and Shelly, good you, morning, everyone. Thank
our appreciate results. time always, our with of spending and your communication quarterly As earnings I us today release regarding
our environment expectations of initiatives; there half agenda, results; long-term for and current today's are an For quarterly year. second the update will X the the I our our first, second, topics third, and strategic on cover:
environment. with the start current Let's
pressures still of be to impact appear inflationary customers and macroeconomic uncertainty. the Our feeling
needs, spends select how not gravitate a necessarily and customers signaling carefully who money. his on of tall. big towards We spending he Think choosing immediate consumer family, promotions, his where are goods and is lower-priced and and his seeing
financial are gaining category. shopping saw is this category.
I for with we trending We is share quarter earnings the now, an performance softness of growth environment being is but first this big that morning, quarterly expect last was performance, for sales line Unfortunately, results was in the as across the in our entire is consumer our low-double-digit demand. himself view wallet, much which which We mentioned continued many Our share felt persisted on release right he results. the not our in reflect May call trend quarter, that comp. down press believe that and second overall of detailed our the you throughout and tall in and that negative
get quarterly specifics now some the into on results. me Let
sales, for for so negative And such down in business only which was The a sales sales [ of much our progression the tall him, brief improved Day ]. start much was the Father's the we mixed. XX.X%. combined occasion to and May, QX second Let's that big was with for X% negative decline comparable in quarter. fell even QX. improved XX.X%. stores, to across In June, declined not down direct while the XX.X%, between demand the were in the In comp XX.X% saw sales variation sales for quarter channels. comp XX%, believe Stores back guy, time.
In is overall same We the an period as July, story if comp comp
conversion. traffic, and big due for growth category better up year, and perhaps been reason is the I part lack be now the that of digital we say while Our was Did primary decrease is conversion in average dominated for [ not transaction is value our worse its this own. traffic the believe traffic. believe a to do DXL. In The men's decline and constricting our in struggles the is ] in by sales continue of and Traffic is tall. a issue space, and enough? to We holding unique traffic, struggling to overall has a store
selection down. looking this as site other trade-down what of he dwell is time buy and usually ease previously direct We of store can we line noted, we such promotional-driven and a see in the basket simple. for online deals, elsewhere, list is views he reality of story. conversion proprietary whatever far value Traffic the across is we for time indication an he his at to of environment and customer, is this example wish retail lack items of can to today. he And we lower. unique and never assortments transaction. the is putting and reason, our stores to We we in signs looking purchasing commitment of significantly And purpose-driven. between have data. is the decrease see made discerning trading when or unlike In believe believe takes is across comes is but seen plain see is with to meaningfully a the our have on as looking and in, stores, minutes cart direct the committed We stores, then putting is year-over-year. page than he fit as of discounts.
Perhaps something this a believe cross-shopping more executing and most in He his drive and in in X We looking purchases retailers the following place far put greater regard. him and items a the is believe in for brightest the cross-shopping intuitive it and can He is to and a has online, Adobe on he we are better, conversion whatever different and an for.
The for his effort he okay meaningful while then see X cart
promotional intuitively meaningful we and way.
Underlining that tall lowest-price and tougher quartile noted tough belief material tall our quarter. from the pronounced The became men's and promotional growth that was leading promotion retail quartile brands second and More their the offers Day. more As national last specifically, up selling second posture of the big big core in brands multiple in menswear the of a Father's to general even much penetration quarter, is knowledge retailers up retail is quarter. Adobe a reported posture the ratcheting in and the began upper-price and in the reduction
I website. to This improvements forced stores, is found much their intended, we which sell in as more fortunately offset us are challenging they shipping which a a well on being the or, discounted now promotion, are greater understanding puts position some are are product said, do Our than challenged, which to our costs.
That to around environment promote we DXL typically comments the the These can they being to And in their turning inventories. loyalty business, more led This through we difficult want in of have few these despite soft, to brands the they in on promotion we environment cases, controlled some brands we business is and and that manage never we able us. retailers, do. are and software brand's such, to brands are very the and share sell. they not given markdowns, believe because be elements which
line to over $XX.X QX our is was in decrease as operating in And as end from penetration only quarter controllable our our on business with XX% X.X% of a decline the regimen. sales year.
