were CEO. behalf Tom, we forth of good on you, being our leadership moment next everyone. executive I to last spoke thank Thank due backdrop. in the morning, environment just Tom deliver this the sales. our team demand in to on to and slow we we Despite want to continuing quarter, macroeconomic current the congratulate May, level of and environment the to When take highlighted a second able expected
over extreme inflation company's recovering margin from the continue the We also our profile that make to last few loss challenged progress the margin in years.
Our which our outlook. significantly quarter, above EPS in improved margin to the us adjusted second profile allowed deliver
prior foreign were volumes sales reported grew Comparable also comparable lower quarter In when to of X% segments, versus basis sales down excluding X%. act. prior the decreased a and of XX% sales sales million was of XXXX, pricing year. three year X% the for versus strong and margin second across than profit the all The due decline sales increases. effect Growth was XXX improved points as operating our price cost from despite our $XXX more offsetting second global gross cumulative reduction lower increase the quarter exchange, of
$XX to expense SG&A $XX sales XX.X%. as basis million of of SG&A increased Adjusted from in a Adjusted XXXX. was points million up XXX percent
expense and the offset controls de-leveraging cost level from sales. were of strong As more than increases lower incentive in by compensation
was compared as $X.XX XX% and and in operating adjusted $X.XX EPS non-operating $XX operating Adjusted by last growth Adjusted with largely our increases $XX the offset interest income up year. income XXXX, pension expenses. versus million in million, was was
turn Now America to comparable were X%. reported North sales X% let's results. our segment and sales down declined
As as quarter volume by spending. to economic were well our declined the as accessory in offset IT to impacted demands declines more the computer pricing cumulative business retailer category than due weak actions. and due lower second Sales our environment softer in
North pricing, increased savings from to improved America XXX adjusted the by prior basis operating driven cost actions. second year's and income quarter, mix points margin XX.X%
North The scale. the revenue quarter is from second typically and highest of quarter benefits the in economies America
shares remain business stable, the well, of seen declined and mainly consumer X% we volume Market the Now Demand due EMEA some in decline. $XXX environment comparable impacted in by EMEA. Sales to offerings. reflecting but priced for downs to customers. about continues let's down in both turn be to lower technology the accessories and our we're wide as have region million, Both the overall to to trade region, reported industry sales trends. challenging quarter
a EMEA operating in from and pricing prior XXX the increase The was the the posted due $X income cost from In of year $X.X improvement X.X%. income second The operating improved margin our to reduction rate quarter, to operating points million adjusted significant a million, ago. year actions. basis adjusted
the year. decreased in to the segment X%. more in comparable due million, sales quarter than technology to decline price reported and operating segment offset Australia weaker in volumes second The Asia and to Latin international to lower international prior income a economic due Moving and and was America. adjusted flat of sales The with increases $X growth essentially lower accessories posted of the environment
items million $XX was improved in of versus lower Switching $XX a as million Year-to-date, half cash incentive the prior second had management by year use use to The driven payouts. in was by a of and prior improvement inventory XX% to cash year we of seasonality. versus due adjusted use flow free flow the capital working levels year the lowered ago. a generally and half of first cash the balance generate flow the and sheet year cash year. We significant the
below now year targeting Longer end, times five X.X We with facility. ratio, million million consolidated times are we range lower end the a a remaining expect X.X availability to than times. expectations. of of At well X to times and covenant of leverage we our had quarter ended quarter previous credit X.X term, to ratio the $XXX with on X.X our revolving $XXX still
more in $XX of the million at slide, with debt We a mature cash balance year X.XX% than over earnings gross prior million. half is As XXXX. quarter our fixed not ended billion shown debt until interest our was lower a X.XX the rate on period than of our XXX total does of and
year our updating our outlook, we quarter guidance third Turning a full providing are for XXXX. outlook to and
For to expect down X%, exchange. of net we which XXXX, includes foreign to flat from reported the quarter third positive be benefit sales a X%
customer the context EPS expect changes We decreased to profile. Provide in on quarterly quarter mix. adjusted product in and of margin first $X.XX. has the $X.XX margins from second Historically, our gross the quarter to jointly
quarter, the trends back a expectation rate. we follow year-over-year similar third growth in to with growth of an our margin margins This improvement expect
higher prior quarter, school due expected compensation. third the are back incentive to higher SG&A to be and marketing year costs to in increase to than support costs Additionally,
pension EPS to adjusted negatively interest non-operating quarter impact to by Third expenses last and $X.XX also year. expected compared are
year, full for to we from expectations a our range net are down a be updating of the X% X%, sales benefit to For which includes reported X.X% within foreign exchange. down positive
down economic to are and X.X% sales to the year lowering comparable for the accessories. We due to our be prolonged expectation uncertainties sales lower of computer for X.X% growth
partners. in business channel greater and As earlier, cautious creating demand are think uncertainty Tom is and our mentioned from second we sentiment seeing cautious Boris the and This consumer half conservatism greater and we it to the ECD. a this with hikes is more expense Fed more prudent our increased rate due environment. outlook in approach and to since forecast Interest last take our has sales by regarding
by of mix more expected from being tax impact mitigated increased modestly rate. foreign slightly a is profitability our partially exchange favorable changed expected by has Our and This country also cancellation.
of tracking range margins margins now growth in to of XX% Our ahead are expect growth expectations, year full and XX%. the our we
We of continue a to target long-term XX%. to XX% range
prior costs compensation In incentive increases expect SG&A higher XXXX, due versus we the year. in
higher adjusted expect income operating For grow at $X.X to is $X.XX. expected of million. higher increase partially about year, non-cash, $X $XX non-operating to to expenses of to and to the net full levels, mid-teen Adjusted million interest EPS offset we by pension costs X% X%
expected would approximately offset rate expense to exchange adjusted placed we The be be to operational to expectations, highlight foreign approximately intangible the million tax On are $X.XX taxes. Slide performance which is EPS. approved the XX%, of adjusted XX amortization being be expected interest by full presentations, is and of the and earnings year $XX for higher
at to and to to million, after bill leverage a least our X.X of CapEx million $XX X.X are with now of end a consolidated expecting free cash $XXX We the year be range within flow times.
XXXX, at and dividends prioritize to uses we debt to reductions. continue Looking in expect cash
Now will on and Operator? your let's be questions. Boris, move to Tom I Q&A happy to where take
