everyone. afternoon Kosta and good Thanks,
Kosta improving we same focused and mentioned, highly us. At stabilizing time, is remain important balance the on profitability strengthening As critically sales sheet. our for trends our
the challenging, on improvement top-line performance and these two to expected of are sales trends, to continue. The progress these solid make to each show which relative continue remains quarters last trends We objectives.
income high last same the operating year. of adjusted sheet guidance time balance our approach Our much our is the end and improved over
of net $X a For loss quarter, $X of net loss million year. we the reported last second to a compared million
share per per World restructuring $X.XX diluted of of charges Our reported Fossil included loss diluted New share. $X.XX
year, $X.XX of of of over unfavorable Sales and intangible first both our an $X.XX including second improvement decreased $X.XX translation per on an impairment diluted earnings percentage impact $XXX trends XX% four points charges XX% constant and had a sales of loss contracts the in decreased currency asset second the hedging quarter. in Currencies, basis, of and on included quarter. our a EPS restructuring impact Last the impact million to was on quarter charges the operating non-cash EPS share. $X.XX foreign and currency
Second this brand liquidation impacted sales negatively and less licensed sales off-price and exits. closures, were quarter by results store year,
core primarily by channels. and sales business declined driven lower in wholesale and closures our off-price digits, sales store Excluding high single our exits,
Asia wholesale mature China emerging mainly are in the scale, enough gaining yet and quickly double Americas is our Europe. business by our to in markets and digit gains continued big increased business Asia challenges India driven markets in in the while not our overcome wholesale
continue will stores double-digit closed contract to first closures a were stores. stores. more offset moderate Overall, since second business ended to retail store in Our the to in quarter a X% decline as improved decreased quarter of XX sales quarter. We’ve compared the due comps single-digit mainly decline the and direct year, as comp comp our by positive retail with e-commerce XXX last than declines to
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traditional business In double low basis digits. Asia, X% of constant Asia on and a watch continued Emporio traditional watches excluding grew Strong wholesale posted Kong and with we moderately driven watches increased X% strong third-party primarily growth currency also double-digit posted a growth on our growth momentum store increase, underlying closures core categories. India, Fossil and connected and reported positive driven by increased sales Hong a Armani both while channel. and China results. sales exits, $XXX the in in growth. by sales in e-comm wholesale sales the million
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factory by sales were offset decreased increased addition, mix and World and royalty In on improved from off-price These mix sales product costs volumes and margins. lower new costs initiatives benefits margin from product cost Fayetteville Asia costs. our sales region higher with absorption fossil additional
included costs basis, were non-cash and restructuring costs. $XX Last operating expenses asset charges. million including reported second a On in restructuring $XXX $X million expenses million in intangible impairment in $X were million and year, $XXX operating million quarter
non-cash impairment a included impact. and the asset expenses second charges, to as million $XX favorable decreased prior in the Excluding operating intangible currency $X compared restructuring million year and quarter
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Our ago. million income was $X operating a second to quarter year compared $X million
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of in our in U.S. GILTI to given a result continue GILTI, rate. some of allowances on establish certain tax the jurisdictions, We in losses the on effectively thereby foreign our deferred taxes double valuation those increasing in effective our subsidiaries international tax income. the provision assets operating mechanics regarding
We’re more a debt improved $XXX pleased million we ago. the with our continued balance than sheet by progress year net from as strengthening position our
$XXX net we debt We cash ratio. low a bank down levels with debt to have almost leverage to and and of maintain zero million, continued $XXX million
$XX Our and a adjusted XX-month of EBITDA our in for ratio leverage the adjusted bank million, X.X quarter times. EBITDA was $XXX trailing resulting was million
outlook. XXXX our to turning Now,
We actual quarters strengthening have quarter. fourth results our to and second adjusted for guidance reflect the adjusting dollar of while for third guidance the our the full-year also in the
and full-year in rates, We closures XX decline of currency terrain which headwinds from sales decline XX% headwind XXX points headwind. range basis in currency and from is sales of the XXX full-year changes of includes basis to a point business of X%. approximately exchange expect exits the store increase from basis points foreign a
$XX expect to is range from from to from range we Operating X%. X% margins Adjusted fiscal to operating to to X.X%, charges, the excluding range for to restructuring million expected which million. $XX margin expected are year X.X%
recent assumptions. results, $X.XX foreign have and and two British the of guidance U.S. euro rates respectfully. now strengthening of our prevailing impactful adjusted rate the pound, uses $X.XX most the currency given we dollar, the to the our of for currencies our
We $XX expect approximately expenditures of million. capital
to charge letter tariff may primarily Section list under list XX% also impact smartwatches, the a based third a on our X on impact guidance of release additional guidance include from financial specific components recent of watches potential including expectations fourth the Excluded metrics is items refer X our certain quarters. for XXX. would today’s traditional for the certain can You ruling. press items and for but
the estimated which is second $X an in half gross of could recognized the this $XX to approximately additional exposure tariff, XX% be year, from million million.
regulatory changes price under are all offsets which to Assuming no for increases, currently changes additional sourcing other or rulings, review.
the take relative let remainder top additional some for Now, the on line. me year, to moment our of specifically a to outlook context the provide
as maintaining half category the back evolve. watch we year, As limited to continues we the we the move the generally visibility of planning have into given conservative are our posture fashion
expect closures as to said, the and second do to of quarterly in remain that as improve impact fourth we we the you’ll our results. on exits our in move year. into basis half sequential store note our business third items but a a Currency negative guidance lessen relative trends first-half sales and our materially of press these release, quarters’ the headwind,
second expect comparisons XXXX which the into the half of move the in diminish quarter. due and much back Asia, QX, half, for of as growth levels we positive liquidation higher the addition, In in the in in first sales third we business. XXXX, strong caused watches and and fourth tougher and part to first consumer direct quarter in to improve availability trends to performance our in continue product display solid
currency being to seeing continues Our product, to of These and drive benefits impact gross from margins channel causing gross and region year. benefits program relatively New in also however, we’re mix. benefits, are Fossil flat margin last be by World to negative offset
fourth also to is with highly meaningful which focused from while also quarter. the results the benefit objectives executing combined year deliver operating store Kosta expected strategic the expense provided against outlined, reductions our to closures, program improving in in lower platform for sustained which World We the Fossil for leverage New is continuing a on expense remain expenses, expense growth and profitability. that Our near-term operating
Q&A. for Thank turn to the the you. like call to operator I’d over Now,
