Adjusted earnings per share were $0.17 in Q2 compared to $0.76 last year.
Adjusted SG&A increased 10% to $273 million in Q2, driven by higher store-related expenses and variable compensation.
Cash flow was negative year-to-date but expected to be positive for full year, with good liquidity and credit availability.
First half sales were $1.2 billion with reported operating income of $30 million including $17 million in charges.
Gross margin in Q2 was 48.1%, down 200 basis points primarily due to pricing investments in U.S. retail and other factors like excess inventory sales and tariffs.
International segment posted sales growth with Canadian business up 8% comp and Mexico up 19% comp; operating margin approximately 4%.
Inventory was up 3% year-over-year at quarter end, with $17 million higher costs due to tariffs; inventory units were down 1%.
Second quarter reported operating income was $4 million, including $8 million in charges; adjusted operating income was $12 million with a 2% margin.
Second quarter sales were $585 million, representing 4% growth over last year, driven by U.S. Retail and International segments.
U.S. retail sales grew $9 million with a 2% comp; international sales grew $11 million; wholesale sales were flat.
Wholesale segment had a 14% adjusted operating margin but profitability declined due to lower pricing and expense deleverage.
Goodyear Forward program contributed $195 million in benefits during the quarter.
Gross margin declined by 360 basis points, with segment operating income at $159 million.
Net debt declined by over $600 million, supported by asset sales and working capital management.
Net income increased to $254 million, driven by a gain on the sale of the Dunlop brand.
Price/mix contributed $91 million benefit but was $44 million below prior guidance due to commercial truck headwinds and lower mix in the Americas.
Rationalization charges of $59 million impacted results; adjusted loss per share was $0.17.
Raw material costs were a $174 million headwind; inflation and other costs added $127 million in headwinds.
Second quarter sales were $4.5 billion, down 2% year-over-year due to lower volume and the sale of the Off-the-Road (OTR) business, partially offset by price/mix increases.
Unit volume declined 5%, impacted by global trade disruptions affecting OE production and consumer sell-out trends.
Dafinchi