XXXX. our Thanks, and to Tom. quarter I also am financial with want operating in how third the fiscal happy performance of I say
improved merchandise complexity through supply year-to-date compounded market sales total annual levels, grow in maneuvering from increased in-stock chain XXXX. XX.X% our sequentially our growth basis considering product even impressive and successfully Today availability been on more is have share. We rate to a critical our is which growing
many supply like companies rates. Additionally, product costs including, on rising raw we material from costs, pressure input face and labor chain energy costs, higher higher
to costs effectively and increasing pressures. about broad managed our cost have these strategic offset We been prices
a and our protect any may adjustments we that proposition. make and rolling value be price price intend our reminder, keep to As will leadership we
to to We to impacting broad have make assortments without date. strategic price fortunate adjustments our are elasticity unit select materially
quarter rate. share results have where said our managing manage from ability believe fiscal dollars gross strong net drive financial profitability earnings period. demonstrates As rather gross than profitability challenging XXXX our market third successfully prior XXX% to income margin we adjusted these increased towards profit we calls, industry-wide our grow XXXX in our We and during
thinking cash comments me statement, Let how some income turn line of the balance of discuss then we the flows, and in statement remainder sheet to and third XXXX. my of about are items XXXX, quarter our now fiscal fiscal
Let me begin with our profit. gross
fiscal total sales increased $XXX gross offset that in our a We third The XXXX, million a gross profit rate. quarter gross by in are lower margin driven increase was pleased $XXX,XXX. growth XX% to profit partially XX% by
in to to quarter better-than-expected basis The margin third XXX supply a decreased rate chain decrease gross last from costs. year. due was gross XX% XX.X% Our higher margin points primarily
and As the out in non-GAAP fiscal XXXX, XXrd XX XXXX. XXXX quarter items a gross the points rate, and respectively from reminder, basis third and basis for margin fourth adjusting week quarter previous our reconciliation XXX of unique in called increased points impact our
to second For above a we fiscal third third fiscal margin that of reason, XXXX earnings said in but our year-over-year rate, quarter XX%. rate our XXXX quarter call lower on that we gross basis expected be quarter our
Turning to our expenses. quarter third fiscal XXXX
and since selling million growth. primarily quarter XXXX from was to to expenses opening operating the store XX, September XX.X% third XX $XXX increase sales Our The increased our new stores and of additional support staffing $XXX,XXX.
period rate decreased As a points percentage last in store same selling operating XX% year. the of and expenses from basis XX.X% to better-than-expected sales, our XX
selling compared our last XX% store our growth grew to this leverage, store XX% we year store units with pleased year. considering and unit rate by are We new operating expenses
expense last XX points our and XXX quarter store staffing operating third higher is quarter fiscal quarter advertising fiscal year occupancy top in third rate of Additionally, store The expense not approximately leveraged leverage approximately we basis in sales. achieved the we in points sales basis XXXX. basis from comparable store XX when decline as our year, rate store previous of fully momentum. quarter on of the and third period expense On same the comparable costs leveraging selling fiscal on yet accelerating XXXX points was extraordinary and third selling leveraged fiscal a with operating store aligned basis, XXXX our the XXXX,
increased Our store to technology $XX,XXX,XXX. store and general to administrative to due The primarily higher expenses staff third increase including support XX.X% cost to is investments. support center and support store our and quarter growth related other increased depreciation
X.X% costs. period to to sales, As basis Surfaces acquired our intangible same assets and other with points was XX amortization general of last the year, due non-payroll-related expectations X% the in a administrative percentage G&A from approximately of primarily expense from Spartan increasing line and from
to warehouse or stores XXXX to we third were increase to weeks compared the the XXXX open preopening Our the six increased the during result expenses period. warehouse an The opened September of quarter opening planning number and ended prior one compared XX is We the September increase fiscal in stores of XX, XXX.X% studio stores XX, opened XXXX. year three during $XX,XXX,XXX. ended primarily to design XX either weeks
increased EBIT third $XX,XXX,XXX. to EBITDA $XXX,XXX,XXX. Adjusted XXXX increased fiscal quarter Our XX.X% X.X% to
primarily Our XX.X% margin well expenses adjusted XX% our impacted as XX% basis XX.X% we store gross ramped preopening that rate costs up to EBITDA last new year points from as margin higher record year. this our higher year's last from to decreased due freight XXX as to growth
tax The fiscal the effective X.X% XXXX to quarter excess primarily tax effective to XX.X% rate period tax decrease exercise was compared same due in the third the option stock period during same year. to current Our during the benefits related higher compared year. prior to quarter previous the rate was the in
a As year. our XXXX in quarter was third last to compared income $X $X,XXX,XXX the provision taxes fiscal same period for result, million
to quarter net XXXX increased GAAP Fiscal to XXXX Our $X.XX. third GAAP fiscal per diluted share third X.X% quarter X.X% increased income earnings $XX,XXX,XXX.
