This exceeded have of guidance. beginning quarter we Julie. continuing expense our quarter exceeded earnings expectations. due lower $X.XX. our primarily a cost improvement share. transportation you, margin inventory operations per to of leading results, position a clearance as to share our fourth to well SG&A principally $X.XX pleased less diluted and We rate per generated These our as was Thank of from results were with activity Starting guidance $X.XX driven by to compared better-than-expected to favorable
a the compared a decline by were quarter sale. year, transactions decrease billion, average to $X.X for and sales driven Net of in both last dollar X%
sensitive stores, a macroeconomic the billion, U.S. sales XXXX. decrease price compared $X.XX XX% be to sales to to and up pressures. XXXX. were In fourth continued given versus increased of year. customer prior quarter quarter XX% our Our the were net Fourth Store compared sales Canadian X%
XX% compared compared XXXX. to quarter last decreased but Fourth million direct sales year, of $XXX X% to increased
Pick omni Store add option take in frequently Our their or focused store. BOPIS, advantage continue customers to in of to and our Online, purchase of Buy Up
a As store reminder, recognized are BOPIS as sales sales.
in in stores We have availability rolled and BOPIS capabilities to BOPIS over XXX have we than X,XXX overall. additional XXXX, more stores currently
$XX For the year. last sales fourth XX%versus quarter, international grew were million and
reminder, partners the primarily are include license royalties sales $XXX sales. in XXXX. Total of sales in our a operations million were wholesale the million approximately and conducted our and product through system-wide recognized international wholesale international and fourth $XXX year As quarter full franchise, retail and
significant margin deleveraged decline rate and rate by a primarily and this in and the expense increased costs the materials, to and pressures network. drive was The continued margin rate fulfillment in and primarily by merchandise million pressure labor transportation as $XX as decline raw product Inflationary fourth well in XX%, margin distribution driven sales labor our gross the due points The lower in due to occupancy incremental inflationary costs increased XXX decreased approximately buying totaled sales. quarter basis to quarter. to promotions for was fourth by driven merchandise
retail the unit or quarter, than single down and we was experienced in in and quarter. AUR third low average better Our what slightly the expectations digits
XXX points uncertainty. better-than-expected quarter. accounting continue basis the by and SG&A on basis expense sales for pressure. expense SG&A This approximately focus with XXX macro to trends in deleveraged of technology Total given resulted expense points, disciplined economic We management, for
previously to making and this IT we strategic are includes we separation. investing our growth, future of important mentioned, As have technology enable part investments in as
Taking points Store into sales was operating line total increase of income wage fourth this all that expectations. quarter while rates sales. wages customer-facing stay as hours also drove million with an $XXX manage basis competitive, company to of of XX.X% in net additional XX we ensuring we or deleverage associates consideration, labor
better the quarter were last last X% our Finished also units Turning to to expectations better to flat inventory cost, balance management. goods year, down ended compared to flat due difference unit to year, due retail was disciplined inventories and Total sheet. expectations. than the than offset partially decrease in inflationary X% our The between inventory year. which of is a dollars pressures lower component last product primarily to by compared compared
in are we year is supply new the inventory our with heading chain. well-positioned clean, Our agility and into
Importantly, estate our led in XX% continues outperform our Approximately levels, to significantly location. by overall fleet store is profitable, real stores our to of non-mall pre-pandemic our be portfolio and continue healthy. strength very
permanently malls. growth American new off-mall the for stores of the We we square North X% full about net footage in opened stores XXXX, year. XX in XXXX, principally in closed full In for year, resulting XX
growth international, through in For we had year XXX ending stores. XXXX, store with record our model partnership the
Next, help outline on XXXX before supplemental to our progress core forward. describe evaluate to which our to I'll going we additional 'XX I slides Investor will better encourage our the XXXX, details. from believe performance guidance, review fiscal you posted website Relations our for I
$XX Starting AUR to was lower confident XX% remain XXXX, Works with in contribution billion, Body operating with to XXXX was growth. a gross XXXX sales & margin achieving up revenue compared sales XX% XX.X%. And billion were we was The in from we Bath as XXXX, margin and our while in unit sales and are $X.X balanced Baseline target. guiding
our we basis The over increases. and was and operating decrease partially leverage with from points associated from store technology declined by XX of Victoria's was by sales points transition offset of basis pressure rate dollars. XXX to of which AUR XXX cost in points on basis compared margin growth points predominantly inflation, expenses separation in operating basis wages, XXX driven and drove has XXXX, Secret income While XX% growth
We the price other became ability pressure to saw, the sensitive more portion pricing, to many were able in of customer limited with This offset as inflation our a retailers increase but AUR. XXXX.
