outlook. release sales my already and Tom items XXXX comments Tom. discuss the Thanks full sheet concentrate to XXXX the going on major balance I'm results. among fourth quarter growth our year statements. statement, earnings and of then, our And our cash some changes income flow in discussed
inventory rate decline start reserves. will margin year-over-year XX The to I decline retail basis offset a shrink our which higher quarter and with fourth better than due we were gross XX.X%. where was with targeted we as inventory negotiations somewhat rebates margin to out favorable by well So and our year-over-year as cost vendors experienced points changes expected rate gross
to XXXX. Moving making stores of opening second year, and in point XX.X% deleverage our comparing recall XX the on the grew last comparable SG&A difficult to in basis XX XX.X% of majority the are basis for growth The expenses, half from our against due was sales from year deleveraged XX.X% we store comparisons. the of to last came XX store store SG&A that XXX expenses leverage points XX.X%
million, in and versus five year was compared very Our into quarter store increase last new last to openings third our have operations Store new versus in new of a planned quarter $X.X quarter. that of half the during the new quarter store much concentration that stores modestly stores some fourth $X,XXX,XXX back conference and in of half which the guided SG&A the $X,XXX,XXX for call. a openings totaled higher opened XXXX above SG&A expenses expenses This reflects first of first three XXXX. the had year shifted their quarter we late pre-opening store heavy we the
related exclude corporate Florida. $XX,XXX,XXX, SG&A SG&A $X,XXX,XXX last charge for fourth totaled in operations Distribution is impairment Center our expense per corporate in Center lease the last basis to SG&A X.X% lease Miami, to our our Miami charge quarter Our points recently and Miami of XX Included X.X%. more not from XX.X% the from increase exited an charge, in normal XX from of $X,XXX,XXX discussed a basis leveraged you if adjusted and share corporate impairment deleverage a exclude for charge below. part of this our detail our points year earnings to actually X.X% We The is year. Distribution
Excluding basis the lease have entirely expenses. SG&A the expense pre-opening XX.X% points impairment charge, our Distribution by deleveraged total XXX to would of rate our Miami Center driven timing
Taken together X.X% with basis basis declining fourth point from margin EBIT rate, contracted last quarter points gross our XX to X.X% margin year. a XXX
amount operating also due gross discussed. formally new Miami to Excluding basis results charge mentioned basis points operating quarter expenses, as already XX store in well fourth more which as is XX strong extremely markets the the Center pre-opening of our margins and expensive points, new margin, declined the Distribution an stores, higher lower XXXX
that EBITDA Before I GAAP and both measures. I income, XXXX and note discuss adjusted please guidance, non-GAAP net discuss XXXX will
metrics our The periods. we net call. our non-GAAP year. quarter enable understand income connection a operating $XX,XXX,XXX in core non-GAAP issued better to $XX,XXX,XXX to comparable described our the release, measures on comparable reconciliation most earnings in from of disclosures between with in increased Fourth investors to GAAP As earnings believe found these basis adjusted release X% can financial directly be this last performance
earnings X% per our $X.XX As Tom quarter mentioned once share share adjusted guidance. above the $X.XX from to which our was XX of fourth high-end increased per last year since
year XX.X% making Fourth year to earnings share sales investments full from growth. last grew on per last support our call. up of and our on provided quarter despite future million adjusted $X.XX totaled are XX% was million year's Our from high-end above adjusted guidance our to $X.XX growth significant EBITDA of X% conference the earnings we $XX,XXX,XXX quarter that $XX.X third we $XX.X
adjusted Our higher last basis pre-opening new by XX.X% points driven contracted rate store EBITDA expenses. margin to XX.X% year from XXX
coming our further our strong onto Moving balance our financial sheet, we're future growth. having XXXX into to improved position support
have from about million or available We million million equity in $XXX bank XX% $XXX.X XXXX. our $XX.X and debt million in total $XXX to declined
Our in which inventory totaled total grew last expectations. was expenditures capital our XX% to with year. compared Gross $XXX,XXX,XXX line $XXX,XXX,XXX
turn we sales and page we some XXXX. earnings and growth XXXX XXXX to on how cover are themes I strong As adjusted broad on planning the will look
relates half place as the to into First, as early comp sales to likely XX% XXXX. having in as retail XXXX it XXXX of due negative a half of comp past entering first -- the new go second base to XXXX comparable well fiscal the we as in increases due Houston higher scheduled stores March for the increase store to tariffs of concentration move of concentration pricing the in abating
We expect store sales XXXX. throughout sequentially our comparable accelerate to
