assortment to across Thank for what significantly be down in We category, a us manage second half our XX% you, swiftly fiscal in joining Old improvements to down year-end down merchandise company XXXX in XX% size total driving everyone, notably, resulting during proved business to prior drive helped exceeding immediate our excess X% improved half moved year-over-year, Navy, the Most improvement in year. Bobby, and in drive our We trends at the and and and the which thanks, to long-term in versus the we took an inventories afternoon. goal inventory, challenging the second year, of control first half. sales action balance levers reduced and compared this year.
with managed year. $XXX our We from savings aggressively further we majority with an fiscal of expected billion almost balance costs, annualized to cash, of $X.X in XXXX identifying and sheet, a impact last million ending significant fortified increase earnings XX%
the of a environment. uncertain as approach fiscal are to we prudent managing planning and we better positioned consumer While business to continue macro we light take and our enter continued in XXXX,
the quarter or our decreased XXXX, fourth constant fourth of in line in by and basis driven declines mid-single-digit since the partnerships the of to were XXX than and a expectations sales our Compared currency down and in on Janie international divestitures transition sales quarter. to the quarter pre-pandemic results.Net Jack Republic to and of $X.XX stores, turn X%, X% XXXX. me Banana X% nonproductive with the for Intermix billion levels to and Let Gap closure more
sales sales XXXX. a to divestitures, result meaningfully second rebalancing of and be the were our compared the Comparable year. fourth closures Navy and X% quarter last Comp of of year, of at efforts X% as in has fiscal Old the comp trend on would a to Absent assortment in top positive primarily half net compared fourth the quarter down Gap. half improved first XXXX as flat
appeared total quarter. as sales XX% the from in-store shifting online back decreased are XXXX, be consumers Online Compared Store in were XX%. sales sales from represented X% and of the XX% to year, year improvement last prior trend a down up sales to to shopping.
in to were down billion strength by quarter sales driven versus X% Starting Old by offset and last in Turning the $X.X brand. weakness fourth baby, and down Navy, sales X% in year women's. with sales down XXXX. to comparable of Old relative were X%, kids Navy by
believe fourth result with sales the Old quarter impacted which efforts promotional As quarter. a the growth forward Navy October discussed last quarter, out event, we than its pulled its typical from to in to fourth some of holiday earlier that get as first
the market its experience in believe lower to In After losing that the half addition, of continues we Old half gains first Navy Old the income consumers. demand driven maintained softness year, in share in women's. by of from share Navy share the second year,
we As value remains we positioning fiscal its look Navy to well-positioned given Old the in XXXX, marketplace. believe that
lapping as points. billion by down year. sales of X% global total The Gap down North of impact growth approximately last Gap outpaced down last X%. brand Asia. were and of a negative result X versus COVID-related year of America in comparable were Gap restrictions X% America Gap $X.X impacted Yeezy negatively in comparable comparable North sales shutdown America sales sales the North outsized were
continued kids active the women's. during and strength share and the half categories the half, weakness share after women's. losing of by in in which in by quarter, gains year the was Gap the brand second offset in brand Gap baby first experienced in driven share maintained
the elevated on While our and share brand fourth to Republic below year, gained positioning expectations. XXXX market relaunch the growth X% fiscal its as delivered shift capitalize quarter brand continued of the preference Banana results consumer in comparable last sales and were and in of
that resonate with X%. had a X% over-assorted Republic misses, were holiday to didn't In believe consumer. gifting the the We assortment comparable including and $XXX quarter, Banana down product with outerwear some fourth sales and sweaters down million, Republic sales Banana
growth drove quarter, to remain work-based has the events that work While preferences back suiting dresses shift in of go mindful of and beneficiary a the the fact do we comp COVID. occasion BR as and people categories, been and to post consumer in
compared Comparable to X%, levels. down X%. up $XXX sales however, pre-pandemic were Athleta were million sales XX% down of XXXX
the gains. broader market We brand delivering there product acknowledge be that Athleta. at share to have misses We been expect
the this could back growth profitability driving term. the the get on impact the That and confident is that brand in to correcting, to continue said, over being will we're long term. focused While team course near growth
Now, points, XX basis quarter in XX.X%. Gross margin margin expense, basis continued lapped to inflationary due points elevated quarter. basis XXX increased cost driven year's points last to fourth deleverage by Merchandise of decreased gross of approximately points to offset fourth in XX headwinds. basis by margin freight XXX we as leverage, air
The remaining clear of deleveraged versus better primarily XX as to percentage year. ROD points inventory. net from efforts driven resulting and last XXX by deleverage points basis a discounting, position our basis excess of sales was
let me turn Now to SG&A.
