morning and good Joe Thanks everyone.
fourth to for the impacts. Before announced quarter like reviewing the and I'd the the underlying Canadian a operating operations of take restructuring our financial to performance business, discuss previously moment associated
quarter month. store earlier remaining we completed planned XX completed the with six the this During closures closures
our completed Canadian locations activities banner remaining we strategies. support simplification in of in our inventory rationalization the Additionally
activities, As operating in now program. performance, final a in of the Canadian I'll business closure remaining the restructuring million a of with and $XXX and Mexico, our we our our incurred operating allocation of the capital strong review of pre-tax turn beginning result costs quarter. to charges fourth
shareholders, and through over quarter the XX% trailing the billion to share stands dividends $XXX $X.X over fourth currently ratio dividends payout combination returned our paid both we dividend million alone In we four of at repurchases. XXXX fiscal our In and a quarters. in
also approximately which $X.X nearly open for We X.X million for to through the share $XXX repurchases million repurchased brings us market, year. shares in the billion
flow. We over of in our we cash $X.X and to free $X.X in remaining authorization, fourth year. expenditures repurchase $X.X the have with we in approximately share importantly $XXX continue approximately our almost the core billion generated XXXX invest capital and on business billion for million In billion quarter full
turning in of Now statement, generated the per earnings QX $X.XX. income GAAP we to diluted share
adjusted increase certain share to point delivered Now my per an diluted from of comparisons share earnings applicable. where In this adjusted XX.X% non-GAAP of we diluted will last include compared per comments earnings QX forward of year. $X.XX,
of large the driven exceeded to performance Consolidated over due GAAP Sales comp improving expense a X.X% and strong on an X.X%, ticket expectations, The for of gross by isolated partially such transactions to trends management. ticket as quarter increased solid weather billion. was fourth Ice part were items Melt small sales in in X.X%. margin smaller basis $XX Pellet The average on comp warmer a ticket decrease increase to as pressure transaction decline and by offset X%, seasonal purchases, Fuel. exerted
was The items, U.S. were year clearance comp our the flat When comparison fourth the for for holiday these transactions prior also pressured X.X% accelerated in activity normalizing for comp to transactions. sales QX. growth quarter.
approximately the basis the points was quarter quarter basis hurricanes a comp in benefit. the of a while XX points provided effect on modest During sales, previous XX drag net of of whether cycling
an increase year. negative with from points of for last impact of approximately of basis of QX was fourth sales. points sales, margin XX gross less from basis saw We Adjusted XX commodity the quarter, this on impact comp deflation XX.X% a quarter
margin taken the compounding vendor implementation actions strategic more continued and from dynamic more the benefits product cost partnerships promotions, we've and pricing key performance, greater promotional program, gross aggressive of improve management. to and our very including are a pivot a with to We strategic targeted the pleased activities for
This rate of quarter of improvement, from we experienced approximate points basis mix. product total XX points pressure offset by basis XX
driven improvement by of and which chain partially benefit, of rate approximately Our XXX inventory points pressure points cost was to drove shrink. by from margin, basis supply pressure basis from offset was points gross improve XX of XX basis actions which
the by Adjusted sales. partially was last of X.X% adjusted SG&A increased basis levered XX compared leverage, for which driven to investments basis strategic was in The sales, of XX primarily offset tax XX.X% by Adjusted which QX points payroll effective operating XX.X% points, was to income XX.X% business. year. rate
At $XX.X X.X% minimums versus billion million of for of job the increased drive increase resets, first quarter investments as or such versus was billion, presentation quantities the inventory fourth increased to $X.X $XXX year-over-year Pro. but QX. the decreased investments The strategic more year driven by Craftsman LY, and sales, the half lot in than in
the we the inventory of for demand In in invested for capture support year southern markets the XXXX. an half second earlier load-end and spring seasonal to early
XXXX ahead, XXXX. our Looking I’m outlook. providing an business guidance discuss today to the versus basis I’d outlook on and adjusted our like
we costs adjusted These that Canadian incur charges and into operating minor pretax XXXX will excluded outlook. expect our from We XXXX. related business restructuring to are charges our
in spending. consumer, continued macro-economic growth interest support for improvement healthy to sector, healthy the expect environment stock provides a low support that strong U.S. in will home housing growth and We continue a constructive in rates, XXXX. housing aging A our
and we in our locations. XXXX, mortar drive our through to guidance Turning sales expect brick to financial strong
to improve sales of modest growth, which year, work e-commerce to foundational platform, high we planning provide half the will single steadily are digit sales the contribution to reaching the Loews.com our second growth. complete improve for in we As
comp the strategic of on for considering timing we When driven lower X.X% based sales X%, X% increase increase to we XXXX first by than the year slightly half approximately benefits sales initiatives. be of a For anticipated half of of the the sales the year, from comp to cadence our a of to expect X.X%. expect the total second
expected Consolidated margins to operating with to to basis X% versus income approximately XXXX adjusted increase XX approximately adjusted XX is XX% operating increasing LY, in points.
investments deleverage technology. approximately in amortization adjusted and points, primarily expected store year, XX the and driven is For facilities to basis by our depreciation increased
gross adjusted contributions will expansion for expect margin We margin that equal provide and year. SG&A to operating the
However, to improvement versus in gross ‘XX. as prior year in the we elevated cycle of QX be we we experienced first pressure the QX cost margin expect
that benefits prior expected SG&A in also flat We operating of We the adjusted solid the adjusted the in assignment for essentially overall margin be QX XXXX. first anticipate to the will operating second the lease of and from mute and profit continue expansion operating performance throughout while half similar Canadian year. will operations U.S. we margin as we terminations year. over business expect Furthermore, Lowe’s levels will performance, income cycle drive
and The adjusted approximately are to tax effective be effective rate expected rate tax XX.X%.
assumes targeted repurchases Additionally ratio leverage share $X billion times. X.XX our a of XXXX guidance approximately in throughout and
growth in adjusted generate Now are of share XX% share expanding per cash XX% sales $X.XX with to flow $X.XX coupled per repurchase X% share. $X margins to income, with expected from earnings our to of diluted operations. and billion expect $X.X to operating approximately to billion program, approximately adjusted solid XX% we grow will Strong
expect of modest benefits working capital million. $XXX approximately We
level have to XXXX plan customers. support on long in-stock ensuring and inventory Our are assumes productivity. we enhanced pro we the to term appropriate DIY as levels drive tools our remains In short we implement term, our elevated in inventory focused
approximately to for billion. cash will long are We investment areas over of $X.X planning in term. to XXXX business billion We the for flow and $X.X continue will the capital approximately that be expenditures we enhance free look estimate
we over about significant closing, our business term. deliver the ability future of In long its value excited remain to the and shareholder
With for that, ready we're now questions.
