overused operator. our second conference and is There quarter call. but recognizing the adopt as you, our be normal, devote XXXX call and of that afternoon. read speed is that way. no growth plans will sheet balance not to detours and the to yesterday second usual need results for and will those the to the there out hesitate quarter my Once return in then follow. along I the the comparisons Good were thank issued explanations new welcome because release to morning eventual Jean me for our business bumps phrase, into long-term Well, items again, goals, discussion it we to will I profitability
products risks the XXXX, based through our actual must through of unknown owned our known conference however, domestic sales refer These the operations, time-to-time cause more XX% SA. to may and read and may usual, One but uncertainties different update subsidiary, and we XXXX, Prestige materially factors involve when uncertainties to risks, information on and primarily XX-Q following. to subsidiaries. As XX, European-based which not include, XX-K duty wholly-owned forward-looking and we with the projected June Report for the are Commission. second Prestige primarily Form referring U.S. forward-looking are When message, Fragrance Securities no French December in our the and of our sales from We risk report we recurring our to discussed contain reports from Annual file on talking results products headings under not be we for ended undertake This quarter we Exchange conducted are Interparfums results. Fragrance do to that intend statements, factors I ended call year statements the limited other conducted quarterly and XX, the factors discuss operations, to the Form discussed. other about
gross operations margin margin assumption gross compared XX% second XX% Once to compared in to year's margin, product profit effect European quarter. but products gross for U.S. quarter. small liabilities year's XX% mix million was quarter decline the to $X second for was life positive a brand The return in former again, had our by second dollar we consolidated Our of by in a XX% strong sold on took a the over last XXXX. and licensee offset of which charge that relating by a to a last
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curtailed ground took of and our Europe January hold pretty exception In XXXX, in sales the as of to to mind a March, of start upon North to original sales the China halt, sales as were were with our expenses, discussion And and projected keep once million. spending. good. please our that operational we February, ad our and As in COVID-XX I again, the before, mentioned as America budgets throughout have turn we based $XXX
of advertising expenses we to included last XX.X% quarter. By to as much XX.X% advertising second in promotion to could already there reduce However, net campaigns quarter, expenses. not in those promotion year compared and we SG&A the second was able limit do we had sales, and to underway were and
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in second net operations, as SG&A of U.S. the XX% quarter but XX%, down For compared XXXX. expenses to quarter, sales second XX% represented were of in the
fixed leveraged are those leverage operations of our decline we sales. that with margin. talked of last as operations of of efficiently May, of the in net about are erosion European U.S. produced percentage higher smaller operating decline operations years, costs loss could several the fixed carry that a significantly European as over not in the than Our and precipitous positive the the In enjoyed we've that be cost past absorption call our as conference our the those
previous our and came unfortunately sales decline As margin you can quarter greater true. for in second forecast, the the see
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such period to the United XXth, XX% conduct ended due of to prior as compared reduction other our months six business, favorable tax the where operations as jurisdictions the Singapore, Our year, was with corresponding effective as for Switzerland, tax States. the well as rate rates European in for the for European June operations XX%
tax tax short-term Our back $XXX capital the the with of resulted in will was benefit when carry million six for quarter million, the effective XX as operations an for We expense corresponding June for able purposes, of including the federal in XXXX, federal XX.X% XXXX approximately rate we to loss working investments. for equivalents be rate XXXX that period. closed and XX%. months to $XXX ended in cash cash, income loss a tax to to XXXX of U.S. compared incurred XX.X% Due the
our capital million million stake and parent untapped which X.X of XX X, of in ratio Origines credit working to made debt, of Our company facilities Parfums the connection last with long-term in borrowings in month. just only equity includes $XX.X
for have these While end difficult and accounts receivable times bankrupt. from most are retailers some levels, are year gone down significantly
face This We payment is true and continue may of especially in have retail faced from of increasing customers. our to delays duty-free customer. accounts receivable
mentioned on are significant covered of a our John however, conference call; last by As portion insurance. our receivables
exposure is not So, significant. our
end increase We finished considerable year are with to into we sell. levels the optimistically inventory translates in also the with which closed mostly ready quarter goods, from
the last with and last our pushed the our year, support new on suppliers conference XXXX Dreams year XXXX. to year debuted this picking placed But exception earlier improve early major call, both late that product the recall will we with been should With and You in levels had year orders up, Rochas, L'Homme Coach into have as unfolds. of launches which the business launches. inventory
look a call will we to turn the closer for Now, over at Jean doing what and doing. I we are how are
