Positive Outlook

• Adjusted Gross Profit Margin: The Company anticipates adjusted gross profit margin* in the range of 72.5% to 73.1% in fiscal year 2024, compared to 71.4% in fiscal year 2023, due primarily to the lapping of actions taken by the Company to address excess inventory in fiscal year 2023, as well as anticipated efficiencies derived from an internal cost savings program in fiscal year 2024, which is expected to more than offset modestly higher product costs.
• Adjusted SG&A: The Company expects adjusted SG&A* in the range of $172 million to $179 million in fiscal year 2024, an increase of $19 million to $26 million as compared to fiscal year 2023. The increase is expected to be primarily attributable to higher sales and marketing expenses and higher organizational costs due to annualizing the expense of headcount additions made during fiscal 2023.
• Adjusted EBITDA Margin: The Company expects adjusted EBITDA margin* in the range of 32.8% to 34.3% for fiscal year 2024.
• Net Interest Expense: The Company expects net interest expense to be approximately $32 million to $34 million during fiscal year 2024.
• Adjusted Effective Tax Rate: The Company expects an adjusted effective tax rate* of approximately 19.5% to 20.5% for fiscal year 2024.