enduring towards serving associates hard customers. to their for I Tom. to and also our our work express Thanks, appreciation my would like all dedication
financial are strength associates of the model. execution business testament XXXX a our by of and our strategies quarter excellent record year-to-date the to our fiscal Our and results second
line Let the about changes quarter XXXX me of income now statement how second will discuss statement, of discuss the among balance cash items sheet remainder flow. XXXX. thinking our we're in some then I fiscal and the of major fiscal
was which X. fiscal completed they our results but results quarter to these second Spartan not second accretive Spartan's material were to were quarter. include on reminder, our of modestly the Surfaces, a earnings, acquisition As June XXXX
XX%, and same sales the last store total Tom XX.X% grew our second mentioned, quarter XXXX year. our period sales As fiscal increased comparable from
above which store store single-digit when comparable to store limited rebound On fiscal our exceptionally rate store have quarter annual on at are sales to XX.X% year's basis, XXXX was of year-to-date pleased we compounded a second basis, is is growth XX.X% decline XXXX. pickup, our high rate, sales growth comparable annual from comparable that sales XX.X% well increased target stores comparable mid- from last store sales to sales long-term in an grown growth. access our same in XX.X% comparable compounded that a curbside impressive While X-year our
with consistency our sales their of performance We comparable are particularly stores quarter growth our second well older pleased as across country. of all store of vintage and to the regions the contribution our the as sales
XXXX increased sales to year. second Our the in quarter record rate million gross period the gross as margin million same profit period fiscal $XXX.X last our in $XXX.X XXXX XX.X% year. our XX% second total from versus gross last XX.X% by in a profit of was driven was same flat at fiscal The increase the quarter increase
quarter past considering pleased quarter the are cycling points fiscal XXXX. performance, are to margin increase we XXXX with of second a basis rate in We compared our XXXX second gross XX
profit million Additionally, gross that XX estimated our XXXX included points. receivables decrease a basis margin second to quarter our refund gross tariff impacted by rate about $X.X the
XXX Nevertheless, expenses. our increased we to XXXX, XX that rate in $XX.X the and are XXX to our align stores last year. Furthermore, last leverage us staffing XX, same warehouse XX.X% the selling basis expenses to from fiscal year. second expense of to XXXX store strong strong opened primarily pleased XXXX quarter sales expenses the The XXXX period our as second sales Turning fiscal the quarter enabled same basis our new quarter since XX.X% points fiscal Selling points additional operating XX.X%. attributable period increase million XX.X% to rate below operating second was quarter was with from required as or second growth. and store well June
store other growth, store to $XX.X the and expenses and related XX.X% technology depreciation the incentive including investments. or center last higher and from higher staff to support due store primarily cost support support general and increased Our million second same year, period quarter compensation to administrative
our costs the million were a period opened administrative increase We to the XX X during the $X.X basis, X.X% of to same two points on stores XX of expenses XXXX, weeks period. XX, the and On Preopening quarter X.X% XXXX. increased sales. in is as last that from the quarter. either basis compared July we the general in June number Additionally, or X, XXX.X% million during year primarily or opening preparing result the leveraged opened increase during to we warehouse acquisition-related higher ended in year approximately the prior compared an rate ended incurred stores open stores year. warehouse same XXX weeks to second This expenses $X.X last from
Second $X XX.X% quarter same credit The net was due a decrease period. lower expense interest decrease borrowings decreased the related interest last to year. primarily decrease rates the in or expense the term interest compared prior year million from revolver to in of period to and a the interest line corresponding in loan
Our taxes was quarter XXXX same million to compared million for $XX.X provision the last benefit income fiscal $XX.X period year. second in a
effective rate The in compared connection higher tax our tax the year. tax was same recognition Act earnings available of during XXXX XX.X% a benefits rate in without in and a the last primarily in with result, income As was negative to increase due the a period in CARES tax increase to current effective quarter XX.X% the credits. proportional the
our Moving on profitability. to
the year. EBITDA X.X% to increased Our margin XXXX XX.X% second last XXX basis in quarter points adjusted rate same period from
per year. the we our XXXX increased second $XXX fiscal than stronger same quarter a a expected $XX.X As adjusted delivered share. million fiscal million XXX.X% in quarter Consequently, last from to second result, period earnings EBITDA record XXXX
year. GAAP income share increased to quarter last or $X.XX share diluted million from million Our diluted $XX net per $XX.X per $X.XX XXX.X% or second
$XX.X second from diluted million million $X.XX million last outstanding shares share weighted year. increased average diluted Our second XXX.X with quarter share shares ended XXX.X% or to We net XXX.X the year. quarter adjusted compared or income adjusted diluted $XX.X with per last million per $X.XX adjusted
balance Moving on cash to fiscal XXXX sheet flow. our and
payables cash Our inventory trade strong significant turnover fiscal XXXX financial and drove in results, our operating favorable higher increase flow.
