Thank you, Shelley, and good everyone. afternoon,
wanted Before spent strategy served transformed I Labs, in my hardware AI-powered a Sleep XX solutions. companies. software Most leading company's technology a about Number. finance career variety joining of share in I of technology the begin, to model from at last and recently, I to roles smart home my as consumer bit I background we Wise where company, and product, CFO retail of the an years
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As we our sustainable, model, growth. transform and operating will capital-efficient profitable pursue we
a taking capital. disciplined drives are returns business We allocation our and that strengthening invested resource through strong on expense approach to management
our to balance on the operating of quarter. third focused enhance our debt the while leverage our optimal from model.Now down move are to durability the let's We on and assessing results strengthen sheet paying
quarter sales digits beds year mid-single were leveraged Third help expectations down $XXX versus our to smart a and XX% low below fulfillment We the decline. our to incremental of from million network of backlog existing last for portion of deliver offset demand quarter. the to net down our
shortfalls a year. $XX of spend drove smart partially higher prices, versus business year-over-year operating all the R&D million, quarter past and of cost prior third savings cash points commodity cost prior the year's XXX $XX of a a quarter, operating mix down pricing was business, versus basis expenses environment. structure operating XX align for Demand-driven controls of million $X.X from largely our included with were margin the the million gross and difficult flow down in areas G&A reductions in generation XX% including operating reduced challenging offset over Our unit demand net spend and million deleverage profit year-to-date Expense the Net fixed to a of $X.X quarter, taken decline operating year-over-year. generated discretionary basis and profit further $XX benefit adjustable the cost last by the combined quarter third the offset versus year-over-year with gross our from by expenses reduction was spending from improvement were year. of reflecting expense ongoing Focused management. For activities down marketing year. the demand prior cash were months up across we demonstrating XX.X% environment. versus million actions in even
a results $X.XX diligently in of loss versus share diluted plans. demand we Our been our third per net Since executing abrupt earnings $X.XX the include trends share last year. August, contingency change have per quarter in
actions expense XXXX. in additional the that may cost additional we identified market taken in adapt year. underway have have reductions the top next identified under augment have to pressure actions bedding to are of XXXX. and operating operations expected we programs year remain million include already well on streamline of approximately million These $XX industry changes and in initiatives this reductions for our We opportunities will to The $XX
a XX% help moving to We the firm program provide with have and us outcomes. support external engaged reduction an work and members. to speed around benefit accelerate include or our efforts team by workforce realize through look care. Our this actions fully in management approximately and forward We restructuring of to XXX
headcount aggressively months. a significant our in initiative in over past We have to managing addition reduction been and this the costs, XX is
enter levels. recent XXXX expect actions, to below total team levels we members the XXXX XXXX X% With with below and XX%
portfolio the rationalizing store environment. We current are also our to with demand align
Specifically, stores through we expect XX to close XXXX. to XX
While some demand store on to focusing next digitally by closing to impact the same expect we of net sales net XXXX within transfer, on stores closures, on will pressure X- both the impact and Depending to headwind minimize create X-point we stores be timing effective year, will the the a sales growth. markets.
We next also our a rate margin as optimization gross cost cost sold and goods to our lower accelerating greater are we value engineering of XX% for target further strategies year. or
our restructuring we to do have anticipate million we onetime up to costs of all While our related efforts. not $XX of finalized plans,
progressively have respond against dynamic million from cost toward of approximately year reductions disciplined initiatives. reductions a be recorded part of through the around we environment. a expense million management From executing the strategy, a XXXX, resources million this are next or streamlined drill changing remainder cost our which in $XX been targeting fourth this to reduction year. These the XX% overall operating approximately expect XXXX, highest targeted we million To $XX be an cumulative approximately operating XX% we mentioned, base, will fixed. X-year return in the XXXX recent reduction the $XXX to we of of for expect in as We on expense of versus of quarter actions a XXXX. costs onetime are macro and the $XX be $XX Of to we Over consumer our incremental allocating more approximately down million are XXXX, of fixed. we period in cost expect actions
business details provide to with enable worked flexibility ratio adapt to utilize conditions. year. end of to bank to calculation lease amend also next increased and our Page liabilities differs revisions us quarter. We bank credit utilized size the as our balance have provide to opposed flexibility for increased calculation which to We prior to through rents. calculation, rightsized which refer the Please version, more on which aligns of news leverage group revised the release through net definition to from of was Xx X our the includes to This our business. agreement $XXX facility the our third how have the in to the effect We the prior to of sheet our new market our restructure of covenant covenants end million, with
our costs with guidance. $XX calculations. Turning to worked year full also We of cash exclude to up onetime million covenant our to banks from
exiting per quarter. of a For anticipated quarter, up share, loss on forecasting $X.XX are our to restructuring XXXX, based onetime trajectory of share net $X.XX the including now third we per share diluted fourth the per demand for costs
for the Let me unpack our assumptions some revised of outlook in year. the underlying
For digits. net double the be full low year, we down sales expect to
including to be net also expect For of points changes. down the X year-over-year sales pressure low XX from quarter, backlog we to fourth double digits,
year's included $XX of XX around quarter million last backlog fourth from benefit service. reminder, a -- As
basis We expect pricing, gross commodity by points partially prices by for efficiencies, and and unit XXXX, margin increased rate smart base deleverage manufacturing approximately XXX adjustable expansion attach. of offset aided
We expect for expense $XX million year. of interest the
around down outlook we XXXX to year mentioned in continue operating expenses prior year. and to alignment versus As $XX moderate with demand our expect be full earlier, costs million
on our early actions call.In how for We year-end next will planning our our here restructuring detailed are provide XXXX guidance on our thoughts some support meantime, the year.
year-to-date actions of next executing. year free positive on focused and a from expense we generating operating have range are scenarios, other reductions benefiting cash taken across the are We we flow
capital in year. We also a next expenditures reduction expect significant
With intact, growth ability questions. the please we long-term announced for our we in open and Operator, actions remain value shareholders. opportunity to generate confident sustainable, today our profitable restructuring and line for the
