thank than are morning information going let discuss To our to second Pam. advanced, our as Good today, little us joining new flagship. results. you know a longer prepared run for remarks quarter to in our providing are detailed usual we you Thanks, on and
with With that, quarter second started let's get results. our
U.S. path key the progress where we to that quarter transformation solid brands. are our target. off and heard us the previously the making fiscal issued to monthly many experienced enabling got continued comps start. on season, a our in to continue initiative of quarter to Equally Momentum quarter-to-date we quarter across from has the our XXXX you second outlook. a slow report season As important, start am achieving our with deliver earnings are on retail this second on improvement the positive Back-to-School peers to progressed, I as pleased
deliver with start a escalating initiatives into navigated let's But quarter and how on second outlook. on we moment. our first, a more detail environment discussion transformation our go an to in on I'll promotional
strength to weather, record the benefiting female plus comp offset from Our quarter several our with although made in in Brexit momentum X%, a by comps pants, counter were flat and protests. second jeans, last intimates, positive that from softness but was by external of U.S. could in tops. swim year, We QX international and not factors, X% which comp levels, extreme including well-publicized improved impacted down results
markets. net Europe, with in with other across were European in comp improvements in the U.K. China offset helped improvements consistent quarter, last In weakness offset Ireland, the Kong results Asia, by In and region. Hong weakness
environment. U.S., markdowns and and competitive our we quarter. to leveraged the markdowns which effectively the approximately heightened achieved quarter tourist these revenue measured believe our positive locations that comps, in from promotions for keep base, and and were appropriate. eighth We represents a despite two-thirds inventories our an of consecutive drag promotions ongoing throughout Turning we compete and line of To Back-to-School,
a Abercrombie we flat posted comp. By brand, at
and soft record dresses which category, wovens must-grow led chase we jumpsuits able successfully quarter. were our bottoms were women, rompers, includes That throughout summer. to to and categories On in strong; dresses these and the way side, men's the knits the for the achieve enabled and and into sales
long-term the We brand, view growth our kids’ which with opportunity also we excited a remain vehicle. of as
represented Celtics February, for where forward Hall limited-edition buy to We've been team our integrated that new store Fierce began evolving This assortments, our been meet hours responding marketing fans Abercrombie at bottles. lined on Boston steadily Tatum and Fierce in in effort. events August our campaigns. building marketing with Jayson including Faneuil in his has campaign effort this which our with up relaunch customers successful early fully first favorably While to are the supporting exciting
supports Beyond assortment. customers' new education. on Response and been storyline plan XX-something our her for to much-needed XX-hour our for with with jeans also Fierce, our we strong Love holiday launched which which the long target a Abercrombie, we as women's Curve campaign, has throughout fall campaigns More campaign well introduced recently, Curve encapsulates our dollars. new outfit all seasons. off she's the media AF as Love desire We building that on appropriately and as voted social jeans introducing our Soft these well weekend as also ones and have
pleased our girls at continued but achieving our stabilization Record while the another bottoms and Girls two short jeans. mixed, were performance Gilly While driven bottoms delivered guys by record record we're positive. pants guys must-grow acceptance performance with swim, strong of was and expectations. falling Hollister quarter across with in Abercrombie, categories, results was at shorts,
this all where strong top our to comp last However, performance of were was unable to enough offset not challenges, we year. from
swung we in sets. trend our quarter quarter away season and tops to registered recognized of Second not the from the improvements earlier girls well June did team with quarter nice The The DNA. chased too our second opportunity in throughout enough the a offerings Back-to-School core July and customer areas our far date. comp as impact continuing resonate and change
the for to on expect We of build holiday. recent QX remainder into successes and
jeans. and chased reaction curvy the fit into we've to continued addition for also on denim, strong to our the recently based mom demand introduced In top,
Similar customer, Hollister's collective quarter We momentum first feel sales marketing skin. confident to their our in record resonate leading and target with continued comfortable both its second swim into to swim genders. built own teens A&F, also quarter making across with
First with that's to K-XX schools and creating inclusive safe campaign: organization another Guide, devoted for launched LGBTQs. an Pride Time also ongoing GLSEN, We pride partner successful
brands, could speaks have about always The benefits to better, done for am across positivity discuss jeans engagement quarter our Collective already are Good, our which strong we Back-to-School teens we for Jeans and resonating date. all with performance Finally, is want the views initiatives. And transformation channels proud million I all and Emma things, realizing results back, to is to there step X reads. video while Back-to-School. initial of over Taking giving a I from which confidence across Chamberlain's content are reaching second
Moving U.S. uncertain elevated, confidence than outlook. promotional believe challenging core our habits. macro an the start domestic many shopping the in reflecting to was global is ahead and desire quarter, our get to our health dramatic that to In the quarter peak the the product core for customer environment we rather summer shift of half, customer second through and tempered back Back-to-School, the of a by
volatility remainder year, be every similar that Our the of outlook and the Back-to-School takes for assumes into holiday to will global promotional. account potential year and
on transformation initiatives. update an to on our move Let's
include, our enhancing network, speed and and life digital programs capabilities, engagement reminder, our these loyalty optimizing our our and As improving and omni throughout store global marketing product optimization. through cycle customer a efficiency concept-to-customer our the increasing
let's So with start global network store optimization.
