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With Year's Earnings Down, Tuesday Morning Looks For 2013 Turn Around

Tuesday August 21st, 2012 - 11:59AM


Tuesday Morning Corp. has reported that, for the fiscal year ended June 30, net income was $3.91 million and earnings per diluted share were nine cents versus $9.58 million and 22 cents in fiscal 2011. Net loss for the fourth fiscal quarter was $2 million, or five cents per diluted share, versus a net loss of $1.4 million, or three cents per diluted share, for the same period last year.

Excluding costs associated with the departure of the company’s former CEO, earnings per diluted share were 12 cents for the year and net loss was two cents per diluted share for the fourth quarter.  Earning fell a penny per diluted share short of at least one published average analyst estimate.

Net sales for the full fiscal year decreased 1% to $812.8 million while comparable store sales decreased 3.1% versus the previous annum. The comp decrease included a 3.3% slide in store traffic partially offset by a 0.2% increase in average ticket. Net sales for the fourth quarter were up 0.8% to $196.4 million as comps increased 0.2%. The comp increase consisted of a 2.9% gain in average ticket offset by a 2.7% decrease in traffic.

 “As we move into the new fiscal year, we are focused on improving our sales performance,” Michael Marchetti, president and interim CEO, said in comments on Tuesday Morning fiscal results. “Innovative sourcing of new merchandise, implementing merchandise initiatives with respect to better allocation and in-stock positions, improved e-commerce performance, a new customer loyalty program and continued improvement in our store portfolio are all being deployed to drive sales growth and improve profitability. With our strong balance sheet, characteristic cost discipline and the initiatives to drive sales, we are well positioned to deliver improved financial performance in fiscal 2013."

Tuesday Morning operated 852 stores in 43 states as of June 30. In the fourth quarter, the company opened four stores, relocated eight and closed four. In the fiscal year, it opened 24 stores, closed 33 and relocated 45.

In June, Tuesday Morning Corp. announced that it had “relieved” Kathleen Mason of her duties as president and CEO. The company also said it had commenced a search for a new chief executive.