunity Princess store customers clear long-lasting expand reach. points Princess further solidifies halo Polly's with to will it's help also of brand affinity further revenue our enhancing generation, in create take addition key strong And and in-store new insights, are in-store to the customers Polly the XX% to We're
for has end, VP U.S. hired and she that Princess the President of To to first Vice Senior where U.S. responsible in Retail that stores store XXXX, from San Sara joined beginning of XXX with Boston. stores recently the Davis, plans, the over spearhead Princess Diego with addition Retail in of and stores who expansion I'm upcoming its in X Polly excited in Sara was Polly announce X to will Lululemon, was the
a also a success We including which, expansion. was of initiatives, Princess with the and PacSun, with great ever. brand's Polly Polly's pleased remain first marketplace other omnichannel wholesale as Princess partnership the has wholesale reminder, relationship
upcoming is Princess increase look they wholesale Polly agreements Mexico quarters testing Polly's Princess and as in footprint. to the Canada Additionally, in international
aged women's test to seeing to growth different assortment for live adding XX, also and setting is customers on the at now brand's XX We're strong marketplace, opportunities our the beyond. Petal marketplace & Pup, Target. continues entering presence season stage to meaningful omnichannel the growth brand and acceptance, targeting holiday Macy's
to enabling brand presence marketplace is awareness, to Petal enhancing addition Pup's new our reach & us customers. In
or XX% which site proof a fact, new-to-file of In is purchased powerful Petal customers, the omnichannel who Macy's customers on test marketplace & products are Target Pup's point.
retailer, launching further are one We Secret Victoria's expanding into the with tests reach another Pup's and with X Mexican Liverpool. in Petal quarter, fourth & wholesale
total me of As it channels at that about great across multiple our our addressable omnichannel brands, will our will market success we increase with and the initiatives formats. confidence and new brands gives resonate think that we early customers our
further brand officially the year, Kings the majority streetwear X Turning for been past annual year the since with revenue this proving U.S. our revenue relevance and of opening store its is of brands. has Culture entered streetwear this weekend. brands now surpassed It growth the international and anniversary The demand first-party its to store comprised strong. the the
As events with popularity U.S., UFC. X to at and the excited store continues in Formula Culture and grow attracting exposure the upcoming in partners Kings and top-tier they about We're events. marketing the are
the by pieces, Beginning next with Las partnership weeklong the edition heritage Kings & Exclusive store and an replica Norris, week, with including last X Culture in-store and week. activation debut and launched host brand Mitchell official limited in we ethos, racing McLaren Prix. elements Ness, McLaren, Grand to of McLaren an to Racing products brand's car, will McLaren Vegas simulators, that tailwind X Culture formula Kings Mitchell retail the racing appearance Formula Ness, Lando will a line in in Kings, & immersive Culture celebrate
We're equally business' the over over year growth customer growth U.S. active pleased with XX% digital the year-over-year. past with
Jay-Z, In musicians. long-term and addition, been spotted and brands Culture Kings recently, Balvin Carré. is potential. growth all have the athletes Rick also brand's picking influencer Ross up including and around bullish We steam Kings' on Culture celebrities, first-party remain very Loiter J wearing
highly and games. and sought purchasing Culture first-party agreements aged the streetwear also before other and continues for bottoms streetwear across XX it wearing seller our after a MNML to continues And with athletes stores in top a wholesale and men country. is awareness and XX Kings regional to brand in now players denim brand store. The MNML Las the is has Vegas, brand top MNML, top-selling brand The among player be dominant omnichannel as NFL XX, exploring celebrities. is at the build after approximately and to and initiatives and NBA
on I in update Australia. on environment I Before give the to the more P&L, detail want an provide
to across earlier, we alluded in our Australia facing continued pressure macro are Zealand. and As New I brands
clear taking up strong to decisive a region brands the action are XXXX. we and However, our for in set
and to Culture the the operating quarter, Wez leadership several of leader Australia of Towards the Kings changes Co-Founder Australia. Polly, the third of Under Ian appointed Co-CEO in of we've Princess Everest end the Bryett, the we made Culture model. Kings as
General Australia a few and Ian years, the Over last served merchandising Polly seasoned Princess and of is marketing professional. Manager as
