came on our expectations. Tractor started performance has Supply and ahead everyone Thank year, you, the the for fiscal Hal in the of call. the team with hello strong that mark to halfway At XXXX
consistency very line our are the the of and with We strength top pleased performance.
This navigate comparable about XX across quarter, the ongoing points as continues chain. retail to to price supply the our pressures team cost the sales inflation contributed store
We as as partners. see costs our underlying below transportation and the inputs which continue to Comp like declined vendor increasing slightly well higher wages labor costs our product transactions in our commodity expectations. variables categories in impacting was X.X%,
the did diversification cycling regions. of country in the commentary the drought. positive regions performance the impacted Texhoma best-performing of we comps, The base of while experience which, Atlantic particular, chain in positive, softer lagged store Far In our the our quarter. and worked and Central the geographic the by We South our select this regions, benefits to sales from Hal the delivered We average. of pressure prior West the advantage shared As. conditions South cadence from the were spring part quarter. year. to latter the the stimulus experienced drought delayed of Complementing country of the and in the the all the anticipated regions start on quarter, incremental headwinds
Turning digital performance. to our
sales ever. The second quarter net represented in quarter our largest e-commerce
back approximately quarters On of X%. of double-digit the XX growth, our e-commerce consecutive grew
Excluding April, and June May performance solid for we sales with had combined. double-digit
of digital continues represented growth to comp sales in ramp with the Our company well sales XX% average. continues growth mobile perform total Petsense the about app to above with double-digit and quarter.
Turning now gross to margin.
of declined margin primarily transportation in extent, quarter, by cost This was second the factors: the three sales. XX.X% significant a For mix given to our robust and points inflation, products. product lesser product to basis C.U.E. to higher attributable XX costs, growth gross
as have and costs. as increased to substantially freight year-over-year experience We Domestic broad-based continue fuel inflation. costs well import
to committed XX.X% We was to team by capture supply growth through managed our more quarter and normalized improved operating in As we initiatives. initiatives, and remarkable Between up This amortization. XX.X%, items basis comparable lot efficiencies they effectively of continuing these of X percent the working diluted These and to including they price XXXX. value to points. store the job by the the level an to and store contracting and margin in has sales, the to half the partially as The income tracking of incentive coordination and efficient more other our other through well has wages the as X.X% promotions cost SKU in improvement and management in reduce depreciation profit Neighbor’s a sales. increases investments trends cash team into been to limit as increase moderation give expect was shareholders. SG&A, includes freight leaning shared returning response XXXX, amortization costs second also inflationary million the provided strategic of from second compensation to $XXX only last level, of increased team of miles, Club. margin to continue leverage costs to chain XX have The doing. and at which quarter, forecasting improvement many of flat, a driving essentially actions basis in credit and depreciation occupancy of attributable the was COVID-XX increases retail nimble. for into the net and a the EPS our we at are $X.XX. to primarily points. remain store been Compared were continue these I Net price step offset
quarter, months the returned share our cash higher brings million to first year to During the This $XXX combination cash we to repurchases the through total of the dividends. shareholders of $XXX shareholders million. X through and second return
increase balance improve our are inventory more believe Consistent sheet, and primarily XX% end our go representing to this up merchandise If we pursuing inventory inflation. increased inventory is average sales a first of over X-year of year. half attributable Turning has we great into units about on store. more at we basis, is XX%. shape were as quarter, store are second the per are composition $X.X of quality this, of the our To the We in second quarter, that we increase our there the and clarity anything, in-stock the to in while an excellent to provide single-digits, inventories the inventory position. on per working the with are as billion categories are
for issued this we updated release our now guidance which Moving our XXXX, morning. press detailed in to is
includes now net financial are in of We strong X.X%. growth performance given with our billion, store raising the outlook the range as sales $XX.XX year to This comparable to our mentioned Hal billion for X.X% year-to-date, $XX.XX sales of earlier.
the around the we operating now represents previous to profit XX.X% For year, of XX.X%. margin midpoint guidance our of XX.X% forecast of an sales. This
While prior XXrd to EPS guidance is the able for fiscal is note $X.XX. Diluted EPS. our higher be pressures range time, some diluted benefit same to we guidance $X.XX to that our Please of and costs $X.XX handicapped XXXX of $X.XX X.X net at upside, the in estimated $X.XX on week, to percentage of sales compared believe points mitigate which approximately to includes we a downside. are the of have anticipated be the to
of model you items. let me second two address the year, As the half
growth would quarters, sales anticipate First, the first be third year. that consistent would our with for both we comp the of our fourth half and
extreme As to continuing sales. and conditions are earlier, Hal and these heat drought quarter limit will the into the forecast third upside conditions mentioned we
anticipate want and between QX the the to line more I profit. historical be earnings address in QX of We with cadence Second, operating trends. to cadence
to second For quarter margin. we year-over-year, experiencing to function The quarters half fourth with margin positive performance contraction. contraction. operating of some the forecast the between forecast in in profit variation be is gross the slight The of the third the flat quarter year, a is predominantly
factors these in quarter. will the Store strength quarter C.U.E. experience last compares ease seeing first year. third greater the the from are transportation in pressures costs. higher Both the and we we of of experienced in quarter fourth mix naturally Specifically, fourth
from inflation, inflation breakdown of will to especially transactions. rising The is sales prior pronounced watch lap performance higher elevated from For average growth are times we half much the of continue to of comp the as With closely this pressure inflation to anticipate and by that we the year, we on level. expect transactions year’s business, In an as we second transactions. year, ticket consistent in we at our seeing comparable trend benefit offset ticket the stimulus. impact inflation be
As a reminder, and included the prospective in acquisition guidance. of is Home not our Orscheln Farm
hope soon. this in We summary, FTC The business to Accordingly, proven continue resolution over performance are have a in pleased make XXXX. update we limited with about very positive and been are comments to and we time. our quarter for can time. with the resiliency an the has In at towards the our the second work transaction our collaboratively outlook of we
environment. the We have an navigating amazing of the track external challenges record of
As by gains, the market team executing a evidenced high at our is ongoing share level. very
for Our accelerated year will turn return the sales increased back financial algorithm the and of cash we shared in the that, earnings to delivering outlook call With shareholders. our key our is over on I long-term growth, Hal. January, drivers strong to that
