The Toro Company  today reported results for its fiscal second-quarter ended May 5, 2023.

The professional segment net sales were $1,068.7 million for the second quarter, a 15.4% increase from $925.8 million in the same quarter the previous fiscal year. The earnings for the quarter were $227.5 million, a 37.6% spike from the $167.4 million from the same quarter last fiscal year.

“We continued our strong momentum in the second quarter, and delivered record top and bottom-line results,” says Richard M. Olson, chairman and chief executive officer. “These results were driven by our professional segment, where continued demand, operational execution, and supply chain improvements drove broad sales volume gains and increased profitability.”

Unlike the improvements in the professional segment, the residential segment reported a 16.8% year-over-year decline in net sales in Q2 2023, coming in at $265.8 million compared to $319.7 million in Q2 2022. Earnings for the second quarter also saw a dip, with $22.7 million reported — a 38.7% decrease from the previous year.

Gross margin and adjusted gross margin were both 35.8%, compared with 32.4% and 32.5%, respectively, for the same prior-year period. The increase in gross margin was primarily due to net price realization, favorable product mix and productivity improvements, partially offset by higher material and manufacturing costs.

For fiscal 2023, Toro management says it is narrowing guidance and now expects net sales growth in the range of 7-8% and adjusted diluted EPS in the range of $4.70 to $4.80.