know, we digital of acted corporate operating on reduction roles, third million quarter during stemming annualized renegotiation reduction of approximately contracts of you of costs the advertising investments. the the As savings, the from agency technology $XXX rationalization and fiscal in XXXX, and of
by in SG&A to labor X% quarter cost offset decrease to billion, This relative last decrease a actions, was year. savings fourth higher related was the driven $X.XX costs. of these seasonal by
As basis volume the SG&A result sales, points from sales year, deleveraged as in quarter. total of of XX a the lower percentage the prior a
count Fourth expense loss quarterly as loss related income EPS earnings $XXX quarter was million. million, variability. of a tax to primarily a result ended was $XXX of million at of net of $X.XX. $XXX Share a
down foreign net XXXX to to of exchange compared Turning sales $XX.X year, point fiscal in results. Compared a headwind. X%. sales X% last to XXXX including net XXXX, billion fiscal down Fiscal are X XXXX were
to transition international versus represents we unproductive to XX of billion XXXX divestitures fleet growth of result of XXXX. a as $X.X close As partnerships, North have points our removed sales and nearly and a since rationalization, reminder, America which
by points fiscal points versus of X% basis XXXX deleverage and XXX driven XX.X% Adjusted was XX points fiscal basis XX% XXX XXXX. of gross in Fiscal last gross from XXXX, down operating SG&A deleverage. margin was year, adjusted margin basis margin in
Merchandise basis driven from a of freight sales points basis inflationary of air higher basis of headwinds, basis last versus and deleveraged margin was deleverage, points ROD last of by XX the points XXX basis net percentage approximately discounting points primarily remaining points XXX down year. deleverage as due XX XXX leverage, to versus year.
$X.XX driven XXXX last X% of lower and in from marketing fiscal SG&A year, billion compensation is spend. by incentive lower down Adjusted
Now balance starting flow, with sheet turning to cash and inventory.
and levels by inventory improvements driven primarily exceeded progress inventory Old the of made end Navy. we by significant XXXX, discussed, rightsizing our last and fiscal of goal year As at below
in The a benefit growth XX% XX point year's in fashion hold. a challenges as primarily last and The supply related by decline ending includes chain lapped related inventory. and to percentage inventories we to points two is percentage remaining decline pack in-transit decrease driven of
demand fiscal XXXX, to lean throughout will moderate levels align to better further with look our which into to levers the inventory we As year, provide and trends. we buys flexibility will responsive continue
are for to more compared to than We as inventory the planning down XXXX fiscal sales prior. be in
will addition, assortments. in buy sell through XXXX inventory hold In lower we the fiscal we and was the and placed future benefit continue into This receipts inventory. hold in as capital working that to will integrate pack pack and
We cash cuts result increase and coupled million our was with an XXXX buys. a composition fiscal ended $XXX last of on year. cash with of and of our receipt leaner cash billion, activities equivalents XX% Net levels from as in from operating inventory progress fiscal improving $X.X and XXXX
was expectations, outflow million, an throughout result $XX $XXX expenditures XXXX. should slightly a begin as of largely were and Free million to cash our normalize Capital timing. above fiscal flow of
on look asset-backed to million our XXXX, this down be later credit As year. we positioned pay the of $XXX to line draw we to expect fiscal
delivering component quarterly to core returns. a shareholder attractive as of committed total remain We an dividend
on dividend dividend Board During that of of approved our the XXXX. the $X.XX quarter, maintaining fiscal a we per and Xnd, for quarter share $X.XX first March paid
at share anticipate activity. dilution fiscal shares We anticipate completed XXXX, in offsetting repurchase of dilution not meaningful our We in therefore, repurchasing do XXXX an price about modest goal average fiscal of XX.X per million and share. $XX very
program to continue share repurchase $XXX We authorization. our have under available current million
turning Now, our outlook. to
macro an We environment. the continue overview sales comparisons planning in first let approach of light factors to me uncertain year-over-year Starting to consumer with take the first QX, impacting in provide and prudent quarter. continued a of
be sale million was out sales Inc. These Gap, quarter. completed in for Inc. approximately The last Baozun $XX sales Gap Gap two-point headwind China representing of brand represented Gap sales the adjusted Gap, to of the of QX, to quarter. China of in current assumptions. a and need the beginning year to
continued a one-point assuming the first quarter. headwind foreign are We exchange in
fourth have sales quarter-to-date, quarter quarter. volume period, we be shopping a to While important significant the first in April important are the which note net period quarter. will to than trending better reach yet that March, the It's
are As to range and I we sales the the mid-single-digit be mindful uncertain for for environment stated earlier, the in planning also of remain down consumer year-over-year quarter.
