Tuesday Morning takes several hits in fourth quarter, including a net loss

Home Textiles Today Staff -- Home Textiles Today, 8/23/2011 2:38:42 PM

Dallas - Suffering from a sharp net loss as well as blows to its net sales, comps and store traffic in its fourth quarter, off-price home fashions chain Tuesday Morning Corp. said it is bent on improving its performance through the back half of the year in time for the holiday selling season.

"While we are disappointed with the results of our fiscal fourth quarter, we are focused on several key areas to optimize our marketing efforts, improve our customer's experience on our website and drive traffic to our stores," said Kathleen Mason, president and ceo. "These efforts, combined with disciplined cost and inventory management, and prudent capital allocation, will be our focus this year as we strive to drive sales, improve profitability and enhance shareholder value."

The 861-unit chain in 43 states was hit with a net loss of $1.4 million, or a 3 cent loss per share, in the quarter, which ended June 30, compared to net income of $1.3 million, or 3 cents per diluted share, for the same period last year.

Net sales declined 3.0% in the quarter to $194.8 million compared to $200.8 million in the year-ago period. Also down were comparable store sales, which dropped 4.5%, comprised of a 5.4% decrease in traffic that was partially offset by a 0.9% increase in average ticket.

For the full year, net income declined 11% to $9.6 million from the prior fiscal year's $10.7 million.

Net sales declined slightly, by 0.9%, to $821.2 million compared to $828.3 million for fiscal 2010. And comparable store sales decreased 1.2%, comprised of a 1.7% decrease in traffic, partially offset by a 0.5% increase in average ticket. The company had earnings per diluted share of $0.22 versus $0.25 for fiscal 2010.

As it enters into a new fiscal year, Tuesday Morning offered its guidance. Net sales for fiscal 2012 are expected to be in the range of $828 million to $834 million; comparable store sales are targeted to fall in the negative low single digits; and earnings per diluted share are expected to be in the range of 22 to 26 cents.