I'll quarter provide of an everyone. outlook. Thanks year start Kosta with our and to afternoon, and our then results full good the first review third update
of that line with challenging, quarter. In helped impactful about adjusted worth in FX sales a also FX sales more in our currency, impact it's operating gross beginning points, management about trends remember not margins, were year the to million points of were At at hedge FX approximately approximately high dollar basis our line our event in our the When operating XX% our quarter; are prior of the for currencies rates came contributed record points important operational based our top on margins and are to the XXX and operating expectation XXX margins. thinking us from X.X%. of portion XXX relative margins quarter, QX X.X%. constant XX% were impacted transactional programs dollar our expectations down about designed And top flows. were based primarily and our headwind basis quarter. outside noting on by line underlying strength rates the year While comes better as other greater the adjusted things than purchases our of margins cash the were the operating at reminder, our The Net and to quarters. margins operating versus the while our three first, US results a over of are to XX% basis that revenue hedging net expenses level, inventory X% IN US $XXX US. outside we're achieve a in adjusted were of down
currency restrictions most declines our have the by of X% where be versus in of notably sales last XX% In impacted China down COVID-driven to Mainland year. second demand. policies China sales continues The our factor were constant travel and Mainland impacted decline sales in quarter, note,
total Excluding year. in China, sales the our versus flat currency were sales decline last in net constant Mainland
currency. sales XXXX. Net With from net originally $XX from planned about QX from let million million deferred early backdrop, X% about sales of were from shipments and some in break QX's Americas revenue $X by recognition that the for down region. benefited an constant sales Third, region me down acceleration and our in
prior grew primarily up grew categories, sales in From the year largest leathers watch watch respectively, in the but traditional two both category. in retail perspective, with XX% the Comparable were traffic growth by wholesale contraction in improvements currency offset the by DTC in by stores and driven declined e-commerce, X% X%. sales by were and channels Our comp versus smart sales a net region and constant XX% region. sales period. XX%
As Costa last fourth to are levels shipments last quarter Sell inventory of orders. have were at QX, benefited the wholesale X% shipments of many elevated trends the still come compared partners down to the entered relative year. which our our noted, start channel the from for year, that originally than the in but Exiting the partners and have were wholesale to timing higher with largest of quarter of last year, replenishment wholesale the levels scheduled down quarter. inventory out pressure rate the continued quarter in versus
sales Moving constant flat versus year. currency to Europe, were last
XX% for sales single primarily positions year earlier jewelry we Mainland in largest sales currency, with in up the last sales versus high constant sales increased In DTC inventory X% down net shipped as sales were growth and digits were versus wholesale down last region accounts two in promotional performed currency. channel of year watch by Our traditional China, goods XX% by than which activity our driven wholesale last were year. key better in and categories, constant Comparable from impacted well holiday Asia, and flat were each.
retail negatively markets other and last that to in as market revenue region constant such and markets, double in our impacted have snap sales up were and net down constant with we other saw also remained of in as dollars trends growth In the to were second Chinese saw. in benefited Korea QX prior in tourists than net currency compared year, by wholesale the from back throughout Asia in pleased that QX Year date better strong of comparisons post-COVID were these India digits we Outside India in with were to currency. sales consistent sequentially however, quarter. travel QX the are Sales addition, historically concessions the XXXX. year. Mainland strategic
offset open distribution we region, each channels, direct-to-consumer digital channels includes up US sales year and were which Important year websites through X% versus our that than comparable in growth sales represented sales, sales a market total are wholesale.com X% mix. constant count like as third wholesalers other and on confessions and retail saw stores in and e-commerce of sites, approximately wholesale.com, store the digits lens, inventory down last were many performance to and at own sales down. of with platforms was in the XX XX% buys party were versus growth constraining we ended XXX our Global across retail most in sales, Net double our party order as Moving channels which in sell websites currency. wholesale last Declines Global by were up platforms. as XX% global existing but global to from third our stores all note sales down while more define were our regional were to our on year. channel down where stores in owned own and that in global well direct-to-consumer notable declines to Mainland quarter. versus in China our last channel
constant sales in China Turning in growth sequentially prior from the sales currency, floors improving traditional as now most by rate. mentioned. Category category impacted watch to performance, QX, were decreased Mainland sales previously X%