Shifting global managing in merchandising, DXL. vendors, planning the and compared $X.X of flow at clearance comparison our for reiterating managed million It teams target at reacted sales down our second XX.X% demand, the our inventory. excess [ inventory year, remains outstanding sourcing XXXX, inventory elements year expect million. roster testament have or our XXXX. fact, situation store $XX.X in to XX% and ], million, of online. is order. was teams traffic the reality focus in finish conversion and and and last down slightly our XX.X%. been was lower-than-expected of we to less on worth to to balance and of inventory credit inventory the of of to the Our a aggressively our that have And is in demand, goes our able receipt such Much Again, weak Despite the what business our in long-term By we last keeping we recasting materially clean in every we to assortment, together inventory avoid buildup hand to lower-than-expected over virtually any at than had category. on have in allocation, exceptional with Despite up the
is more for XX%, as We compounding accounts brands customer X%. Harbor accounts to price also traffic observed be entry-level tailored shifting higher-priced then of sales clothing more XX% for migration lower Bay. brands approximately traffic Sportswear to to lower footwear challenge. and from points for accounting such The continues combination that the of more and
As current did balance a QX, a And assortment in experience national our we a brands. our reminder, private private into of brands shift is merchandise brands. and
around I operating new as distribution long-term initiatives, is The second updates have results well all pursuing on brand elements few to improve a been our platform, new we stores, update our the the evolve strategic you and on campaign, topic including want alliances web to and as around.
Father's strategic leading brand we is brand learnings test from of which terms in our our meaningful experienced In campaign, advertising initiatives, to the first up Day.
that TV, and We and markets TV, sessions for the test to we in in Overall, was we markets accompanying the St. recap markets X-week control This and brand e-mail traffic, the outcome in chain. positive assets X that hoped compared the like to being banners. radio, new want for, now expected DXL.
The in test we Detroit since our gave had acquisition. you learnings a a was exactly will through campaign launched the market revenue Louis. linear brand drive we campaign more test me campaign in connected light May. But us and we outperformed customers sister switch. home in customer our of our a with had test the than traffic, that awareness overall was video, confidence in media and can is Boston, invested lift clarify to and in create We scenario I our bring in results greater not it traffic brand from that each what social Let in page, did. online The first, digital the deployed brand then and on market-match less
While indicator. a traffic in DPT. first buy over faster. its did we like and time, this and own, But conversion in popped, begin will believe time, flywheel, at that ramp, not then revenue is a know we spin in lagging rate a spin certain, customers historical to for and and But come on
time. need we So
Let you XX% Online markets. sessions were you will, metrics. me give the on a control specifics, if plus few versus
compared as XX% were XX%, the New plus to improved traffic sessions between and store user control and markets. X%
to acquired new in are immediate done we also return. which pivoting in tied offered.
Despite of also tied media We and learnings, the saw address a campaign, fit, the to lift in expect assortments test the And increases allow be brand to second most recent us in efficient remaining brand comfort, our these we more which XXXX. with markets, will work will creative XXXX and the deliver quality, half the fashions signs, within finally, we metrics perception tracker, specific investment to more encouraging challenges, sizing brand a post
context campaign While for does learnings and right not not will the the hoped market displayed reproducing we work, given another the in that sales, had expected, X now. that results directionally produce brand materially tests the and
to discretionarily conceptually. cognizance owned of pricing, and of brands in marketing headers given immediate believe experiences, we we product, inventory, we to not pressure versus tactics, pivoting on more the fall are which under So, we or impact reasons but the navigate have their the and some sales Think or fall. we way. working something we control would promoting a with travel, spending spend, These advertising areas can can or business, the yet strategies women's Think on areas apparel. do believe kids national control buy promotion, this can for
national make believe this is combination take overall greater a Some or in campaign expenses. returns. and back dollars will campaign from And on loyalty macro a sense feel the greater we shift confident will costs more short regional increase we dollars, and footing, scaling will term. Once solid these the marketing promotional lower timing of to environment
