Tuesday Morning Q4 Earnings Fall

Did Not 'Aggressively Drive Sales At All Costs'

By Staff -- Home Textiles Today, 1/9/2006 12:00:00 AM

Dallas — —

Dallas — Tuesday Morning Corp. reported net sales for its fourth quarter ended Dec. 31, 2005 of $335.2 million, up less than one percent compared to $332.4 million in the fourth quarter of 2004.

For the fiscal year ended Dec. 31, 2005, sales increased 3.8 percent to $931.8 million, up from $897.8 million in 2004. Comp store sales were down 5.3 percent for the fourth quarter of 2005 and for the year dropped 4 percent.

“We did not choose to aggressively drive sales at all costs in the fourth quarter, even though the retail environment was highly promotional. Average transactions increased over 3 percent in the fourth quarter, however traffic levels were lower than anticipated,” stated Kathleen Mason, president and CEO.

The company currently expects 2005 fourth-quarter earnings to be approximately $0.84 per diluted share. Earnings per diluted share were $0.88 for the fourth quarter of 2004. For fiscal year 2005, the company projects earnings to be $1.45 per diluted share.