Tuesday Morning sees 21% quarterly sales drop

Dallas – Tuesday Morning, which filed Chapter 11 bankruptcy last month, was having a tough time even before pandemic-related store closures.

In a filing with the SEC, the off-price chain reported that sales for its third fiscal quarter tumbled 21% to $165.7 million. The quarter ended March 31. Tuesday Morning shuttered its stores in accordance with COVID-19 mitigation on March 25.

Operating loss for the quarter was $30.6 million. Net loss widened to $31 million from a loss of $8.3 million in the year-ago quarter.

Cash and cash equivalents were $47.3 million as of March 31.  The company had $90.6 million in cash borrowings and $8.8 million in letters of credit outstanding under its existing revolving credit facility at the quarter’s end.

For the first nine months of the fiscal year, sales were down 8.0% to $714.6 million. Operating loss was $28.2. Net loss widened to $27.7 million from a net loss of $391 million in the previous year-to-date period.

The company plans to close 230 of its 687 stores as part of its reorganization and said last month that it hopes to emerge from bankruptcy by early fall 2020. The first round of store closings began last week.