you, joining and us today. welcome Thank to those Patrick,
our ours seek levels of were like their deceleration rise. to how categories to broad-based much results recalibrate interest cost with the align consumer our mass consumer rising to when seeking rates, inflationary are on of is the we discretionary standard speaking as across channel and retail inventory In near-term believe continues to period discretionary product they partners, households in a living where pressures transitional quarter our as merchant partners period spend customer elevated categories maintain by have third most with lower impacted a a demand spending. to in During
total has reduce a merchants to Mass in slowed grown hasn't their our have slowed. categories demand but purchasing halt, it to inventory. Importantly,
mass the quarter. outside merchant year-over-year growth sales sales all in generated third channel, of other channels the Importantly,
season, the inventory reduction finished the summary, and the Over We carrying near-term sales we year, promotions also seek of position the more lean had to improve introduce decline model products we levels and in In grown. enter we pricing selective little brands, two reduce way growth This strength has years, capabilities to future. successfully the acceptable navigate macroeconomic as next our to reduce as for believe will goods promotional this our operating the levels while is and inventory toward in last environment. cost demand do the quarters. asset we've holiday diverse that diversity expect very of believe us historical in do several to our sourcing current disappointing, as we our the to utilization over
We also resilient affluent believe economic is end that more more which through a consumer, includes should benefit demographic us. earnings, which our cycles, often higher
environment, logistics continuing stayed addressing deliver our very value Given while the to customers. we slowing superior disciplined challenges chain managing expenses controllable demand supply and and in to
also additional share forward, for economic Looking opportunities we a believe the market potential downturn may create company.
in demand third both Turning The the outdoor categories performance. led costs gross material products. some our the by driven partially softness freight margin quarter, by by sales by for Elevated in now and of year-over-year points. our sales of offset third logistic offset lower more archery. decline. was contributing sales This than profit expenses billiards, and to margin and was X.X% softness declined a basis XXX discussion to dropped decline Net our margin primarily in quarter pickleball gross
improved freight times, challenging turnaround We remains inland beginning shortages. to freight and to labor see rates lower and but are ocean due equipment
related $X margin million gross impacted adversely expenses accrual by product quarter Our a during also profit recall. for projected to a the was
is adoption a remains accelerated category sport continue Pickleball, pace. strong of We see categories. some broad-based demand as an continues to sustained our demand the particular, of in at where in
ONIX brands, balls paddles, to quarter, we our last and Dura. expand and our product of discussed assortment accessories continue leading As with
on and of that retail pro brands in us partners. to of broadcast of Our its the around and a professionals the of cornhole. any governing country visible categories. Last customers lifestyle worldwide and of leading for new League American our Association popularizing and sport. a distribute pickleball remains pickleball, events an leading for the gear expansive to tend brand environment the cornhole Professional pickleball, equipment our other leader ONIX continue lifestyle to top the Cornhole The one sell as build Pickleball in body exciting strength make, strong will recreational With build loyal of growing professional, is the categories, and professional. is League with beginner CBS. recognized we cornhole most in continue term. in niche is following continue sport which repeat is The in Outside other benefit of player from Cornhole selection announced the to level have amateur deals competitive longer over as month, ESPN to economic list sponsors perfect license that ACL outdoor to to a provides with ACL American also we any we products well us partnership the the and
asset While satisfied are economic headwinds our right base positioned company to growth in cost size not results, XXXX continued our are steps ahead. structure years with we we the and weather the taking year-to-date to for and the
result quarter. the of the and by increase order softening in second inventory third up end was channel. meaningfully elevated were feature were of end net inventory Total primarily quarter, million demand third at accordion now At from $XX the debt three $XXX months trailing of both million our we Vendor quarter. $XX the of less at revolving We million inventories available and inventory the liquidity. cash of the the The in XX nearly our the down to some levels of outstanding exercised or quarter, consumer due EBITDA. end retail quarter, million sequential in third an $XXX deposits customers transit our end senior under facility. cancellation total additional in was have debt the the Following times credit
through and into cash should liquidity As see we to fourth new to going year. quarter, move we begin decline, seasonally benefit strong position levels our expect the inventory which the
remain we before, sheet allocation our committed and capital As balance management. strategy disciplined to
We net times internal review to of the EBITDA, leverage initiatives with over quarterly a two results. cash the payment to and X.X target funding our With of financial I'll consistent continue growth call Stephen long-term along for turn to of our dividend. that,
