morning, everyone. Michael. Thanks, Good
receipts, second the successfully value stores top our strengthened reopened, demonstrated laser flow is and incredible preserve quarter, focused as teams the to fortifying growth. on reduced within channel cut quarter, the were instilled position. in and we These During improvement and sequential line spending, disciplines, Back accelerated levers and inventory positive took the March, in exceptional digital control. operating posted our cash. earnings resiliency Aerie steps numerous actions The our creation in financial in resulted second operational cash
revenue of weaker primarily due impact AEO, total declined XX% store traffic. last to the mall closures and For to year,
we declined period. year-ago last lapped the $XX revenue in revenue addition, license from year. Store Japanese to a In million benefit XX%
in productivity days conversion weak selling delivered of rate. quarter closures, to were lapped second peak roughly result with store the the over the June Open equivalent July weeks. strong a of coming fewer volume during and sales also stores hours As we in year, high May as a have very mall to last XX% lower Reduced historical by offset and XX% year. quarter we traffic back-to-school relative XX% last and headwinds, our second
For costs, reduction center distribution the to revenue in reflecting total transactions and digital store a XX%, and company, profit cost an per higher gross primarily increase declined shipment. in due and higher delivery
quarters. impairments recall headwinds reflecting of revenue offset recognized the rent negotiations the period. lower taken by landlords we benefit in licensing expense, profit with that In lapped gross These year-ago our Japanese addition, the recent the partly from and impact were in
We also benefited markdowns an markups controlled. were increase from in and well
the declined management of XX.X% organization due in percentage crisis from quarter. loss gross lower remains primarily a the our reductions per a since began, share operating to plan, declined $X.XX controls last in year. COVID company SG&A. operating XX% reported focus. significant SG&A of XX% Expense an margin executed and And expenses initial expense We across from expense has implemented the store versus closures. adjusted of the As revenue, cost
incremental results million, charges. $XX which and EBITDA Our COVID-XX year, $XXX million restructuring in to adjusted compared pretax excluding was the these expenses $XX million from last
operating cash the Our was during $XXX strong in flow. cash with quarter, million generation
the investments with in the after our credit $XXX repaying quarter facility. a outstanding million we under million the borrowings repaid we result, $XXX $XXX After revolving remaining As balance. short-term quarter outstanding our cash of and ended ended, million
of balance currently liquidity and over $XXX debt of Preserving many issuance. and our only balance actions priority XXXX. remains note is cash preservation will strength recent Our our our outstanding million convertible major continue the sheet our
For cash share suspended example, were on hold. our repurchases we last put quarter, and dividends
current Our the a that is will back pay expectation the dividend we half not year. in of
million to $XXX half guidance million $XX remains $XX in our expenditures year-to-date reduced capital range of $XXX down plan, last lowering down from the from In addition, This expectation. we million million, of meaningfully capital year. to spending our million of XXXX. are a And our $XXX first
to our with also We manage continue inventory discipline.
primarily American our Our closures in inventory in by cut AURs, quarter-end to second store this control optimization company reductions and to promotional improve crisis we the proactive driven receipts declined quarter activity, early positioned us The due well. enabled inventory initiatives. XX%, inventory Eagle inventory receipts end cuts as with and total to
our momentum. fall disciplined we that of the inventory the focused similarly surrounding require have growth product pandemic. given half executing We we in and narrow this invest plan less In clean for continue to are more season heading AE, COVID-XX In inventory support back uncertainty are the assortments into the we year, Aerie, on on buys. and to upfront
plan closures costs with next fleet we our Moving to reduce our years and several evaluating the and increase to fixed the stores. are stores, over actively associated
remains reduce we XX digital important and based to and our mall specifically lease engagement, customer success customers stores, which to XX acquiring profile, the locations our been to expect growth on plan confidence have engagement for customer recent fleet end to online of other this us tenure, fueling with proximity levels. At our and our year, close additional in channel through footprint. we had distribution chosen the While our have gives
confident sales ability locations. from transfer very in are We customers our these and to
monitor these AE We close. the will results. and And we'll to on rigorously identify additional based learnings, locations analyze
year, well as average next an year and We similar under three a and number XXX a leases years. half lease term expiring as have this almost
portfolio lease us longer allow no Our quickly locations that flexible will sense. to exit makes
I Although share not providing we are for can guidance, directional some comments.
Eagle brand the shopping the As destination. is back-to-school you American leading know,
periods In year. brand's of represent key August weeks highest in volume fact, July the some and of the
performance the the we especially to uncertainty have a noted, on volume have delayed put This year, we sales starts timeframe back-to-school it peak the to weeks. demand many over moved quarter, Day into for As spread volume be to crisis by recent Labor the past sustained other as have closing, post we our previously retailers I pressure our period, discussed by September. as and In organization as lapped periods. last extended high more expect we resetting current encouraged to position We're for those responded historical have success. better
underway. to and additional areas perform open and second and year. the currently expense the of the quarter, continuing online like With of our pandemic, continued we in XX% over sequential improvement made During and half of the stores inventory efficiency from well, escalation progress the channel we management cXapital see work is expect to barring an first
on and in growth are we value our AE's process call long-term ensure we of improve profit strategies and network. for the updating chain creation structure and the returns, go-to-market questions. We capitalize open Aerie's supply our to With optimize can that, up opportunities,
