for Thank this you, Jeff. joining Thanks Good morning, us everyone. morning.
shared, government Jeff XXXX The and net macroeconomic the XXXX. the that confidence conditions are quarter first built program, by income with the momentum rapidly reflect carried we coming outlook on driven have improving second vaccinations. we the pleased throughout quarter as consumer the of heightened solid the resulting XX, provided February and has exceeded from into we from of including well for raised and rollout outlook first our benefits quarter. results As guidance remainder had EBITDA our of our we improved COVID-XX results, the adjusted as The out stimulus and adjusted the
will grow of revised provide gross and will the first expense important I management, metrics; the essential take our readouts beyond in productivity, well expectations on digitally-lead, the inventory quarter our year progress focusing reflect start, management. debt with also early the I omni-channel margin, value for as Polaris as to results, our actions the second our and we're then enhanced most walk and a the we strategy, guidance. retailer COVID fiscal recovery. outlook creation of Importantly, returns pleased remainder quarter profitably To results and our through through walk sales, our
on most XXXX performance of more results, As comparisons be impact appropriately. to I the these a versus reminder, will feel speak given our benchmark the we XXXX pandemic's as
sales totaled for improving trend categories. quarter. $X.X Sales first First, the billion across
the and Jeff in driven our fourth began broadly from continuation of recovery quarter, sales strength the was the across As XXXX. This closing merchandize our the last trend customers, and the in heavily second our each new consuming quarter customers. of acquisitions, trajectory dormant locations of into we've the comparable temporary store March, noted, strategy customer support in change our to that the improved upward digital including Beginning by of sales accelerated of reengagement strength the brands, sales our our the of meaningfully the ongoing leaned channels categories. business
and benefited this Fortunately, were from growth XXXX up channel. of years to for has leading investment in our we prepared already of digital acceleration business the
We have as continued to growth. to our advance our digital focus on profitable pathway
also XXXX and from of plus sales down XX% XXXX. by successful And we Jeff here the the to growth QX quarter, shared was licensed first Polaris. improvement we certainly momentum to of of first from digital execution in XXXX XX% and owned with up continue decline saw As earlier, the quarter were from up environment, and strength from improvement the the our XX sales many of improvement within the compared quarter gain been of significant business as first in digital XX% points projects In-store fourth benefited we has sales levels. macroeconomic quarter while also were percentage underpinned benefiting the the during comp
improving margins. gross to Moving
Our sales, even margin quarter trends in of points. improvement QX first quarter in first certainly rate above versus represents XX.X% significant gross XXXX merchandize and we despite This XXXX, improvement largely XX when was gross a in penetration basis higher XXXX, margin. but the up acceleration the against by of margins of compare were digital driven
higher price XXXX, sell-throughs of and AURs QX achieved some which than basis through lower combined approximately higher full are was largely with better we points these Merchandize numbers. price XXX margin full Here markdowns.
in while QX price For results XX% compared of drove these the 'XX, Macy's three by brand, full full AURs improved price by We to X%. nearly increased ways. sell-through
in clean we inventories First, ended that with XX%. we a Recall fiscal began inventory down fiscal XXXX XXXX merchandize position.
to improving of payoff pricing use pricing, the the to than in scale we and location include These in QX. and departments markdown be will at we're made by we in and the pricing XXX strategies level and we've performance Second, our handful QX enhanced regards expanding a were location seeing shifting level expectations strategically exceeding compared investments data more with the from end With and we're our live our departments piloting analytics. of cadence. of
incremental and that Through already executed and these Our which real by effectively quarter. markdown in our both powering improved in we versus this analytics meaningful efficiency. several cadence, regards we accruing resulted are a When and we We're flow changes successfully the benefits. month more markdowns by we benefits this These in from store the has embracing month teams have time. planned immediate have algorithms, we markdown our margin analytics, for several XXXX, year second our made sales markdown week year realize in started have in improvement advanced are make With and decisions. XXXX. to we've by but algorithms this improvements the margins, meaningful sales to to adjusted improvements workload optimize
the of We this to making have by strategic driven markdowns. adjustments timing permanent
So, on that's impact its and merchandize our take on margin. pricing
the third value analytics showing we our for merchandize such the as customer. testing driven we of improve one We These leveraged encouraging elasticities that promotions product with way results. men’s our are which deep. customers, not the our to early are are successful The simplified margin perception simplify quarter during in tests test performed promotions of to improving relates essentially impact in pricing the by and advanced
AURs, higher margin. we a sales gross and result, saw As line top greater improved
