Tuesday Morning Downtrends Home Décor
Staff Staff -- Furniture Today, July 31, 2006
Citing nationwide economic pressures from higher gas prices, a slow housing market, climbing interest rates and a troubled stock market, Tuesday Morning said it will approach the second half of the fiscal year focused more on functional goods at the expense of home décor items.
“Consumers have moved from a home décor-focused purchase to a purchase of replenishable, functional items,” said Kathleen Mason, president and ceo. “Our core customers are spending more on each visit to a Tuesday Morning, but their visits have declined by 1.5 times.”
Mason explained during the 762-unit closeout chain's second-quarter conference call last week that approximately 60% of the company's business is generated during the second half of the year. “We are adjusting the product mix in our stores, shifting assortments to meet our customers' changing priorities. We can improve the customer's perception and therefore the anticipation and excitement that they have come to expect from us.”
For the second quarter, the retailer reported net income of $2.9 million, down 72.4% from the same period a year ago. Net sales for the quarter were $207.7 million, down 5.1%. Comp-store sales dropped 7.9%.
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