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Tuesday Morning Produces Mixed Results In Q1

Off-price retailer Tuesday Morning produced mixed results in its first quarter, showing an improvement in comparable store sales but a wider net loss.

For the company’s first quarter ended September 30, net sales were $218.8 million, compared to $211.9 million for the first quarter of fiscal 2017. Comparable store sales increased 3.6% compared to the same period a year ago, and were comprised of a 2.9% increase in customer transactions, along with a 0.6% increase in average ticket. The company estimates an approximate 100 basis point hurricane related challenge to its comparable store sales, largely offset by a planned promotional shift to late September from early October.

The company’s operating loss for the first quarter of fiscal 2018 was $12 million, compared to an operating loss of $9.2 million in the first quarter of fiscal 2017. The company estimates that its first quarter results were adversely impacted by the recognition within gross margin of previously capitalized supply chain and freight costs. The company reported a net loss of $12.3 million, or $0.28 per share, in the first quarter of fiscal 2018, compared to a net loss of $8.9 million, or $0.20 per share, in the first quarter of fiscal 2017.

Steve Becker, CEO, Tuesday Morning said, “We are pleased to have started fiscal 2018 with a comparable sales increase of 3.6% despite hurricane related challenges. We are encouraged by the improvements we continue to make across all areas of our organization, with notable progress on our distribution center inventory management. Given our fiscal first quarter performance, we are reiterating our previously provided outlook for a 2% to 5% comp increase and a significant improvement in adjusted EBITDA for fiscal 2018.”