Thank you, and Shelly everyone. good morning,
helped continued a level, you are results. consumer the business to the progress ongoing and accelerating demand back back to inspiring with are to will responding pandemic. transformation, very to and It inspiring even rate tell making I respond see the COVID-XX At see that in with Peter challenges our digital high our which our for XXXX our of our us pleased began to share customers and we can we our with both you is I an we expectations Today, recovery. more at the coming
over past months DXL with three engagement been remarkable. has Consumer the
be quarter the and are considered in chapter we achieved. pursuing of can strategy, important if This the a we and have executing the even very results context
and which results to underpinning has has belief been provided strong digital major for steadily business that was developing transformation, is a a Our these inflection. poised our
stores In across than we and current to DXL greater customers new our a and second sales quarter, who our big of customers and demographics is This website the into all tall to both expected. includes surge level onto profitability saw have happening and not and customer us drive far with customers a lot material upon shopped consumer before. journey DXL. digitally We starting know a their new share We believe conducted, we have are we consumers research believe and we change about market. thinking taking are some shopping that there's finding of us how in based are of previously
continued QX in seen with have XX.X% DXL to to new XXXX. file growing growth same period as We compared the customers in
EBITDA financial any than in that posted XX has XXXX, quarter XX.X have posted XX the months company. we have profitability by million. years is expectations six Year-to-date achieved mid-May. performance the our a surpassed internal result adjusted in put for level of all context, fiscal back last an been initially Our that greater into we To months that second in forecasted in
from implemented from that fiscal result of promotional and our was lease reduced our occupancy This improvements restructured overhead from improvements portfolio costs and driven by margin selling, a administrative in improvements costs XXXX. strategy, was in restructuring general in in gross
margin All in the for elements, excess of from to leverage contributed an XX%. quarter combined of demand greater these with sales expected EBITDA second than
and I'm our headed. believe given of chain. raising Today, greater guidance risk ongoing full our talking and is forward we you the in COVID cautious remain the we looking ongoing year surges business to variant where are we While detail supply the for in Delta about the
our to all of distribution thank in shipped look of something these for is I hard because to be all of the our thankful office we it support store time, best. get because and my them. And to you customers in you Since to team, going stores, Thank pandemic, the created of answered worthy work, must an Before your corporate open leadership customer. and ahead in for. been of and and call myself, get day is want amazing our guest you, of of feel all highest From acknowledge have the our the is who day, our our have heart I our and his make beginning our customer center, they are our in Center, Engagement that the the when and delivered. and It rise every dedication associates the DXL need frontline bottom you, the every our esteem. and is them, answers can gets team, associates thank product on they results are
cover planning topics I'm two to today.
about performance fiscal intend fortify talk our customers. into year marketing hearing to and second, remainder of momentum and maintain want I you And to we position about to to are quarter our want you positive our how from talk to our this I the the second for and what XXXX. priorities we First, to seeing
very comp Comp that was in and compared as XXXX, XXXX. to a announce year growth comparison be most XX.X% as sales XX.X% XXXX normalized was to growth to XXXX. standpoint, to comp comparisons XX.X% and rate from was as overall will XX.X% sales year-over-year compared direct we financial of was making for stores results. our the second XXXX last QX our to our Since our I'm and sales pleased compared quarter
EBITDA million million, were second to million the X.X In total, to XXX.X quarter was of adjusted XXXX. the sales second XX.X for quarter compared XXX.X and compared in our quarter million
quarter the our the of net XXXX. re-crafted outcome our we in These model. we've million finally, strategy and leverage as XX.X and have compared created of expectations second our even And results our operating to income exceeded our direct was break
have gradually the during accelerate year. business loyal to plan our on successes meaningfully business with to But constructed acceleration Our thesis in the return year the decile for we in seen seen the customers returning month top in and the was quarter most first continue an would surpassing XXXX. fiscal shop We've us. XXXX improvement of levels second quarter that each to with
we rates that have also QX. sales similar growth on continued August We report what for to trend our a reported for
stores, most an XXXX. this significant This XX% was In traffic was way bump in toward South and store that from and Conversion April. Regionally, performing a in month compared in as each In quarter, work store per XXXX encouraging June was XX.X%, is in all X.X% quarter well. was the transaction Midwest out was we portfolio. to experienced back rate XX% all XX.X% dollars continued progressed. comps X.X%, of exceptionally levels. We saw which the saw exceeded XXX comp up May, XXX its Central in what our comp acceleration to of up we plan stores and our XX%, March we sales southeast, the July the
middle quarter the the compared as Mid-Atlantic quarter, XXXX. while coasts have So the fiscal the opportunity sales all of having comps, to increased improve country, the points for behind Pacific regions, positive significant lagged still Northeast the to second comparable basis XXX Northwest, and in
are direct things did comps that we the One as our fall not business pleased back increased. most with our is store of
in cost only direct Our accelerated hold to but up not continued further QX.