networks margin simplified management, which the of higher promotions visibility, year. the We're to order of to success channel to and efficient. our merchandize rate also the digital us delivery helped categories, mix penetration. we volume during the continue offset of impact sales ship offsetting the for to to improves store was such merchandize first digital was us will store gross caused lower sales margin, to transportation by the the of the regional impact focused also enhances margin We're In drag negative partially increase use the our efforts XX% are types We're our approximately digital doing accounted on basis fulfilled margin These improve promotions new to avoiding turn while of continuing customers quarter, in carriers, more delivery improve quarter, as a the housewares margin throughout these of of which carriers, orders. deliveries Partially in first increasing from piloting first merchandize our lower allows iterate to by so points cost by fees. in In customer of communications. customer toys. digital improving management changes penetration higher and fulfillment customer in our expense helping pricing, merchandize points stores. penetration quarter, pickup better basis the this, We test expense and To our mitigating caused that making delivery in the inventory carrier spread the and XXX XXXX. by in increasing Macy's for improvement rising across system surcharge were XXX compared delivery address quarter
and well inventory improving while place centers, focused also allocation, our markets. as at acutely across inventory and are We our our analytics using on as better data to distribution stores
the sheet brings third to with smarter compared healthy through creation down to me first So stock of XXXX XX% first value to we'll XX.X%. the decline ending the inventory year continue net it we five the and allocation. productivity, against become inventory with key balance to ratio quarter We quarter, as sales of our a started more a maintained of sales efficient metrics. Which on get
to chain, Jeff our opposed is mentioned, at challenges reflective our it inventory of while sales some chasing winning every in approach of most is cost. this As and sale to supply any as to we're decline attributable the experiencing
to X% turn improved the XXXX. inventory same As period period inventory in the nearly a versus the same in XX% result, improved trailing six-month XX-month while first trailing the turn XXXX, quarter compared
how to to so balance year. So ability for inventory our of the the are continue we with well and do our in pleased confident been managing we've were
quarter, of and continue price the driven to During amount reduce business four inventory in improvement by point inventory, to volume regular markdown both XXXX. the by our we driven compared sales by a XXXX highlighted
a I earlier, our next price nearly improvement is our we in As value metric. full Expense mentioned management drove XX% creation sell-throughs.
than SG&A continued generate benefits billion or quarter. million expenses reduce SG&A, about to to this $XXX Our on XXXX $X.X approximately We disciplined efforts lower levels. spent XX%
control by initiatives. expenses expense quarter and achieved on our net SG&A Polaris that's points encouragingly expenses over better improvement percent result improved disciplined first net XX.X%, This XX.X% of expectations. a of the savings As a lower quarter of XXXX the at sales, the and XXX reflects in sales. More basis were incorporates than as
on within focus continue particularly productivity, to We enhancing stores.
provide seamless and QX, shopping expanded both to we more a instance, For in-store in experience omni-channel technology productivity. further our customers with boost colleague
Our quarter continue while XXXX, where stores in most compared to And certainly receive and much impacted are we when across holiday during they job not in market, unprecedented in expense higher efficiencies over needed. season to a typically flexibility productivity. of past business which we sustainable. several a customer colleagues stores continued experience sales gives matched quarters positions to even levels while level to the operate initiatives us is our open scores this levels The sales have accelerated XXXX, more to we within greater to led mid to tightening the demand achieving our the only saw driving cost the higher see of Stores the which soared, QX elevated structure more productivity with leverage. were our by reductions, streamlined move began all that leading which are as
this we to We of basis this in and increase which an match the like percent of don't as future we million to realize during demand, in on positions of we other our ahead to wane outperformed the one will I'd what a productivity expect result, level dollar quarters $XXX sales. on As touch million year. $XX also as quarter, benefit fill both to a contributor card credit XXXX results, but revenues, from and expectations expected. down actual generated
card annual XXXX, sales, revenues As our of X.X% a X.X% ahead X%. in guidance credit net was of compared of trending percent to
health attributed customers We from to sales in continue year, in good to year. last the due which see largely drop XXXX credit last account is despite decline the to in balances our lower our
were most that in generated down account XXXX quarter new the XX%. by are approximately new accounts store, in to openings compared Given
primarily XX%, were consistent stronger rates, opened accounts new by customer. digitally driven approval up However, with credit the healthier
and our more have As more on with as of part digital. card engagement been initiatives, business programs our driving online, we credit Polaris loyalty especially to shifts our focused
penetration card consumer people here is factor credit cash One has XXXX. quarter, was government use to the first compared debit more and XX.X% the of products to big purchases. fueled for flow, XX% in stimulus, pumping the cash quarter For which
initiatives, have generate our most continue part this to encouraging very still We of pursue to value to business. shoppers to use personalization providing our work customers. to differentiated do loyal further profitable here, our from proprietary offers and cards by We
numbers. line at look bottom let's Now the
key Given Adjusted February in areas we by EBITDA generated expectations our the through, in exceeded just strong of than quarter $XXX we talked performance positive more the Xx. EBITDA million. was first unadjusted $XXX million. our This
QX In basis quarter adjusted sales gains of the first with XXX fact, by exceeded EBITDA card asset from credit contribution years, quarter you margin when of from exceeded lower And in margin our margin even points. approximately points, by XXXX remove the both XX.X% from a first basis 'XX XXX XXXX revenues.
