As compared to the same quarter last year, our sales increased 41%.
Excluding Lanier Apparel, where operations were effectively exited during the third quarter of fiscal 2021, net sales increased 15% over the same period of fiscal 2019.
The robust sales growth that we experienced during the third quarter was driven by 40% growth in our full price direct-to-consumer business, with growth in each of our brands compared to fiscal 2019, including a 13% increase in full-price retail and a 100% gain in full-price e-commerce.
Restaurant sales also contributed to our top-line improvement, growing 14% in the third quarter of fiscal 2021 as compared to the third quarter of fiscal 2019 fueled by strong increases at existing locations, as well as the addition of five new Marlin Bar locations.
At the same time, adjusted gross margin increased an impressive 710 basis points to 62% during the third quarter of fiscal 2021 as compared to fiscal 2019.
But I will mention that they drove record third quarter earnings of $1.19 per share on an adjusted basis compared to an adjusted loss of $0.44 per share last year and adjusted earnings per share, up $0.10 during the third quarter of fiscal 2019.
These brands are 100% focused on the consumer and making that consumer happy with powerful clear brand messages, exceptional differentiated product, superior customer experiences, including our e-commerce websites, our stores and restaurants and strategic wholesale accounts.
The predominant mix of direct-to-consumer, which is expected to be over 80% of our business enhances our ability to deliver happiness to our customers.
As Tom just mentioned, we had outstanding performances in each of our brands during the third quarter, which resulted in significant sales, gross margin, operating margin and earnings growth to levels exceeding pre-pandemic results.
Excluding Lanier Apparel where operations were effectively exited during the third quarter of fiscal 2021, consolidated sales increased 15% to $243 million.
On an adjusted basis, gross margin expanded 710 basis points over 2019 to 62% in the third quarter.
Approximately 270 basis points of higher freight cost, including the use of air freight partially offset some of the margin improvement.
On an adjusted basis, we gained 260 basis points of SG&A leverage in the third quarter, improving from 56% of sales in 2019 to 53% of sales in 2021.
As a result, our consolidated operating margin expanded 970 basis points from 1% in 2019, to 11%.
We ended the third quarter with $188 million of cash and short-term investments and no borrowings outstanding under our revolving credit facility.
FIFO inventory decreased 17% compared to fiscal 2020 excluding Lanier Apparel due to higher-than-expected sales during the first nine months of 2021, ongoing enhancements to enterprise order management systems and prudent seasonal purchases.
We expect sales from Lanier Apparel to be approximately $20 million lower than 2019's fourth quarter as we exited the business in Q3 of this year.
In addition, we expect our branded wholesale business to be approximately $15 million lower than 2019.
For the fourth quarter, we expect sales to be between $285 million and $295 million compared to sales of $298 million in the fourth quarter of fiscal 2019.
Again Lanier Apparel generated $20 million in net sales in the fourth quarter of 2019.
In the fourth quarter of fiscal 2021, we expect earnings of $1.20 to $1.35 per share on an adjusted basis, compared to earnings of $1.09 per share on an adjusted basis in the fourth quarter of 2019.
For the full year, we now expect sales in a range of $1.127 billion to $1.137 billion as compared to sales of $1.123 billion in 2019.
For the full year, sales from Lanier Apparel are expected to be $25 million in 2021, compared to $95 million in 2019.
Adjusted earnings per share is expected to be between $7.52 and $7.67.
This compared to earnings of $4.32 per share on an adjusted basis in 2019.
Our effective tax rate for the full fiscal year 2021 is expected to be approximately 22%.
Capital expenditures are expected to be between $35 million and $40 million in fiscal 2021, primarily reflecting investments in information technology initiatives, new Marlin Bars and retail stores.
We continue to generate strong cash flow from operations, including a $157 million year-to-date.
We remain in a strong position to return cash to shareholders and are proud of our long history of returning value through dividends, which we have paid every quarter since going public in 1960.
This quarter, our Board of Directors has declared a dividend of $0.42 per share.
Additionally, in assessing our capital allocation plan, our Board of Directors approved a new share repurchase authorization of $150 million.

Summary:
But I will mention that they drove record third quarter earnings of $1.19 per share on an adjusted basis compared to an adjusted loss of $0.44 per share last year and adjusted earnings per share, up $0.10 during the third quarter of fiscal 2019.
As Tom just mentioned, we had outstanding performances in each of our brands during the third quarter, which resulted in significant sales, gross margin, operating margin and earnings growth to levels exceeding pre-pandemic results.
For the fourth quarter, we expect sales to be between $285 million and $295 million compared to sales of $298 million in the fourth quarter of fiscal 2019.
For the full year, we now expect sales in a range of $1.127 billion to $1.137 billion as compared to sales of $1.123 billion in 2019.
Adjusted earnings per share is expected to be between $7.52 and $7.67.