“In terms of the key drivers for the year, we expect the combination of price increases, margin accretive mix and cost savings to support our gross margin improvement.”

In context

“tax rate to be approximately 22% to 23% as compared to 25% to 26% previously. Lastly, we expect a fully diluted share count of approximately 56 million shares at year-end. Let me provide you with additional color on our planning assumptions for fiscal 2023. Starting with the top line. Our raised outlook reflects our outperformance in Q2 relative to our expectations, pipeline related to the incremental space gains Tarang spoke about with Walmart, Target and Shoppers Drug Mart as well as our ongoing business momentum. Turning to gross margin. We now expect our gross margin to be up approximately 175 basis points year-over-year as compared to our previous expectation for up 100 basis points. This is largely a result of our outperformance in Q2 and an improved outlook on transportation costs. In terms of the key drivers for the year, we expect the combination of price increases, margin accretive mix and cost savings to support our gross margin improvement. Now turning to adjusted EBITDA. Our outlook implies adjusted EBITDA growth of approximately 25% to 27% versus prior year, up from approximately 12% to 14% previously and on top of the strong 22% growth in fiscal 2022. This embeds our marketing and digital spend expectations at the top end of our 17% to 19% range. Even with that increased investment, our outlook now implies adjusted EBITDA margin leverage of approximately 50 basis points year-over-year. The improved outlook is supported by the combination of our strong sales growth, gross margin expansion and leverage in our non-marketing SG&A expenses. Overall, we are quite pleased to be in a position to meaningfully raise both our sales and profitability outlook and what continues to be a dynamic environment. In summary, we're pleased wi”