fiscal As a through is our doubling discussed customers goal too. our operating Day, costs, and stores and store do to believe reducing margin XXXX in XXXX occupancy. driver key fiscal leveraging adjusted at of our mainly We our XXXX non-GAAP Investor fixed our
Research highly With majority visits Z than the our more represents Z of these especially customer is in millennials. target occurring largest which channels, stores often that base. Gen shows relevant, our Gen to sales it
Reflecting however, store optimization evolution our remain stores. to and with key for one on been have the experience, being providing top the are omni-channel commitment this choose best several components priorities. our network is opening has to global rightsizing, closing including, seamless remodeling, There of strategy of shifted. and right us. focused experience the with providing wherever they digital We and to omni-channel there, However, their engage capabilities, and them and expectations whenever,
XXXX, Since underperforming over we have closed XXX locations.
store footage on new the fiscal year, gross $X experiences, XX%. the first digital provided XXX ending with in XX while square This deliver Over gross including by our and company-wide to over to achieved period, year track same with productive year. footage we we've been while half experiences, growing up in approximately remain to reducing has billion down customer roughly to new the last XX This the XXXX. close square locations XX revenues
perform our and a them store and brands we quantitatively evolution. step across well qualitatively continue to updated Our ongoing in view both as critical formats
on store average The global on been against high We've sales older-format generate Hollister, of with lift stores. has control the fleet Hollister stores Hollister's size been aligned which updated. the are closely build-outs. At able of given its single-digit average existing meaningfully to XX% approximately modernized impact new our more
approximately built, they Abercrombie, were the fleet global feet. to our tended of XX% been At has very footprints stores runway. When updated, averaging large significant XX,XXX have leaving square to X,XXX
the stores are XX% them. below are or New generally larger-format roughly achieve stores and comparable stores. is smaller-footprint taking days modernized and to early we sales are learnings far, that Thus slightly control smaller. applying It
have been stores. the mall lease Unfortunately, temp it Recently, to requires more we've how carve available move opportunity locations our as there to space. give openings can we do with prudently us limited with which landlords our introduce partnership or existing accelerate could the many or to been within for increasingly annually
brands our the U.S. at are of Looking across our health of fleet base. proud we
are has in and past one locations over non-flagship months. XX In operating B XX% American centers the of and primarily XXXX, traffic open We fiscal the outpaced our year our margins. A located mall four-wall average North for generated approximately positive
for with renewal to flexible modernize continue locations and stores our to expect of simultaneously kept landlords of we into stack up terms. improving XXXX. leverage And lease further we've our the XX% partnerships roughly remainder our with Importantly, while highly to lease XXXX
Abercrombies have carried era. optimizing our flagships those the a been price that our operating mall first performance in unfavorable time, trafficked premium lease to than but flagships, impact. cost mall-based large-format represents and in While to XXXX mostly of we've the significantly be tended locations. made well-above last on harder incredibly in beautiful highly rents built At significant considerable These that which we are terms elevated a stores, of our costs which progress XXXX longer and stores. successful, opened These were stores construction tourist average high different
for modernize involved oftentimes large fleet The remaining are terms flagship our evaluating build-out tenor the today. Many is location, and return. and old not significant did of sense promise cost without in of the We're model flagships. size, outdated. to of make The majority and a
to to our shorter is strategy continue to and both cater more locations we and closer As customers local to lease that omni-channel move flexible customer, with smaller-format, alike. open terms tourist our
XX Heading flagships XX two of Hollister's. and comprised XXXX, into Abercrombies had we
our we closed Street Store XXXX. Abercrombie reminder, Pedder -- in a As
stores these had total count, small on approximately better XX While the represented locations our of results. impact to of actual our flagships in outsized sales. number operating XXXX, an impact frame have this is X% flagship our store To compared
four-wall a operating total and point roughly $XX with drag over basis XXX point on million. for drag and were a comp margins responsible for on As operating margin company perspective basis comp XXX
is it within existing on repositioning these and stay it that where that we our With markets locations sense. backdrop, imperative exiting of path makes
size fits is QX by one announced the unique year-end; A&F exits approach. Milan our SoHo for is flagship years location its any has quarter flagship own closure: rather engage exit with landlords of set behind-the-scenes which do The on Japan, top to thoughtfully Italy, of XXXX we expected which close the each goal not Copenhagen New work, all than a many doors a is closure. The its York circumstances, As three we in After in of take A&F which at first cost. fiscal scheduled QX; shut and Fukuoka to Hollister
$XX SoHo at reminder, basis closures run our approximately XXXX the contributed by in of are closings year-end. QX fiscal QX, XX and XX revenue. or to under QX X% margin three XXXX to in and points in count our benefit operating bring total flagship a rate off Milan expected will of As of Copenhagen plus million announced Copenhagen The
Looking to XXXX.
