good I today Thank of outstanding morning, you, part excited am company. and everyone. this to honored Julie, you to be join and
several Over the weeks, with business, finance the have the spent engaging teams. I while executive my past time leadership immersing and
have to reinforced path The have in observe ahead made I strategic for tremendous planning participate that the last had and also few opportunities belief my the the long-term and shareholders. weeks company’s the teams the significant & Works Body progress initiatives. financial the on on value opportunity have create on the Bath right is to capitalize process
results. year fiscal provide quarter range of Starting diluted reviewing per overview per $X.XX, guidance quarter will share generated of I an for earnings diluted our the our start by with share $X.XX Today, of third I $X.XX to per then second we results, exceeding share. and will guidance the diluted adjusted second XXXX. quarter our financial
Our the with adjusted debt early the the results extinguishment on exclude of repurchases gain quarter. the associated second in debt
quarter initiative, the expense AURs increased favorability We from and with in part matters improved of the benefited to were resolution operational Victoria’s second our and pleased resulting from associated the discrete in EPS margins. cost benefits the retirement certain with outperformance also spin-off. our interest of optimization repurchase tax resulting merchandise second favorability, and rate related debt tax of from Secret quarter the
decrease The in with the average X.X% and year-over-year quarter billion, Net a sale. driven dollar $X.X our was transactions sales by second in for both of decline were expectations. line
a In and prior Canadian totaled of year. second X% decrease versus stores, quarter billion, U.S. $X.X the sales
of year. X% sales compared direct decreased quarter to Adjusted XX% in second quarter. Second $XXX decreased demand million last BOPIS, for the direct
quarter. As sales stores are to the BOPIS first a rollout in and store the BOPIS as completed U.S. reminder, recognized sales we
wholesale collected X% X%. year-to-date June last we declined posted international system-wide sales. sales sell product International retail shipments, new sales net year. increase, international revenue and while lower propelled the two declined international basis, sale a generated million were versus revenue are Royalties second on and in orders $XX our by franchise retail and event. store to our strong Note, franchise sales the sales wholesale and and partners to openings There increased components a by sales to the semiannual due double-digit quarter total for off
sales that the to back returned the for Our year of guidance half assumes our international growth.
to for the by a Our first XX basis year year-over-year gross quarter basis prior of profit compared QX, sequential quarter. representing rate decreased the points XXX second improvement points from
time packaging improvement Merchandise for benefit, margin investment first nine by formulations and quarters. offset driven and rate improved AUR year-over-year partially transportation costs, innovation. This by was in the reduced continued modestly deflation product in increased
new increased buying in growth expense lower occupancy Improvements merchandise from due sales. were and deleverage margins and sales by primarily to occupancy expense store offset sales --
reflecting basis basis of of IT deleverage, our Total in SG&A growth. XX as driver expense points, was points costs, improvement as drive future the well year-over-year strategic deleveraged first to XXX by sequential the investments quarter. Technology a biggest representing separation
partially expense. investments our impact work, hours produced which in As optimization technology with said, the profit work SG&A. our expected, and labor mitigated All cost $XX home million the store approximately benefits of efficiency of in and cost gross across produced quarter office optimization we
Second net total XX% of was million company $XXX quarter sales. operating income or
second million $XXX well We ended in repurchased inventory and the the total levels focused to quarter compared positioned. last inventory Heading principal disciplined $XXX year, second XX% remain of our inventory on management notes year. dollars the Turning senior We half for are down to balance sheet. with million the quarter. into the
with levels. our the remains In we increase closing permanently principally quarter, store and to Our new stores, overall penetration XX significantly real fleet continued healthy, pre-pandemic stores the malls. XX% XX of opening North second outperforming profitable off-mall portfolio off-mall very estate American in and
our business, in stores stores. with international quarter, the XX Our new quarter ending the opened XXX partners second
Now XXXX turning guidance. fiscal to our
our is reminder, XXXX. of XXrd so fiscal share as XXrd per or XXXX will fiscal fourth XX impact We And of comparisons any and repurchase the are to $X.XX with quarter reflected excludes debt estimated impact of our XXXX guidance the providing a diluted includes in the The weeks. guidance activity. XXXX guidance share week the at of our consist further week,
With expectations QX our to as sales guidance that we resulting profit share year narrowing the our the to our and through EPS repurchases fiscal factoring range, of reflect updating guidance. increase benefits our in are context, gross performance, an raising quarter, in and debt the second
these on additional me provide some Now let color changes.