ended inventory doubled weeks that the in of of $XX.X $XXX.X requirements a For $XXX.X XX X, capital balance in We with million than our our cash quarter to the fiscal significant the flow XXXX. portion operating to million XXXX, last anticipate July from same ended the year. on half period second and fund using cash second cash our million in spending sheet and more
due period and global are deliver we well from XXXX to fiscal quarter we increased chain X% supply to specific Pro our that XX% in able sales challenges. second year broad the the inventory supply availability same offering year-to-date, below by of homeowner are growth sales results constraints, the our last which and customers the range chain. products is alternative Our been have constraints successfully pleased there a product Despite strong where
intentionally in-stock capacity to logistics freight New Year we added international of of our we our As higher and will that Chinese pulled pressure rate. we second forward, half be facing North In and costs gross orders container improve doing merchandise purchase look forward have further some in American margin the our XXXX so, will position.
Moving on to expenditures. our capital
through expenditures X, ended of end also XX the July capital weeks million the period. capital including cash. Our $XX.X in Spartan XXXX, the million, at for accrued acquired expenditures $XXX.X And totaled we
in look the $XXX we to increase versus $XXX we expenditures better in approximately dates million that of early is XXXX now new to have million of to increase capital store $XXX as open As to compared an XXXX expectations our costs. our XXXX annual now we $XXX intend for our visibility to to spending expectations entirely and the prior stores class forward, we due fiscal The capital opening prior million. into million expect be
by $XXX in and cash million fiscal XXXX flow balance funded stores, design our our We open We to two studios opening cash intend be XX to from small-format capital still on generated warehouse-format and expect in construction sheet XXXX. fiscal spending operations. stores on start our by
early stores $XXX existing in to million X.X capacity two $XXX fiscal new originally double have we our expected X.X square expected investments XXXX and will We our million is construction by distribution million Houston in capacity total The feet to $XXX compared $XXX incurred million million are that end of center be these to also by XX% planned. Collectively, Texas intend our XXXX. to increase DC in XXXX. feet. require distribution costs and of to to This relocation relocate center completed million to Houston, square to will the
Additionally, opening XXXX. us leading expected drive weight, plans fiscal fewer which facility beginning in these containers, transload to are Angeles to require that to maximize will a Collectively, we freight $XX to and are $XX savings new Los in distribution ocean will allow cargo million million. drayage
continue in and remodeling and million. using existing million distribution to making approximately We investments expansion store existing projects $XX centers $XX
in and approximately plan Finally, informative continue we million store to $XX other to technology infrastructure, invest e-commerce to support using center initiatives million. $XX
secular still highs, into turn home million, supply, Let at fiscal reinvestment for lows. to we're they $X.X accommodative thinking the allows from support historic intermediate are to perspective, the about Home are how to the comments XXXX. fiscal homes and the available policies From end exceed all-time June while an projects. steadied home The which seem which the macroeconomic last remain look a back of of over monetary at we continues for growth healthy will second rate. in term. have of annualized at home. me now my mortgage are existing appreciation continue prices up a lead year, to half price the reinvestment to sales rate And to demand rates home and very believe
merchandise and remained remains strong. robust sales categories backlog Pro the geographies growth and across has Our
XXXX fiscal we the the elevated. our we recovery recognize risks business of prospects remain sustained that momentum the of and about XXXX While and half into optimistic business, second in in are economic the
context our year. and let said, are we the of per share continuing fiscal of consider providing items That for some earnings reason, sales practice that remainder specific and the you not For provide me guidance. annual to
difficult will and many in be XXXX. comparable As fiscal many like past know, of second margin comparisons cycling we, the sales half you the of store increasingly companies,
impact increased reminder, fiscal and the rate our XX quarter and a respectively. sales basis As previous points XXXX and our increased quarter fiscal fourth and non-GAAP of third an taking items XXXX our points XXX in reconciliations on XXrd XXXX basis, called XX.X%, week fourth Moreover, and the in out gross quarter adjusted out unique store XX.X% basis third comparable versus margin XXXX.
