Tuesday Morning reports 2Q decline in sales, comps

Home Textiles Today Staff -- Home Textiles Today, 1/10/2012 1:51:09 PM

Dallas -- Tuesday Morning Corporation took some hits in net sales and comps in its second quarter, which included the all-important holiday selling season.

The closeout retailer, with 861 stores in 43 states, reported a 2.2% decline in net sales to $273.1 million in the second quarter, ended Dec. 31, versus $279.3 million in the year-ago period.

Comparable store sales for the period decreased more harshly -- by 4.6% -- comprised of a 3.5% decline in traffic and a 1.1% dip in ticket.

For the six-month period, net sales were down 1.9% to $443.7 million compared to $452.1 million during the same period last year, and comps decreased 4.4%.

To the retailer's credit, president and ceo Kathleen Mason noted, Tuesday Morning's balance sheet at Dec.31, was "stronger than the same period last year, especially with respect to cash and inventory."

She added: "We continue to focus on our previously announced initiatives which we believe will begin to positively impact our business in the back half of the current fiscal year and more so in fiscal 2013."

Based on the second quarter sales results, Tuesday Morning said it now expects diluted earnings per share for the second quarter ended Dec.31, 2011 to be in the range of 35 to 37 cents. By comparison, diluted earnings per share were $0.40 for the quarter ended Dec. 31, 2010.

"We are revising our guidance for the full fiscal year ending June 30, 2012," the company added.

Net sales for fiscal 2012 are expected to be in the range of $815 million to $820 million. Comparable store sales are expected to be in the range of -3.0% to -3.75% and earnings per diluted share are expected to be in the range of 13 to 16 cents.