Tuesday Morning Q2 Net Drops 8.1 Percent on Lower Sales

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.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.

Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN May digital issue

    HFN's DIGITAL EDITION

    May 2017


    COVER STORY: HFN Turns 90

    We commemorate HFN's 90th anniversary by paying tribute to the iconic retailer and supplier brands--and the people--that have helped the industry flourish, then and now.


    ALSO IN THIS ISSUE:

    • Up & Coming Leaders - The home industry is in capable and visionary hands as this year’s 40 Under 40 list attests. Today’s young leaders span all disciplines and varied levels of operation.
    • Omnichannel Retailing - In the Mobile App World, Time is Money