“We expect the combination of price increases, margin accretive mix and cost savings to offset elevated transportation costs.”

In context

“ously. We expect our fiscal ‘23 adjusted tax rate to be approximately 25% to 26% as compared to 27% to 28% previously. Lastly, we continue to expect a fully diluted share count of approximately 56 million shares. Let me provide you with additional color on our planning assumptions for fiscal ‘23. Starting with top line, our raised outlook reflects the outperformance in Q1 relative to our expectations in addition to pipeline related to the incremental space gains Tarang discussed. We continue to expect double digit top line growth in each quarter of fiscal ‘23. Turning to gross margin, we now expect our gross margin to be up approximately 100 basis points year-over-year as compared to our expectation for flat to slightly up previously. This is largely a result of our outperformance in Q1. We expect the combination of price increases, margin accretive mix and cost savings to offset elevated transportation costs. Turning now to adjusted EBITDA, our outlook now implies adjusted EBITDA growth of approximately 12% to 14% versus prior year, up from approximately 8% to 10% previously, and on top of the strong 22% growth in fiscal ‘22. Overall, we are quite pleased to be in a position to raise our profitability outlook in a dynamic macro environment this early in our fiscal year. Like many companies, we do expect cost pressures to weigh on adjusted EBITDA margin this year. Our outlook therefore continues to bake in cost inflation with a non marketing SG&A including higher outbound fuel and logistics costs and addition to the higher inbound transportation costs captured in gross margin. From a cadence perspective, we expect balance of year adjusted EBITDA margins to be in the mid teens, largely due to ou”