out Our direct stand to as a digital transformation. it brand. is our ability first testament of to growth a the shows sustainability our believe And we digital
year XX.X% and XXXX, the XX.X Direct Our QX our XX.X%. and in direct to we QX July, again was penetration month penetration annual once our year to were compared to total XXXX comps expect XX.X% by June direct compared May of sales in compared as in in approximately to all XX% in XX.X% be in for full of XX.X% XXXX. as full
the customers. marketing We quarter, inflection DXL our to of businesses driving traffic, our For and web believe are digital infrastructure of size. new our combination investments in a up optimization improvements XX.X% driven by and direct significant conversion, basket digital in
shift but remarkable resurgence Now, also clothing. let itself. margins gears continued product our performance bit in product and about we We saw in tailored casual saw categories, sportswear a me talk and and
about XX% sales label, consistent penetration private the designer relatively XX% and quarter is our second collections assortment was for merchandise with Our inventory composition.
dress seen were dress Wall saw jeans testing XX.X% which together. once in relevant primarily casual wear you pair We tailored collections the did slightly a designer a drove have our many and we as to greatest same? It's consumer participate the brands Polo, even shirts new club with integrating see dress lifestyle. our compared and XXXX, and the times casual as We just XXXX. as pairs, in a relaxed weddings stretch or step a Nautica events, the formal of uniform in We're shift XX.X% wear with even of improvement four the with for velocity vest drove Street. sportswear a coat seeing new are many more such and someone trousers Reebok How department, believe such by business fleece woven sport Suits in customers emerging again. preference over jogger or X.X% shirt started a clothing for more or on is to from selling higher business. and Tailored QX collection
outperformed to pre-pandemic by inventory inventory. Obviously, buy we more the was will a with by believe demand. some there an availability. greater chasing the position battle over on performance relied was the at to Brands And throughout to stores plan in performance quarter, bring If brand are we that continue levels. one brands continue on impact our where strong dictated second positions. we we We than constant in a in inventory to more is continually inventory merchandise inventory where sales in secure our quarter had were inventory. to up to the keep In challenge customers
to receipts at in add are be with to a position working the inventory our of more We end season. fall stronger vendors
the what goods in demand. containers, we some freight by continue three continued also lastly, to cost growing work this air to which support they pre-pandemic. cost times and to cases consider with is We And challenges of ocean shipping to through capacities four
challenges truck and we to to fabrics began the as procuring continue we shortages team through for second early challenge of these successful chase getting merchandise our sales And merchants support to expect Despite XXXX. goods have drivers delays and in to planning of floor, Furthermore, goods this ultimately led domestically. working price transporting to port, to half in sourcing with the have February. production, the our as been partners increases
a our it able than our faster and pace. can to ultimately to way inventories historical get ship most selling turning it, we then what need we in find and cases, If through we're still
of our the is an to strategic ideal side flip be for The promotional. to goals, to that one which primary brand is creates DXL less it inventory execute the environment us repositioning challenge
Our which driven in empowered This our is confidence comfort, messaging to that consumers to to experience a to promotional, is and private store fit built of to us our respect direct belonging proposition lean proprietary brand for day built face community. the exclusive in away value shift grounded who DXL to and and largely a that customers trust The and quarter tall and of value proposition customer highly discount from a and continued of is fit, leaves around and this into assortment the our full an outcome and experience. the strategy and allows a satisfied curated us. brands the national big happy, who around label positioning the second
broad promotional expect price lapsed profitability. also to full messaging, Father's were is Memorial merchandise we offer the promotions, to ongoing relevant drove customers, for and and Day We've only thesis for more the in We more was more which that that are deeper second there our testing us limited further. relevant need promotions, increasing targeted quarter and scale essentially no personalization stronger and merchandise Day without level engage file which drive we to add be and non-promotional reduced anything elasticity the in discounting need and engaging to Our and selling. customer margins clearance grounded base enables of with
been results. in of moderate of posture been allows promotional strategic in and where intentional, XXXX, promotional us year we of our to an for some better as marketing and And long-term started QX is have the reduced across us some it repositioning promotions. strategy. a it higher else support has And of and later resume and all understands the and cut and reduced in there rates our to discount big this two important more than Our component store to about. a the as in second the It year. win second upside making but evolution of channels. times from ago, virtually years at ingrained honors we free, will our the quarter The this expect we're of certain being by been a huge DXL has promotion in anyone the half what posture and markdown driver all down that we who is coupons our store, has Despite do a not be market. need But level really we will level done tall incur guys will all markdowns created