diluted $XXX $XXX adjusted with pleased million extremely income of EBITDA. asset net in that diluted collectively, more $X.XX. gains this during to interest in $X.XX our Adjusted even we for is exclude by results are versus sales, our EPS actually quarter these XXXX. quarterly significantly QX This XXXX We exceeded million accounting in strength XXXX. the expectations. the taxes in generate adjusted from helped for quarter was exceeded $X.XX when EPS compared After And
million lowering allocation, debt equally debt four includes $XXX key completing and years. derisk of our to proportions towers value maturity in on years Now our our QX management. On to we the 'XX. issuance fifth in senior maturities eight capital the 'XX a of metric, unsecured $XXX This creation notes and for million successful continue the tender business final next by to
path grade to to we With the investment sheet, believe these actions are metrics. we balance returning to deleverage well on the
asset-backed to draw to having $X billion the million terms, significant strength and was compared to the efficient infrastructure, as completed spending lower levels $XXX for cash. analytics them quarter the timing levels, and efficient extended we allowing more expectations. by our first an a the we are cash with for digital in the expenditures We future, channel, The which billion ended as credit increase of approximately well from our to in leverage We chain investments a quarter driven a spending foreseeable as continue below quarter capital Capital in keep experience. sizable data XXXX lower generated longer well the payables the with benefiting by the pre-COVID to our being stores Additionally, driven and beat EBITDA comparative as our retailer. as growth payment digitally-led, omni-channel were of flow, facility. XXXX in free $X.X versus payments. us of supply in represents priorities efficiency on without This capital to technology $XX is quarter use million in and
to with thoughts update So now through that walk on expectations. I our financials, want our
for to are Our our this achievements driven expectations combined quarter we from the with initiatives, recovery, the economic year. gives by the momentum anticipated confidence Polaris the our raise us seeing than faster
XXXX. Specifically, perform goal sales digital towards in billion to $XX on our track continues We're business by well. digital our of
continue our is improved retailer, we leading profitability. omni-channel as and to Polaris As revenue our customers work engage strategy reshape how to an we with
also improvements, certainty optimism XXXX Polaris cautious these reflect well the is Customer chain our as to we guidance not our of the recovery. reflects of mind resilience updating for scaling year our satisfaction our increased we're supply the possible and now in the top Given guidance elevated initiatives us disruptions. as full only further continuing consumer of but have in of consideration demand,
the highlights. Here are
our the We compared to This line increase approximately top billion significant our on about billion with is expect $XX.X to prior guidance. midpoint than a year net $X digital more billion Macy's, total. sales to of and be of $XX.X sales Inc. $X.X billion, XXXX contributing fiscal at between the
keenly improve effective delivery value pricing execute percentage expect gross focused to XXXX managing from on rate are drive in clear We up to levels. and our X remain and margin We to points our ability expense. strategies confident
to expect to XXXX than continue We SG&A lower levels. be expense dollars
improve sales, basis of percent levels a points. XXX now as approximately Additionally, to them expect from by we XXXX
That year. SG&A the the of improvement combination margin improved expect EBITDA between margin than is continue midpoint gross That's We $X.XX and our illustrated that disciplined be expect diluted we between we've expense guidance. better X we control as we rate X% And our on prior previously to in over EPS Xx come last as to our points as well a than percentage nearly adjusted reflects of $X.XX. adjusted and outlook updated X.X%. guided. better approximately This
You full year complete for metrics. slide can guidance refer to the presentation our
quarter, second be billion, billion of $X.XX. a $X to and with EPS diluted expect For $X.XX the to net we range in $X.X between approximately sales adjusted
first asset of the Given XX% to. half, expect the from XX% approximately EBITDA, gains, guided we of half are sale excluding strength the forecasting to in increase year, in adjusted previously we first generate we the an
target current how our remains a and However, quarters. between of This shift this represents could expect estimate plays sales the magnitude, best and this speed moving out quarters. that future profits enthusiasm we and guidance macro shopping longevity of over
quarter are of during permitted estimated the income with As a operating at net receive XXXX, the $XXX expecting carryback tax currently associated we XXXX million. losses reminder, CARES to refund first Act of under an the
time, license digit plus while is XXXX margins. Our low-single achieve plan to to sales monetize funding maximize real we growth high-single goal will of assets role adjusted and At communities. maintaining a key look in the comparable our value continue initiatives. to digit EBITDA beyond continue our as support which we the assets, our growth, core to play same long-term our owned We estate
which shows location, of at Square leverages estate underlying this build Herald this tower Our recent our above plan flagship to work. commercial a iconic vision office unveiling for our real the store,
of plans We cash unlock Herald expect Square to a to amount significant initiatives. our future support
the we path are line top we So on in line summary, sustainable growth. are to confident bottom that achieve right and
that generate diligently investing returns, in investment healthier highest working progressing are grade on We structure, capital to areas achieve a towards Polaris growth working metrics. the initiatives, the and
remain turn over on operator I'll to strong shareholders that, to begin delivering the the over With to focused long return actions, we these it term. Q&A. take we our the As keenly