DTC results. our X% in decreased wholesale selling. strong category trends. watch strong the to Mainland Net sequentially improvements Fossil year. channels. its inventory the Globally Americas better X%. up growth in last Fossil category anchored in constant our versus demand versus dollars were by in $XX stock Excluding gen in our increased year's sales prior currency Mainland our sales flat six traditional quarterly sales in in weighed increased year and last levels jewelry were jewelry China watch QX currency X%. also volume, net continued prior down constant in sales and traditional our China, underlying in our quarters up direct-to-consumer accounts and were XX% in as launch brand selling but on constant sales currency million generally reflect branded XX% Net category positions leathers drove in smart Results watch as lapping soft
XX.X% product our a with due subsidiaries currency a year partially US gains increased which channels European to The other points Asian to Moving down both to factors. mix. stronger the was last compared headwinds attributable product this margin last from and driven year-over-year ocean sales Approximately, year. more margins third favorable versus XXX four and XXX were basis These points FX is rates our carries costs dollar a P&L, outlet contracts higher year, basis basis in China and promotional freight as decline freight air offset quarter XXX down gross primarily costs in versus of points inventory significantly higher XXXX. lower versus up and markets. hedging mix, higher were our
X.X% rate total impairment and the wound last down transformation basis X% costs due down lease Fossil new primarily operating $XX X.X% operating non-recurrence costs digital partially were last by only QX compensation costs of was as income impairment $X.XX reduced income store SG&A lower was percentage Adjusted of compared versus and to World $XX operating income as costs. X.X% points was initiatives last $XX compared our prior by were operating down expense $XX the lower QX million expenses, year. million margin $XXX to margin year, earnings from count were one-time costs costs, and Operating period. last FX year-ago year. store store offset in investments was sales income $X.XX performance-based million year year, operating costs, Turning in reflects restructuring points. XX.X%, versus expenses year. million overall sales. a XXX XXX year. was which costs The Adjusted to X% to year were compared versus period. up X.X lower in includes restructuring $XXX versus rates last million compared year of terminations, share operating basis early down we margins million under last to were labor the of XX.X% and program. last the higher prior operating gains operating adjusted to liability from impacted which versus per increased Operating
$XXX last at balances inventory end the QX million, versus up sheet, balance XX% the of were at Looking year.
call, Mainland was QX lead flow potential of into our warehouses our and down accelerated COVID-driven China. to our as and year continued restrictions in year in As prior we inventory in supply our noted conservatively this was worked QX balances. our as inventory work primary flow In extended more inventory QX, we warehouses last this of into our around mitigated transportation manage times from and down we versus base our significantly
years. Our million million to QX revolving facility. rate from three our ending $XX by $XXX the amended we was $XXX amended than cash XXXX in term November same Subsequent the the and our structure The transition we revolving matures credit balance required other SOFR. million and carries the of interest had the quarter, LIBOR extending available to facility credit facility end now existing under
to our remains XXXX, outlook a Now to for we into turning cautious guidance QX, operating on assumes our global global environment fiscal continue consumer that heading demand challenging. outlook and maintain
annual our top adjusted are results quarter for While our within our for updating QX. guidance margins, we operating outlook line our by expectations third were driven
forecasting XX% we XX% the to X% are QX, For net between midpoint. negative negative at or negative sales
primary reflects outlook Our factors. three
basis our quarter. rates the point prevailing to XXX line top point estimated to FX basis on a impact First, XXX are have in
planned two of but points sales quarter. shipped to $XX about the Second, shipments million accounts were in of approximately QX QX during impact or for the for timing that
macro of anticipate impact estimate in factors we that guidance saw the prior basis the revenue that be our these we revenue our a X%. demand our compared year negative estimated down each from of year Third, points result in basis our XXX operating of QX XXX XX% will persistent seven of trends an negative softening headwinds into of to of approximately Taking expect basis, foreign guidance in full now includes X% we to points. in negative to to range negative previous full account, regions. negative On currency
to impact a of operating currency revised FX, X% perspective, is year the we are our to X% an basis. Excluding of compared our X%. margin to to range guidance X% down down on for outlook to From our forecast the adjusted constant in tightening full of X% be the prior X%
previously margin in and margins a in activity turn for With operating questions. assumes to expense given adjusted back now the Our guidance Christine contemplates investments some that year take than like expectation promotional reduction to the planned lower also quarter. through I'd gross are increased us to call the that, last
