Gross margin increased 210 basis points to 33.4% compared to 31.3% in the year ago quarter. The increase was primarily due to a favorable mix of higher margin products and channel distribution, the stabilization of our sourcing strategy, especially our in house manufacturing and reflected more normalized levels of discontinued merchandise as we expected. Excluding a fair value inventory step up associated with the Sierra acquisition of $420,000, adjusted gross margin in the third quarter was 34.3%.
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