Tuesday Morning takes Q4 hit from former ceo's departure

Home Textiles Today Staff -- Home Textiles Today, 8/21/2012 12:30:18 PM

Dallas - Because of costs associated with the abrupt departure of ceo Kathleen Mason in early June, Tuesday Morning recorded a steeper net loss in the fourth quarter than it would have.

The 852-unit closeout chain reported a net loss for the period, ended June 30, of $2.0 million, or 5 cents per share, compared to net loss of $1.4 million, 3 cents per share, for the same period last year.

Excluding the expenses from Mason's exit, the retailer's net loss was $700,000 or a 2 cents per share.

Sales inched up 0.8% to $196.4 million, with comps slipping 0.2%. Average ticket was up 2.9%, but traffic was down 2.7%.

For the full fiscal year, earnings per share were 9 cents versus EPS of 22 cents for the previous year. Excluding costs associated to Mason's departure, earnings per EPS was 12 cents.

Year-to-date sales came in at $812.8 million, a 1.0% dip. Comps were down 3.1%, the result of a 3.3% decrease in traffic that was partially offset by a 0.2% increase in average ticket.

Michael Marchetti, president and interim ceo, said that as Tuesday Morning embarks on a new fiscal year it's "focused on improving our sales performance. Innovative sourcing of new merchandise, implementing merchandise initiatives with respect to better allocation and in-stock positions, improved e-commerce performance, a new customer loyalty program, and continued improvement in our store portfolio are all being deployed to drive sales growth and improve profitability."

The company's outlook for the new year call for sales in the range of $820 million to $830 million, comparable store sales to be roughly flat, and earnings per share to be in the range of 18 to 23 cents.