Mark, you, good Thank morning, and everyone.
pressures demand reflect softer-than-expected earnings our environment, against well customer. as driven our and less-than-ideal strong additional on quarter third a expense by Kohl's and progress this achieved strategic margin gross management macroeconomic persistent despite as priorities. weather We
and our Throughout sheet. enhancing and our inventory simplifying have with and managing XXXX, on accelerating further experience, balance are the value customer we strengthening focused which discipline strategic X our strategies, priorities, expenses
and resonating Our actions against priorities these with our customers. working are
our in more year-to-date initiatives. our driven stores' with by recently, strong pleased Sephora growth and performance am gifting positive and, home I
expenses In addition, quarter. efforts at of the strategies, our end furthered simplify and the manage to third we inventory value reduce tightly XX% our have
XXXX. have us we to year in work will set and done up to be build the momentum successful this ahead, Looking continue
before, though, of said time have the we full take efforts some for it As realized. will our be impact to
some and details QX. and share by were pricing of promotions were now impacted X.X%, down on eliminate me down sales across decreased be to the Net favor decision to online-only sales part Let in continue additional omnichannel enterprise. in our X.X%. Digital XX.X% sales comparable
While down for in it approximately this our pressured has sales XXXX, comparable the digital were QX. remains in long-term business. performance X% right Store our strategy
Taking our tracking first a the the were closer we look sales X season, had at expectations. solid and above a quarter, weeks, back-to-school through
October a However, demand the had warmer weather during of on goods, in especially clear for our impact later fall and into seasonal September part store.
While I Kohl's proven on We experienced business be a basis. weather blaming like when historically a divergence transition apparel-intensive for, fall in has to sensitive weather to most regional don't significant is performance fluctuations. the fairly period
in Mid-Atlantic regions, mid-single in sales Store impact all the weather digits. were our single QX, was where Northeast and most low apparent, other to digits the increased Midwest, low regions while down
on categories home, initiatives and various impulse. de-weather underway business weather-sensitive growing focus have less sales as beauty, we We like our gifting in to
against stores' the progress investments of point key meaningful really emphasize of strategy. priorities, XXXX, time importance our the and performance. has our our want update Before processes. come This our a attention, of focal new sharing reestablished strategic have on an as stores we in and leadership's I our In to form operational
their new while to our of sales local customer our simplifying our to checkout included and repositioning it store, in-store expanding consolidating empowering capitalize front merchandising gifting and have adding the signage overall stores drive area, opportunities the and graphics, actions to categories our improving Our assortment in markets. on
to this able favorable, been return customers year-to-date. brick-and-mortar stores. and this yielded so has accomplish we've year to our far has what been from a of in The sales proud am growth I response
our Kohl's. initiatives top to largest priorities. priority turn opportunity detail now represents and Enhancing for remains experience provide the Let our growth our and more the me on customer overarching longer-term
QX As these to stores future our space most we Sephora be I are home significant decor shared longer will as in our on believe the largely growth for and call, contributors gifting, white opportunities term, Kohl's. new impulse
also are stabilizing businesses apparel our and assortments our We footwear on to customers' interest. by reflect our focused optimizing
Let some at me initiatives, stand on with where on these first Sephora now share we some updates Kohl's. of starting
We more Based our and have by confidence at results shops will with growth in Kohl's in comparable success, partnership we in QX, increased In Sephora to with be greater QX from with QX. opened achieving. than that we beauty extremely XX% increased last is an in that mid-teens XXXX on billion XXXX XX% a acceleration continue happy and XXXX. than Sephora the to and business the our be sales $X are growth This year.
saw We skin strong including assortment, increased attribute sales and demand than fragrance. entire quarter, beauty the the the awareness shopping increased We more gains. across improving care, driving share in trend and Total frequency. additional beauty to makeup XX% the
the over our XX presence Sephora large of During a format smaller shops. stores, quarter, more of in XXX is Sephora nearly more our with third received now and There stores XXX XXX shops. than
expand to it pleased remainder of by performance. this chain XXXX. format our This new are shops, supports relates the plan As our very smaller the to with we initial to the
our well are year. with For last more XX% Sephora compared in of the to as holiday stores positioned, season, featured we
which on the building our broader year's growing of efforts. successes sets gift are gifting number within our beauty last also significantly holiday supports We assortment,
gifting new holiday of to expanded Kohl's assortment This a and season, of significantly year. at destination. want gifting we We our have section gifting this XX% front store, is the become the the
gift and care of added stocking personal number increased baskets have the sets. and stuffers gift We
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variety beauty, a other of with wellness, electronics, fixtures and snacks these merchandise will toys, We products.
