Monday May 12th, 2014 - 12:29PM
Tuesday Morning Corp. has announced financial results for the third quarter that demonstrate, according to CEO Michael Rouleau, "hard work beginning to produce results." The company posted a gain in comparable store sales of 6.4% resulting from an 8.4% increase in number of transactions partially offset by a 1.9% drop in average ticket.
The company also showed signs of a turnaround in its net loss, putting it at $8.4 million this year, or 20 cents per share, down from $12.4 million, or 29 cents per share, in the 2013 quarter.
Net sales increased by 2.6% to $182.8 million, up from $178.1 million in Q3 2013.
The company's gross profit hit a high of $68.1 million, up from $66.2 million reported in the year-prior third quarter, primarily due to improvement in freight and distribution efficiencies, the company noted. Gross margin was reported at 37.3%, slightly up from 37.2% in 2013.
In announcing the financial results, Rouleau said, "During the third quarter, we commenced work on the final phase of the company's turnaround efforts, which includes the sell-off of exited categories, further reduction of our clearance merchandise and enhancements to our store layouts. Our strong comparable store sales performance, increased inventory turnover and improved cash position during the third quarter all demonstrate that our hard work is beginning to produce results."
Tuesday Morning also reported that cost-cutting measures continue to have an impact on its operational margin, evidenced by a 2.8% reduction in SG&A expenses.