costs the sourcing our tariffs. assuming to vendor take cost in only from the After stays cover financial will regime as call, will quarter out Chinese retracted for early net a as XX% any consumer we additional on and to beginning away we plan moving the our net a we first We tariffs as the tariff considering built China. our Second, see If you tariffs would March. positive well this negotiations but to including positive place be or update pricing related as the actions in current for inactive well. XXXX business currently tariffs may our
new other our believe you to through, e-commerce, positioning larger distribution important center technology, further strategic and office. new a like corporate in making investments Tom a priorities areas that as northeast walked strategic loyalty, enhance Third, and we relocating are will talent, training like CRM, we
support return they six much confident done the as growth our over are these yield a will necessary We and investments to years. are have last
We lease discuss $X.XX new to least center have distribution at further. that identified XXXX will accounting our and in I EPS tied
same support XXXX We into new of late year. in the move quarter and center the are moving completing in a fourth third store our quarter that
intend move items take for expenses We costs of additional center. unique called in out income, transition earnings remove them dual store new store to out call our of support And release accelerated cost these center leasehold on rent, will per and and and the the improvements we quarter EBITDA support from our support well estimates as this these press today. move, are during to each depreciation an onetime current store adjusted these our have center net share to like as
we profit between labor to per million $X.XX and or approximately our port and on outbound share. capacity into that short-term facility rather Northeast and expanded to a growth quarter lease store this short-term square could mentioned we cost the growth operate expansion in Tom will Baltimore, this be for our costs square than we'll XX,XXX freight a center stores Savannah the center for every the to XX,XXX our This XX,XXX to in and capacity open inbound fourth We gross million foot additional to need lower $X over $X Midwest our distribution preparation our our come. that square support We million to In estimate in analysis open, an and but Midwest cost Maryland planning have shipments in will fourth Savannah. to for center needed Northeast $X of center million would as XXXX distribution store. foot of quarter. in the that distribution in fourth feet support demonstrated long we run to XXXX million drag to create to using years domestic distribution quarter X.X expanding build that support are $X in on new Finally, a approximately upfront the taking the be the freight the
Midwest half XXXX us operations year We lower first could a to we emerge period, facility than freight have into these about costs expect in quarter of Over to expanding longer factors million XX% XXXX lower our to miles sales increase is $XXX be This first an facility the million sales growth the fully range million to freight Taking X% consideration, stores. of and begin where in is growth domestic save first $XX costs versus three X%. we comparable of this rather domestic to net in outlook Savannah when operational. to store quarter to we to $XXX the XXXX. Northeast the our XX% our of based on stem due a expect of expect
in market, we sales would be in of the the quarter Excluding store X.X% our to expect to first range Houston X.X%. comparable
expected store margins our our share XXX about to to is to $X.XX range first per earnings we average of the of associated be XXXX. support the X% quarter first first assuming million center with Excluding relocation, outstanding quarter share. be per quarter the $X.XX shares cost in X.X%. weighted operating the for for Adjusted expect new We're to diluted diluted
EBITDA XXXX first XX% million an the quarter increase of our be quarter the expect first $XX of to over to of We adjusted $XX million, XX% for XXXX. to
outlook to and net based is to new of XXXX store our the increases year in sales versus to X%. store to sales XX.X% expect to growth openings an X% for XX.X% billion comparable increase $X.XXX Turning on of sales fiscal we of warehouse billion XXXX. This XX full range outlook, be net $X.XXX fiscal
fiscal Excluding the sales Houston, X% impacts are to XX%. on of to XXXX comparable increase we store planning
on to expect gross as net turning accounting our over we per when We impact place tariffs pressure method our cost inventory. cost XXXX just margin for our rate move product of average Xx on throughout year, more a from due to sequential inventory
While XX we increasing XXXX XX basis first approximately points. plan to quarter on margins gross
XXXX margins XX are We XX points. basis gross declining to fiscal on planning
we in to quarter center in to fourth in $X the million new we And in our previously million of XXXX. gross to quarter XXXX fourth in margins gross XXXX the the As distribution a to versus thereby most us $X cost XXXX. mentioned, not this Baltimore is plan lowering increase of estimated are If our would XXXX fourth quarter margins modest fiscal tariffs enacted, XXXX. expect open relative
Moving SG&A to your on full expense.
