“That said, given these headwinds, we continue to expect gross margin to end the year below fiscal 2021.”

In context

“our strong second quarter results and our fiscal 2022 outlook. We delivered Q2 net sales of $92 million, up 27% versus prior year, driven by broad-based strength in our national and international retailers. Gross Margin of 63% was down approximately 200 basis points compared to prior year. We saw gross margin benefits from cost savings and margin accretive mix. We also benefited from the price increases we implemented on a subset of our SKUs in May, mainly internationally. These gross margin benefits were more than offset by changing FX rates and elevated transportation costs as we worked to navigate the global container imbalance. Overall, our gross margin rate came in a bit better than expected this quarter, due to the timing of when the higher transportation costs flow through our P&L. That said, given these headwinds, we continue to expect gross margin to end the year below fiscal 2021. On an adjusted basis SG&A as a percentage of sales was 49% compared to 51% last year. Our increased investment behind marketing and digital was more than offset by leverage in our non-marketing related spend. Marketing and digital investment for the quarter was approximately 16% of net sales versus 15% a year ago. Q2 adjusted EBITDA was $18 million, up 29% versus last year, and adjusted EBITDA margin was approximately 20% of net sales. Adjusted net income was $11 million, or $0.21 per diluted share, compared to $8 million or $0.16 per diluted share a year ago. Our liquidity remained strong with the combination of our cash balance and access to our revolving credit facility, sitting at approximately $130 million. We ended the quarter with $42 million in cash on hand, compared to a cash bal”