volatility further three ago when further continues continue pandemic and just different the knew as many today, a new environment completely we one to pandemic expect. Thanks today and beginning us, and uncertainty was behind face no toward the to normal. than what feels feels macro ways, In the even John. But elevated the years transition world as the
rates putting Federal From economic spending mentioned, today now, remains the pressure decades to unprecedented than high building as interest from raising high the peaked significant XX pressure To categories. it's for has rate a this both U.S. at persistent interest evolve, years. inflation recently macro an in at is our unemployment rates, having patterns But consumer perspective, levels. Reserve And been inflation, stubbornly the Christina and discretionary control on and higher lower pace. inflation been despite continue
While today, I'm in our when to just pleased visible under guessing see we're XX engagement guests. our quarters. X% consecutive most we're to on day that I'm even has stabilize and all and conditions deeper now normalize, for the looking forward in continuing grown economic the of to which from That's all grew begin traffic, QX these challenges face
result in vast over an increase In quarter by more the to The sales foot increased pandemic, a first per since the square have sales significant has driven fact, portion that of traffic. majority XX%. prior than of XXXX, of total been is time, which growth that
Total X.X% in flat Total first double combined led combined our comparable digit quarter, sales on line, growth from with contribution business. locations. of growth other sales reflected revenue the the with sales X.X% grew revenue growth Roundel new reflecting by the ad
over of single comp far As trends declines month specifically, of softened into positive digit May. first into growth Brian More soften April in the and by quarter the quarter. course saw low the then so the we trends with the began end mentioned, sales February the and of
and actions. as favorability benefit than year we over XX of was reduction a a Among ago. XX.X% compared than and pricing lower rate costs. inventory merchandising by basis the percentage drivers, last first markdown of Our freight in saw driven quarter the Along gross we about clearance year's point primarily points in a more margin retail rate higher with of transportation
a a lower digital fulfillment. favorable of from rate saw day same gross lower cost margin more mix small also and volume We benefit
reduced those margin a our two compared full Offsetting of year point shrink with ago. gross a percentage rate sources benefit, by
increase if One year on margin from shrink first neutral, trends year. impact $XXX the our our full and mix categories. profitability now lower last pressure compared rate continue, merchandise in by shrink that reduce impact as highest rate highlighted, was categories was sales offset million sales Brian As our of note, we expect than will by approximately more to declines gross margin margin in quarter with continued current the rates declines of has
productivity investments in by guidance inflationary against pay discipline increase provided from backdrop up comparable quarter strong our and of company. flat combined continued was our benefits XX the team, XX.X% the throughout across SG&A year a ago. our points This rate with first sales, we the benefit purposeful the for quarter, offset reflects expense about partially and cost Consistent a expense pressures our with business, increases basis of for
expense last down points, remodel DNA about was accelerated compared reflecting quarter basis related lower to first program with our depreciation Our XX rate year.