peak to significant basis lap as of as margin, XXX improvement gross last to year-over-year now driven will headwinds leverage the we relates freight. cost last quarter year. basis margin This Approximately last year's product approximately inflationary first first due the elevated to year's deleverage locked points it compared at expect As prices. XX.X% in be of XXX selling we quarter by points cotton in gross air are we
offset headwinds the XXX sales. And to These promotional expected Navy. to flat a of is moderate the be year. this are a and activity, percentage become particularly point of by and half tailwind ROD in roughly of least less expected back as headwind be is inflationary inflationary discounting Old to At at basis half expected
continued are last of to incentive by savings quarter manage first the the offset compensation. reflecting billion SG&A We benefit of actions, planning largely approximately $X.X year's in higher
to representing XXXX. adjusted full Gap and current brand to year year, These year-over-year in Inc. comparisons, to last sales be two-point in headwind turning $XXX net Gap China assumptions. sales impacting sales million of approximately fiscal need Inc. Gap factors Gap represented a out Now XXXX. Starting with
$XXX or to have add growth. to one-point sales will million net estimated XXXX of Fiscal week, a approximately XXrd
we prudent inventory in believe we planning range. earlier, than in to to a taking trends, a be continued down for And fiscal approach could current as the fiscal sales Assuming more mid-single-digit XXXX stated down sales XXXX. uncertain continuation are and in light low of environment, be of net the
Turning to gross margin.
to leverage margins compared the XXXX, basis progress expect gross We back to by approximately XXXX gross year's margin airfreight year first half fiscal XXX to elevated normalized to the margin the This the as lap is a in half as of gross freight. be we of last expected of fiscal points in make getting expense fiscal only in will adjusted in towards pre-pandemic air be back driven tailwind XX% XXXX.
XXX versus cost year basis shifting points we deleverage Approximately to approximately points is in benefit due in to of a deleverage inflationary This of as rates. XXX and of by driven last year, product headwinds. the of of costs approximately improved XXX from the points half basis half basis the tailwind first freight back leverage
We compared a position XXX of offset points headwind as and our is as than be flat more planned relative of inflationary of fully ROD result could sales basis normalized promotional the a year percentage to for be last more activity last to inventory roughly year. better believe the And year. to
down to to prior SG&A mid are approximately billion. year single $X.X XXXX We targeting fiscal the be low or from digits
we We wage XXXX, in in compensation are the for will be initiatives by and implemented fiscal fiscal higher cost offset planning inflation which savings incentive fully expect XXXX.
fiscal XXXX reported These roughly of net back savings realize severance earlier million to Bobby expect operating half the out and of and will which half be adjusted we XXXX. fiscal that costs, related of in income. addition, incur spoke other $XXX the In to annualized savings will in
largely the achieve lower $XXX planning store plan XX stores. closing technology million, planning We America project are investments Gap and end $XXX and that as our North total XX fewer close and Gap in of Banana on to XX Athleta by Navy reflecting stores achieved as Banana XXX ended capital This close XX% fiscal non-strategic million remain of having in XXXX of to in goal. Old and stores openings. Republic We to to and range year, open to of we're well to track XX goal to Republic expenditures XXXX the
and be our $XXX at swiftly sheet. including levers control. fortified we and costs, annualized proved category during moved million Navy, in balance our closing, to-date a aggressively inventory, significantly Old what to reduced year, to balance the manage identifying size challenging manage in So We improved savings in assortment
While we're to continued environment, we're we remain and our profitable its uncertain mindful delivering value Inc. long-term. path taking the towards confident sustainable, the and over are and of position back believe shareholders macro Gap, the actions in growth taking right for consumer we the on steps
that, the With Operator? open for questions. we'll line
