Tuesday Morning Corporation Reports Sales Results for the Second Quarter Fiscal 2018
January 08 2018 - 9:00AM
Tuesday Morning Corporation (NASDAQ:TUES), one of
the original off-price retailers with over 720 stores across the
United States specializing in name-brand, high quality products for
the home, selling luxury textiles, furnishings, housewares and
seasonal decor, today reported sales results for the second quarter
ended December 31, 2017. Net sales were $334 million with a
comparable store sales increase of 1.6%, which was comprised of a
1.7% increase in customer transactions, slightly offset by a 0.1%
decrease in average ticket.
Steve Becker, Chief Executive Officer said, “We
delivered a 1.6% comp for our second fiscal quarter and a 2.4% comp
for the six months ending in December. Throughout the peak
season, we experienced significant improvement in our supply chain
operations, benefiting from the management, personnel, systems and
process changes that we have made. We continued to effectively
manage our working capital, reducing our overall inventory balance
by approximately $30 million or 12% versus December quarter end
last year and we ended the quarter with no outstanding balances
under our revolving line of credit. As is typical, we will begin to
use our line again during the March quarter as our inventories
build. We are pleased with our inventory composition and are
well positioned for a positive spring season with the freshness and
quality of inventory, especially relative to the challenges faced
last spring in the aftermath of the Phoenix distribution center
opening. We remain comfortable with our previously provided
outlook for a 2% to 5% comp sales increase and a significant
improvement in Adjusted EBITDA for fiscal 2018, which
includes a material increase in gross margins in the spring
season reflecting reduced distribution costs. We are
focused on opportunities to improve our sales and profitability,
including continued improvement in inventory levels in subsets of
our store base.”
The Company will report complete financial
results for the second quarter on Thursday, February 1, 2018.
About Tuesday MorningTuesday Morning Corporation
(NASDAQ:TUES) is one of the original off-price retailers
specializing in name-brand, high quality products for the home,
selling luxury textiles, furnishings, housewares and seasonal
decor. Based in Dallas, Texas, the Company opened its first
store in 1974 and operates over 720 stores in 40 states. More
information and a list of store locations may be found on the
Company’s website at www.tuesdaymorning.com.
Cautionary Statement Regarding Forward-Looking
StatementsThis press release contains forward-looking statements,
which are based on management’s current expectations, estimates and
projections. Forward-looking statements in this press release
include, but are not limited to, statements of management’s current
plans and expectations in this press release, including statements
regarding management’s financial outlook for fiscal year 2018,
merchandising and marketing strategies and inventory
levels.
Reference is hereby made to the Company’s
filings with the Securities and Exchange Commission, including, but
not limited to, "Cautionary Statement Regarding Forward-Looking
Statements" and "Item 1A. Risk Factors" of the Company's Annual
Report on Form 10-K for the fiscal year ended June 30, 2017, for
examples of risks, uncertainties and events that could cause our
actual results to differ materially from the expectations expressed
in our forward-looking statements. These risks, uncertainties and
events also include, but are not limited to, the following: our
ability to successfully implement our long-term business strategy;
changes in economic and political conditions which may adversely
affect consumer spending; our failure to identify and respond to
changes in consumer trends and preferences; our ability to
continuously attract buying opportunities for off-price merchandise
and anticipate consumer demand; our ability to successfully manage
our inventory balances profitably; our ability to effectively
manage our supply chain operations; loss of, disruption in
operations, or increased costs in the operation of our distribution
center facilities; unplanned loss or departure of one or more
members of our senior management or other key management; increased
or new competition; our ability to successfully execute our
strategy of opening new stores and relocating and expanding
existing stores; increases in fuel prices and changes in
transportation industry regulations or conditions; our ability to
generate strong cash flows from operations and to continue to
access credit markets; increases in the cost or a disruption in the
flow of our imported products; changes in federal tax policy; the
success of our marketing, advertising and promotional efforts; our
ability to attract, train and retain quality employees in
appropriate numbers, including key employees and management;
increased variability due to seasonal and quarterly fluctuations;
our ability to maintain and protect our information technology
systems and technologies and related improvements to support our
growth; our ability to protect the security of information about
our business and our customers, suppliers, business partners and
employees; our ability to comply with existing, changing, and new
government regulations; our ability to manage litigation risks from
our customers, employees and other third parties; our ability to
manage risks associated with product liability claims and product
recalls; the impact of adverse local conditions, natural disasters
and other events; our ability to manage the negative effects of
inventory shrinkage; our ability to manage exposure to unexpected
costs related to our insurance programs; our ability to mitigate
reductions of customer traffic in shopping centers where our stores
are located; and increased costs or exposure to fraud or theft
resulting from payment card industry related risk and
regulations. The Company’s filings with the SEC are available
at the SEC’s web site at www.sec.gov.
The forward-looking statements made in this
press release relate only to events as of the date on which the
statements were made. Except as may be required by law, the Company
disclaims obligations to update any forward-looking statements to
reflect events and circumstances after the date on which the
statements were made or to reflect the occurrence of unanticipated
events. Investors are cautioned not to place undue reliance
on any forward-looking statements.
INVESTOR RELATIONS:
Farah Soi / Caitlin
MorahanICR203-682-8200Farah.Soi@icrinc.comCaitlin.Morahan@icrinc.com
MEDIA:
Blynn AustinPerry Street
Communications214-965-9955BAustin@perryst.com
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