Tuesday Morning Posts $21.5 Million Loss in Q2
January 23, 2013,
DALLAS-Increases in expenses turned Tuesday Morning's bottom line from black to red in the second quarter, with the closeout retailer reporting a $21.5 million loss for the quarter, which ended on Dec. 31.
The loss came about in spite of a 4.4 percent gain in net sales, which totaled $285.3 million and which included an increase of 5.6 percent in same-store sales. The retailer recorded an inventory valuation charge of $41.8 million, which was required to devalue certain inventory based on a strategic decision to sell off the inventory. That charge was reflected in cost of goods sold, and sent Tuesday Morning's gross margin skidding downward by 1,680 basis points to 21.6 percent. In addition, selling, general and administrative expenses grew 6.1 percent in dollars and 46 basis points as a percentage of sales, to 29.5 percent.