Thank you, Tom and Trevor.
macroeconomic take inventory in million of and flooring cash flow million the increase flow throughout fiscal $XXX.X million our immense a flow. investing free cash XXXX industry the year-over-year.
We how continue that in in As us to growth CFO, manage pride focused sales I our share in our teams balance sustain and effectively despite market achieved Their X.X% generated $XXX.X and headwinds navigating enabled operating profitability, sheet, contraction cash to capital, business. throws $XXX.X challenges efforts generating while in
strength, grow we on we will embark fiscal by continue so share our can we XXXX, we of believe from a position executing do to control. and what we market As
our discuss profit. items of significant let's Fourth I'll cash Now my income statement gross sheet and XXXX. XXXX flows discussion the the for some balance as line as outlook fiscal full well with among our changes begin year and Quarter statement, in of
us XXXX continue margin XXXX chain gross our to X.X% late gross on managing chain profitability by margin XXXX. lower period on we last basis can period increase increased profit that was expected to attributed growth and gross growing X.X% supply year, driven and margins in grew prior points lower XX rate. fiscal driven XXX same strategically primarily discussed quarter attributed the to our costs.
Fiscal of our by in sales product point favorable The same full from the a gross increase X.X% margin basis rate supply year, are year a profit from to from calls, flat increase XX.X%. largely to rate. rate As benefit by last rise be of fourth in by sales on year-over-year costs are started XXXX gross The margin earnings Fiscal gross into our in focusing
store our and to Turning operating selling expenses.
from continue fourth expenses. to expenses to store operating period the offset warehouse as million stemming operating the for XXXX primarily occupancy Our XX we of stores additional fiscal and versus expenses $XXX.X year. by stores is selling by in same last from higher same and This last growth million XX.X% quarter store expense $X.X increased year, reductions period comp of manage our attributed
year. deleveraged our same to a primarily warehouse operating fixed and due the as additional percentage a occupancy store from resulting store This period from increase As well sales. in basis X.X% XX deleverage as points XXX stores by last and labor store comparable sales, in other decrease costs operating expenses is to XX.X% selling of and
selling million the $XXX.X $X.X by For and decrease in XX.X% stores offset increased fiscal million XXXX a year, million for in and new $XXX.X of was by selling expenses expenses same store driven year.
The partially last full period $X.X and increase comparable store Spartan, our expenses. million operating store or by at from
As new the points store sales, year. comparable by and XX.X% a deleverage This expenses stores. decrease approximately from selling XXX was operating to primarily same increase basis period store percentage attributable a from to sales last and deleveraged in of
Turning general to administrative expenses. &
period XX.X% attributed store store expenses period fiscal to general last and same Fourth as Our last compared costs, incentive equity well year. higher is increased million including to administrative additional same This the staff including growth investments increased as of support XXXX year. by to our investments and Quarter $XX.X under & from growth the administrative supports compensation
to XXXX store to deleverage full caused by & administrative & administrative XXX of deleveraged As in the year our basis a X.X%, sales, sales.
Fiscal due general decline comparable points expenses primarily percentage general increased the from comprised in growth, administrative primarily expenses cost $XX.X other store costs. year. for to staff additional $XX.X and including of was last The same XX.X% million support approximately increase period million
percentage same points general The in comparable a Our in the sales as X.X% sales year. administrative from driven X.X% increase expenses of sales. XX delevered primarily a decrease deleverage as percentage store to basis from by by last the & period of was approximately a
Moving resulting increase to from increased year, year-over-year. last from XX fourth quarter increase deleverage in XXXX and stemmed expenses pre-opening the $XX.X This to expenses, XX.X% of million to our the basis openings, period same a pre-opening primarily incurred last in labor to points rent of compared year. our we future period and stores the of in expenses open new related number stores preparing open, were store delays the getting same fiscal
to expense. Moving interest
cap interest reduction fiscal of Our expense from from in ABL our The primarily Quarter decreased higher expense lower $X.X borrowings contracts. to is the million under million last $X.X interest period in due rate XXXX year. net million derivative interest facility Fourth same $X.X our income and interest
Turning taxes. to
Our increased effective period basis from fiscal tax to awards. XXXX tax benefits XX.X% Fourth points to rate XX.X% by XXX related last in primarily to Quarter stock-based year, due decreased same compensation the
Moving to adjusted EBITDA.
