Tuesday Morning Q2 Net Drops 8.1 Percent on Lower Sales
January 24, 2012,
DALLAS-Second-quarter net income for closeout retailer Tuesday Morning fell 8.1 percent to $15.9 million, primarily due to reduced sales volume.
Net sales for the quarter, which ended on Dec. 31, fell 2.2 percent to $273.1 million, including a 4.6 percent fall in same-store sales. The top line, particularly comparable-store results, suffered from a 3.5 percent decrease in store traffic and a 1.1 percent drop in average ticket, Tuesday morning said in a statement.
Kathleen Mason, president and CEO, said that while Tuesday Morning was not pleased with its holiday-quarter sales, the company did maintain its gross margin despite the highly promotional environment. Gross margin was 38.4 percent in the quarter, the same percentage it was in last year's second quarter. Selling, general and administrative expenses edged up 0.6 percent in dollars and 83 basis points as a percentage of sales, to 29.1 percent.
Based on these results, Tuesday Morning is projecting net sales for the full fiscal year to total between $815 million and $820 million, with same-store sales decreasing by between 3 percent and 3.75 percent.