Tuesday Morning Loss Climbs in Q3
April 29, 2013,
DALLAS-Increased expenses and several one-time charges combined to push Tuesday Morning deeper into the red in its fiscal third quarter ending on March 31.
The closeout retailer reported a net loss of $12.4 million in the quarter, compared to a net loss of $4.2 million in last year's third quarter. The one-time charges were for severance costs; legal, consulting, search and recruitment fees; systems impairment; and a deferred tax asset valuation allowance. But taking these out of the equation, Tuesday Morning's net loss still totaled $4.8 million.
These factors offset some positive sales momentum for Tuesday Morning in the quarter. Net sales rose 3.1 percent to $178.1 million, including a gain of 2.8 percent in same-store sales. Michael Rouleau, the retailer's interim CEO, said sales improved due to increases in both customer traffic and average sales ticket.
"Although there is still a great deal of work to be done, we have now realigned our entire organization to focus on the company's key priorities with the objective or returning to profitability and providing a great store experience for our customers," Rouleau said.