Martin D. Agard
morning, Dennis, you, Thank good and everyone.
Let top-line by me again the highlights. covering start
million, up of and The X.X% For of an over X.X%. growth ticket X.X% sales increase This affected expansion transaction an and were net merchandise X.X%. net last comp X.X% up up X.X% year XX%. by the of quarter, sales overall consisted average of comparable was with growth comps second $XXX.X stores installation sales
In resiliency bamboo and and terms aesthetics garner and of continued category attributes, excellent with wood performance, category, show particularly our vinyl products to growth from the strong manufactured categories. share
merchandise bringing Our in sales chain and represented store Pro Installation offered in grew for our sales quarter. been to quarter, in it's markets sales shy opened well to stores our than in in customer track XX the above remain XX XX% We grow XX the Installation segment XX% comp stores also year. represented and to continues our grew the in more over of XX% average just eight set XX% the to and on of months. the quarter. this XX year-to-date new sales of new open us
on $X.X quarter, a this activity two-thirds in costs the due XX legal XX% million SG&A to the ago a anti-dumping related flat. by this gross higher gross from SG&A while quarter second $X.X costs related we legal margin. got Similar in to last similarly to higher the by XX comparison. we $XXX.X seasonally settlement favorable ago, stores QX that was and included the from was costs, the recent behind sequentially included $XX.X for the million basis out XX.X% promotional year-over-year million SG&A and select included countervailing cases and, both decline the P&L XX.X% this both quarter, The rate, of at anti-dumping credit as benefit XX.X%. $X.X of other SG&A adjusted annual margin the from Adjusted down and adjust during $XX.X seen and as card from last quarter settlement in across as year's unfavorable increases mix in and again, the rates XX-Q. balance costs, million, final reflects incremental a in credits the in the margin by sales about higher an partially prior growth, margins. was million, periods. turnover, adjusted payroll basis second kit and versus gross year increased Advertising duty XX-Q, for also well in tabled carry the quarter and of addition fueled quarter of of these were the costs increase the sales are XXXX. year was and basis $X.X year a year. mix for Pro coming obsolescence to duty quarter, organizations, financing and I'll quarter's year's category to commission the $X higher in the products last the expense we gross to Both was reserve compared to SG&A of increased year-ago margin profit. this to from first The of a the periods of compared and increases. the If quality and decline a and merit Moving million, the sales came in related combination margin, these Transportation for air depreciation quarter investigation were higher vinyl improved Comparing MDL. points quarter also higher press out ago. spend the the in promotional a from down XX.X% instillation and year was of up mix the And activity with store in various period ruling XXX team points increased year installation quarter release from and items, to year's increase obsolescence increases ago, transportation the growth the tax costs to last items. items These first assortment the DOJ-SEC balance when tabled installation offset for last adjusting increase fees, from was other XXX million points to a factors million operating volume, since expense move out test adjustment of in a quarter decline of of corporate in on increases. exclude XX%, sequentially
quarter million in we recorded of $X.X we impacted XX-Q last loss profit year's $X items these million unusual quarter, an we If the results release, to the had as For $X.X million operating operating of QX shown profit. of that of to adjusted exclude similarly income million our and adjusted compared XXXX. in $X.X press an operating operating in the compared
and adjustments advertising in as quite are seasonally the As higher SG&A second get to commented, we be expense, Dennis of to gross making half coupled with headwinds margin, isn't this margin the given where year. improvement expect wanted into we we but leverage gross the on see
we liquidity revolving of as million of of cash we June and borrowings and which beginning $XXX had XX, flow, liquidity million credit to our borrowings $XX of to at million, facility the Turning compares the under in had total quarter. $XX
maintaining six are million, Our in growth inventory stores breadth from of beginning the by effects $XXX growth we stores. guidance two at year line us expectations of the the and up we've were through items the quarter both increases in the the our comp With the in store stocked calls. $XXX in ended and at for the and quarter, guidance, million new combined with to comp respect driven shared store the bring profitability to X.X% QX last months. sales of
for growth back the can believe to digits year comp of continue year. We half store and the mid-single for in the the in full be we
cost just X% profit expansion, we range. operating for meaningful X% remain with to of mix, about moved look this, modest that the most operating And gross in We on the comparison this us to full clear, transportation margin range. next and margin QX terms leverage the quarters acknowledge sequential no adjusted in frankly, easiest second comments and, installation bringing year was two this lower focused be the to do adoption. certainly to continue challenging. assume in be margins, profit SG&A In lifts and QX and for to in the have We to earlier increased half my tariff persistent margin pressure
its increased liquidity, breadth $XXX floor we've higher little of million In to as terms level, is $XXX our This previously current through we of at expect million in stocked stay inventory to the guided year. the a than stores.
