today. joining you, and call to on Thank those us Patrick, the welcome
quarter an margin year, profitability operating represent first highlighted by demand improvement, normalized the Our start to assortment. and results encouraging by our stabilization strong and leverage product for gross and supported
quarter points the level first of since margin the improvement quarter the an XXX compared XXXX. of highest Our second basis reached prior gross XX%, to year and
profile of facilities Our XXXX, headwinds cost a reduce costs in and first through production slowed business Rosarito, handling shutdown inventory. normalization U.S. during work we to conditions costs, our margin Mexico reflects in underutilization quarter the as as numerous we including inventory heightened in the
assets progress during We Rosarito divest the our that to took cost further plans steps quarter. to to with reduce facility our fixed continue and of
assets. there tightly continue our We divesting we expenses control toward work the to as
profitability. Looking long-term optimizing forward, on to believe we committed and our cost which our assets maximizing our return we remain to through structure, base us asset will enhance position
to sales net increased as stabilized. X.X% consumer our quarter First for demand products
archery mix grew more sales table sales normal during a outdoor our Importantly, seasonal year-over-year. tennis, categories quarter. saw and the basketball, we of games The
inventory levels XXXX. last call, our As partners I reduced retail our into mentioned their successfully coming on
are believe most channel products relatively light. now So inventories of we our
DTC year-over-year area remains a of quarter. direct-to-consumer with for the first on basis a online XX% our up opportunity Our growth sales us in key sales or
monitor of closely health consumer. ahead, the to the continue we Looking
who we income, spending can likely our durable segment softer us categories, believe higher consumers a While of this more base spending. level year our of U.S. consumer among be that maintain position a in will brands
of As cash normalizing, and are seasonality operating our gross the is overall generation. demand margins so too
a from season. of the both cash first the of as selling spring grew quarter, inventories we generated accounts During our modest receivable the late in quarter and amount ahead operations
on still reduce While as When basis, combined did generate ample expect this move sequential our operating expect year. a to through we we our leverage, to increase inventory with inventories improved flow overall cash levels we XXXX.
the within range we first before, At leverage prioritize the of of rate long-term As quarter, net repayment was to our to end target our X.X X.Xx. the was which continue EBITDA, variable our debt of debt. X.Xx
diverse sheet, cost We positions soft consumer portfolio us focus his portfolio with and established on prepared the believe a interim, that updating our I'll demand, shareholder next brand will operational to of build position to Stephen loyalty, on remarks. well-capitalized to with together build balance a navigate all with period progress we and successfully indoor forward our outdoor long-term products, of continuing over to consumer turn recreational continued market-leading focus for of while to creating discipline, to quarter.
With call We brands.
In look continue experiences our value. the that, creating while all you exceptional excellence
