much Good so everyone, morning, and thank for us. joining you
are Today QX financial reporting better-than-expected we results.
as investments. was execution our and Our operational with These comparable to sales current came balance our our industry high better to than the ongoing strong profitability expected. pressure end in guidance at the our continue sales demonstrate of strategic reaction results we
quarter. XX% the improved last year-over-year reported expected, comparable our As performance we from sales decline
quarter, second comparable down the sales X.X%. For were
incentive membership from in expenses rate due than recorded profit gross margins better year. We expenses absorbing our year last we QX last SG&A our kept and higher while to profitability flat our XXX basis compensation product expanded points improvements program. We
like consumer purchases into travel and spend outside to pull-forward the demand home to Our the the services lower due pandemic back shift industry continues and experience entertainment. of tech
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we're the teams preparing for uncertain our of today ongoing proud pressure We deal and incredibly where an plan be the promotions environment level strategically industry way price-competitive focused year to and conditions. and fiscal in were and managing the above are very above business and macro the 'XX. managed are of continue consumers promotional our light our and often pre-pandemic industry future last of in I and discounts
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end year days targeting down the the of strategically our continues to to team inventory approximately was at quarter compared with manage last of forward sales XX inventory as Our in decline line the supply.
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income For expansion, program we expect of which what at least the seen consistent with to 'XX, the XX is our now fiscal year. we points Year-over-Year in first of three-tiered operating basis Enterprise have membership half rate contribute
we to digital evolve omnichannel to our portfolio on stores to quarter, our an means This continue of age retail customers leading capability. want landscape. and provide needs progress a the ensure fulfillment. journey make and experiences we multichannel differentiated maintain evolving increasingly our in During We position with to
be a capital-efficient great we time, At the to them to same to operate place work. remaining more and while cost need
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matter pick prioritized a minutes that minimizes process. inventory customer the quickly invested of in tools employee process. our and through more We digital shrink, scan this drives pick and experience, the in efficient allow up customer a much to prioritizes This
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with small, of new meaningful market-share results in While these categories growth. seeing are we promising some
the evolution on based As overarching continuing drive operating goals. in model our to are we to it stores, our two relates
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the We our to labor for hourly the hours and to difficult had the have decisions necessary to best pay been possible we associated our same working of the In our ability appropriately. to and hard some us employees. flex strategic to give have customers amount experience spend are roles the balance but make labor and deliver
and to recent as we improvement plan fiscal were the able As we have our result. customer-facing availability labor of we structural mentioned the in a changes, million a add our basis X approximately staffing with into metric year quarter, rate associate than we for improvements additional more in last our for these NPS second 'XX. associates of most sales store XXX driven to revenue saw of percent changes, as in expense compared quarter Because points domestic hours
rates of quarters. as in several Additionally, have been we keeping successful have sales percent as our revenue, the a our even declined past over steady labor
our to flexibility, Second, employees we provide more predictability, opportunities need skills. to and gain
within tools been increase have that across flexibility programs development stores. employee in and We and investing their
to As expect, existing across emerging channels. better focused are and and technology on leveraging experiences you employee also customer we would drive
vast which We hire retail gratified to that employee of outperform our in internally. continue the rates The roles. industry, majority key retention are leadership particularly we
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enter the the proud optimistic. both to half forward and look we we year As are second of holiday the pragmatic, season, and
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the we to believed preparing midpoint of During the for sales a within we annual annual number aligning sales and guidance comparable of were our last conference that closer range, our guidance. call, scenarios we were noted
would halfway through we industry year narrowing a as knew outlook it for year are and largely We and challenging the our be the expected.
discuss will X.X% X% range accordingly. of now our more X%. sales expect X%. detail, down our This range We to to are the we Matt compares down decline comparable in updating of in sales As previous to guidance to comparable
we raising effectively our rate time, non-GAAP midpoint of the ranges are for profitability earnings same guidance our share. previous the At and narrowing operating per annual income
point to years expect the declines. in year be low that demand two continue after We of will this tech sales
and part believe pandemic driven should in the and possibly the replacement tech lives, our the is Tech stabilization bought by homes upgrade our for electronics businesses of year growth bigger tech the a our the and industry all ever, normalization both and of early see consumer natural in than we cycles next in innovation. and
quarter the Let me say fourth words about a few specifically.
reported decline of comparable this for XX% we half and of context, the a X% For fiscal for first sales 'XX year. roughly
comparable than just year-over-year similar guiding that better or QX a for the a to decline X.X% are decline QX. We are little we reported sales
to Our comparable will supporting sales improve slightly of factors are positive. sales QX could full-year number X% down guidance There QX our implies for of comparable that belief a wide a range and positive. our turn potentially year-over-year
We expect with last budget price and as we in-home be across to theater inventory spends all points expect year. better-positioned growth
stabilization signs to starting are theater in of We home see our business.
trends improved to For and QX example, units sales TV in returned growth.
linear. premium in expect We as in category our not will to we our performance strength assortment computing improve the build-on position exactly of
trends category to stabilization last signs are to We QX units improved were also as and see materially of year. flat starting this in laptop sales
titles expect to released is continued gaming the year. half growth inventory more We the slate see in back category new in promising a as is to be there software readily the available of expected of and
are inventory we the than mobile last unlocked to drive constrained be in potential phones category business. growth phone for expect expect in less growth and We to as planning our year
events. for we be the regarding to is that be hypothesis promotional pre-pandemic will and largely holiday they Our the toward looking traffic By season consumer this, behavior. returns will great weighted and that mean convenience deals
we excellent drive track macro environments and thrive backdrop proven and such a that the and and to year, we dynamic industry remain conditions future the as well volatility we continue an strong through have move of in have continue In challenging will record environment. incredibly summary, we an the team navigating to excited through opportunities. macro while our about We assets adjust as omnichannel evolve and
in timing different categories nuances, coming product believe for in existing they have slightly our the we are poised While growth general, years.
in behind optimize our consumer broadband AI this continue advancement. of time, material business the see partners are we trends cloud, to scenes create macro including course should addition, access, over and generative technology to drive where vendor products augmented working that of In reality, know we expansion that several opportunities our
one-third largest 'XX second U.S. that, As and quarter like commercialize one some technology CE Matt with over with television retailer else and call no share, market results like of customers we specialty can fiscal on our the computing I details the new turn for the to our for would to more outlook. And can.