Gina our focused drive base and personalized our to which decrease time, should margin. reliance to increase promotion a on visits. marketing broad working are we customer As more are developing the on approach grow our targeted, described, same At merchandise we
quarter that subside the cost first will year. this after to expect inflation We begin of
our and on expenses, technology separation for summer are end investments of IT our efforts completing activities. through As the the focused
on building sales are separation, evolving capabilities. drive advanced marketing our our focused Beyond capabilities advancing omni-channel program, and supporting analytics, loyalty our These we include new growth. profitable to strategy bolstering
that Our as technology and assumes separation-related drive costs, roll establish model invest strategically and future capabilities continue costs we current levels to will growth. at team our off standalone
As are to in external we evaluate cost offset fund strategic gross and as to earlier, investments. Gina see take action structure partnering pressures both as our with to and closely ongoing as margin cost indicated we advisers our what well SG&A
process, this is in early of half outlook, but of the year. we primarily in million over the cost targeting are impacting of half second savings, are which We included $XXX XXXX annual our
to a in remaining We the XXXX. portion realize substantial of benefits expect
in Our opportunities product efforts expense office store and with home operations, transportation, broad margin, based, are spend. indirect
have with forward We in work look more upcoming sharing quarters. this you recently and initiated to
operating As we challenges approximately XX%. we and XX% optimization profit and benefits realize rate our of initiatives, margin targeting with move the of approximately gross and industry-leading near-term and of past recent of an SG&A XX% margins are
will providing we comparison consist XXrd of XXXX. with fiscal our outlook the week, weeks. will fiscal that XX our to quarter include Today, XXXX now financial note outlook. to of 'XX fiscal a so are fourth Turning 'XX XXXX Please
$X.XX we the includes week, Our diluted impact of at the which outlook per estimate share. XXrd
expected uncertainty forecast sentiment. consideration macroeconomic ongoing takes into Our and customer
forecasting sales mid-single-digit decline. the For we flat to sales full a are year,
continuation of the and year softening of DNA. XXXX to quarter part Our half fourth the moderate first in sales changing the and is reacting of of range reading for a business trends. anniversary as we back improvement half sales trends a assumes Quickly trends our
sales. to integrated chase leverage industry-leading and our will demand chain and We maximize vertically our agility supply
more growth customers work drive make We customers. have our and will visits to than other also spend as loyalty program through higher these
efficient effective Our to designed lead is and current more marketing. customer segmentation to work also
growth Our XXXX. international double-digit net forecasting provide healthy continues growth international we business, accretive to to our and business in are sales margin
first We gross expect approximately begin full continue XX%, to expect quarter as year. year the through moderate be costs and will rate to we margin move the in we inflationary
but increase to more flat are We targeted continue efforts. for opportunities AURs through to expand forecasting AURs we'll driven, data roughly marketing test and margin
to an work. the investments organization by expect our We buying sales of drive deleverage, also lower occupancy profit by capabilities our in to driven growth, omni-channel and direct future offset expense fulfillment partially benefits
Our technology approximately the cost rate plan year by wage technology, store deleverage work. driven benefits offset our partially and by of primarily -- increased full assumes XX% a rates, SG&A with of optimization
approximately $XXX year shares forecasting full all $XXX inputs, approximately $X.XX million. of operations expect earnings are rate tax year effective of continuing Considering to expense and between net diluted weighted of full We per million, we non-operating and from be XX% diluted of these approximately average share outstanding $X. and
Turning expenditures. to capital
planning our are The future focused approximately million to to of for in $XXX majority growth. investments XXXX. We capital on million $XXX support is
investments continued off-mall planning in for new select store opening. remodels are and We
