good and Thank you, everyone. Mark, morning,
be offset QX. clearance our toughest said, this year's to which drag XXX Our last with direction was would not we more the comparison first regular our elevated comp points activity on our knew expectations price are of we year. strategic not predominantly That to due in This quarter our of results basis headwind. was expected reflective business did sales than quarter meet first heading are the and of the initiatives. We
below product. the since digits softened best while through regular quarterly performance sales sales seasonal XXXX, weeks increase first comp were X late and quarter, did expectations. price spring quarter, in for were our March price first the April, especially into they the low their Regular And single though our in strong of
price headwind by building With early our Sephora. continued in we will success clearance trends in driven behind now us, and expect performance regular our growth categories improve, the positive our on new
inventory We which in in the our controlling quarter. effectively are gross also margin in decline managing resulted SG&A expansion expenses,
of However, active addressing, businesses. opportunity actively including areas we our are and that are jewelry there
have in We conviction we continue strategy well as traction growth number to as in by are high our supported gaining are the our the new seeing areas increase of the in we key more guidance Jill will our ongoing the uncertainty the customers. the more discuss conservative outlook year fiscal environment. first updated as That and in consumer underperformance said, reflects detail, given a in quarter
As it economic by including number consumer the to of pressured continue factors, backdrop, customers be and rates inflation. a interest relates high our to
high-income has to remained While spending customers among steady, impacted. middle customer income our be continues our
the deliver hard this which a is even portfolio for customers looking the spend to are value. is us of well In this value, we recognizing environment, having positions pressured. as strong brand consumer is our discretionary working that more Part of private
the customer challenging sheet. X focused with enhancing and simplifying managing inventory accelerating further priorities backdrop, experience; executing on a remain remains against what balance which our strategies; our navigating While and and strategic value strengthening consumer our are: discipline; we expenses
our a to across have of organization the implemented time. Over business. takes the significant we of scale year, amount past reposition this change Efforts
of X, value simplifying When we against in have customer strengthening debt. long-term progress our us. by reducing our As managing opportunities experience are and tightly, sheet and priorities, continue comes our to balance these against at making look I progress but strategies, we are and expenses enhancing to inventory executing it well front the our
brands from beauty opened year. offering at start increased fragrance deliver comparable Sephora the Sol growth driven better-than-expected sales success saw We part Sephora XX%, in strong of QX, Janeiro including collection. than in our what's by working. as sales me past care, Taking contribution continued and Kohl's skin the and a body greater such in to Sephora especially de step bath and XX% In continues exceptional shops growth with let and back, results.
will Sephora new In end XXX Sephora XXXX, we shops, with we of in X,XXX open important which will QX, the acquisition. an driver in open to continues Sephora approximately of stores. majority year the and will our be customer
attract base. frequently continuing shops expanded as are diverse to We younger, who store more Sephora across we more also have customer a our
Us. also collectively opportunity categories, "R" In years. home, our making are building $X launch in in us presence outlined of for to addition gifting the including progress in a impulse these as look forward to Sephora, underpenetrated sales the We and Babies we and billion-plus coming
to to have ability our achieve confidence continue target. in this We
seasonal XX% In than benefits the our up average, and company did are and sales marketing from home, underperformed deliver home category incremental of investments while our assortment more the initial decor from in pet. we in decor initiatives decor, growth and everyday with the seeing sales QX. expanded In we
quarter, lighting like areas art, XXX% in last received. more New pet, and in have been from than year's glassware benefiting the increased expansion. assortment well sales And wall
In QX. we performances impulse, in Valentine's our than nearly gifting, we Day And presentation. performance and sales XX% recently, lines grew the across were gifting as pleased during introduced increased and stores more sales Mother's Easter queue more in of than XX%, Day with XXX with strong more
expect impulse going We gifting in forward. growth and continued
Day receipts X Memorial more in invested the well celebrate around merchandise key AMERICANA have holidays. gifting Day and to events such We as as July as Father's
In stores more to addition, base dedicated X/X store add than reach lines queuing to year-end. of our we XXX will more by
meaningful Us. category. serve partnership family way during to more a their competitive complete landscape in seen recent with about us a the in excited the gear of an years. We gear category important period lives in presence disruption that by This creating also large continue to Babies "R" is upcoming the baby a has be allows partnership in our Baby
customers. new younger a with space and represents Kohl's commitment this reach growth broadens opportunity to significant our
shops presence. "R" online our launch XXX QX with Us Babies open in in the will stores will of Kohl's coincide approximately We which
to progress important are we making footwear of areas mention our also and that apparel in some business. It's
casual We categories. trends our women's progress our in in are dress have our offering most This we seeing underlying build and evident wear polished is to positive the business. most seen across the in efforts
price that newness QX, X% In sales indicates favorable. has our we introducing were example regular the is resonating dress business are the with is response which customer our this women's, up in been very One of customers. where
a the will in momentum. have offering notice opportunity continued our of greater shop Dresses we in-store our dress dedicated that Kohl's. is And in those presence. likely area supporting XXX for as a an dress sales large launched recently, QX, visited stores you'll a We identified for expand stores and much
our amplify broadly And are polished efforts more to casual working.
