us thanks for Thank everyone you, afternoon. Sonia. And joining this
course in headwinds the While execution outlined below to the while performance QX ability expectations, to at the our on and Sonia confident year are of prior the for industrywide updated order Old navigating through correct our outlook long-term Navy challenges is we in strategy. near-term, the action our deliver remainder in our
with quarter start our first Let results. me
sales Navy, in compounded by $X.X flows categories. sales decline year year acceptance of The First Old was XX% down versus product and last last with down all driven were XX% stemming by continued issues key inventory primarily down XX% quarter lateness and from down comparable billion with assortment some XX%. sales versus size in comparable imbalances our
first our In of lapping addition, points three QX sales as estimated XXXX to partnership last percentage was five the from transitions. percentage quarter quarter, divestitures, negatively highlighted benefit we growth points stimulus and store an and European by in impacted related closures
quarter. estimated year, and the during the strategic Excluding declined initiatives of last X% effect from the sales stimulus approximately
active in the X%. compared establishing Athleta began the lockdowns over overall and sales comparable sales earlier, declined and late year reflecting also awareness levels, and wellness inflationary slightly last X% brand which at was at forced Athleta, and grew increase was global demand, driving Growth an believe consumer Gap Turning by stemming slow women's China. posted to down in income brand down the that brand's well XXXX Banana Gap, We XX%. negatively as authority continued and Republic, impacted impacted sales last year. by brand pre-pandemic slowed sales and versus March Athleta inventory pressures in sales lower Gap in lateness progress demand with Sonia COVID-related sales XX% XX% as with of to comparable discussed from categories. impacting the to
up Republic Banana since sales relaunch. grew the meet is CAGR to mix the consumer and a in While comparable is its strikes [indiscernible]. year's see as in mid a the toward Athleta we as last active in conservative double revenue path on of benefits last the term, stance brand more to as current order balance keep delivering taking over capitalizing brand lifestyle and realizing XX% best brand we we're shift long-term, trends a compared near year right the the eye with in close assortment sales the digit XX%
declined quarter total contributed store sales sales Looking prior online the of from declining XX% XX% year; Inc. by at last during year. sales, versus channel XX% this Gap
to margin deleveraging Now basis gross XXX margin. of points Gross was versus sales XX.X% year. last
freight of of gross quarter, margin XXX last XXXX margin fiscal realized the more XXX quarter. was As significant which to approximately We of incremental we most half expected headwind approximately transitory our million be was basis air This of realized air driver our quarter, quarter. deleverage deleverage. resulted the communicated points in the in than the first gross in during freight
XXX gross year. Merchandise Excluding deleveraged, elevated approximately the points. versus XXX air points basis basis transitory freight margin deleveraged last margin
elevated last elevated discounting merchandise relaunched the the experience points prior of and Old resonating year, Republic from freight Navy due transitory primarily result declined the customers. Excluding customer with air basis and increases at year's as a XXX discounting by margin approximately imbalances is assortment price costs, higher commodity to Banana as partially offset inflationary at brand lower
efforts XXX which line was basis, SG&A year. as While the on costs, basis quarter. XXX nominal approximately last result from sales ROD year lower of our we ROD from in points, XX.X% a de-leveraging lower benefit continue sales a were volume or restructuring primarily fleet the with of prior to through points $X.X basis billion during deleveraged,
Excluding quarter basis year XXX elevated to sales freight activity, deleveraged SG&A volumes, loss deleverage. $XX reflecting costs divestitures air million promotional related was the a margin expense, first the lower the adjusted Operating and volume. primarily inflationary higher in driven sales in charges by X.X% of SG&A, SG&A to last lower primarily Navy, points from Old prior higher the year,
freight basis approximately the a margins first X.X%. transitory, would loss quarter points costs, of XXX have Excluding elevated approximately been air operating of
savings a included $XX we during plan paid million shares versus rate dividend air and the tax expenses offset million dilution. The for X.X transitory the the in ended long-term quarter of $XX to part of last a of during repurchased approximately and debt which our to $X.XX, to the Share million, EPS approximately share $XXX expense, of as count was loss in $XX interest quarter elevated recognized taxes, per of QX XX%. Moving fall. interest million year $XXX million at a related during was million last we impact quarter. to negative our the $X.XX freight refinancing and Reported $X.XX due
up an last in outflow than stemming above earned operating Turning driven basics delays, quarter, of as lower from and and transit well out timing and outflow longer Free by the paid XX% of during previously our $XXX to inventory. largely times, year, an activities input higher million. historical AUC compensation was $XXX of QX was from a Total ending inventory long pack-and-hold result sales. cash outflow payments of life was Net average QX cash incentive merchandise strategies, planned versus costs. elevated flow received million,
