Tuesday Morning Loss Widens in Q1
October 31, 2013,
DALLAS-With product margins suffering and a sharply reduced income-tax benefit, Tuesday Morning saw its first-quarter net loss grow from $7 million last year to $12 million this year.
As Jeff Boyer, the retailer's chief financial officer, explained during a conference call to financial analysts yesterday, the loss included the absorption of revenue from discontinued businesses, including footwear and apparel and the shutdown of its Internet sales channel, which took place in last year's fourth quarter. In addition, increasingly sharp and competitive pricing and the acceleration of markdowns resulted in a drop of 303 basis points in gross margin, to 34.5 percent. Tuesday Morning's income-tax benefit fell 82.5 percent as well.
Net sales in the quarter, which ended on Sept. 30, grew 6.3 percent to $183.7 million, including a gain of 9.1 percent in same-store sales. Selling, general and administrative expenses were virtually flat in dollars and fell 254 basis points as a percentage of sales, to 41.3 percent.
Other Articles By Author
Von Tobel Cites Brass Textures Among Top Trends
HFN's DIGITAL EDITION
2017 State of the Industry Report
Cautious Optimism, Mixed Results
Many expected 2016 would be a banner year, but the political and economic climate softened consumer confidence. It was also a year consumers spent more lavishly on home remodeling rather than decorating.
ALSO IN THIS ISSUE:
- TJX Unveils First U.S. Homesense Store - In a time when retailers are reducing store counts, TJX continues to get physical.
- Ikea’s Fluid Spaces - The retailer’s new intros reflect multifunctional rooms.
- N.Y. Home Fashions Market Preview - Textile textures get soft and cozy, colors warmer.