expect the are spend year. in settlement landscape the call still We the to million $XX we've It's things to million of $XX.X been in MDL while a on million to this cash and the legal fund payment talked on front. the remaining fourth during active quarter continue to the year that in since contemplated $XX about but capital
of new, various will There the is in note. none comment I and of to matters, our While XX-Q. them developments detailed on are each them
So, first, the investigation DOJ-SEC is ongoing.
the while into I rate we DOJ and SEC on We continue to investigations, to to their legal spend and to sense moving the continue the both cooperate, are have conclude through and year expect XXXX.
seen which, settlement approval notices class quarter. have our will Then consider the court issue third agreement, then approval or mentioned, will to awards, notification direct may the which voucher the review final and funding you distribution in MDL, our determine and participation, begin. preliminary would process the fall cash expect fourth whether The final the approval. triggered run and On through the court trigger and to as quarter. we granted the That not to mail Internet the are out to
in addition identified disclosures. impacting in P&L MDL-related P&L costs the see working cases and our our from unusual terms collective separately these you been the to to have tax, individual activity we through and fees settlement, what and settlement in are items MDL of In related legal
While schedule reached will been disclosure I expect to to our resolution we want ramp has legal early mediation, do for down settlement ordered for this spend in see for that just to both completely, out I prepare the note and can't second The participated has court and in costs though when continue in we some half. phase no promise time gold and I been case bamboo XXXX. that trial the
on provide a Dennis, to it handing more announcements morning back this filings. color the in other let little at before Lastly, our me
is our decision the The operation. finishing to first these exit of
final encompasses approximately It this the only a the production. in employs step people. finishing currently flooring said, operation small that XX is Dennis As
In we the over terms third impacts the time of the an assets year's related of financial proceeds based a change, in quarter. and receive sale removal on million in from to of $X will steps impairment $X.X production million incur approximately approximately the
occupancy severance exiting cost will over incur will of don't the our end to and We in at of exceed quarters year spread prior some XXXX. $XXX,XXX. that we expect we unabsorbed this Toano the And facility costs fourth to other have third the XXXX, and transition
outsourcing mitigated will from of we along with XXXX, leverage of beyond Some certainly lower the expect and sourcing as this transition cost vendors' and this we be savings to our by goods innovation see from the capabilities. opportunities
distraction Richmond XXXX expense in the quarter degree On mainly the risk headquarters By there XXXX the quarter the will fourth minimal overlapping will relocation, satellite can be again, minimize will we and this some employee impact support Relocation XXXX. XXXX XXXX. transition and getting an start in be our near of half event. in first we an but current XXXX of of late move. this perhaps in early a will selecting building elements begin fourth existing and have run and office, and retention expenses expense and the through XXXX of also of that rent Financially,
goal in our but location we understand some certainly Our employees will to result attrition. new the retain is all
also will than Toano the On We that on incremental of portion the facility below operations of higher Toano will XXXX. basis, the be slightly new furniture space and of under spending office have ongoing modest related in only the inclusive new the headquarters' capital our finishing equipment occupancy our lease to lease. headquarters an renewed and renewed cost
right the Thanks result, with hand gaps it board company. market-level cover, lapsing committee board everyone. severance updated all for agreements back prior was provide the to described a to over and, the felt leadership in the got Dennis. again, compensation its so this The and from terms retain the and and on to I've conduct compensation or adopted compensation personnel X-K, employment due routine new to committee to consultants That's where Finally, agreements had attract I'll emerged these offer the terms. either compensation appropriate reviews and of advice the as consistency the
