Thanks, Michael. everyone. Good afternoon,
plan. quarter we As operate in cost control environment the managed through Yet, pleased first and choppy healthy with renewed with the We our supply on position, us promotions, product chain. strategically how a This with variability. year our deliver monthly in enabled agility favorability, entered quarter. expected, and first inventory I'm to flexibility, the remained
a Adjusted Consolidated basis from several to the linked points. equity a delivery partially operating $XX year. to on we and we also below record X% favourable gross X.X%. revenue million, expense by increasing costs, profit maintained compensation the margin company, of as last pre-pandemic an year, $X.X past openings. Compared margin, billion first reflecting operating healthy led store income rate Within a rent margins up by quarter focus levels new promotions brand markdowns. partial new increased leveraged transportation to over progress gross was XXX environment $XXX rebuilding with the made preserving year, in last offset we with gross higher million to marked years. X% remained Merchandise of Markdowns of the margin for and to offset increased dollars up slightly, last
$XXX compensation driven despite growth, down to in our Store of million and new driven expense was corporate was year, model. last labor X% efficiencies compensation by SG&A advertising. up by store
a increased over another reduction new the focus stores. services, several that area past a quarters. to due has We saw Depreciation also professional in been primarily investments in
the downsizing of In in business. strengthen we've model. third-party first Quiet quarter, layer first buy, took delivery, we're streamlining brands see and and workforce of focused In Quiet platform's, pace mentioned, on place platforms costs seen we we inventory. from we where benefits, how year reset including rethinking focus From as fulfilment the here, innovative to restructure and to the with ownership, the runway. our the This align included long-term Michael benefits profitability. our current expenses next to areas greatest significant measures the to on We of and growth replenish
structure related in of as double as expenses time. we as quarter, full assessment long-term noted back includes processes into over greater prioritize P&L, business review the explore such company-wide was primarily to per $X.XX Quiet. as entire cost profitability efficient share. half as of a of restructuring As sharing we I last look and of our charges, we across margins of the This continue more operating digits Adjusted excluded profit in a forward rebuilding This our on ways clearance unlocking EPS two to second more the began well this to year. management, working. impairment the due and $X.XX
Our $XXX last count diluted million, was from down million share year. $XXX
we trends with brands, sequentially were revenue first X%. improve see and our increased Aerie up sales Eagle to both for American quarter. to Turning XX%, in Aerie pleased the comparable
assortments As resonated Jen noted, well. new product
from opened we last ramped stores lift over up the as Additionally, maturity new years, curve. they a the along saw nice two
Aerie's and operating rent as year, normalizing American year. margin driven to declined by well revenue of XX.X% freight XXX last basis and down points X% Eagle last expense comps were to leverage. improved X%, costs, as
sales. on brand As eliminating to Jen allowed year, relocating deliver or SKUs year noted, unproductive over lower rebuilt Aerie better profitability down the the of This years, closing several despite us the we stores. last unprofitable and have foundation
With the sales on can moving bones place, drive the forward. pursuing a profitable focused we're brand ideas of new that in healthier now
cost down particular inventory X%. current in Aerie in continue and ended the with environment. X% down year, US across to Canada ending cautiously quarter buy as compared double the last units year, down Consolidated digits was last to Aerie inventory the to and we
to Looking discipline pace second maintaining inventory expect revenue. ahead, and inventory we quarter are below
million. with liquidity have quarter, first our our the and to through redeemed with remaining liquidity healthy revolver, to of principal amounting access In associated million continue we We successfully additional convertible ended balance the the to note position. $XXX $XXX with the total quarter cash in
of the to million totalled leveraging infrastructure on to focusing guidance investing expenditures $XXX $XXX million of of expect We're prioritize million, CapEx million and start our we the at cash be in free selectively as million to four-year $XXX $XX have. We flow Capital to range continue generation. down year. prior the now $XXX we from the
reflecting expect We store Aerie to roughly for last count flat approximately XXXX XX brand. year, by in offset store the net consolidated continue our closures AE approximately to be new XX to openings
environment increased seeing favorability Moving discretionary agility for in and yet on to as the chain cost our to operations, our supply the continues normalize, volatile. spending outlook, we're product remains
the slowed last has several business first Over the weeks, from quarter.
this the this million. seen operating million time second of to continue, range revenue we in While in down to income guiding at low it $XX quarter trend single with the are be the digits, will remains $XX if
We increase quarter. in from first similar we as expense pressure expect digits, a gross to sell-offs to is recovery to the depreciation year and cycle expected is mid-single expected last costs. to and freight elevated from the margin end-of-season be SG&A low
year, the to down revenues low of digits to operating For $XXX in and we single million. see range flat the $XXX income million
As and updates on highly we'll savings discussed, finding our and focused across on organization, we're progress. continue provide efficiencies to the
open I'll for up that, it With questions.