across full normalization consumer sales post-pandemic judicious continued the we industry. our year, now For and declines reflecting to performance, uncertainty, category the X.X% spending expect of macroeconomic year-to-date X.X%,
at two were we with of first our quarters are maximize plan sales and midpoint trends guidance. year-to-date our line reading improved adept agility the very to midpoint business performance For range our projections. to of the changing and narrowing and sales our to responding that the sales. Factoring is company around The the year, prior of in in we visibility, demand chase quickly and leverage
efficiency our million enhancing of the with deliver the excellence selling to center, expense efficiency of Approximately and traffic, $XXX program, half optimize benefits of as cost reduced plan better our year. second efficiency spend. labor the and we in staffing are operational XX% the expense, hours savings we reduced other in reflecting store are and approximately and We remainder related productivity to transportation to savings including align decreased home as in office our indirect expense call
expectations XX%. year we forecast rate half the are now approximately in full margin of for first exceeded to and raising year margin gross our our the Gross the
cost benefits and formulation We to by our investments margin second the benefits offset by reinforce efficiency are position. competitive expect year to in produced supported continue work. These deflation rate of half in year-over-year our packaging upgrades from improve optimization and partially merchandise greater to the
rate merchandise basis second half year, the expand expect improved prior the margin year for resulting full rate the of approximately by we margin Overall, points year. XXX in versus to in merchandise
expense buying growth, as for expect occupancy deleverage sales ramps. our the less new driven levels and to the and remainder deleverage for by new still fulfillment year, We with store the increased expense year, from center of direct-to-consumer
full Our by benefits technology sales wage with partially of work. guidance optimization cost expected deleverage expense lower our still increased and XX% driven SG&A levels, assumes offset of rates, year the store rate approximately by a
through expect favorability We average approximately now of non-operating approximately $XXX expect second interest shares and rate full effective tax an quarter. expense reflecting still the approximately repurchases year XX% of We net of adjusted end expense debt of from million, outstanding diluted the $XXX weighted million.
the XXXX, year $X.XX XXXX increasing earnings of plan in per to $XXX $X.XX, to million for and we For cash are adjusted share our XXXX. capital to of now in free we fiscal range guidance we $XXX to continue flow to $XXX $XXX generate million diluted to expenditures fiscal expect million million
decline sales third outlook, our to rate an the to X% we of sales. forecasting approximately we Turning profit rate gross XX% expect quarter X.X% versus of approximately SG&A XXXX of prior are and year, of XX%
of outstanding a shares non-operating earnings $XX share XX% $X.XX. diluted We approximately of rate of average expense are diluted to expect and weighted $X.XX forecasting Considering and quarter net third approximately tax approximately factors, all these of million $XXX million. we per
our now Looking allocation. at capital
business profitable is priority investing first drive Our in to growth. the
returning earnings In with quarter, also for second increase. to million we market. paying of repurchased dividend share shareholders. million time plan $XX and in over In We annual dividends cash committed million the shares year, open increase in an are also per to we X.X paid continue an $X.XX as six first the months dividend $XX intention of the the to we to the
shareholders, returning and market. senior ratio committed of open the debt In leverage $XXX times our a with over target quarter times the XXXX we of X.X million time. year, ratio of repurchased X.X have addition returning in ended adjusted are of principal cash We to second approximately through leverage EBITDA the to our we to to gross notes to amount
options balanced additional as debt continue approach capital such We considering will to repurchases. and a allocation, share take to
our and future In to all of focused and are profitable drive about for the growth generate actions the conclusion, I value taking am on necessary excited business stakeholders. we
be would for At this will I happy it time, take your questions Heather and over turn to to Q&A. we
