Tuesday Morning is starting to see the results of its turnaround strategy, which involved the company exiting a number of non-core categories, such as women’s apparel and footwear.
In the second quarter of fiscal 2014, comparable sales in ongoing core categories increased 7% and were led by exceptional strength in furniture, up 57%; sheets and linens, up 23%; and home décor, up 20%.
Comparable store sales increased by 3.1% and consisted of a 7% increase in customer transactions, partially offset by a 3.9% decrease in average ticket.
The company’s net sales were flat at $285.8 million compared with $285.3 million for the prior-year quarter. Net sales for the second quarter of fiscal 2013 included the contribution of 24 additional stores, as well as e-commerce sales.
Including the impact of business turnaround related charges, the company reported net income for the quarter of $17.7 million, or $0.41 per share, compared to a net loss of $21.5 million, or $0.51 per share, in the same period last year.
“During the second quarter, our experienced team executed a disciplined program aimed at improving operations, enhancing merchandising and strengthening the Tuesday Morning offering to our value-oriented consumer,” said CEO Michael Rouleau. “Our progress to date includes improved customer service in well-stocked stores displaying fresh, new merchandise at great values — all of which yielded solid comparable store sales results, increased inventory turnover and a strong cash position. We are pleased with our progress and results this quarter and are confident we will demonstrate continued improvement in the second half of our fiscal 2014, yet remain focused on the significant work ahead necessary to complete our business turnaround program.”
Tuesday Morning is a leading closeout retailer of upscale decorative home accessories, housewares, seasonal goods and famous-maker gifts. Based in Dallas, Texas, the company opened its first store in 1974 and currently operates 819 stores in 41 states.