Excluding fuel, gross margin expanded 10 basis points due to productivity initiatives, improved pharmacy margins and favorable product mix, offset by lower gross margin rates across certain product categories due to the rate impact of higher product costs, on account of rising inflation and increased supply chain costs. This decline can be attributed to lower pandemic-related expenses and the execution of productivity initiatives, which were offset by increased employee expenses, depreciation and other costs. 3 More Stocks Looking Red Hot Here are three more favorably ranked stocks — Sanderson Farms SAFM, Costco COST and United Natural Foods UNFI.