Thank you, Mary.
to model. today and business get truly years started, team that of express After new spent is companies profitable this outlook I the this growth leadership be I .
Between the of products Saks, I to is share eventual and excited Street, being remarkable this am XX having Sactionals Before then introduction as part at a and immense. gains market categories covering truly Lovesac continued expansion, want large-cap for consumer brand, consumer geographic say how the amazing can start-up, part here of growth Wall on differentiated company and special. I and opportunity the and for
our driven our what by celebration. This increase with of fiscal we 'XX, the with year-over-year of 'XX. XXth to quarter million the X% review or followed for sales for and was All in showrooms. $X by Net web right. projected July $XXX.X quarter, promotional quarter the million the campaign driven of to On and a rest quick fiscal line increased second X second outlook and in anniversary by
Showroom comparable the compared an second the in fiscal in increase driven $XX.X transactions the million net to with The year XX addition $XX.X period. increase net prior related year sales Showroom of $X.X was sales increased prior net million prior to or promotional point-of-sale as of period. of in sales million compared X.X% and in 'XX by X.X% showrooms year, to new lower higher Showroom the to discounting than the quarter
As our the sales sales our prior net metrics, placed which $XX.X 'XX in million quarter period. $X.X transactions $XX.X comparable million increased second a sales orders the or recorded. point always to we does are point-of-sale to through when reflect reflect at of control reminder, Internet net showrooms, customer which transfers in the to as and in the fiscal XX.X% million year that not represent compared
million XX.X% shop-in-shop pop-up inventory of due second 'XX. fiscal to fiscal $XX.X the and include inventory The to transactions transactions decrease quarter $X.X or a open-box second $X.X to the decreased which only million sales, was $X.X compared net quarter Other lower in principally million open-box in million shop, 'XX.
reminder, of operations, a our open-box circular with ESG ICON part a for and inventory design life initiatives. As are our transactions
the options reviewing which and with progress at product for retain should more sustainability same great in profits for making to all goals, returned align We're time. our this Lovesac
open-box operating We meantime, the to possible. of as warehouses to these we In with in are efficiently in ramp inventory may expect limited engage some QX. transactions ensure ICON initiatives as our
which open In included outlook. third an our will have quarter, box the fact, in sales, $X.X incremental million in we in are
quarter, sales expenses. basis pillows, points and primarily increased of quarter and XX% the prior year and basis in net increased our XX% in our XXX blankets which by SaaS sales, to second By net Sactional increased X%. other total in sales the distribution the margin related points category, decrease quarter sales net of a includes driven in product second decorative XX.X% year. over XX.X% tariff the XXX net increased Gross versus prior accessories
This was the related over prior outbound The partially decrease the points discounting. XXX offset positive impact and to costs. is from and decrease related distribution XXX basis pressure in promotional basis partially offset of higher higher points expenses transportation inbound by in transportation total warehousing points of costs. XX by year basis tariff principally in
lower quarter reminder, the a the in rates at a benefits level. inbound the As of in albeit decrease third freight will slightly continue
deleverage In points, costs, sales current the fiscal as and employment to new basis SG&A credit selling-related of an expenses 'XX. increased support a growth driven employment $X.X in XXX million percent expense well net card increase Lovesac in professional by tied by continued primarily to to costs increased fees. as hires due by dollars, within primarily investments and future as
in million Rent $X.X by rent. in percentage professional net consisting $X.X in Overhead items. XX increases our of from in expenses mainly related offset $X.X showrooms, miscellaneous other fees reduction million, $X.X addition and rent partially $X expense increased million infrastructure investments of increased $X of million to by million million
million compared the We prior quarter. and prior in XX% period to million of period. $X.X and of second sales prior in was Advertising year XX.X% or estimate net financials fiscal quarter were the million nonrecurring Advertising as expenses sales $XX.X marketing period. the compared in expenses XX.X% of to quarter 'XX $XX.X the of incremental second the second year the net million in restatement increased fees approximately $X.X marketing for associated to with