And the flexibility team Ian and be time the have to and Beginning team began cycle. transform dynamic Culture allows all repeat and Culture shorter and on rapidly by cycles. consumer Kings repeat, third merchandising brands Kings' chain. operating which Culture half Ian lead second year, model to and speed first-party converting of for will started in next the the the Kings' quarter, already supply merchandising during of test test
of quarter, profitability margin result the the the and quarter. as towards Kings, the region, we third on the is inventory in lower of at increased Culture end a reducing our for Additionally, began consumer the reflected which pressure in gross
that of for Culture to test model through We into brand's work confident Australia, the and the Kings repeat a reduction a I'm in will fourth to merchandising confident up of success. quarter quarter in XXXX and through Kings inventory very transition and the the long-term we're the Culture Australia first sets inventory strong next and of year. continue the
on more Now I'll the give your P&L questions. taking detail before you
were compared X% $XXX compared For were sales the to currency basis, third quarter a for improvement third sales last down net constant second but decline sequential net a of XX% quarter. year. the On million, quarter, a the last year, to
region orders Zealand delivered rest declined XX%, demand proud in the last impacted U.S. of we down growth The million Australia X%. quarter last were As the and was I'm XX%. that quarter X% to year, quarter region, the by by third the third grew down I orders Zealand $X.X New to in for the and lower where New year. Total world and mentioned, were of Australia or X% compared predominantly compared which
where largest the XX%. U.S., Zealand, We we reach, serve U.S. down active see basis, Australia expand are X%. were X%, traffic. New order higher we a customers were in the customers the in and growth customers On by down In in X.X the see active And to pleased to third opportunity quarter. driven regional our of active million
impact quarter calculated last to Our in currency second on in of down order of through to And a reminder, local XX-month X% Average to currency. was and inventory. a active active back XXXX. is we decreased region, basis pulled Gross our constant in promotions marketing X% fourth third will targeted into primarily basis. as Australia clear customer quarter a reported in on spend year customer compared the year, and value growth which Zealand New $XX, the quarter X% count was down the last our AOV on due
which third Our among rate our XX%, quarter of lowest return peers. one remains was the
in to Moving year. to same period profitability. Gross XX.X% was last compared XX.X% third the margin quarter in the
higher through Australia, as The mentioned, margin contraction partially As strategic its return in over successfully the moved by rate, Culture gross discounting coming a inventory, to product due brand we increase gross expenses. margin which offset Kings entirely also impacted lower positions the was modest the was to freight newness the by quarters.
Australia we're our XXX Culture points negatively basis To give at Kings actions the impacted quarter. perspective, the by in margins more you approximately gross taking
selling Selling price compared to third points once to Excluding lower have down XXXX. expenses Australia to million in were margins region, net and selling third XX% XX and driven full the Selling distribution pleased the last were and versus quarter to operational the would of expenses XX% increased, gross year. shipping, leverage year. again fulfillment I'm report declined improved to air that from sales, benefits last able $XX $XX quarter by by outbound freight of Driven million we basis of expenses. compared efficiencies
third effectiveness, marketing sales drive the in we were up of efficiencies our our quarter lower our marketing the and expenses million net on cost XXXX. business third were compared the quarter the of expenses compared nimble in built Australia with demand we to in basis, net In region. rate a we of demand, ability ramp spend model, in quarter third with On our the XX.X% Anchored third also remain we levels organization $XX.X highly appropriately million the particularly operational XXXX. environment. of to with XX.X% newness of continued experienced to have flex in correlation Marketing structure quarter, sales $XX.X to into the aligned the a to
hard of we in third declined are And by sales net by net G&A million $XX.X expansion achieving XXXX. we On of basis was the change our marketing marketing over quarter rate omnichannel basis, administrative to million compared rate. XX.X% working driven the year. lower of improved The the and expenses to and prior our of quarters. primarily rate in to XX.X% compared quarter in effectiveness third anticipate General a XXXX. the X% a volume on effectiveness sales were efforts, We sales improve coming to compared to the a $XX.X levels moderation expenses further of as
I've on largely the in expenses, calls, this opportunities will in require stated fixed, nominal improvements sales incremental expense leverage supporting As our is base and G&A prior to line future.
