Report: Activist Investor Weighs Purchase Of Tuesday Morning

According to a recent Dallas Morning News report, an activist investor has purchased shares of Tuesday Morning, which may lead to a potential bid for the off-price retailer.

The report said that Delta Value Group Investment Partnership, a firm controlled by investor Kenneth Traub, spent $5.88 million to purchase 8% of the company’s shares. Delta Value said it intends to have “cooperative and constructive discussions” with the company and said those discussions could include the acquisition of all Tuesday Morning shares, according to the report.

In the report, Tuesday Morning’s board said it’s “committed to acting in the best interest of all of the company’s stockholders.” The company added that it “values constructive input from investors and will continue to engage with its stockholders and evaluate opportunities to increase long-term stockholder value.”

In Tuesday Morning’s recent second quarter, net sales were $324.4 million, compared to $338.4 million for the second quarter of fiscal 2019. Comparable store sales decreased 3% compared to the same period a year ago.

Regarding its fiscal year 2020 outlook, Steve Becker, CEO, Tuesday Morning, said, “We continue to experience positive transaction growth entering the spring season.  We are undergoing transformational changes led by our new merchant leadership, involving the entire merchant organization, buying processes and assortment, all of which will enable us to operate as a true off-pricer and will drive our success going forward.”