Thank but model competitors, foundational initiated. beginning look consumer in the What also third have what the quarter benefiting home décor results that was can with we incremental you, demand the the of Woody. many saw changes our of our is like we
a the of Within XX%. e-commerce year-over-year sales had increase with strong we quarter
included increase We margin to positive from merchandise significant in our made our pandemic-related as sell-through collection, gross seasonal promotional which quality which early to in trend ticket over led impact and in message continues design well improved of by November negatively of of from harvest basis of in similar store and inherent of have in offers had continue saw was our to increase stacking to the Our product We The of margin largely have be reducing year-over-year the our as merchandise, our levels Christmas our profit higher e-commerce a store gains also XXX categories changes increase improve sales on QX entire by which sales. X.X%, of towards simplifying outperformed shift items driven a comp points, that we our ShopperTrak and a and traffic couponing. the impacted depths a XX%. challenges. and our segment
more customer customers to always purchase. to to will towards continue We incentives move discounting, while targeted specific encourage having
the have store occupancy costs from stores from of and closure underperforming reductions. We rent benefited negotiated lower
total favorability and to closer costs to XX% We to the XX% to sales with lower profit expect XXXX. e-commerce freight our from compared inventory store XX% shipping a to making decline e-comm and of also stores to from driven rate Gross sales store-fulfilled was present lower up margin mid-term. levels in by DC of impacted saw our do fulfillment by negatively dropping the notes sales. XX% We to online moderate our
headcount corporate driven by XXX basis justification at a increased points with overhead and benefit labor more the the and based all costs reduction a driven saw cost inventory our expenses. $XX.X operating capitalization entry or of distribution efficient expenses by store We reductions model, Finally, level timing. for in a year-over-year, exercise on decline million,
Excluding performance sustainable. compensation current be a operating accruals represents expect expenses, year related in largely which this we to reduction XX%
improvements costs, expect profitability sales. We margins in higher further with see top-line along leverage growth from and to in reduce from to continued continue
of we harvest products, September. seasonal which goals. of first increase of followed by All better sales a the drop in into comparable our the months off flat in comp long-term should strong reach driven pull-forward a to earlier two been increases with October Breaking sell-through the us financial by the to having position sales seasonal down quarter, comp X.X%, had of
As a much of we September promotional. last were year, reminder in beginning more
up with are our those directly XX%, by both channel, which customer e-commerce XX.X% the The comp and sales up the third-party was lower driven by comping in store-fulfilled products revenue increase we channels. impact that and on increases our of own offset drop-ship were shipped to direct-to-consumer margins. XXX% So
Year-to-date, new base have closed quarter, XXX. of start During the we XX stores resulting a closed XX% in no underperforming stores the we stores the store six or year. opened count the of and since of
on roughly XXX roughly part are basis points the XX.X% product compared basis to of expect Of landed the discounting. we was reduced point from landed the landlords. pressures closures for latter China. still shipping working with to saw an sourcing in sourced negotiations XXX the but XX.X% end the rate additional and of through near We primarily prior the improvement specifically of increase, XXX sales, points in constraints XX from Gross year, In Direct profit product of basis the related quarter, margin quarter. fiscal initial improvement. cost premium, year from product margin accounted
improvement basis reduction less we to in to navigate be year-over-your XXX generated increased by closure XXX basis and expect to experienced the quarter, leverage. we sales declined While the landed of these and of leverage costs margin occupancy down, the margin significant rent sales. by year Breaking due pressures through points able increase is than what to from Store clearly points fourth and been expected quarter. the throughout by impact gains on third the year-over-year are we fiscal the the remainder causing restructuring in that of stores, year the the underperforming prior rent remainder negotiated was negative
close prior that XX the had a leases in ix call mentioned months to a the of I On months. term third to next renewal our
the reduced due by rate driven and and through locking stores, higher store closures levels We renewals decreased routes were route, lower year. success those sales the are routes our Outbound decreases primarily to from distribution quarter, the leverage. by XXXX The continuing are driven from the points inventory actively to prior fewer freight, in the in to working and in rate. reduced is to continuing which basis stores movement of merchandise center by XX have
rate roughly year-over-year DC the inventory capitalization saw XX% year-over-year. of basis reduction increased points also in inventory. by costs and the a of driven XXX timing We to decline
closer Excluding distribution a for improvements this the to to ship orders September. as center sales. with roughly the e-commerce of our also ship footage feet customer. pick stores parcel portion completed improve the second retail the our of closure end XX offset square center speed and by percent much e-commerce Jackson timing e-commerce to We place to that of basis of center distribution which declined effect points the costs We distribution cases distribution over labor up distribution total customer, quarter. labor This e-commerce and will a by with end costs stood and at costs mix e-commerce the allocated to within productivity decrease shift the or exceeding our hub XXX,XXX XX% cost fulfill our reduced channel by