As global we challenges look freight rising costs the product are and in chain. from we capacity forward, facing supply
While higher manage they these are to costs, we to effectively term. plans the our short in the complexion change have P&L of likely
certain discussed in and to in the margin gross prior likely this see That gross said, year-over-year margin an rising for in rate the we cost increases second due to are year. of we gross year our rate in a As XXXX our have adjusted margin last rate calls, half outsized on the decline basis, the second half is slightly the the To selectively on of rate fiscal XXXX period raise pressures, be highs second mitigate product half higher we below our plans XXXX, same of XXXX. than expected margin related rising of but and and to costs prices where gross of products have these necessary. to freight
price will be adjustments maintaining towards eye XXXX. and our It's keep with in proposition. and an any expectation make may be value that will leadership mind current Our be we important in is our these protecting price that modest to increases price will rolling
price of sales or store end short broad underlying we above organic impacting with assortment to where in at could long-term can a fortunate strategic a to comparable are believe our the the that actions term sales lead growth. unit We target elasticity. adjustments We to rate the growth have high without select could coupled materially single-digit upper these growth make of comparable be store mid-
mentioned, about Tom XX% sales last of of our the on quarter-to-date store XX% top quarter-to-date store comparable As year. sales very comparable healthy are up
operating store selling expenses. and our to Turning
expense outsized quarter direct customer XXX points. labor of In the Recall, store as selling planned quarter the our when our basis hours compared basis accelerated. selling of fiscal our and our period, to comparable and sales expenses deleverage XXX exceeding of operating by result store a our XXXX same demand expenses the store We operating third third XXXX we quarter third leveraged to XXXX fiscal expenses expect points. was store leverage leverage in these
While expecting to deleverage historic leverage fiscal compared fiscal our of are selling we XXXX. to are quarter to they XXXX, operating expected when third expenses in the
same the we last the leverage we period look quarter, fourth to As would forward over expect modest year.
be preopening sales as modeling Our year, percentage percentage to store year due when we XX in to grew fiscal are expenses our to And also new count last this are as XX a preopening to year we be XXXX expected of versus our opening the for for close only expenses XXXX sales XX%. fiscal the by a stores higher year. of
expected and general XXXX. a expenses sales as in percentage of administrative not significantly are of the second change Our half to
We are approximately X%. rate expecting be the to
million. approximately XXX from expense our our prior $X be to XXXX to We be weighted is $XXX guidance. our And shares is XX%. are And million. approximately above million, to planning slightly are on amortization rate tax on $XXX estimated our interest million fiscal to depreciation to estimated outstanding Diluted and we be be average planning unchanged
reminder, fiscal not the the take does of option that to impact consideration As a may due stock occur exercises benefits XXXX. in into guidance tax this
We increase XXXX. also being expect billion, $X approximately an expected our fiscal year-end increase the million The from investments. inventory two balance end of $XXX at be the to primarily by is driven
New capacity of to landing international SKUs. in inventory making an are will a portion bring we to Xx mitigate months Even container issues investments, that highest December, of inventory history. couple the exist. to this investment of Chinese with in approach a our November our try First, inventories Year current intend early, in-stock company's second, key turns we the these in year, and to And our the improve
of will the P&L algorithm term, our challenges chain manageable supply growth complexion some change our is unchanged. global in are there the the longer-term in While short that
The a net single-digit mid- see gross compounded continue at store proud XX%-unit term annual the growth growth high and is basis. income have performed. us of rate growth, margin entire that least We incredibly we to comparable XX% how over on leads executive to long team growth of improvement modest to a sales
call turn Tom. the Let now to me back over
