Tuesday Morning Sales, Comps Gains in Third Quarter
-- Home Textiles Today, 4/26/2010 12:00:00 AM
Tuesday Morning Corp. experienced modest improvements in its business during its third quarter, with gains in net sales, comps and traffic.
Sales for the quarter, ended March 31, were up by 3.0% to $172.0 million compared to $167.0 million for the same time last year. Comparable store sales increased by 1.6% due to a 2.9% increase in traffic offsetting a 1.3% decrease in average ticket.
Year to date, sales were up 2.34% to $627.5 million compared to $613.1 million in the year-ago period. Comp store sales increased 1.0%.
“We were pleased with the increase in comparable store sales and traffic for the second consecutive quarter in spite of severe weather that affected many of our stores during and around key marketing events early in the quarter,” said Kathleen Mason, president and ceo. “We have continued to improve our strong balance sheet, increase earnings, and eliminate debt.”
Based on the results, the 847-unit closeout chain with stores in 43 states currently expects loss per share for the third quarter to be in the range of 9 cents to 11 cents. Loss per share was 16 cents for last year's third quarter.
Tuesday Morning also said it had revised its guidance for the full fiscal year, which ends June 30. Sales are expected to be in the range of $819 million to $824 million, comparable store sales to be positive in the low single digits, and diluted earnings per share are expected to be in the range of 18 cents to 20 cents. In the prior fiscal year, earnings per share were $0.00.
Additionally, capital expenditures are expected to be $21 million, and the company also expects to end this fiscal year with seven fewer stores than it operated in the previous year.
The company will report full results April 26.
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