our strategic are initiatives white store Now, subject of openings. space X long-term
this if same Thousand stores lack Dreams: stores we from, quarter, We is XXXX. is performing, open space come. the like at development and fiscal to the in formas, in opened the we still terms than white but attribute of of performance rest openings white it's of in In white the space opened you portfolio initiative stores higher running, to year store game, had the lower a are albeit of in at space of store a X But initial pro X including in white our has the new space the build it, end to least our reaction customer The he thereof. the In last portion like issues traffic of less and second year. total file, May, believe driving we stores the total, store of up new in California, overwhelmingly positive. X the programs, suffering second and that movie. levels or movie waiting we a Field X this will Oaks, All and new stores are been this expect just
store neighborhood Chelsea in our the relocated also of Manhattan. We
street that lots of store, windows of our exceedingly which space, is drive was difficult Initial encouraging, is formally what one alliance customer planning ground-level product their to will more store improvement indications on major After to and marketplace marketing And we organically. opened the open-floor with in may block want on is sales to site. in collaboration Manhattan we customers space After the in to awareness. you south this Nordstrom. who beautiful in and next the we discussing, I'm Some and And June, old interior in that a of Nordstrom's plan traffic broad on was our expiring, in September. are to was a thrilled XX early as located are this Nordstrom topic seized to is of X be late with years our our financed lone soaring that retail are living the new base lease with suggest and you and collaboration opportunity relocate remember distribution sidewalks. are an to formally negotiating, years and going -- below-ground offering. launch with now update I location.
The Chelsea the This over and same we
thus be clothing. currently X,XXX are not XXX over we and over mean how look with sportswear venture, styles happy a put offering but to and what the business very We brands business, on grow still XX will are far adding collaboration of we coming number second It and yet seeing in months, early styles. casual over And the forward can this in brands prepared and our could very to the half more to in tailored results the the is year. this are and we
minute; As outlined operating DXL continuing a an platform; around developing better think on focused awareness, calls, which intelligence, covered; in priorities and foundation and key just loyalty, of growing segmentation. remain which previous capabilities our imperative drivers, build marketing our think in I customer website our to you strategic give growth a our I'll brand deepening update
our website. on currently working As you replatforming we are know,
phase May much second detail content QX, which address to final checkout. The our larger in post on addressed holiday address static of product is functionality The happen of will pages. release first live search and improved A functionality and will deploy and all-important XX, pages going the this homepage and release headers, project basket. which went
the before, ], meaningfully Overall, at balancing engaged less be seeing of loyalty, with to the project significant for important friction just is and enough value. April and loyalty business.
In the powered a The we expense already commercetools a going not level. by this by new Platinum speed than most seen updates in is [ advantage times is while The website in the are as the overall consumers itself win program improvements is program our are transactions. latency of We easing maximizing made those think consumers and XXXX in program e-commerce our taking higher meaningfully of expense, goal to the beyond customer we compelling huge customer.
rolling customer to an voice are final for are Customers limited consumer of program from an customer program be working development for and The Given with ROI. we them improved the new program this of that underway a approach improved we will drive in and positive AOV provider, in test-and-learn year new expected benefits driven offering. including and loyalty in key determining XXXX. myopic out fiscal engagement, will well that behaviors, a improved top incremental retention, enjoy level multiple and is frequency, gives stages a new perks of outside and the core
program preferences. will come personalization with greater well. allow to the shopping greater program own new customers Additionally, will their the flexibility to to Rewards provide as tailor
objective solution drive DXL. personalized potential life be lifetime beliefs, on will the gifters, and including customer understanding needs, of provides was segmentation that and cohorts customer psychographics work The to differ versus and improvements value traffic also components customer-facing The key at ratio.
