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But the Dallas-based closeout gift and home furnishings retailer said it expects the retail environment to remain "difficult and uncertain" over the next year.
The recession and housing market deterioration continued to affect the home furnishings business, said Kathleen Mason, president and chief executive officer.
The company has no debt and will continue to focus on keeping inventories and costs in line with sales, Mason said.
Tuesday Morning reported a net loss of $1.6 million, or 4 cents a share, in the quarter, which ended June 30. That compares with a net loss of $2.5 million, or 6 cents, in the same period last year. The one analyst surveyed by Thomson Reuters had expected a loss of 5 cents a share.
Fourth-quarter margins were better, as inventory was 7.2 percent lower than a year ago, resulting in fewer markdowns. Lower freight costs also helped.
For fiscal 2010, Tuesday Morning forecast earnings ranging from a loss of 2 cents a share to a profit of 2 cents on sales of $795 million to $805 million. It expects same-store sales to decline in the low single-digits.
The company plans to spend $21 million, up from $12.5 million last year, to improve systems and distribution processes and to relocate and expand stores. Relocated stores have historically shown a double-digit improvement in sales, as well as better profit margins, the company said.
Fourth-quarter revenue declined 4 percent to $188.7 million from $196.5 million a year earlier. Same-store sales fell 6.6 percent. Almost all the decline was from a decrease in the average customer sale; customer traffic increased 0.1 percent.
The states with the largest sales declines remained Arizona, California, Florida and Nevada.
For the just-completed fiscal 2009, Tuesday Morning reported a net loss of $44,000, or zero per share, on revenue of $801.7 million. That compares with net income of $14.5 million, or 35 cents a share, on revenue of $885.3 million in the fiscal year ended June 30, 2008. Same-store sales for the year fell 12.4 percent.
Tuesday Morning operates 857 stores in 45 states. Shares traded at a 52-week high of $5.48 early Tuesday but closed at $4.60 a share, up 16 cents.
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