And our everyone. page, on morning, our following second GAAP Page for Good have the we Mike. X half. Beginning on materials, P&L you, first the included Thank quarter. GAAP of we've presentation our for P&L the
speak GAAP in quarter Last quarter results an cost adjustment items. allowed Page us exclude information the balance and our to for reference. to X our our the adjustments year's retire I to basis, and of results deleverage which This restructuring. liquidity pandemic-related strengthen to performance related second half and to second early And your included is included the debt summarizes year an on our for sheet. adjusted this morning, these will organizational first as
our On were we quarter the Page as Mike Net last X, the said, we achieved call. in forecast million. shared with $XXX you on sales
consistent Our declined seasonal by our demand U.S. product. guidance our exceeded in mid-teens. forecast Wholesale the quarter of comps sales for in earlier driven retail XX%, with a the decline
our strong weather, interest borrowing, cash which we had a trends in we In largely in Canada. replenishment and International our the led first was in lower half, Spending traffic than our to controlled business we've our expense enables across operating income most better-than-planned forecasted. were sales seen position than of to forecast. brands. bit lower Profitability, turn had also EPS forecasted, affected cooler consumer due both above were well and lower which
key summarizes our page few quarter relative second next year. of performance The to last a metrics
Second quarter and earnings sales were down.
continued affecting These to the current last in performance significant strong, demand, impact year began the second of of Our year channels. the consumer was of on effects last quarter and all inflation our to in the see sales through balance although relatively quarter. we
led negatively rate overall profit lower Our strong, and remained dollars profitability. lower year-over-year affected gross our gross sales expense have performance deleverage, margin which but has have to
the and were EPS and adjusted Year-to-date first same net sales last reached XX%. adjusted and versus down of income the sales XX% profitability Page includes operating down half X year. for metrics XXXX
lighter represents the nearly ahead sales first historically half portion XX% of The us. our of planned with year the still of
million this position. to gross The ago, softening. was outlook for year is inventory year. basis improved expansion margin on largest excess our for the of a Our took as charges $XXX gross was X. quarter for we of quarter, the points P&L forward net an in last over we XXX Page second our On rate demand contributor achieved A margin XX.X%, sales in inventory increase the
we've resulted demand, We have which P&L made this progress to align excess and to through inventory managed in the has inventory, carefully projected in a net year. working commitments good benefit with
a we rates. a freight from ocean to lower benefit Additionally, in lesser extent, quarter saw the
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been higher versus performance-based compensation costs related lower these provisions new and stores Offsetting increased variable year have ago. a for costs to
will as the the our Operating largely year. through spending was million, the spending quarter. due income ahead second on continue forecast, in $XX to We our focus lower of we move half of
last interest year forecasted. we and was line, the Below below lower than expense had
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over up Our year. last effective basis about was tax XXX XX.X%, rate points
to have to more expect have in non-deductible XXXX of as earnings higher costs rate greater planned we be tax a compensation our the We this effective in generated U.S. for and year.
million was count share by driven shares about last average versus our repurchases. by weighted X year, lower Our share
to year. per in line, diluted $X.XX bottom prior earnings adjusted share $X.XX On compared the the were
adjusted Page On year-to-date X, we've our included P&L.
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page, next our the highlights sheet summarize we cash flow. and On of balance some
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get great has to selling to States, our demand channels. chain in the across us team a position good planned put done product support the have to supply work which United we has Our various here
through levels as at held decline we year $XXX began inventory end A including Debt in overall borrowings the last soften. packed ago, million of demand was to year, had to continue expect we inventory We will the QX. and of the balance down our outstanding revolver. on year
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last have improvement year. flow of Working over a capital are principal working in of ago, year this the use $XXX significant operating changes inventories other favorable a improvement. versus and We in $XXX seen year down cash million this nearly a versus generating drivers million
year forecasts about Canada up stores operating in Our Mexico. cash free flow CapEx and year, in new the of U.S., be Carter's. over investments will generation million, $XX $XX last indicate for million Year-to-date strong was in a XXXX reflecting largely and
return this to mentioned, of we've meaningful able repurchases. a year been combination shareholders and thus Mike dividends As share through far to capital
Page and performance in XX Turning quarter. business of the a of second our summary to the segments
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half first results adjusted our for XX, your segment reference. Page On we've included
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are And questions. to your with take these remarks, we ready