business opportunity, we and Kohl's. decor businesses have fills for home To important vendor have void other and new invested this is on in historically for. growth complements our elsewhere decor merchandising Home have relationships. the organization a shopped capitalize that our customers another Building formed a opportunity
we QX, lighting into decor, stores, and our glassware to In ceramic new art, began wall home more. barware, including and botanicals, products flow
drive are as significant in more in in business solid in incremental the a driven set goods. as initial We home customers in store. our home our prominently will stores, QX, destination growth of expand to as home coming outperformed In featured by categories, which our Kohl's years broader for and assortments new see performance further we begin a
is have toys. invested in that pet broadening and cat with in-store We we have through dog a category also very discussed have expanding our our like assortment our results It been QX apparel products opportunity to increasing The XX%. pet positive, beds, grow sales more and and dog business. space than of
momentum with options. to plenty gift of during build this the pet-related expect on holiday season We
positive marketing strong As more with home our allocate optimistic of is and customers that offering build. and supported and year-to-date. through at our efforts, My in of our feedback spend achieved I'm will respond and by our already product expanded customers seen collective gifting, Kohl's. sales recognize we've this impulse store will the Sephora, their more customer favorably decor, We've optimism sales of
open similar We opened longer-term a Kohl's quick on new our recently you significantly follow activities remain new opportunities let XXXX, near a total, to to smaller our expand and longer opened stores, me term, for term. stores. new store in so to new relocation capitalizing the will update new the X provide committed footprint opportunity In completed In larger We the we completing closed store on a new continue openings, Now year. format cadence with stores. X see store. we X opportunity stores, with to X for
and weakness cold in footwear QX. during obvious was offerings. apparel There our weather our to businesses Turning
XXXX. However, we strength see focused areas continue our we polished dress attention in our casual where have to and offerings, in
pants QX, including well and across with men's Draper We and with dresses Little suiting, results other outperformed and dress dress also brands Lauren performance Armour in our of as were X key Jumping solid Under James, and brands, the pleased and Eddie as Conrad, Bauer Haggar. and shirts private Apt. Nike, like Co. Beans brands Women's
to of and footwear apparel Broadly do already underway. speaking, to and we improve lot is performance, have more work work however, a this our overall
to share juniors into market me to market. reducing our In offer core our are through strategy lead domestic category dependent by brands. for are doing we example. one more upon leaning pivoting business, basics while private a times continuing where In our is speed Let items our brands success we in so, trend-oriented
our category brands this We forward that confidence us will encouraging progress the currently year. market more and be relevant in to further work sell-throughs. of look in This some as seen sharing more coming have of the on we in select these the have gives we scale quarters. I juniors stores
our evident in is value discuss priority, millions is simplifying me second our regular on to basis. great let value provides strategies. which Now a and shop This our Kohl's that customers. accelerating at customers Kohl's of the
and opportunity customers, effort and an important pricing However, drive that engagement they is of for conversion. we one newer This ensure recognize the to Kohl's customer can value simplify that and we too to our have that an offers overall provides. believe ours
encouraging apparel targeted price results and have mix in home key our items volume testing positive sales marketing with merchandise high see initiative, also we pricing. points. the items items while growth. is clear see our brands, we more and and percentage these which pricing in on to of In must-have XXXX, clearance a consistent as private offers Customers events our continue increased with implemented of key During our value regular
we a XXXX. is purchase account them plan more The portion scale of in but assortment our to currently, small meaningfully
pleased progress made Our risks recognizing approach I the that the quickly. moving am date. has to we've been too of thoughtful, with
is label co-brand program. rewards. recently, card, Kohl's ways value more Kohl's Kohl's our we card newly Rewards, to earn loyalty our credit our which Kohl's Cash, credit gives our component launched Another provide the customers of private important customers leading This and, includes great most
managing I inventory third to our transition will and priority, is with which discipline. expenses now
inventory inventory year last proved goal management. disciplines environment year, where stay we compared During agile we new beneficial quarter, as in by open-to-buy strong we greater to operate with down as percent. softened. planning mid-single-digits our the able the reduced earlier ahead of and inventory demand to The XX% had expense we're this implemented third We QX of
last levels year decor. as For to well an are as increased well core gifting holiday, investments with in in-stock basics from home compared and we as better in inventory positioned perspective
to remains the long inventory goal increase over term. turns Our
able our perspective, demand expectation disciplined due our And than to from slightly manage an tougher a to focus in expenses better expense we were environment.
We the including focus productivity. driving reducing and more areas company, our efficiency to expense operations technology into across on marketing embedding drive to our spend of all continue
leverage X.Xx committed fourth a remain a lastly, to long-term returning sheet. our level. strength, And of historical We to balance with our our balance sheet managing priority objective is strengthening its to
revolver Our our focus our cash is near-term position. significantly reducing and borrowings rebuilding
We discuss to Jill capital returning capital in a shareholders. also committed allocation remain moment. to priorities will our overall
things. To leave summarize to you I my today, X comments with want
First, repositioning we Kohl's. are
are categories business. will we the executing It to and we the sales growth several we initiatives and position we that products includes better the the efforts and disciplines the important drive leverage provide over across to operational We improved strategic the term. offer, and experiences processes our long profitability carry, value company manage
in growth innings the remain I've to initiatives. build time we takes many Second, that said our times of businesses. it early
and been relevant has one, processes products. assortments current disciplines and new focus twofold: new and, adding optimizing two, embedding Our our
the year, of work see be this in this XXXX holiday be aspects of efforts will fruition visible While even season, XXXX. of more future in beyond. anxious to they evident to more our will come I'm am I and we've and accomplished our proud vision
And seen important new for carry of holidays they strategies our year, this time more the our time Kohl's. be customers. by an for been third, even have significance the first always very given will that And many
up all holiday for this want the visit will stores their get listening a season. I associates us to over today for I hope set to our our to those thank across Kohl's the coming chance of efforts success organization weeks.
turn to XXXX our outlook. quarter results I discuss will and third Jill? over the Jill to call now
