Retail net sales squeezed 3.2% to $1.07B and identical store sales fell 5.8%.
Gross margin rate grew 10 bps at 15% primarily driven by higher gross margins and vendor allowances as well as lower inventory shrink costs.
Adjusted SG&A expense rate up 20 bps to 12.3% primarily due to higher employee costs.
Operating margin rate slipped 140 bps to 1.2%.
SVU +1.82% premarket.