Net sales in the quarter, both as reported and organic, increased 6% versus the prior year to $2.0 billion.
The impact of inflation-driven pricing and sales allowances of 14% more than offset volume declines of 4% and increased promotional spending of 3%.
Gross margin decreased to $571 million from $587 million in the prior year. As a percent of sales, gross margin was 28.7% compared to 31.3% in the prior year. Excluding items impacting comparability, adjusted gross margin increased to $622 million from $578 million.
Excluding items impacting comparability, adjusted gross margin percentage increased 40 basis points to 31.3% due to the mitigation of on-going inflation with pricing actions, supply chain productivity improvements and cost savings initiatives, partially offset by increased promotional spending and unfavorable volume / mix.
Marketing and selling expenses increased 2% to $179 million and represented approximately 9% of net sales, as planned. The increase was driven by higher selling expenses, partially offset by lower advertising and consumer promotion expense.
Administrative expenses increased 12% to $163 million. Excluding items impacting comparability, adjusted administrative expenses increased by 10% to $153 million driven by higher incentive compensation costs, higher benefit-related costs and inflation.
Other expenses were $31 million compared to other income of $168 million in the prior year. Excluding items impacting comparability, adjusted other income declined to $1 million compared to $14 million in the prior year primarily due to lower pension and postretirement benefit income.
As reported EBIT decreased to $170 million from $411 million in the prior year. Excluding items impacting comparability, adjusted EBIT increased 5% compared to the prior year to $269 million primarily due to higher adjusted gross margin, partially offset by higher adjusted administrative expenses and lower adjusted other income.
Net interest expense was $45 million compared to $47 million in the prior year primarily due to lower levels of debt in the current year. The tax rate was 23.2% compared to 20.9% in the prior year. Excluding items impacting comparability, the adjusted tax rate was 24.1% compared to 23.9% in the prior year.
As reported EPS from continuing operations, which includes pension and postretirement actuarial gains and losses, decreased to $0.32 per share compared to $0.95 per share in the prior year. Excluding items impacting comparability, adjusted EPS from continuing operations increased $0.04, or 8%, compared to the prior year to $0.56 primarily reflecting the increase in adjusted EBIT and lower net interest expense. ■