working delivering remain with to I'm company excited opportunity Chip. committed on tremendous on for the I for be our the our brand. Thanks, you and long-term given this Michelle both plan deliver stakeholders. role our and taking and and new humbled portfolio to to
Before for the let points. results with me XXXX, our start I outlook through walk you key and QX three
with Highlighted with we business. quarter direct-to-consumer delivered a strength continued First, year. prior net our in in-line solid revenues by
of around the our Europe power the offset in wholesale America This world and was incredible our declines in momentum Russia. Asia driven Levi's benefits and of success internationally QX, business Latin the reflects U.S. and demonstrating in helping quarter's the largely performance of brand sustained the by diversification as
year excluding pandemic XX%. EBIT emerge Second, economies the gross margin adjusted enabling us the of the have deliver foreign of of ahead our points structural exchange improved taken to stronger XXXX from for to we XXX business, basis margin, and substantially steps the have
momentum We XXXX. have positive entering
to and revenue delivering further business direct-to-consumer the global the positioning accelerating through drive in Our acceleration channel. is strong growth, holidays, us
second cost have positive costs, the constant with expect December currency foreign markets. broad-based exchange, commodity of in exited And improved and the which we from also major implemented. growth, including half, benefit was across benefit we initiatives tailwinds, continued several especially Europe to
progress driven what Net you our then XXXX. in in by in-line walk with positive through the QX, prior the strong now revenue I that for was we DTC momentum business. will means growth achieved year,
was challenges in U.S. which supply business to decline impacting up offset chain mid-single-digit due international by wholesale. was Our primarily a X%, the U.S.,
all margin in gross all UPTs, XX.X%, and currency despite the up grew by Our contracting reported XXXX, Adjusted XXX DTC in X%. grew consumers points across channel And but X%, to segments, net approximate an comp a Traffic, impact. revenue on U.S. positive business driven e-commerce in basis. AURs, dollars sales Europe. points by our grew our points including versus to rate growth numbers, returning and stores year-over-year, large basis XXX XXX unfavorable basis was due partially exchange basis global
impact lower price full we and Price greater partially guidance increases mix, higher price sales. margin of our in favorable currency and offset to gross full than costs impact of was a the lower anticipated. channel owing sales decline than product primarily foreign the and The
was adjusted to currency basis negative Moving basis foreign X% basis. on for million, costs, a our the constant laser controlling long-term. invest impact margin year EBIT at to XXX X% a expenses points the despite last quarter SG&A, from $X.XX remain from basis and selectively high-end down in while a outlook, was points EPS focused $X.XX reported XXX contracting Adjusted as of continuing Adjusted exchange. the SG&A diluted on we XXX QX was on
highlights by in of was driven segment. key addition strong revenues a net Americas, decline and store U.S., the the in double-digit of Canada, comps positive I'll new through wholesale DTC as in now as in Latin U.S. and America growth well in by wholesale. by e-commerce, X% take offset Latin the and a stores. was growth growth declined Canada In and X%, you DTC America
Mexico. in our Overall, on driven up Canada in growth X%, largest grew market, by Latin the year. Europe prior modestly XX% excluding and growth down second at mid-single-digit outperformed in-part of our expectations XX%, America was top strong Russia,
across QX, and excluding up primarily experienced DTC Overall, our Europe's QX and to was Russia most entering by in revenues improvement Asia, revenues XX%, sustained by the key Spain bottoms DTC strength saw net India, were and a relative QX Germany, markets reflecting core driven XXXX. the growth momentum led like Indonesia. we X%, and up business. In broad-based in U.K., markets sequential ANZ,
wholesale comp DTC of XX%. revenue stores driven also grew in was and company-operated by growth XX% strong performance
growth AUR XXX double-digit pricing to the also also actions points successful Our over margin in expanded quarter. delivered Overall, XX.X%. operating basis
sheet and flow. balance cash to Turning
have we our a last year, XX% we over throughout implementation basis discussed As a the in in-line on U.S. strategically half. prior ERP ahead Reported increased first inventory of dollar inventories built with plan. year,
the products, which If of goods and and in-transit, the multiple you XX%. core than can was sold inventories. season increase is The represents exclude across more in of total future the bulk build ERP approximately two-thirds increase be
inventory that point growth for half and have will by the [managed [ph] buys] first confident QX are high We the of be XXXX XX%. down
and end the overall preparation normal provide net the capital inventory quarter way, liquidity the QX, and on of of of which debt second With levels liquidity bring half. the end will Cash ERP a approximately to by billion. X.X expect remained to the tailwind we million with of working back strong XXX in
