Tuesday Morning Lowers Expectations

By Staff -- Home Textiles Today, 12/20/2004 12:00:00 AM

Dallas —

Tuesday Morning Corporation has revised downward its guidance for the fourth quarter and year ending Dec. 31.

Diluted earnings per share for the fourth quarter of 2004 are now expected to be flat at approximately 83 cents. Diluted earnings for the fourth quarter of last year were 83 cents, which included a 6 cent charge for the early extinguishment of debt. Analysts had predicted earnings per share to be $1.05 for the quarter.

For the year ending Dec. 31, total sales are projected to be approximately $890 million, up over 8 percent versus $822.6 million in the prior year period. Year-over-year same-store sales are anticipated to be down low single digits. Based on these sales results, diluted earnings per share for the fiscal year 2004 are now expected to be up over 10 percent to approximately $1.44, down from the retailer's July guidance of $1.67 to $1.69 per share.

Diluted earnings for fiscal 2003 were $1.29, which included a 6 cent charge for the early extinguishment of debt taken in the fourth quarter.

“This season has provided a challenging environment for home furnishings focused retailers,” stated Kathleen Mason, president and CEO. “While business in some of our key decorative home categories as well as in seasonal merchandise has not met expectations, we are encouraged by sales of new receipts of non-seasonal merchandise.”