Tuesday Morning earnings rise in Q2
January 31, 2014,
Exiting the poorly performing women's apparel and footwear categories to sharpen its focus on core home business segments proved to be a shrewd move for Tuesday Morning Corporation's behalf.
Comparable sales in ongoing core categories over the three-month period increased 7% and were led by "exceptional strength" in Tuesday Morning's home segments: furniture, up 57%; sheets/linens, up 23%; and home décor, up 20%.
Excluding turnaround-related charges, non-GAAP adjusted net income came to $19.3 million, or 45 cents per share, compared to a non-GAAP adjusted net income of $15.5 million, or 37 cents per share, in the same period last year.
Second quarter sales were essentially flat at $285.8 million compared with $285.3 million a year ago. Tuesday Morning noted its net sales included the contribution of 24 more stores as well as e-commerce sales.
Total comparable store sales increased by 3.1%, comprised of a 7% increase in customer transactions, partially offset by a 3.9% decrease in average ticket.
While Michael Rouleau, who joined the company as CEO in August, said he was "pleased" with Tuesday Morning's Q2 results, especially given the short amount of time it had to prepare for the holiday season amid a storewide reorganization, there is still room for improvement - and efforts for that are underway.
During the company's conference call yesterday evening, he added: "If I were to grade our holiday performance, I would give us a solid B. We believe we made a lot of new customer friends who could see and experience the difference at Tuesday Morning."
Year-to-date, sales rose 2.5% to $469.4 million. Comps rose 5.4%, comprised of a 9.4% increase in customer transactions and partially offset by a 4.0% decrease in average ticket. Net income was $5.7 million, or 13 cents per share, versus a net loss of $28.4 million, or 68 cents per share last year.
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