Fourth and by net XXXX in comparable decreased of declined XX.X% last from store period fourth of our to from the share by Consequently, year, income to million same per period the year. from $XXX.X last earnings XX.X% fell Quarter deleverage expense EBITDA $X.XX XX.X% quarter decline fiscal same Our million adjusted diluted $XX.X due the sales. primarily
existing and believe balance even contraction. us we balance sheet a period during within grow flow. strong industry We capital our sheet prudently that maintain allows structure our a to of on Moving cash to
We our and working are capital particularly with inventory management. pleased
XX.X% the including during swing and million $XXX unrestricted in million year most believe capital delivered $XXX.X no to to XXXX. same accrued at operating of are free inventory $XXX borrowings fiscal a end XXXX, period billion expenditures flow of pleased of positive of cash with end $XXX.X available We had cash the In we million XXXX, for $X.X year-over-year for of ABL generating the recent flow period fiscal million equivalents us leaves with and fiscal year, of consisting last million of ABL this decreased period totaled our million end expenditures million guidance last have under cash As $XXX.X facility our million. in cash and of by our and from within million.
Consequently, facility. the $XXX.X same at the compared ended the XXXX of well $XXX.X capital borrowing $XXX.X range liquidity, $XX.X positioned XXXX.
We in the under
countries to mentioned, origin diversifying As in we continued of our products mitigate cost XX In we inventory Tom risk. XXXX, successfully from compared countries countries our and have XX sourced XXXX. reduce to
cargo we our diversification anticipate compared in are XXXX, sales margin moving in material XX% of approximately believe a to attacks fiscal our United in from produced gross our produced source the a XXXX tailwind strategies our on will of Red have proudly States. the ocean were now that XX% the provide products the costs approximately don't XX% beyond.
Relatedly, XXXX.
We products impact Importantly, international with China We ships in rate and Sea continuing flow to approximately shipping in shipments of through we on in the or the States. sold United
international shipments the few a only our of Sea. Red are routed Fortunately, through
Red For Cape the Hope Africa. lead we origins account the around can these the the bypass to times added increased shipments for that from times Good of transit Sea,
of mitigate risk. contract to shippers our staggered and Additionally, cost we with largest multiyear end manage have contracts world's dates the some with
facing We larger the capacity during are risk is reducing time.
Global weaker or supply impacts. and period, is further increases issues pandemic cost material ocean any demand of experiencing COVID-XX not capacity the at than carrier this chain
seasonality or to in promotional subject our business good we by and cost As highly very influenced and is sales, inventory a are not position. reminder, a
durable will return now growth. the and level discussion on discuss largely hinges and hard XX-year on There direction and rates, behind of housing sales spending some the assumptions and outlook. uncertainty interest XXXX spending mortgage discretionary to ticket absolute earnings considerable affordability remains when surface The debate about year-over-year and our existing Let flooring fiscal home of large me goods. sales
be continuing in the potential appears previously provided put pace we lower elevated. most prudently moved into recent pressure interest they While we following around rates Taking XXXX continued rate now Moreover, is could that the we are October X% headwinds it slightly that than wider account, potential our remain interest peak repair cuts are of industry pleased expected more that from existing in sales, our half of XXXX, outcomes these for have weighted a slower forecasters business. second mortgage of home on in range and in recent CPI fiscal spending and and likely and to planning PPI of all considerations remodel earnings of report.
Therefore, growth XX-year XXXX.