Altogether, our efficiency higher rate gross expected in the of lower a was and our transportation benefits costs freight upside rate due as to income expected operating first from than higher quarter from our efforts X.X% primarily than impact and offset shrink. margin
decline this us year about a in was long are ago. we're that well purposeful so We to offsetting frequency making right the be discretionary than investments in cautious opportunities. inventory inventory John than inventory far decline Partially mentioned, will QX forward. As our of the were the support more approach year and number was approach share we approach year taking Within XX% some inventory year. XX% categories, the with inventory lower we in in carrying and a last inventory the categories of served going excess ending term reflecting strategic has along this our continue discretionary are bets cautious believe
standing capital As our reiterating I by I to always do, start turn priorities. where now long deployment, I'll
in business our invest fully criteria. strategic we First, financial in that and meet projects our
which the since we've any A credit our our of shares Second, only maintained XXXX. first and ratings. we we build priorities, cash to Middle to supported of after third, And time support we've two repurchase excess dividend within limits over deploy those on record look annual the increases,
Regarding quarter continue quarter behind one our new strategy. to build the range. With will the billion in billion $X we upstream sortation our we open capital as billion in stores, of first up capacity of continue $X.X up investments full inventory center year replenishment to to $X locations, expect CapEx first and ramp priority, we made be the remodel the year
repurchase a quarter, in the priority, given long the rating it's the our $XXX million from term, quarter. offset $XXX maintain paid activity the term first repurchase average up don't goals. share last count. the by Regarding compatible we XX% by share million the driven any to impact decline approach in with financial per resume in until dividends we shares performance, on the In credit dividend of current second environment and didn't first a year, our partially intend finally, And increase near that in we'll
sheet. progress On in our I'm strengthening that pleased with balance note, our
well entirely specifically, operating operations in below last our compared when Even More driven seen generated remains in in year-over-year year operations potential, profitability almost dramatic $X.X changes term an billion. improvement This our our was improvement our long investment year. QX, inventory with our to a by flows. already we've as encouraging cash absorbed cash of billion start ago $X.X and comparison
our return finally, tax want quarter capital. my end after with of And I review invested on the to
a and ago. this trailing the XX in For began the change Reflecting ROIC quarter the XX.X% XX.X% in first through of profitability working see to compared with after both increase we year was our capital ago. year tax months, the a year,
expect metric quarter's continue As see Based efficiency potential from back anticipate on to building flow. our move and XXXX ROIC continue term ago inventory the expectations, we than year in we cash in year a in higher a we the toward to benefit this farther the to and this beyond. profitability into longer recovery and year, expect reflected these
So now, the and our to turn full for QX let expectations me year.
we exited first As comp we line, trends May. on the into sales and I notably softer moved experienced the quarter mentioned as
second decline, around centered quarter As in range trends. a digit result, we're a those single low with sales recent anticipating a wide consistent
possibilities a as In terms expecting we're profitability, well. of of range
our tailwind the meaningful the that line, we'll across in and many face will efforts continue from of and including team. inflationary the QX second to the headwind shrink. on margin that to we benefit from expect in freight believe and broad from trends line, costs continue On transportation SG&A inventory significant and gross based pressures cost quarter, same emerged a efficiency resulting a expense discipline Similarly,
cost quarter $X.XX all sales our in adjusted are QX they our than In currently, we operating we comp saw ago, believe quarter margin these we rate but which will of a pressure be GAAP translate EPS of much and QX. our higher expectations see than $X.XX. trending to the rate to QX. second very light expectations, if than low where However, in single second SG&A low rate Altogether, greater of we'll digits, year range we deleverage the X.X% lower end in related declining earned up is experienced to a the
we this with QX, continue believe and to rapidly in of As macro changing year the trends. planning we entered appropriate look light conservatively that level caution, beyond consumer environment we of tough a
clear expect and ongoing of that mitigate cost also flow in the saving the facing into to we're underway some the short term, including in half actions we year. efficiency have While them, P&L to work the efforts headwinds multiple we second
While we we've remain the feel and macro light shrink efforts, also outlined we good about the pressures today. on in cautious of these overall environment,
financial wide guidance Taking flat. into full we're we the meeting our around maintaining planning range for provided sales February. in account, this year all we year full are Namely, centered in comparable community at a
We expect operating our we income $X by and GAAP generate of to grow expect to full or our business billion more. EPS $X.XX. to year year full And adjusted $X.XX
profitable outweighing confidence very in to potential. term for As growth. time building frequency of in we're growth continued categories, ready again we're Brian, portion to the And discretionary assortment. operating will our the the the my the turn while its will blocks longer margin back starting in reiterate consumer spending Even benefit rate economy a recovery confident once pressures I from seen the prospects our our call strong and challenging and to currently our toward categories are I longer growth against that over a to in term today, backdrop, in discretionary assemble for back get we've more over stabilize want
to strong we and In resilient business meantime, navigate with a have a the model. sheet capacity this balance the environment
team to team. were sincere our have to my thanks best work the right entire long term with want in We express the strategy and to privileged retail. I
by asset. far most term You valuable our long are
over that, I'll turn Brian. to With it
