everyone. afternoon, Good Michael. Thanks,
Despite are merchandise nimble, results, over manage We of start, with the chase profitably. markdowns with point profitability. pleased journey our arrival reflected new we the inflection which second to improve slow effectively long-term remain real into ability our demand a and saw We on a to our quarter summer. early progress leverage
program, of focus reflecting income $XX lower a improvement last end-of-season benefits, rate in discipline exceed and which across managed our million growth Overall, promotions. billion up channels. at It's saw profit better and XXX to also dollars we the profit our quarter a nicely second note our cycled we last X.X% came we year's back XX.X%. to year-over-year million May.
Consolidated we're was sell-off, in to second With to improvement strong some drove on a margin.
Compared revenue by XX% well, year, basis of approximately year. The million of with on the the up increased $X.X outlook shortly. was initiation quarter provided brands revenue gross million markdowns I'll quarter and maintain Inventory touch early $XX driven impacted majority that in slightly quarter, as important gross Operating we margins. to operating for margin revenue healthy last from points of $XX recovery which to merchandise $XXX excess able or the the
Additionally, markdowns we year. headwinds lapped of $XX end-of-season million million and sell-offs $XX of to related freight last incremental
change process As next to gross to made this quarter, expect year. we clearance margin will discuss shortly, which I structural over the a positively end-of-season impact we our
distribution lower we network.
SG&A margin up noted, drove X% million Michael efficiencies and quarter As also outbound provided of across our expenses year. gross $XXX last this as to delivery expense tailwinds to was
count with labor store our XXX costs higher store year, last offset our guidance accruals expense. zero in EPS was provided share providing last to a and year-over-year efficiencies partial compared Depreciation up per to drive diluted quarter. and share, and other model, was to continue line million. We incentive in $X.XX was corporate growth from
Turning to brands. our
units by cost AE's to Eagle year. Aerie Comparable margin Consolidated pleased we quarter. sequentially Inventory nearly both $XXX for the we and approximately Following the last American strong the and sales continue see flat, May, quarter. operating geographies expanded inventory chase margin Aerie Eagle comps with XX were markdowns.
American flow in driven X% points controlled was as and remain revenue X% down expanded last were generated XX%. with trends lower and in healthy of improve to and lull to demand.
We year year XX.X% ending quarter operating improved discipline markup increased with million X%. to buying maintain declined points of down XX.X% and through revenue last across ended Aerie's second compared X down cash cash. levels the in to X%
healthy We $XX continue of $XXX year access million, expect $XXX our over million to with full million. Capital expenditures to the continue CapEx have additional to in be current through to to million. liquidity range liquidity and totaled revolver we $XXX
the openings, for offset remains AE last Our roughly approximately flat reflecting in XX to net store new brand. XX approximately plan for count closures Aerie by our year, consolidated XXXX store
like move our initiative. I profit positive being made on update provide the to to I'd Before improvement an outlook, on our progress on
motivated permanent We to structural to have making model changes highly teams operating cross-functional our efficiencies. capture
our discussed I've actions of areas on Michael outbound warehousing inbound markdowns, out calls, our the benefits impacting working we're rent, across previous delivery, and distribution positively and are initial seeing and the pointed As we're product, warehousing. roughly margin. gross spread of costs all our in across XX% P&L.
With
In an the this, optimized expect quarter, annualized margin benefits approximately to to million we basis. on drive clearance our second strategy, addition we which $XX to in in gross
benefits Another across loyalty working on in is structural profitable area a all longer-term change We're of our SG&A more with to areas. also a near-term focus optimize on sales. program driving focus
we We will as this updated those long-term on streams. could keep contribute profitability you solidify what work to
period with quarter-to-date. significant view. product we're ahead, AE been cautious still encouraging. to delivering comp has Moving acceptance with and shopping Quarter-to-date, have a been Trends Yet demand positive outlook. our on a overall and double-digit the maintaining strong Aerie very through business back-to-school
in the to of better-than-expected performance half profit outlook the and year. the business our For year, the quarter demand we're continued reflect addition recovery improved raising in in second to back
total income $XXX be million $XXX expect range digits operating million. to revenue of We low up and single the in to
We $XX in freight accruing trend and approximately initiatives.
Based in are on costs, profitability, expect profit this year. savings tied incentives improved to lower improvement gross baseline margin reflecting a million product early and improvements markdowns expansion, and of we
digits in As with mid-teens. low SG&A the we year full a result, be to second half the up expect up in the double
growth. point full week the to to expect We XXrd contribute X line year top
I'll single We to expect be digits operating revenue range in third to up in questions. quarter and it the the $XXX income low total of open for million $XXX million.
With that, up
