prior in with no significant In quarter, margins in revenue, inventory on QX by points. our basis year currencies as in of good sales operating And XXX was by Kosta. Relative XXX first key the to basis quarter currencies expectations. and with on afternoon, gross in the impacted net P&L basis Thanks, and margins margins everyone. expected The variations our by impact points, performance themes. also our came foreign line points XXX
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significantly In retail stemmed in earnings call shipments our from the lagged sell noted major channel regions, the shipping partners. our these primarily regions decline from both on underlying out we yearend wholesale into trends. the As
including increased inventory. consumer and We Partially wholesale maintained solid channels, in in digital some continued to results inventory most double discretionary did and spending pattern growth our categories, and we comparable these consumer to as these These primarily channels offsetting purchases capabilities our watches digit the attribute direct cautious that and stance regions sales of in achieve large store reflect this year through jewelry. we channels on declined retailers our promotional prior execution including growth. retail cleared strong activity have
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sales the single Fossil, where channels sales Offsetting largest the in digits. and declined, mid our with our driven traditional stronger brand leathers. Fossil Europe. brands and Growth in even in wholesale grew for Americas in in powerful and licensed was up the I by Americas were India primarily in watches robust discussed growth Global the X% growth more trends
Moving down the P&L.
basis First related points offerings. charge versus for changes quarter a gross XXX tag points last $X in XX margin basis year. was product included up certain XX.X% we or of our million anticipate as costs approximately margins Gross restructuring
adjusted Excluding margin these XX.X%. costs was gross
foreign of by licensing Our the product adjusted expenses, timing increased mix promotional in impact activity margin freight certain of benefited lower favorable a and offset product gross from headwinds partially from currencies.
related were expenses in year. versus million Restructuring to last costs were operating program. conjunction our $X with tag Total severance expenses flat primarily
last X% in direct restructuring Excluding reductions to variable initiatives revenue program. the associated costs versus with channels, in fixed growth year. our increases growth by in down costs higher partially tag impairment and cost offset spend our related This and SG&A marketing was reflects
million operating loss X.X% operating previously the ago was XXX basis of at mentioned. was million that period. sales, in of operating and driven year in $XX Taking operating Adjusted the includes points compared $XX an to came together QX loss loss FX minus $XX headwinds million of adjusted which margin I
million, last and revolving year's down levels balance cash was of in the and our inventories had $XXX to $XXX credit ending the we Turning sheet, facility. $XX we at under availability from million, million quarter brought XX%
includes to $XXX capital. this primary outlook, inventory of drive our next, which and strategy, our the on plan reducing and our as growth Turning to in transforming annualized working elements core growth improving means initiatives, our benefits focused now over to the year million we remain
cautious we in stance Europe. macro near Americas factors China. keep the At continue play the reopening guidance includes into adjusted X% into of our margin operating environment, in maintaining to the the range the of and And adjusted range particularly same year these term consideration, plus which net in to X% we light X%. for are a margin, leaning down and consumer Taking in sales time, Mainland to we're sales plus in to of the and operating be X% income full on
assumptions Let few are more specific embedded me in that outline a outlook. our
declines sales prior Our of positive the annual low versus and in QX half double of assumes second year. the the single to digit growth in rates XXXX guidance year mid then digit
headwind our quarter second point basis XX a on on estimate We revenue currencies. based the in prevailing on rates. First
second revenue. on year, that that will prevailing basis On XXX QX a a estimate However, average would out basis impact half reversing the our revenue. on tailwind basis rates a point tailwind of point XX in and we our see year approximately that of an to in inclusive result the full
impact driven better reflect key the forecasts currencies, year sales metrics excluding the half factors. year-over-year of three from Second, our second by
accounts levels wholesale provide year, large second half Europe growth easier the trends are the purchase in year, particularly current in in many wholesale levels. First, based last on normalize. year-over-year we their as which to comparisons, purchase forecast This curtailed Americas of have and QX sellout sharply shipping
Second, momentum travel our Mainland forecast assumes as reopening continued country the creates is patterns. healthier spending and China in
And QX. will last levels. growth. offerings From initiatives some program watch and are Fossil in In expected rates sales year's prior gross a year our gross margin in and third, impacted lap margin assumes outlook significant similar particularly addition, perspective, drive premium product tag we to COVID in our marketing improvement brands with our contemplated to
these prevailing gross rates, margin high from One margins. pressure lower sales and sales an point currency margin promotional our freight gross China rates. final mix, come product from activity. some including cost of increased to inventory on mix for Offsetting expected forecast benefits assumes continued Benefits to benefits, are favorable
the outlook of will Our assumes the QX half realizing offset cost, to benefits product of timing be that in related the year. second royalty
with to the program primarily by expected run million operating previously As cost goods expenses least savings our the noted, end fiscal benefit we at in year sold. of tag generate rate $XXX of to is in XXXX modest
guidance we with to initiatives. XX% to which assumes that XXXX, marketing XXXX associated growth goal Our our XX% offset in annualized that tag helps investments realized inflation in of increases and
in incurred $XX tag $XX million in million year the approximately XXXX. costs estimate with program we to Additionally, restructuring fiscal be to associated
perspective, we supply our expected levels to of as improve manage operations. we to aim XXXX. in reduce improve achieve our sheet initiatives throughout end inventory as through through combination down receipts, The balance capital We as this end XXXX are well a to to significantly expect reductions from our chain flows these cash activities Finally, working to in the inventory in year.
the call turn Q&A. take With like that, to through to Christine I'd over some to back us