to third earnings $X.XX. income $XX,XXX,XXX. X% quarter per share increased to Adjusted net adjusted increased Our diluted X.X%
GAAP Our press found average period million $XXX,XXX,XXX million same on to reconciliation count earnings be third non-GAAP release. quarter complete the weighted A year. our share earnings today's was during diluted last can to XXX.X compared of
Moving XXXX sheet cash our quarter on to and flow third statement. balance in items fiscal specific
our strong our sales increased As our second quarter his quarter taken growth. to up actions year have growth To last year-to-date. multiple remarks, prepared period the year-to-date. period mentioned we was inventory favorably from XX% in end, that net support last inventory third the Tom XX% year from our compares X% build and inventory when XX% and up same same to The the to
We $XXX inventory to XXXX two expect million to in is to to increase year-end by about approximately being expected investments. inventory our XX% XX% from fiscal our increase fiscal billion, The XXXX. up primarily driven $X
inventory we in and growth turnover. Notwithstanding intend capacity that New all-time And try an are we portion the exist. mitigate of to First, our international months in investing a experiencing second, SKUs. inventory inventory inventory landing of couple improving in November in-stock Year to this to high Chinese our bring in December container in early key current we are the issues a
our expenditures. weeks $XXX,XXX,XXX including capital the capital our the end to expenditures XX, on XX Moving at September expenditures Through period. totaled the ended accrued XXXX, of capital
As we expenditures look million $XXX annual prior to million to forward, we fiscal unchanged our be capital $XXX expect from our XXXX approximately guidance.
our by expect capital from be on funded fiscal generated XXXX flow cash existing We hand. and spending cash to operations
September in unrestricted XXXX, of our to our support $XXX,XXX,XXX had including we on sheet. in $XXX,XXX,XXX As liquidity balance XX, cash growth
how we're to Let thinking me about of fourth the fiscal now turn XXXX. quarter
We growth support trend exceed – to or housing last demand at is be available solid and continue we home years reinvestment are which a mortgage The home the secular lead a prices XX-year will to year cycle old and believe in due annualized projects. people prices occurs to market. continues are in homes rates sales natural around to macroeconomic still X.X replacement years are well September operating homes and in Home X%. above of in Existing and and to elevated for million XX hovering to remain home the units continued continue that supply XX live there XX% maintenance. older
inventory in-stock than of better we are have many our competitors. improved, Our think positions which
modest our great cost growing elevated due higher than a with with a have teams job merchandising With to business Pro also ticket. we on-trend our business innovation. and in an increase at homeowner along see retail a Our rate faster done
comparable sales by As driven Tom on have a fourth ticket. mentioned quarter our and in accelerated both one store basis two-year
that We risks final we the into about in said, the about XXXX fiscal That business some a optimistic fourth prospects but let elevated. and the XXXX. of fiscal remain and economic quarter are XXXX comments of me provide recognize sustained recovery quarter
capacity the face supply look we freight in As from product and the forward costs challenges global we rising chain.
costs single-digit manage have the term. over We short rate to likely comparable and organic of certain income of change margin underlying comparable product our to these that on our To costs rate in longer-term higher mid- we these store growth products. related store believe prices While have coupled could pressure, the rising effectively, sales with sales they be gross targets growth plans high growth. our we freight plans are lead a complexion to and actions growth term of mitigate the could intermediate raise above statement to these to
comparable top last on growth of our sales store comparable up the sales mentioned, Tom was about quarter-to-date of XX.X% As very quarter-to-date year. healthy XX% store
to the year. As second gross XXXX discussed margin as half are prior last increases calls, in of in margin costs year-over-year we likely on as outsized see year the decline due gross well this a rising rate our rate to
Our gross margin acquisition quarter are note XX% retail. Surfaces approximately should gross our rates XXXX also the commercial margin as to I fourth expected XX%. that be fiscal to below margin lower to modestly of gross is rate rate is expected Spartan
selling Turning expenses. store to and our operating
We fiscal fiscal XXXX the store lower. selling fourth and slightly XXXX, quarter expect expenses leverage XX% compared quarter operating or approximately to of to an fourth our
be fourth in fiscal our similar fourth line on about to amortization depreciation and and the pre-opening third to the to interest with and expected XXXX. and plan $X.X fiscal expenses outstanding to Diluted the We our to be be XXXX. sales, quarter, average are expenses shares approximately As XXX,XXX,XXX of sales weighted million our quarter estimated be the quarter tax slightly is about expense to above administrative XX%. $XX of million. fiscal to estimated are we rate in In be of general a be quarter spent are expected X% of percentage XXXX fourth amount
due stock the quarter not tax in that fourth the reminder, option of the may to impact incur As a exercises consider this of fiscal guidance benefit does XXXX.
some to team executive questions. we're performance Let is our by proud me ready Operator, saying take our incredibly now in entire XXXX. close of