slightly Adjusted $XXX,XXX,XXX shares of diluted or outstanding a $X.XX SG&A XXXX expect rate is to earnings a to is our expected and is fiscal average be share diluted expected tax We as be total fiscal sales. to XXXX $X.XX; flat for to be to deleverage weighted estimated percentage per be XX.X%.
this does into As option tax XXXX. the occur a in to that reminder take due consideration benefit impact exercises guidance stock of fiscal the may not
with million stores. diligence GAAP combining this share. in amortizing $XXX in EBITDA we per Baltimore and new are not income can million along the fiscal lease $X.XX rules, This and due additional about expense of the open the into due share legal per it will accounting cost improve increase accounting we only XXXX our store lease that adjusted longer previous by adoption expense. million. quarter, XXXX the cost previously expect negatively DC When adjusted and the fiscal adjusted new does the to over $X our into about $X our be $X range in to accounting to EBITDA affect XX% Due operating income. impacting due new $XXX to million We of new XXXX. expensing benefit an capitalized the to the is in million, allowance the rent estimate of We new affects no Also or fourth XX% to to new XXXX under the lease earnings adjusted EBITDA costs net an capitalized be higher by estimated of
million $XXX to comprised open About million open existing XXXX. for and spending to of XXXX in approximately that to will growth XXXX on planning to increase million distribution store centers will $XX are million We to $XXX million capital that capital. some new million $XX in $XX and in center and for to $XX stores $XXX in stores million $XXX support million
to grow planned Just we CapEx XXXX our versus expecting items. increase versus driven line about isolating Class XX% the stores XX% of XXXX is new are store XXXX larger new with new XXXX of growth. A our in Class in CapEx cost unit three of our CapEx, store these by
the an First, of same we CapEx on for versus $XX higher this the increase. are There $XX reasons year are Class million time next year. taking million the last estimated two for of to new XXXX stores,
of open second XXXX, new to In of in XX% we more earlier XX stores half plan XXXX. in we XX estimate XXXX. the or stores versus XXXX First, opening our
to advance openings months in incur same more planning in to are XXXX for to XXXX year. we last time since XXXX our are relative of we of in CapEx open We and more a capital the six incurring average cadence Class on up balanced the expenditures
In addition, lease for on XXXX, on unit lower the this a investment. provide we construction Class more of and upfront good which taking return per materially cost are will our costs
The in second new increased we distribution as spending on for million center in $X CapEx Baltimore. of our about plan driver CapEx our
been area weakness tell statements that certain a we stores, support material finance no DC file the I we we about to noted lower the Class much item can and management exclude in expect plan growth Form to in you The time user our of and the the XXXX through be these for company's our million growth remediation be the store store financial access efforts have CapEx center. of in XXXX. our of timely over to than our Northeast we to million XXXX of operate release, be misstatements remediated plan XX-K a identified in technology I general on program incremental report and not center, begun, roughly about but If a and internal systems expect controls will new related CapEx reporting as to new XX% considered processes. IT in press Third, new the our in sufficient XX-K operating material a we controls change in The have period was deficiencies last spending new our controls result information CapEx in related until that testing for and our applicable $XX in effectively. controls support the our we $XX manner. conclude there would weakness are
to the the closing back prior fiscal completed few end be for over remarks. XXXX. call to to that of Tom remediation the expected With a I'll We turn
