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Home sector gets slight boost from Tuesday Morning

DALLAS -- Tuesday Morning's third-quarter sales offered another boost to the home retail segment, albeit not to the extent of Bed Bath & Beyond or Pier 1, which reported 4Q comps of 8.5% and 8.9%, respectively. 

Tuesday Morning reported net sales for the third quarter ended March 31 were $174.3 million compared with $172 million for the quarter ended March 31, 2010, an increase of 1.3%. Comparable-store sales for the quarter ended March 31, 2011 increased by 0.7% comprised of a 3.2% decrease in traffic and a 3.9% increase in ticket. 

Based on the third quarter sales results, the company currently expects to have improved earnings of 1 cent to 3 cents per share for the three month period ended March 31 compared with the same period last year. We expect the loss per share for the third quarter ended March 31 to be in the range of 7 cent to 9 cents versus a loss of 10 cents for the quarter ended March 31, 2010.

The company said it has revised its guidance for the full fiscal year ending June 30. Net sales are expected to be in the range of $830 million to $836 million. Comparable-store sales are expected to be flat and diluted earnings per share are expected to be in the range of 30 cents to 34 cents compared with 25 cents in the prior fiscal year ended June 30, 2010. 

Kathleen Mason, president and CEO stated, "We achieved an increase in total sales and comparable-store sales for the quarter in spite of severe weather that affected many of our stores during and around key marketing events early in the quarter. During a period of continued housing declines, as well as substantial inflation, we were able to improve earnings during the quarter, year over year."