Tuesday Morning Lowers Q4 Guidance
Lower Customer Traffic Drives Profits Lower
By Staff -- Home Textiles Today, 1/2/2006
Dallas — Upscale closeout retailer Tuesday Morning Corp., which operates 732 stores in 46 states, revised downward its guidance for the fourth quarter and year ending Dec. 31, 2005.
Total sales for the quarter are now expected to be in the range of $330 to $335 million, resulting in total sales for the year ending of $927 to $932 million, up 3.3 to 3.8 percent, respectively, from total annual sales of $897.8 million in fiscal 2004. Comp store sales for the full year are now expected to be down approximately 4.0 to 4.5 percent.
Diluted earnings per share, based on the results, would be $0.81 to $0.84 for the fourth quarter, and $1.42 to $1.45 per diluted share for fiscal 2005. Excluding the $0.06 per diluted share lease accounting charge taken in the first quarter, diluted earnings for fiscal 2005 would be $1.48 to $1.51 versus $1.50 diluted earnings for the 2004 fiscal year.
“Average ticket in the fourth quarter increased versus fourth quarter last year, however traffic levels in our stores have not driven the sales we anticipated,” said Kathleen Mason, president and CEO. “Our economic model continues to generate an excellent return on investment, and I am confident in our ability to generate increased sales and profits in the future. We will again be debt free with a solid cash position.”
The company will announce fourth-quarter sales results on Jan. 5, 2006.
