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Tuesday Morning Comps Rise In Q1

Off-price retailer Tuesday Morning got off to a strong start this fall season, the company asserted, with comparable store sales rising 3.8%.

Net sales in the company’s first quarter of fiscal 2019, ended September 30, were $227.3 million, compared to $218.8 million for the first quarter of fiscal 2018.  The company’s sales comparison to the prior year is impacted by the net closure of nine stores during the last twelve months. Comparable store sales increased 3.8% compared to the same period a year ago, and were comprised of a 1.9% increase in customer transactions along with a 1.9% increase in average ticket.

The company’s operating loss for the first quarter of fiscal 2019 was $7.6 million, compared to an operating loss of $12 million in the first quarter of fiscal 2018, an improvement of 37%. The company reported a net loss of $8.1 million, or $0.18 per share, for the first quarter of fiscal 2019 compared to a net loss of $12.3 million, or $0.28 per share, for the first quarter of fiscal 2018.

Steve Becker, CEO, Tuesday Morning, said, “We are off to a strong start this fall season. We are especially pleased with the 3.8% overall comparable store sales growth in the first quarter. Our marketing efforts are effectively reaching new customers, and our assortment is being well received, driving growth in both transactions and ticket. Our base stores, defined as stores not recently impacted by real estate activity, had comparable store sales growth of 1.8% in the first quarter. Our comparable store sales numbers were negatively impacted by approximately 200 basis points compared to last year due to a planned promotional shift from the first quarter to the second quarter of fiscal 2019. We are making exciting progress across all aspects of our business, evidenced not only by our strong sales momentum, but also by the 70 basis point gross margin expansion in the quarter, culminating in over $4 million in adjusted EBITDA improvement as compared to the prior year quarter. With a robust buying environment, combined with sales growth and our improved execution, we are well-prepared for the holiday season.”