aggressively to in $X.X Adjusted period last our EBITDA year. same the EBITDA placing of composition quarter margin we level was took compared X.X% last adjusted in period our the XXXX I Adjusted higher inventory, the in for to was million to year. compared strategic year. for same was that X.X% next compared actions to inventory entirely slated reiterate to want due million region's of Australia a expectations $X.X earlier to the through move newness the with third EBITDA
For net our to reflect decreased X-for-XX quarter period that approximately $X.XX of which like to share reverse XXXX, also we XX, All a $XX per shares. split. September remind compared net share $X.XX or including million $XXX,XXX would common stock, the was the of third last same per retrospectively split, in have everyone effective implemented outstanding loss share reverse stock I loss XX the the million or our to shares press to been references outstanding information, to adjusted year. stock
balance the to sheet. Turning
We've and from We benefiting I'm I year, million the balance of and progress the reduce the the As ending of the liquidity ended We quarter. taken quarter $XX million our over last very at by and million. inventory debt clear several or our made improve $XX mentioned, had to debt working quarters of We our we've with capital. pleased third $XX approximately with sheet. beginning meaningfully total strengthening $XXX also while significantly action end composition our in levels quarter million at the reduced cash cash XX% the equivalents. our fiscal
$XXX.X XXXX. end million to inventory. which of end the at million Total made the quarter of proud dollars levels, and on at to were have totaled compared of across XX% year. our were Moving down down brands compared quarter I'm $XXX last third the to progress all of teams our units XX% the of inventory inventory
Australia, region. with Kings' mentioned, rightsize macro Culture are to actions we continued aggressive in inventory in As taking I the the pressure
and composition, Princess and in confident Petal the brands, regions. Polly, we're inventory MNML, across all newness & overall our For quality Pup, other
decrease a dollars through fiscal expect see to in the end We of inventory the units and continued year.
operating third $X.X the of $XX flow quarter of XXXX. In cash, million million quarter, and cash to the in which we free generated third $XX compared million of
cash to cash, of I'm an For in of with the quarter, the EBITDA, the cost enables pleased which In management, profile. the period stable for prudent operating XXXX. $XXX,XXX. a usage that $XX year, positive compared comparable total of million working very of us first X we million positive to generated have operating approximately XXX,XXX flow our $XX coupled in operating cash months repurchased shares we third capital
end the approximately in As have the we million repurchase our quarter, third of remaining of authorization. $X share
valuation. XXXX. for Australia to in $XX.X macro us touch that this I the We trends businesses we on valuations by charge filings. actions quarter, want to the Finally, reflect impairment taking position our we impairment noncash we're million current performance our encouraged an expect well updated charge to goodwill in remain saw and in and In you U.S., the the updated for the took and
Australia We further between the and XXXX. $XX we for flow, expect to will million million fourth and $XX balance more to the the set continue in between expect In quarter sheet in up to the the million region generate our in and through strengthen and cash $XXX strong to pay million of light we clear for that of million taking down the us a net region, actions conditions $XX.X deliver in $XX.X and EBITDA between in million macroeconomic inventory to now and we're and sales year. $XXX
Executive a Jill to on Jill's advisory We're to the has commitment Officer. doing brands the step for a her let is the over retail know Lastly, into a.k.a.'s has Chief well, for past continued to She is she grateful begun a.k.a. personal I role company Board decision immensely build. the and X.X championed veteran years. industry search helped Jill a has has and leadership Board strategic that immediately. Directors, effective she made really of will remain and want while you the
that the your of Before remainder clear. I priorities year the are remind for questions, to take I you our want
our pay a down the reach market and sheet balance strong year our and profitability strengthen and more expand confident our on that of by initiatives further set diligently remain I these for omnichannel taking and expenses. and to and successful We the focused am up our debt finding we customers year managing aim even we total expansion. our next growth our in actions efficiencies beyond. through we the new in and XXXX, committed driving long-term We operational more to fourth addressable direct-to-consumer inventory remainder reducing are continue quarter. to and remain brands And
Now we'll questions. open for up it
