Tuesday Morning Trims '09 Outlook
Heath E. Combs -- Furniture Today, September 1, 2008
Off-price retailer Tuesday Morning saw profits cut in half for the fiscal year ended June 30, as sales fell 4.2% to $885.3 million; comps fell 7.6%.
Net income of $14.5 million or 35 cents per diluted share plummeted from net income of $30.0 million or 72 cents per diluted share in the prior year.
Pointing to the upside, Kathleen Mason, president and ceo of the 842-chain, said, "We were able to control inventory and expenses to partially offset the decline in demand."
During the earnings call, evp and cfo Stephanie Bowman noted that traffic in the fourth quarter fell 11% while the average ticket was off 1.7%. Volume was down 10.4% to $196.5 million. She said that the company has taken more markdowns, which was part of the plan to reduce the age of inventory.
For the fiscal year ahead, the company projects another sales falloff, to the range of $868 million to $878 million, with comps estimated to fall in mid-single digits, and diluted EPS be in the range of 21 cents to 27 cents.
Tuesday Morning Corporation
|Qtr. 6/30 ($millions)||2008||2007||%change|
|Oper. Income (EBIT)||(5.2)||4.1||--|
|Per share (diluted)||(0.06)||0.05||--|
|Average gross margin||34.6%||36.4%||--|
|Oper. Income (EBIT)||24.8||48.7||(49.1)|
|Per share (diluted)||0.35||0.72||(51.4)|
|Average gross margin||36.4%||37.4%||--|
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