best our we are first at in We are driven CRM at the through know by customers stimulus time. checks are surveys pent system of that attracting spending. pandemic level the was the for we second up and we also who customers tailwinds performance demand and of some our DXL quarter some level and customer revenge shopping know some But many that from for reactivating
Our CRM few customers on to tailwinds. I'd that acquired with share examples we are newly surprises data a long-term like shows you. And some believe
the she back First, for than many new just with so back pre-pandemic. we helping Attracting clothes undoubtedly game. to years. returned female We are dressing But getting is we into a look. the before. seeing new have more world our more than in are been theorize her and him guests the as female has that customers office now the up many or of get customer elusive we Either seeing
a rack from experienced sizes weight Second, shifting cooped communicate, outcomes during COVID past creating have to is for customer of the XXL and we've and seeing slides least upper segment, the and years we with our partially we base the representation us greater are being and how believe specific the And at a this we up. or and middle do we two somewhat we many lockdowns. engage personalized due up are more improvements in been that are Likewise, believe while way. the making
tall billion, reminder, a and opportunity of as think for of which size market billion. us of Just share. our we addressable When north the market XXL, include $XX and the is big to ample you means market for addressable take we total total believe XXL is north to core continue $XX up there's
marketing strategy. you to Hopefully, noticed some have not changes so subtle our
inclusivity to have our we values been build making effort a First, on diversity. greater of and
represent of now a range body is types. using messaging creative Our more models that broader
today We models. fall, for have unique models we where only to used feature XX four different
being marketing. Second, this our we of are ramping further in with greater based our and representative inclusion consumer
content basis. with and and some We're connect social also relevantly with allows on connected us through a authentic more generated focusing We're models, using as which on much individualized user storytelling, to also of newer more an is who customers more content brand our media. customers our individual us and our
direct individual mechanisms the customer and mass website, mail And rather third, marketed across our generic email, to greater see he wants to segmentation-based different show approach an communication flexibility than specifically messaging. like gives us what other
be level up fall different and messaging more capabilities for another We for printing and targeted with driving relevant personalization variable mailers and cohorts. customer will also
be Fourth, without like we companies promotions. as with the in the and Hulu, of awareness branded year, YouTube brand marketing focusing more connected greater TV, initiatives second media reliance half such and on drive to creating content on relationships will
merchandise product in invested to outfitting software outfits front, website help fifth, looking big and largest with selection outfit the look. DXL entire unique most customer feel help have on on in tall This often customers the build with include help exclusive customers we great. for and ecommerce digital that the also of now and men. the to our pages as by see technology will go item to the apparel complete their And brand Most trust our great design
to we build product platform into app app functionality allow that the experience but also under us a flexible offerings stable the provide which a that more lastly, will have new forward. more going to not construction and And enable be will user only a will us extend will more environment
lead and and and life strengthen We as growth and consumers clearly positioning share. continue do in our moat so vision it have to we the mind position, competitive is a this DXLs is throughout conceptualized XXXX bringing and to tall to position that We our to in inflection potential look to big everything today. XXXX the we us beyond. now makes we believe retailer as for possible with business team in apparel men's defendable And stance referred for the it, will greatest greater the with leading this further our articulated have do
wholesale update with $XXX,XXX wholesale. in primarily me let XXXX. of the to our total, compared sales which an of In for quarter second you the on finally, second X.X And quarter, is generated business, Amazon million give
with order the While together, ongoing our What other in business when back, this the have is a in what business to is build challenges and impacted some they driving need, every with challenges. teething wholesale business clearly sales our BXB like fallen to it trying chain need Amazon. supply challenge they
We also the grow continue opportunities to search overall to for business. other
that to would turn Peter? with now over I on financials. call like an to the Peter said, update And for