of compared $X.X loss year, quarter just to the will the discussed. the million the year. serve operating income The quarter XXth was we was through remainder for anniversary many of increased fiscal driven last primary messages contributor second $X the marketing for to of factors foundation the the in as This the the percentage by of our Operating million launch campaign. of
net turn morning. Before our and and loss, earnings we diluted in of GAAP the and reconciliation per comparable net EBITDA, attention our share terminology loss refer to earlier this to adjusted issued adjusted most directly our please their each measurements release metrics between
$X.X compared million was the $X.X per income net of negative diluted share $X.XX the for per diluted in period. loss or prior $X.XX Net quarter million to year or share
income of quarter the quarter. as for we fiscal 'XX. second benefit provision The 'XX, is provision of million to of primarily compared an driven the by second a $X,XXX $X.X for the in quarter the loss net recorded tax tax fiscal change During
an the of gross $XX.X upside for our margin. the period. of EBITDA the EBITDA adjusted million to principally Adjusted second ahead million compared quarter the income $X.X was was quarter by prior year EBITDA driven for expectations, as of to in Adjusted
balance our to sheet. Turning
is believe SKUs, in Side despite is a maintain delivery exceptionally to both of of are levels inventory on in-stock merchandise We good our our clear highlight quantity with discussed leveled quality our ability total feel about our addition and prior model. projections, and our as positions of the and we uniqueness of and Angled and times. the line the Our this business out, we inventory This call. have industry-leading
with We quarter no availability million revolving release well our and with $XX our press cash details sheet, very line cash performance. for in second as borrowings. other in on $XX.X of on as to a of million healthy ended second the equivalents our refer balance inclusive earnings financial quarter Please credit
'XX. million. net start third quarter. So third the in outlook, compared inventory let's and sales now with the of We $X.X of to million includes million $X.X our estimate open-box This quarter sales $XXX of approximately fiscal fiscal
a We SG&A as positive margins gross XX%. million. and EBITDA slightly percent above net and XX above and of expect slightly of XX% adjusted and advertising million as Merchandising between negative net sales. between sales percent $X.X includes $X.X This XX a
prior to XX.X diluted be period common million per loss weighted our average We is $X.XX This million financial $X.XX to $X.X associated incremental with million outstanding. expected nonrecurring $X shares statements. approximately share to of be of $X.X loss net estimate million. We includes to restatement estimate with expenses
'XX. year the fiscal full Now for
are range the to sales We million million. year to $XXX net full outlook of tightening $XXX for our
between income with as expenses of gross adjusted estimate and million above net sales XX% XX% of financial to a $X $XX be expect nonrecurring restatement million sales. XX% fiscal net $XX We We and between SG&A $XX $XX $XX.X million estimates merchandising million EBITDA and million. as includes and approximately net statements. percent prior 'XX to This percentage of of and slightly a period associated of These $XX margins incremental of include between million. our advertising million
of per average range estimated income common XX.X $X.XX outstanding. shares diluted $X.XX, approximately in the diluted estimate million We share and weighted to
in approximately the Quickly a in expected week outlook. million is on the fourth XXrd As reminder, quarter net balance to sales. contribute our $X cash
Given of the openings new our of quarter, timing year. inbound the strong and the cash balance flow point quarter the to be inventory of fourth touch third quarter tends planned ending lowest seasonally our ahead of
'XX. I'm pleased fiscal we end cash. third quarter which ended approximately up fiscal third million million that $XX $X.X to at quarter with share substantially the is in from of
inventory than season, with we As 'XX busy continue fiscal net cash we through a monetize to we end the fiscal we ended 'XX. higher will estimate balance
the well to confident I'll now start operator are Market put as measured sheet, a and already So drivers to challenging ROI-based what approach backdrop new results. our With healthy the ahead quarter gains, back session. the the with in balance foundations, to turn in and for we Lovesac of a share opportunity very optimizing second a position. in strong I'm here, Q&A reinvestment I'm focus their I'm strengthening execution team's pleased our but by exciting on growth new continues the to us. an an call proud conclusion, macro be enviable outlook.
underpinned growth, exuberance of as