at X.Xx. remained ratio leverage Our
in return was quarter million. remain returned program, XXX returning approximately total XXX quarter. bringing and in million under company to capital [ph] repurchase no million share date. shareholders negative adjusted to to In cash flow approximately the has a in quarter fourth our the have which Owing committed to share expiration XX fourth XX [XXXX] dividend in-line inventory, last investments currently $X.XX remaining free with of we We approximately million declared and per the our we QX,
gross continuing the from brand robust strong almost of This including the during holiday despite DTC results versus accelerated ahead promotional continued will in touch period through our period, across basis up mortar, XX% brick Levi's the the of led globe, and in strength December. Before for XXX reflects operating year. largely holiday December, the strength by almost November U.S. margin the generating the XXXX. turning And and our performance. prior I into in points year, a November, remained marketplace, December momentum of sequentially to Growth November outlook on continued
to our XXXX outlook. fiscal let's Now, turn
That forward, there's do profitable as half of growth acknowledge product expect As tailwinds dollar. our outlook. we in in we additional in in said, strategies stronger our We we look assumed lot and have still a second costs lap and confident the expect uncertainties XXXX. are the to continue and we macro higher caution however
XXXX, exchange operations business and split of inclusive fiscal net reflecting X% revenues For billion the we to XXX of suspension revenue headwind expect evenly billion X.X from year-over-year, points X.X X.X% of of between foreign and growth Russia. reported our basis in
Russia, in points we impact basis dollars, and Americas growth reported in Europe includes low-single-digit In the Asia. Europe, Asia. mid-single-digit This basis XXX excluding expect negative in growth and a XXX in FX points and of
we For points Digital, shift and favorable to gross of our expansion of XX basis towards margin, point accelerated International. anticipate Women's, DTC, by driven the XX business basis
XXXX. points XX is XX to Overall, to rate SG&A set future expect XX for margin continued deleverage adjusted basis to to basis basis to on expected versus due EBIT up be remaining points, points expenses. point growth us Our XX strategic basis down disciplined yet investments to we
expense and interest a did due million comp as normalize mid-to-high tax we the a interest to in expect rate quarter, in benefiting not from teens. to to XXXX deferred We XX full-year approximately
is to of EPS diluted range in to Adjusted $X.XX expected be the $X.XX.
behind invest of high to include of XXX continue ROI million. in initiatives. CapEx capital growth We XXXX around full-year Uses
We as cash to in inventories HX. expect flow positive normalizes be
In XX of more company than stores mortar, anticipate new operated DTC globally. we terms net brick and opening
door XX the around end we the we full second I U.S. detail, full to as color Mexico. plan XXX following and doors towards U.S. by our XX priced then quarter HX HX In in to of open opening Canada the the count the NextGen XXXX, taking of some given the U.S., in on now the taking goal mainline the price implementation share progress implementation year ERP Levi's and some in place in successful quarterly in will HX, doors versus approximately
Therefore, reported in low-to-mid Our be more assumes will headwinds as guidance product prior in single-digits difficult as HX, higher exchange strengthen to we that compared HX our to foreign costs. well down HX, given expect and versus year. in business continued from revenues HX compares
headwinds reported increase high-single-digits. HX expected revenues to We moderate and in to
advertising percentage anniversary ago no revenues QX, points with XXXth a full-year change late basis. a basis HX be kicking-off to expect by higher of in year the a XX we as than in on Given
advance be the low-single-digits to for expected at QX. increase wholesale least XXX prior QX is implementation, As orders we revenues down gross margin expect ERP we points. to to basis
Conversely slightly a to mix for up QX, to gross to expected revenues high-single-digits expect be DTC penetration. in favorable we more to sales higher with the to QX due is be down margin shift due QX.
Before I want three points. to with turn leave Q&A, it you key over for I
in to exit are expansion, bolster made The the performance. business, confidence driving XXXX. our in share growth investments market sustainable diversity rates and of in continue our ability have December and strong profitable our to we deliver Our DTC
we We will comp growing invest and e-commerce. to sales accelerate in growth, base, ensuring continue our store strategically drive
to and commitment goals strategy our Finally, our long-term growth is unwavering.
momentum the confidence XXXX. be by on will to beyond macro deliver XXXX our us a impacted in gives ability the Although growth environment, in our business and of softer brands strength our underlying algorithm
I'll With that, now ahead the call and for open Q&A. go