to reopen In expirations, for available ability flagships closure within these lease natural the we to additional Fukuoka, markets. have giving us three addition through
provide contributed operating point to detail cannot that we million of What this time. margin year. operating For a we approximately XXX combined XX points variety store-level can or basis this is last the margin reasons basis at four-wall disclose of $X group's drag
initiatives, a our anticipated remain be These our ongoing clear, was closures. transformation progress to closures scenario us we outlook operating our we with our with of market on To fiscal our target. Investor along and closures, contemplated achieving Day closer track bring at and provided XXXX analysis potential when XXXX
are flagships. additional closing XXXX, to committed we fiscal Beyond
XXXX We XX in provides that further fiscal have stack beyond. a through on summary today's investor clarity lease on presentation future page expirations and lease
the with natural As closures our exercising expected exception. store, the go reminder, we Accelerated leases. provisions, for of potential through SoHo the majority buyouts in exercise expirations to should primarily of clauses a kick-out and did future as recently dark provided occur lease are be our
our all network key I and tracking lot enhancing long-term initiatives, know, quickly time spent goals. talking of our we've also global other our capabilities. I want a of touch Starting about on digital optimization, are store to which to omnichannel but with
positive, a grew by digital, range. Our which cross-channel in driven again double-digit traffic once was
devices continued in rollout During network stores. in-store of global the top the quarter, handheld upgrades implemented and U.S. we technology our point-of-sale and
life-cycle, gather data. increasing to live size price and the now our optimization throughout learning programs efficiency and speed machine our as they These with we tools. Turning customer product build are
Given this inventory learn we've just year launched we and to fiscal margin both benefits efficiencies expect and XXXX. in realize
royalty engagement that series of will year across the growth have a Lastly, and loyalty to brands. marketing we're in personalization on strong from ongoing early from improving have customer stages experience accounts investments in our through enable data leverage the last rich membership we our of programs, which us optimization,
with and all further that every foundation our XXXX our see detail to initiative, on move fiscal our our it that an we closer goals. quarter is hopefully, expect We impact to clear in transformation XXXX. to strengthen fiscal business With
Next, and our largest our citizenship governance, very our environmental, work corporate us efforts ESG matters new customers. it in seriously. want We at and quickly to announced fiscal and It commonly our to sustainability become on the as participant that a it we also we've called. sustainability social touch matters Last in the on to year time, or UN Compact, XXXX is that I ongoing provided Global targets. world's initiative take week ESG and
growth and I basis. I new our in Europe Scott, region issued call release our and Before like understands key members customer each team localized Investor hires Asia. in a XXXX, At both this on our April turn proven to team. over our regions. Critical our the that the to would two on building we significant Day discussed welcome opportunity playbook to execute more can aspirations, Earlier these morning, a for to we announcing
VF General our leading most China, Olga Our Dan business XX-plus running Le from experience, Martens. us both by Wu charge Europe joining Corp, creating where has at they the over Timberland. relevant Dr. Olga experience, she led hard been years be in was joined, has Vesconte. team have will years work the Olga relevant of Since Asia. Manager Dan of and Dan for be and priorities. strategic recently will XX at
have positive impact Our XXXX. our both expectation a for is to on results in
turn will second over detail. I call to our that, to With the more results Scott quarter in discuss