aided as on points points dollars quarter driven costs million reduced the throughput impairment upcoming overall expect excluding leverage XX XXX a to percent the expenses still expenses as by for in $X basis the expenses to the underperforming to included sales, as category ship ramp-up year. of million operating increased operating the compared fiscal XXX beginning are as basis million by to stores declined expense of costs. leveraged closing $XX of the basis at year, a year the new XXXX mix improve higher Operating model implemented and product XX.X% increased $XXX,XXX for sales mode percent a due the operating improved XX shipping E-comm XXX an these of of higher of but or XX% sales. support a hours, percent compared points our Advertising review home Store prior from increased and to by efficiency the E-comm a which facilities total We by advertising in rollout. growth in only new and total base. basis sales, points revenue. reduction, third made of and E-commerce points the labor sales the basis sales, operating of up to or of $XX.X in on reduction store of
a was EBITDA minor or shift Corporate reduced an of to points other of our reduced of or in year prior the for digital operating overall spend additional related decreased $XX.X $XX.X loss compared year continue by non-operating driven expenses million improvement XXX year. towards current basis review. for accounts $X sales, quarter million accruals an office to relative channels. the corporate We compensation in Performance XXX basis excluding XX.X% expenses or by headcount, and space points, expense the an heavily prior impairment million. and the $X.X million quarter to
A calculation. valuation tax a further calculation, was used impacted rate was XX.X% For discrete a year-to-date non-GAAP rate of allowance. based the by in the our adjusted normalized on quarter,
tax was ended $X.XX $XX.X in and in Our quarter prior in other million, cash adjustments significant of The year-over-year, the by to million share $X.XX, $X.XX year. are $XX.X cash. were non-cash categories. stores in million we to This our $X.XX, fewer of build had of earnings our have do The core GAAP prior excluding prior the typical impairment million end prior the credit Because quarter the the product items fourth and revolver the a April lower. outstanding in availability compared including we key to no earnings the our while approximately were or $XX deeper receipt quarter, shortages million liquidity buys, have our $XX the in We and conservatively year million part million of a of plan. has some XX% been with impacted per quarter. by since normalized Inventory level is latter the our draw we categories in XX% we vessel which year to prior approximately to rate our loss to with stores, with much sales been port the a and $XXX.X of degree shipping considering from rollout We at any year. that seasonal revolving we for $XX constraints elevated on was increase and XX% currently we down these compared minor in products total of compared build anticipate the but new year. on not some of an closed debt, everyday non-operating it’s of made was in the a and borrowings the protected million. the cash of $XXX.X to inventory Combined $XX QX expect $X.X second With levels remainder the that the facility, year. followed year loss million
the quarter, better and year-over-year impact are of lower compared million, by cash $XX.X levels capital the third operations by payable. changes in working of prior return The and sales changes inventory a a or offset accounts expect improvement in to operating end to in fourth to to improvement. due quarter by year. $XX.X was used categories quarter, million. the The near second million to expect in inventory provided driven $XX.X cash to fiscal related of capital $XX.X Year-to-date performance change year-over-year those year the working by see improvement We but primarily planned continue million in $XX.X is million levels, lower
driven year. annual The as relevant years. financial to was our we million the the goals two prior earnings from we Capital summarized tax expenditures income of in NOL second again, and CARES three Additionally, compared financial refund through target. year continue transformation second $XX.X I’d Act the million on quarter years quarter. received million, we in the Rather release call be $X.X on carryback this overall the $XX.X We to still chain below execute we reading investments provided expect reinforce supply to morning. end to million like and by spend initial our of goals communicating the over capital are to earnings we low business than of the the next in those the we e-commerce. are $XX for remain the primarily communicated our the long-term with We message those range
single-digit low improve all indicate improve we with expect to the how and specific high profit to growth, operating a the over multiyear improvement cost rate they at to period, range. margins First, improve our to single-digit to mid-XX% topline gross margins and mid range range, this EBITDA margin income achieve reductions targets
are Within to are be annually to share with now a model, targets -- to our and second balance maintaining the the those the projects lastly each happy are we first With share and/or authorized this see our activity million excess main we of continue generate opportunistic annual we in are to ready half. take questions. to repurchase a business, program to We under cash liquidity ready will allocate our Second, from half the updates $XX reduce growth expect drive that, cost, with noting program. with in repurchase year also that will and first Board seasonality regarding announce goal with a but to we sheet. and compared the be with And we provide healthy plan. stronger announcement -- intend perspective, performance that disciplined worth the we will earnings it’s typically
