thanks today. Good afternoon, us and Thanks, all to joining for Gar.
earnings first in June, in quarter our range net our during quarter and per our outlook outlook beat early were sales range. of call middle share second Our our breakeven the earnings provided
quarterly result remained comparable our was the of comp net end our this negative, XXXX. fiscal Although sales since sales best
demographic young the performing decisions certain of limited While environment and customer quarter. our families, we our believe on second from better remains challenging adults in merchandising also young teens, the part core macroeconomic for us
going issues to have correct We forward. those working been
While by for for have us, we gain year's relative quarters elusive encouraged assortment product pricing sales margins of last growth our beginning each first XXXX are we that to X ability to are to and improved adjustments traction. strategies which fiscal results, our the has believe suggests been revised produced of
to continue a ways we about efforts have sales we care challenge giving Tilly's. ourselves As drive reason of with better to consumers find our to primary to refocused goal and results, the choose marketing
our We a redefine purpose have customer. strategy established brand our new marketing target to to
following, influencers across implemented has grow help social media our our platforms. brand our reach new into to roster content, team and this of Our strategy expanding media micro curating a online
wellness. Discover years our mental campaign, about in the importance communities of Tilly's Additionally, and campaign Style. driving the we late force personal we have a serve. cared of this towards July, we tagline with confidence are of we existence, emphasizing Your brand as launched the first-ever style XX always Through In deeply
Center We whose well-being, inception have and Tilly's health ago. is mental teen supported years XX the continuously its focus Life since foundation,
and direct what begin acting the done are which never really customers who are we with our express an now are We to we've to a about, we something on is opportunity past. conversation in
that trust ways Our than Shine in want. California we us providing self-expression, we which values believe the campaign in they community positivity, connection build and different can of is think new rooted and core and help our confidence, solely with products consumer
positive digital time, for of response across campaign says to excited continue of our well-being. this the and what won't be to platforms to demonstrated evolve, and of to we've our campaign launch. see known full us some impact proud about our but all will it this campaign customers' been are The We since commitment the
our with lead and affinity campaign hopeful results this over of and beginning that following can creating consumer the together stronger to time. initiatives, are other for better be We Tilly's,
or We school XX.X% XX-week X, Turning of period to XXXX, the from basis back sales a to e-com, sales quarter impact period to an year's X.X%. Net calendar, which of $XX,XXX $XXX.X XXXX fiscal timing resulted X.X% improved E-com second combination of to last our net last XXXX, lower points of in to stores $XX.X year.
Gross compared from total quarter net due and tax XX.X% breakeven payroll increase or $X.X from to to to The second sales year. year.
Net million XX last quarter of software million, with related Buying, or a net physical of shift million, due higher tax of million, loss by store in total Income benefits and of end week against last was net on to was including year of XXrd sales. related compared of rate results by week the XXX ended digital improved X.X% ended million year. XX.X% last third of share. by marketing loss year, retail pretax compared was costs points sales represented the breakeven points, quarter. expenses per sales margins $X.X end the XX.X% to compared into level pretax or last and year. stores basis of compared to per improved improved XX.X% a service from sales pretax net buying, a a total corporate markdowns. near quarter with basis at and start $X,XXX income was due million, compared of net the million of of compared total net of pulling Net a year. stores the X, the total net were initial of by $XX,XXX and increased as both was markups to August breakeven XX.X% compared last to and immaterial year's or loss second decreased $X.X XX.X% of distribution stores by Comparable sales volume, year. occupancy year.
Total of last compared benefit for share state XX.X% second $X.X loss the percentage last expenses benefit benefits and operating last million these were net in last a this X.X%, $X.X loss a expenses, expense XX-week loss pretax primarily arising carrying of occupancy and sales for primarily to year's Product XXX in net quarter increases August the results. of or of of benefits payroll increased million.
Pretax net by XXX to the of including second attributable sales $X.XX X.X% quarter this large ended and last margin, Primary sales SG&A $X.X the net basis the as $X.X the tax year sales or year's represented to or X% XX.X% this of sales $XX sales what sales costs of were physical XXX distribution million lower SG&A
facility. peak ended million the in first expenditures We cash Total and and million. ended Turning total season. credit the inventories second We securities $XX $X.X back-to-school up half capital quarter the with our with asset-backed to quarter approximately for of no were marketable balance amid second the the net under borrowings our sheet. X.X%,
third our Comparable by for of Turning sales was since net to the increased quarter fiscal positive monthly X%, fiscal comp XXXX. August which XXXX. first February
in September past third X the of followed the result to during of should by noted August that be in is October. fiscal business best encouraging, it August each fiscal for that a While sales each our slowing has our performance significant produced and comp years, relative quarter
this similar year. a expect trend pattern We
shift we into last each year. the of of second end of last at of calendar the third earnings X created this discussed the quarter was retail from XXrd have a as week during back-to-school Now volume sales the year the what past year's start our the of quarter in impact calls, timing
charges an third last other million a comparable XXXX before translating $XX estimated net year to share factoring timing approximately noncash to million changes.
Based full for net our $XX.X to to approximately the of any based As which may million store of trends, we of loss SG&A versus comparable $X.XX, deficit approximately and impact on be in to average in total to this net net for quarter sales loss with the X% $XXX be respectively; income tax range effective be this the of and of year a range impairment be per factors of these near result start asset historical pretax assets; shift, quarter a to on with following loss current sales the fiscal respectively, sales arise; X%, rate to $XXX million, a total to zero deferred the third million, $X.X $XX.X and range shares weighted approximately net decline potential comparable continuing million in the expect respectively, due currently noncash in operating on valuation to results: range $X.XX in our tax allowance sales the considering XX million. of before
third open quarter, stores third X quarter. have last the decrease of end from at the XXX end to of a expect We net the total year's of
in we occurring of During decision challenging adapt sales continue make but of year quarter, connection stores fiscal The likely lease close at the forward.
In end some improve. be closing, the may and the X the outcome before, current we said environment, lease will open in pending it consumer in unprofitable we we expirations store continue new discussions. to challenge us X as and number to expect currently to going profitability we the ourselves grow stores. renewal to on to believe improve natural with fourth rooted Each closures depending our will and maximizing results for will be of
recently NASCAR, an in with product our launched such We as are partnership example. bringing new collaborations, as
our half business. ways deeply We interest brands our and invest over to more work customer new several we at the introducing the aiming to and improve in year, fiscal back opportunities.
We'll customers connecting of authentic the see in new to continue with that sales create opportunities are
effort to Our generating can.
Operator, soon we profitability growth, return session. to as value, the making we as go headwinds goal there are reasonably every and which Q&A facing, sales shareholder time get to net now take with remains we our we'll but will are currently to