We shared five growth levers that will deliver at least 400 basis points of outgrowth above IP by our fiscal 2023.
We also shared a structural cost initiative that we yield at least 200 basis points in operating expense to sales ratio improvements by fiscal 2023 powering ROIC back into the high teens during that time.
Overall sales were down 6.3%, and gross margin was down 30 basis points versus the prior-year period.
Our operating margin on a GAAP basis was 7% and was significantly influenced by a nonrecurring asset impairment charge which I'll describe in greater detail shortly.
As you can see on Slide 5, excluding this impairment charge and adjustments related to severance and cost associated with mission critical, our adjusted operating margin was 11%, down 30 basis points from the prior year despite lower sales and supported by mission critical.
All of this resulted in earnings per share of $0.69 for the quarter, or $1.10 on an adjusted basis.
Tales of safety and janitorial products anchored by our PPE program continued growing at over 20% for the quarter.
The improving trends extended into December with total company sales growth estimated at 2.4%.
Cutting tools represent roughly 30% to 40% of the $12 billion to $15 billion metalworking market.
And while we're benefiting from a PPE tailwind, we are nonetheless pleased with our progress in the fiscal first quarter as the business grew over 35%.
In our fiscal first quarter, we increased our sales headcount by 50, including roles such as business development or hunting, metalworking specialists, and government.
Our first-quarter sales were $772 million, or $12.5 million on an average daily sales basis.
Both a decline of 6.3% versus the same quarter last year.
Moving to gross margins, our first-quarter gross margin was 41.9%, a decline of 30 basis points compared to the first quarter of last year.
Sequentially, gross margin improved 30 basis points, compared to the fourth quarter 2020.
Total operating expenses in the first quarter were $243 million, or 31.4% of sales, versus $257 million, or 31.2% of sales in the prior year.
This includes about $4 million of costs related to severance and the review of our operating model both related to mission critical.
Excluding these costs, operating expenses as a percent of sales were 30.9% in the prior year, excluding $2.6 million of costs related to severance.
Operating expenses were also 30.9% of sales.
Including the asset impairment charge that Erik mentioned earlier, all of this resulted in GAAP operating margin of 7%, compared to 11% in the same period last year.
Excluding the impairment charge, severance, and other related costs, our adjusted margin was 11%, versus an adjusted 11.3% in the prior year.
GAAP earnings per share were $0.69 adjusted for the impairment charge as well as severance and other related costs.
Adjusted earnings per share were $1.10.
We achieve a free cash flow of $95 million in the first quarter, as compared to $72 million in the prior year.
As of the end of fiscal Q1, we were carrying $521 million of inventory down $22 million from last quarter.
Roughly $60 million of that is related to PPE products and over half of that is specific to disposable masks.
During the quarter, we continued to manage our liquidity very closely and we paid down $130 million of our revolving credit facility in Q1.
Our total debt as of the end of the first quarter was $490 million, comprised primarily of $120 million balance on our revolving credit facility; $20 million of short-term, fixed-rate borrowings; and $345 million of long-term, fixed-rate borrowings.
Cash and cash equivalents were $53 million resulting in net debt of $437 million at the end of the quarter.
Since then in December, we paid a special dividend of approximately $195 million which we funded primarily from our revolver.
On Slide 8, you can see our original program goals of $90 million to $100 million of cost takeout through fiscal 2023 and as versus fiscal 2019.
On our last call, we shared that we had taken out $20 million of cost in fiscal 2020 and that our goal for fiscal '21 was to take out another $25 million to achieve cumulative savings of $45 million by the end of fiscal '21.
I'm pleased to report that we achieved an additional $8 million of savings in the first quarter, bringing our cumulative savings to $28 million against our goal of $45 million by the end of this year.
This is growth savings and does not reflect investments of roughly $2 million to $3 million in the first quarter, and $15 million expected in fiscal '21.
This 170,000-square-foot facility on 17 acres served as one of our co-headquarters.
We will be relocating late this spring to a smaller 26,000-square-foot space nearby, which will accommodate our new hybrid working model.
Once the sale of our current location is complete, we will save roughly $3 million annually in operating expenses.
Our company's sights are firmly set on two goals referenced on Slide 12 to be achieved by the end of our fiscal '23: first, growing at least 400 basis points above IP, and second, returning ROIC back into the high teens.
We have five growth initiatives powering our market share aspirations and we are executing significant structural cost reductions that we expect to improve operating expenses as a percentage of sales by at least 200 basis points.

Summary:
All of this resulted in earnings per share of $0.69 for the quarter, or $1.10 on an adjusted basis.
GAAP earnings per share were $0.69 adjusted for the impairment charge as well as severance and other related costs.
Adjusted earnings per share were $1.10.