investing our to support distribution We are and in growth. logistics capabilities also technology,
Approximately XX White of XX are all, remodels Barn of planned XXXX. square payments projects relate X%. capital about off-mall to estate growth planning new of store to approximately design, year, $XX shifted XX of total mall XXXX yield approximately and the stores In expenditures footage which this closures. real XXX out by consisting we into offset approximately This million
We generate in cash flow expect 'XX. free million $XXX to million fiscal $XXX to of
our to outlook. 'XX turn first quarter now I'll
For we the mid to low forecasting first quarter, declines. sales are digit
merchandise approximately margin decline expect be lower quarter driven gross expected deleverage an The and and rate is We in by versus first principally year occupancy. buying last XX%. margin the rate to
we sensitivity. anticipate customer as We for are declines continued forecasting AUR adjusted slight mix price
quarter. center approximately deleverage, the also up and and transportation. increases raw decline million sales occupancy second the to as forecast in direct-to-consumer first first forecasted includes our to related it incremental in wages operations by inflationary cost quarter and are and expenses the Buying fulfillment of driven $XX new ramps Our materials,
sales, rate We driven be increase increased quarter in the technology to rate and store of approximately first investments largely wages. by our XX% associate expect with SG&A
expense million, expect weighted outstanding We of approximately quarter first tax approximately approximately rate net $XXX of non-operating diluted $XX a shares average of and million. XX%
all Considering to continuing of $X.XX share are first outputs, per earnings these operations $X.XX. forecasting quarter of we from diluted
for pressures. a inflation and elevated assumes forecast wage Our current demand quarter continuation softer the and of first trend
is the However, pressures our that not we of and year expectations for fiscal certain full as half. reflective this moderate second will because anticipate in wage such inflation headwinds the
Turning to inventory.
We XXXX, with as a very have entered I clean position. inventory said,
to end slight expect quarter first decrease a with the units We first XXXX. in to compared both of inventory and the dollars quarter
With committed allocation, disciplined capital we regard are to taking balanced and approach. to a
first the new our in investing completing significantly categories, Our technology new growth IT advancement standing separation stores remodel supporting existing capabilities. customer critical the to business investing priority profitable is off-mall product our in and in improving capabilities, drive and and by fulfillment experience, new of improving
time to We to increase are earnings dividend an dividend returning annual the intention our also increase. of plan over to share cash committed $X.XXper shareholders. to paying an with We as continue
Turning structure. to capital
adjusted a leverage is X.Xx. target with ratio We X.Xx. basis, a of of On ratio leverage are year our ending the our net gross debt-to-EBITDA approximately above X.Xx,
target, Although we above over target time. to our will we are return remain we range confident our
of X We and years. XXXX next until a million approximately maturities due over $XXX coming have debt total the no
to regular of capital dividend. forecasted flow working for with we By year fund cash more generated comparison, year. over estimate in after cash need we the are XXXX, our million than free the starting our We $XXX that $XXX needs we million
through best into year the trends. better as go our of macroeconomic evaluate we the and cash we visibility use will We gain
repayment considering are as share We and such repurchases. options debt
that as In our and to trends their the it impact planning to the is prudent as of year, for the spending customers we business. macroeconomic habits the believe pressures well acknowledge continuing current
our striving chase in leveraging the our to and to future. drive to demand profitable building integrated are forecast, exceed vertically growth sales chain agile supply We capabilities
move Gina pursuing we with us a enable will as view our business profit and and mentioned a on support core of confidently expansion. to Taking growth are earlier, to advisers opportunities. opportunities And refreshed comprehensive review external working our forward I of
prepared That turn it over concludes our to comments. will I Heather.
