Tuesday Morning Revises Guidance Based on Favorable 3Q Results

Home Textiles Today Staff -- Home Textiles Today, 5/13/2011 8:58:16 AM

DALLAS - Off-price chain Tuesday Morning Corp. eked out modest sales and comp increases during its third quarter, the company reported last week.
     Sales for the period, ended March 31, rose 1.3% to $174.3 million. Comps inched up 0.7%, which was comprised of a 3.2% decrease in traffic and a 3.9% increase in ticket.
     Year to date, sales slipped almost 0.2% to $626.4 million, and comp decreased 0.1%.
     "We achieved an increase in total sales and comparable store sales for the 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. "During a period of continued housing declines, as well as substantial inflation, we were able to improve earnings during the quarter, year over year."
     Based on the third-quarter sales results, the 839-store retailer said it currently expects to have improved earnings of 1 cent to 3 cents per share for the three-month period ended March 31, and the loss per share for the quarter to be in the range of 7 cents to 9 cents versus a loss of 10 cents last year.
     "While we remain positive about our business," the company said, it is revising our guidance for the full fiscal year ending June 30. Net sales are expected to be in the range of $830 million to $836 million; comparable store sales are expected to be flat; and diluted earnings per share are expected to be in the range of 30 cents to 34 cents compared to25 cents in the prior fiscal year.