Erik. Thanks
inventory and discipline. Our expense earnings our continued quarter demonstrated second
assortment items. price We are position in a rebalance key across demand our merchandise strong to points and with customer
significant make in shortfall. also bending sales mitigating curve, expense our We progress the
to take a digital merchandise. the aggressive continued reflect we sales first action conversion loyalty, while and was quarter. relative related second quarter trends, the to softer into traffic half, Second Heading consistent marketing to
execution the grow are line the marketing, million the second second for quarter. XX% quarter current with with our Nordstrom continue the expectations. with program in us notes year the are level customers, plans redemptions in increased over digital over related investment second Full-Price significant our increasing to in active addressed importantly customer further in in Enrollments and and around and to a Our confidence up We've sales. of accelerate half loyalty, give and plans improvement last up scores we making year XX% XX to to to saw during have and With quarter Off-Price. of respect ability we last satisfaction Beginning our turn we trend. progress
half, you had XX% reduction of to And a points flash perspective. apparel prior initial the in we women's get in gap high from our in example merchandising, a price to to with year-over-year and address event the third investments need events. For levels assortment quality plan first back in
accelerating encouraged and performance for half. we're the by second We sell-through are plans the
applying across In increase at points. holidays and accessible anniversary the depth categories gift increasing or specifically our to the addition, we're our mix items assortment learnings amplifying to key for more price
rate rate well solid levels of to ended QX We Expense exceeded improved and expectations. the last from For position year positive spread decreased performance quarter, a to were our profit margin relative quarter expectations. the markdown second consecutive year our due quarters XX QX sequentially basis last merchandise in sales. occupancy with deleverage. inventory from consistent reflecting points our gross two
increased deleverage XX modestly volume. points, in on rate sales Our SG&A by lower reflecting QX basis fixed costs
expense of have SG&A This related delivered to addition to X% adjustment. compared $XXX year. million to ahead down we performance due million to expense previous $XXX expense Today, was plans $XXX million. of tracking our savings annual the primarily was savings our in of
of Our reductions These in that our efficiency for EBIT initiatives technology flows represent permanent supply and support through. to cost initiatives and structure lower discretionary and improvement include as our structure stores, process realignment position end-to-end well spend. strong chain
in we overhead maintained During expense managed expenses. the quarter well second tough environment a variable and also flat sales as
related marketing, year. digital technology Expenses and to chain relatively supply were last to flat capabilities,
A for QX over last basis met QX. by improvement investments our X.X% generational from expectations. XX points Our margin EBIT meaningful of year. deleverage our EBIT
lowered we our range $X.XX end the revised outlook for top Moving of $X.XX. full to to prior the of year, EPS
the flat believe X% between We expect not year. outlook, approximately of has our tariffs year a the decline outlook for be relatively X% to into it impact a for will we but The range versus incorporated sales decrease the growth. been of prior immaterial
four color to our midpoint sales reflecting first This for which like the half. expected I'd to basis on half. provide from second are at incorporates assumptions flat all are equally. drivers Now point XXX improvement Sales roughly the the be weighted a
depth First, rebalancing buys our include our key off-price. and of plans assortment, opportunistic merchandise increasing for accelerating items
in digital in off-price, including accelerating Second, Nordstrom marketing our in efforts full-price. investments our flash we Rack additional are continuing while events Television brand campaign marketing
flagship, the year's in with launch last of Nordstrom on most fourth, quarter. fourth lap benefit sales will fourth quarter. And Nordy impact the will Third, we XXth New to October opening respect in with York the notes Club primarily the
For half. expect to quarter, modestly improve from the first the third sales we
We anniversary expect sell-through expansion profit gross improved rate at product. from the
expenses be cost, rate York We to New our leveraged SG&A fixed pre includes expect from for also which open flagship.
margin year's to is EBIT relatively expected quarter related last charge. credit Third estimated be including flat
approach. we drive to maintain as improve consistent. well a market New step and and share, deleverage. flagship shareholder City in occupancy our remains returns framework tribute York the quarter, discipline value opening expect the allocation capital to as For fourth back, the quarter, fourth a Taking Gain sales profitability
driving and and to focused inventory scale on invested curve. our top-line, time, further Over to investments the leveraging improve expense return contribute on We're expect the bending capital. and generational we profitability
maintain a We balance have approach allocations. sheet strong to capital a and consistent
appropriate expect X% free fund flow expected heavy this CapEx we investment from beyond X% year to this and As of XXXX. to moderating strategic X% to we accelerating levels objectives. sales year's to exit CapEx cycle, our are and cash level moderate
the we year year. to and on after current intend profitability drive a our targets long experience. targets we the our financial and revisit finish key to expectations year the closing, of our terms are -term delivering priorities ago, enhance we will improve execute those In shared on customer to strategies top-line, In focus
Q&A. I'll Trina turn over to now for
