Tuesday Morning posted a positive holiday season, as the off-price retailer reported that its net sales and comps rose.
For the second quarter ended December 31, 2017, net sales were $334 million with a comparable store sales increase of 1.6%, which was comprised of a 1.7% increase in customer transactions, slightly offset by a 0.1% decrease in average ticket.
Steve Becker, CEO, Tuesday Morning, said, “We delivered a 1.6% comp for our second fiscal quarter and a 2.4% comp for the six months ending in December. Throughout the peak season, we experienced significant improvement in our supply chain operations, benefiting from the management, personnel, systems and process changes that we have made. We continued to effectively manage our working capital, reducing our overall inventory balance by approximately $30 million or 12% versus December quarter end last year and we ended the quarter with no outstanding balances under our revolving line of credit. As is typical, we will begin to use our line again during the March quarter as our inventories build.”
Becker added, “We are pleased with our inventory composition and are well positioned for a positive spring season with the freshness and quality of inventory. We remain comfortable with our previously provided outlook for a 2% to 5% comp sales increase and a significant improvement in adjusted EBITDA for fiscal 2018, which includes a material increase in gross margins in the spring season reflecting reduced distribution costs. We are focused on opportunities to improve our sales and profitability, including continued improvement in inventory levels in subsets of our store base.”
The company will report complete financial results for the second quarter on February 1.