brands positive We and solid quarter. growth Wang Lauren the Vera Conrad Vera in delivering have leaned have seen with Simply both reception into and
market We happening regular of positive introduced and to lot juniors also to we we've react a trends. change repositioning in stores Sephora to are cross-shopping efforts, to sales our price in on are better juniors seeing where our next fashion To offering is area better This business. an brands the opportunities. is build capitalize
it are other women's pleased driving business as business is categories. with in Overall, instrumental the of across direction our we
dress seen areas. solid pants of shirts and We've footwear casual demand well for addition dress perform dress to have men's also suitings. women's, In these and and kids as seen dresses in we well as suiting, both
are working. share let product, of me that other our initiatives beyond some Moving
early of to have efforts simplify strategies our our First, signs success. shown value
seeing customers' with agreeing great are is We customers more through that signals positive delivering our work value. Kohl's insight
Kohl's number drive Card scaled the positively Also by targeted messaging amplified of enrollment. we during Credit greater increased our customers as our to Cash February, differentiator which to the customers. In has and high-volume key for pricing QX, our program brand and loyalty and around we to awards private a offering leverage loyalty across been continue received Kohl's we offers
continue actions all in will new first increase acquisition our helped we to these quarter and future our that our us simplify of which engagement. we with with most And customers indicators that and value to loyal loyalty offers positive of rates these Collectively, promotions. enrollment we while are to in and drive bring forward customer sensitive most we With ensure promotions therefore, know program, strategy the continue said, targeted to personalized reduction in customers higher are value. an our
QX managing and to to Second, with buy. from down This where we in our we benefit lower open disciplines inventory increase are led Inventory XX% sales. was continued turn operate inventory we expenses as the in discipline. an with to greater successfully the flexibility and despite
target controlled expenses and to to shops inventory turns. a the last in continue impulse initiatives, in organization across will decline a range invested we resulting and tightly We Sephora year, compared slight focus we percent our queuing including in even mid-single growth driving digits as marketing on lines. with new as And new declines inventory the
than inventory by In sheet. with anticipated XXXX long-term balance call which expectations Jill notes, in our the This of from sales we $XXX million management a million prior and benefited cash discuss the down were we our And borrowings our further lower strengthening third, million are will more significantly strong will executing was level on QX, revolver year. QX, May line in by debt reduce In make-whole in $XXX despite flow. detail. $XXX
making solid progress are several of initiatives. our across So we
incremental delivering footwear portions and in in categories as growth our as well are of underpenetrated We new apparel Sephora offerings. in
addition, with further strengthening the managing discipline balance expenses and we are inventory and sheet. In
areas the of for the of me and going headwinds us discuss some in let Now faced we forward. opportunity quarter
across the at on this This and in of QX weighed is year's businesses outset lapped drag activity. unique and headwind our elevated call, mentioned clearance on that especially results last as major sales and As comp a we I in footwear active, performance a kids. juniors heavily apparel our was
following Importantly, as normalized this our of us now quarter is sales XXXX. first headwind clearance behind the
strong experienced challenged, transitions. the positive spring tanks otherwise kids were our In tees, product, and quarter. been X seasonal sales historically through demand businesses weeks first shorts which dampening of what in our and seasonal sensitive uniquely in addition, the was we softer have trend Categories to regular price men's including impacting a
to addition headwinds, of for In opportunity we forward. going identified these areas us also
accounted a area quarter. decline. felt most businesses. overall It decline in in first men's active active, sales major was in is factor and our the which majority for significantly the the of kids the The is Clearance
FLX as we FLX for work apparel in athleisure affordable excess We into see the awareness first we as well all runway value-oriented is the this year, private FLX quarter. a continue brand Tek to that with expanded performed of growth our Gear, building in partners stores. with solid we our the brand the reputation We to long further are in increase brand XX% especially half growing customers. of to strong, was back build and leaning newness very for a and which brands, of
is area accessories. second The
a on in year. made retaining We during Sephora been Over in our key do stores, past is to consistent we especially job an sales, know decline. events good space opportunity the did jewelry sales of and our X still there customers, as to not for holidays which the jewelry years, we offer a have our
currently are placing include reestablish presence, its which our will expanding it to in-store working by assortment near Sephora. positioning our and in-store We improving
have We jewelry during a will in stronger season. the also holiday presence
home our is legacy area offering. third The
select care. with our electrics electrics, as the new bedding During the customers as well home we introducing first and value improve quarter, To care newness bedding. results, areas our softness floor we in excellent to brands kitchen underperformed are are kitchen providing increasing floor and and ensuring across within business in
it's our important sales, discussed. traffic In given declined sales though across both QX, to platform. drive store headwinds digital slightly lastly, the outperformed we I And continue that omnichannel
clearance as improved headwind. channel we move each in the past transactions However,
Looking search expect recommendation all And in new our traffic capabilities which while store targeting and from digital, to to in site ahead, and stores. highlighted our conversion. are higher drive will and reinforce initiatives, the our to value initiatives in continue we communication scale product we also improving performance benefit simplification of growth increased
summarize comments leave now you I X things. want and will today, I to with my
expectations. were major our results was seasonal overall Clearance demand a and not our product. for especially into April, to and headwind QX comparable First, late up sales March softened in spring to our
addressing digits, of the increased actively opportunity identified quarter. However, single areas in low regular we and are sales the price
have to we clearance address headwind out. the our the behind is and opportunities laid now in confidence we ability us Importantly,
decor, Babies our our areas at impulse Sephora home many underlying seeing are in of strategy and trends strong are the expand will are and lines the gifting key incremental "R" shops, Sephora women's growth momentum XXX business. open our positive than has in year, online. XXX during of we and XXX and Second, Kohl's maintained to more partnership we working. and additional in additional impulse we a stores an stores driving queuing balance Us sales launch And
our reasons, we initiatives. strategic confident For these remain in
business our of structure underlying remains the third, And sound.
we growth, managing controlling work expenses. line top margin and inventory are we to effectively, drive sales While gross tightly expanding
strengthening reducing commitment through the the long-term and We balance are by also demonstrating shareholders debt. to dividend sheet capital our returning to
this Reposition corporate to quarter recognize Kohl's continued simple a size and a Jill will across distribution want improving turn XXXX. to outlook stores, I centers and to of first call our business to task, not the is and dedication now results. and their I for results associates resilience for discuss our over
