As a result, total net sales for the third quarter were up 16% year-over-year.
Professional segment net sales increased 15%, marking the second quarter in a row of double-digit growth for this segment.
Residential segment net sales were up 23% and that comparison is on top of a 38% growth rate in the third quarter of last year.
Despite these challenges, both segments delivered solid earnings growth in the third quarter, Professional earnings up 7.6% and Residential earnings up 10.5%.
We grew net sales for the quarter by 16.2% to $976.8 million.
Reported earnings per share was $0.89 per diluted share, up from $0.82 last year and adjusted earnings per share was $0.92 per diluted share, up 12.2% from $0.82 in the prior year.
Professional segment net sales were up 15.2% to $718.5 million.
Professional segment earnings for the third quarter were up 7.6% to $122.3 million.
And when expressed as a percent of net sales, decreased 120 basis points to 17%.
Residential segment net sales for the third quarter were up 23% to $252.1 million.
Residential segment earnings for the quarter were up 10.5% to $31.5 million and when expressed as a percent of net sales, down 140 basis points to 12.5%.
We reported gross margin of 33.9%, a decrease of 110 basis points compared to the same period in the prior year.
Adjusted gross margin was 33.9%, down 130 basis points on a comparative basis.
SG&A expense as a percent of net sales for the quarter increased 20 basis points to 21.4%.
Operating earnings as a percent of net sales for the third quarter decreased 130 basis points to 12.5%.
Adjusted operating earnings as a percent of net sales decreased 80 basis points to 13.1%.
Interest expense was down $1.3 million for the quarter to $7 million, driven by lower debt levels and decreased interest rate.
The reported effective tax rate for the third quarter was 18% and the adjusted effective tax rate was 19.3%.
Accounts receivable totaled $301.2 million, down 2.2% from a year ago, primarily driven by channel mix.
Inventory was essentially flat to last year at $665.6 million.
Accounts payable increased 53% from last year to $411.4 million.
Year-to-date free cash flow was $429 million with the conversion ratio of 123%.
At the end of the quarter, our liquidity remained at $1.1 million.
This included cash and cash equivalents of $535 million and full availability under our $600 million revolving credit facility.
Over the past nine months, we deployed the majority of cash generated year-to-date, including the funding of our Turflynx and Left Hand Robotics acquisition, an increase in our regular dividend with $85 million paid out so far this year, the resumption of share repurchases with $177 million through the third quarter and $100 million in debt pay down.
We now expect net sales growth of about 17%, up from 12% to 15% previously.
Looking at profitability, we now expect overall adjusted operating earnings as a percent of net sales for the full year to be similar to fiscal 2020.
Based on current visibility, we now expect full-year adjusted earnings per share in the range of $3.53 to $3.57 per diluted share, up from our previous range of $3.45 to $3.55.
The three products include the Exmark 96-inch Lazer Z Diesel, the Toro Z Master 4000, and Z-Spray LTS spreader sprayer.

Summary:
Reported earnings per share was $0.89 per diluted share, up from $0.82 last year and adjusted earnings per share was $0.92 per diluted share, up 12.2% from $0.82 in the prior year.
We now expect net sales growth of about 17%, up from 12% to 15% previously.
Looking at profitability, we now expect overall adjusted operating earnings as a percent of net sales for the full year to be similar to fiscal 2020.
Based on current visibility, we now expect full-year adjusted earnings per share in the range of $3.53 to $3.57 per diluted share, up from our previous range of $3.45 to $3.55.