As change by a every our plan in points earnings basis reminder, XXX comparable store sales impacts per compared $X.XX share. with about
in stock. EBITDA long excited we adjusted remain aging and path housing a margin. the opportunities our Over and to We supply about spend, flooring to the still teens housing run, mid- demand long-term of goal see structural in high well-documented that an achieving repair remodel including exceeds
our to Turning outlook. XXXX fiscal
be Our $X.XXX expected in X% from XXXX. billion to fiscal range the XXXX fiscal sales increase X% of to by are to $X.X billion, an approximately
estimated store to [X.X% X% fiscal to X%]. comparable X.X% (sic) our to are sales decline For XXXX,
decline in most first expect the We our store store likely be low first the comparable sales half double comparable to with quarter sales to challenged digits. the XXXX in fiscal of
X units be the assumption at to comparable and that XXXX.
We million and high-end in million X.X sales outlook. our around home throughout low-end the in growth exit fourth of XXXX were expect the quarter and our fourth We of year to units sales or flat our in approximately approximately sequentially improved quarter the existing and store remaining outlook using return
digits estimate estimate For low ticket our comparable single low transaction mid- our to fiscal to and digits. to average decline single comparable XXXX, decline we
comparable year. We expect in ticket average sequential and improvement throughout comparable the transactions both
new a loaded expect fiscal sales We due be productivity by to opening to XXXX and store cadence. environment continue our to back-end store lower the impacted
XXXX sequential first the of could the of year-over-year XXXX, largest to from continued We our approximate store the we expect quarter gross and estimate throughout rate XXXX sales. sequential margin our XXXX. decline outlook. of year-over-year fiscal at in The fourth expenses XXXX to attributed sales selling from deleverage rate the operating the is midpoint XX% full We fiscal fiscal gross XX.X% anticipate have rate margin comparable XXXX expansion fiscal XXXX approximate our increase. expect year-over-year to of year expenses We XX.X%.
In primarily margin gross and store in quarter our to
We in openings pressured expect quarter as new store due as XXXX sales. be the to declining late comparable to the first the store well
to decline to X% be X% $XXX by to is rate $XXX increases.
We to The be fourth Fiscal The XXXX approximately fiscal compensation flat quarter and million. expense is & million openings late in $XX due fourth the by of sales, our approximately the Additionally, to of of be estimated by grow X% pre-opening expense most to of new adjusted to X% falling to fiscal be interest million equity quarter increase $XX and XXXX. increase in Administrative the and XXXX.
We XXXX. General and estimate over million. XXXX sales pressured approximately or expected to in approximately slightly our expenses quarter third XXXX will is estimate decline XXXX borrowings under primarily our EBITDA due recapture.
Fiscal interest sales are expenses and our above facility store XXXX caused comparable incentive ABL deleverage approximately an store
margin is XX.X% be adjusted rate approximately XX.X%. to expected Our EBITDA to
For fiscal the XXXX, in $X.XX diluted range of to Diluted is million estimated are be be earnings shares. XXX per estimated weighted approximately to share to average outstanding $X.XX. shares
Moving on to capital expenditures.
and store in by in support million resiliency of construction infrastructure, capital the information $XX plan $XXX be intend these $XXX.X continue our of in executive our you to expenditures using period associates.
Operator, I funded business we open invest investments to behalf require and $XX the center $XX like plan our distribution the are during stores on to stores, be uncertainty primarily expected specifically, million XX $XXX facility.
More million.
And are in fiscal $XX demonstrated we XXXX end invest $XXX closing, take now the entire intend has to compared million to ability XXXX. using a initiatives centers Collectively, range team, to model thank operations a to to ABL XXXX. existing We million. flow format to store approximately we $XXX million XX share accrued begin to projects market make of from personal XXXX want fiscal fiscal at borrowings million.
In the including extend capital to of million expenditures in fiscal of capital technology cash in grow other million, warehouse our e-commerce under to relocate finally, industry expenditures planned X the modeling stores of our following our in opening period and approximately and the and to and would to gratitude to with questions. to express Our contraction.
On face to We