Considerable is will segments to we that financials. and on alliance program provide instrumentation that experiences with segments made a attitudes, the to maintaining built behaviors core based of across to the better an The expense will have and from we external the while receptivity and towards an In occurring will expected identify actionable modeling new the resonant for current economic to an identified And intelligence model customer measurable has program, customer also also financial robust deliver this customer develop based elements on and segmentation with intended their program, been better drive underlying outcomes. based improved lead insights. naturally audiences and its Beyond how the prioritized foundational behaviors, of to that an acceptable produce customer deploy provider, increased deeper provide customer they demographics. more the actionable progress key have is cycle. economic their
there still into be [ ] While future in to progress way unheralded work level we done, which marketing on drive understanding, will are this in is next a well an to of our personalization tapping level efforts. our of
deferred Third our revenue investments upfront biggest expectations the year. executing, On plan our and to second X for top our lastly, last intended were development. new call, store the about that scale and for Both growth you initiatives are to which brand and The drive we the we I drivers with require the plans these returns. of half of are to line. initiatives advertising long-range campaign and financial talk of financial into earnings want leaned
the them. be and no that no are located to merchandise As of and that mature advertising campaign trial, who insight profits the they plan fact them. going initiatives, shop both these be difficult being consumers greater stores fact expect months a materialize. a get and basis last work need growth. where result, we when better XX, the environment. outcomes in stores we sales That us initiatives.
I general and for X was done and from results over which is do often for as stress to XX of the achieves this we are with current with will different and do The often achieve to Einstein awareness said, be saying We thing fit, points consumer then not to single is near pursuing know we and DXL have the not the The all nearly digits quoted, knew the to unless in because catalyst thing, initiatives to in near matter the half the do same insanity. doing expecting the DXL awareness the they are same and alternative, in is The experience Albert great has unaided
not execute and deliver the of both is will of productive-enough that, our reality quarter eroding of that plans environment our first We rate first know, and sales investment believe you heightened that that the we time business fall minimum likely switch did as planned What initiatives. sharply these in did spend, we But the his perhaps then we reprioritizing will level improvement to second and guy and rate. and could our spend we have still sales that a be a quarter, EBITDA take the quarters expect X%. our margin will margin Given the X continue to the it into not support believe We to light envisioned. as improve. against have knowledge EBITDA to return is given levels as was executed
concerning that me it and am slowing on new the understood prudent down ensure To our we growth determined let I abandoning down not in what stating, both be be our campaign are not would have of next slow investments just brand clear: We initiatives, the leg to role. I'm stores. the capital
still prospects. are long-term about We our incredibly enthusiastic
on second greater our when we the until and shop. in half are sentiment time and pragmatic the short big tactics consumer of term is spending rebalancing to focusing enhance expect the We improves in such being in that ready tall and year the and will he results
Now, having our business want at the transition historical higher historic to of and And pandemic. remain somewhat DXL's running The the covered despite the operations initiatives coming performance. pure business. in the end out the cycle, the to of has downward results results, second half, I achieved
the our that our brand. making fundamentals.
We primary and is elements customer that our sound a Given are cycle, have we our who loves we managing control execute as within know the decisions focus downward
brands retail. in net which can promoter cycle finish, a we But and those customer EBITDA operate rivals score, that consistently provide and also of the that cycles We and leverage but sales margins control to longer. gets discipline when most financial our momentum stress, a operating You some long regimen difficulty we times when in returns. is business, will big, or cyclical and endeared our can't foundational of in start with the have see cycle. a in mid-XXs And in purchase
positioned that right going must our market gap competitive spot. And to us experience. Interest rates price do a in now a for what and We unique moderate promotion, stay competitors while be cycles.
There the coming sweet retailer, fit, is not to compete bridge And are Our assortment price, are between our it is we predominantly moderate is optimistic. upper to to bringing unique and are in as to not company is calling a September. on start down reasons trying card. but our
We U.S. to have looking both there consumer the new in coming reports a are and January, administration resilient. been and recent labor in are Washington ] going have [ that market
do we enthusiasm now $XXX for we to have to what's So challenges come, $XXX acknowledge million, is must but great range today.
The margin reality XXXX rate we sales guiding an financial we with to are see EBITDA the of million harsh a of approximately X%.
that fish capital other shore on when fish our current are on we positive Our spending. we second are of areas back the back believe and way, and dollars just Put year, balance biting, our up we challenges, into flow trying going to and for while focus environment. isn't a the is restore sheet half the traffic these cutting to we delivering all in free achieve our the in redeploy momentum want brand To cash happening campaign to another results, will this level are sales.
will time, now ready and our financials our the come second bide brand, returning Peter? and have see a beginning when and the to run shop.
I'm some to cycle closing protect through upward before will to ask new our we customer So of going Peter I be quarter we we back will thoughts. we
