Tuesday Morning reported a sales decline and a net loss in its third quarter, and indicated it is boosting its off-price growth strategies as the retailer looks to identify and reinforce its most successful merchandising assortments.
Net sales were $211 million, compared to $223.3 million for the third quarter of fiscal 2018. Comparable store sales decreased 5.3% compared to the same period a year ago. Factors that contributed to the sales decline include a reduction in the number of traditional promotional events to one in the third quarter of fiscal 2019 compared to three events in the prior year, comping against the highest quarterly comparable sales increase from last year of 9.1%, and a calendar shift of Easter into the company’s fourth fiscal quarter. Customer transactions and average ticket decreased 2.6% and 2.8%, respectively.
The company reported a net loss of $8.3 million, or $0.18 per share, for the third quarter of fiscal 2019 compared to a net loss of $8.1 million, or $0.18 per share, for the third quarter of fiscal 2018.
Steve Becker, CEO, Tuesday Morning, stated, “Over the last two years we have built a foundation for profitable growth at Tuesday Morning. Our third quarter top line results are not indicative of our potential, especially as we faced a challenging comparison from last year, headwinds from a late start to the spring season in many parts of the country, and Easter timing. These top-line headwinds were exacerbated by our previously announced strategic decision to reduce our traditional promotional events. In addition, we identified missed merchandise opportunities that we are taking steps to address.”
Becker continued, “It is clear that the categories of merchandise where we are having the most success are consistently managed with a greater proportion of close-outs, providing a treasure hunt with sharp pricing and great values. We intend to deliver this experience more consistently across our entire assortment. To that end, we are continuing to recruit additional veteran off-price leadership to our merchandise organization and have reorganized the team to improve our execution and remain true to our 45-year off-price heritage. We are pleased with our year to date improvement in operating profitability despite our third quarter sales shortfall, and remain focused on executing our strategy and delivering improved financial performance.”