$XXX quarter, property related Mission Francisco, the to San our we refunds, realized of $XXX sale to inflows approximately During carryback million related in of and Act. tax the primarily the CARES Bay in NOL million
fiscal North Moving in us We our of America, closing goal XX% still anticipate estate. to to approximately closing XX in stores end the XXXX, XXX real fiscal XXXX. about stores bringing by of of
to reflected Now Sonia outlook. influencing I’d turning like year full XXXX our to earlier and are in revised near-term review our the our factors performance outlook. fiscal that discussed
product we’ve the we take outlook income mind, recovery, some approximately First, challenges to a guidance prudent time. Navy this to do the of and to while will as related With Navy, know that for BODEQUALITY, launch negative revised these executional a at the of in factors issues, working including embedded lower correct related we more in a are as that EPS well remediations our Old acceptance $X consumer. impact to assortment of $X.XX Old imbalances,
America down inflationary year, stimulus we conservative thus trend experiencing this Navy than in we relates experienced have prior our the to in in we during in and impact the attribute factored environment consumer in weakness optimistic the the lap income quarter on quarter, outlook. at that expected We slow pronounced the as posture is a as is are lower to in we planned. Old North while it Gap more we an the while cautiously Second, during fiscal May, consumer, in to far XXXX improvement remain the more having
low-to-mid year. and markets $X.XX sales challenges $X.XX. And outlook. fuel since the market $X.XX we of we look in hourly EPS in out now outlook brand, is a these Third, as we’re our which also factors, to range of headwinds our costs China expect labor last in with our we’ve revising contemplates XXXX business, the fiscal fiscal also namely for modest to Adjusting impacting to with Asia XXXX We XXXX for important the revised spoke fiscal experienced incremental you, year. for remainder single-digits versus of finally, negatively decline to approximately adjusted reported impacting Gap last $X.XX range lockdowns our our EPS
delays, We Old of balancing levels. expect half flat growth the flat to the of assortment to second modest in fiscal positioning total XXXX relatively pre-pandemic revenue Navy in the second year-over-year normalize XXXX to supply half improve, and as year begins sales at
XX.X% are Old higher of fiscal We reflecting be inflationary at in XX.X% deleverage. range margin expecting higher discounting XXXX to and to gross ROD costs, the Navy
fiscal freight expense approximately we As quarter, $XX in quarter roughly in was in discussed million air we elevated incremental of last anticipate the continued the realized freight air $XXX transitory expense and XXXX, quarter. million first expect second
was return more compares the of million We second levels to freight which last this recognized the in primarily half expect the the year, year. air half year, of to to in of second expense normalized $XXX
Excluding from costs year of increases prior cost as the be materials Navy air at headwinds includes fuel we the in which for million discounting of and would well the the Old raw compared as to inflationary half of our expect XX.X%, outlook. to first XX.X% range incremental the higher year, modest from margins gross $XXX
modest of is points nearly in reflecting XXX in the expected gross Looking the primarily first at after XXXX, air progression for margin of the as our the we through to levels Old at midpoint the range margin promotional half elevated half the year guidance first relative the fiscal in Navy. improvements adjusting to year improve of move at expenses basis the half, second freight
manage margin we taken a In to year. now of that year Fiscal slightly of the have fiscal sales for the SG&A last of basis near-term is outlook deleverage outlook. outlook. preliminary a action sales as operating fiscal percentage margin air the in revised impact of light X.X% the as X.X%, lower to to including range sales deleverage an expenses and a reported and on lower approximately and [ph] versus reduce slight half. result will expected also be X.X% X.X% We expect XXXX assumes XXXX basis the first headwinds, revised ROD of year the our in Our of outlook gross result point XXX as now of freight spend incremental remainder to adjusted discretionary the
As approximately our include a benefit from DC, planned reminder, million reported sale model a European complete. guidance net our of a now partnership our transition is $XXX metrics that of the U.K.
In addition, million tax income. we required see effective expect have partner in approximately and a in $XX approximately approvals. $XX capital over million the we look is an that a in will important grow as part Mexico in and XX%. invested charges strong proceeding approximately interest return and related agreement We where fiscal business, competitive to with returns XXXX market on shareholder expense driving net reached are We our regulatory focused be long-term. Old we we of Navy successfully through value the growth net to remain will total We shareholder rate annually be a on believe paying dividend anticipate
$X.XX As second dividend fiscal Directors recently our share. approved XXXX Board announced quarter at of per
we plan over to long-term. open our the XXXX restabilize and line questions. share through back that, Operator? Navy intended the we’ll value delivering With our in headwinds disappointed the shareholders industry-wide In path performance, and cash we’re to ability toward growth, fiscal we offset while on business, dilution. navigate in closing, margin for our putting us for return a to in In expansion Old confident near-term are our shareholders repurchases its addition, to