Tuesday Morning reports 1Q loss, drop in sales

Tue. October 27, 2009; Posted: 11:06 AM

Oct 27, 2009 (The Dallas Morning News - McClatchy-Tribune Information Services via COMTEX) -- TUES | Quote | Chart | News | PowerRating -- Dallas-based Tuesday Morning Corp. reported a fiscal first-quarter net loss and a decline in sales, but margins improved as less inventory meant fewer unplanned markdowns.

The retailer of deep discounted gifts and home furnishings reported on Tuesday a net loss of $4.7 million, or 11 cents a share, in the period ended Sept. 30, compared with a net loss of $4.3 million or 10 cents a share, a year ago.

Sales fell 4.3 percent to $165.9 million from $173.4 million in 2008. Total inventory was 8.6 percent lower than a year ago, and on a per-average-store basis, inventory was 9.3 percent lower at the end of the quarter vs. last year.

Same-store sales fell 5.8 percent as customer traffic fell 1.7 percent and the average transaction declined 4.1 percent.

"We are encouraged by the positive trends we experienced in September," said Kathleen Mason, president and chief executive officer. "We have effectively managed inventory levels."

However, ongoing uncertainty in home furnishings retail, led the company to keep its full-year forecast for sales to decline in the low single digits and earnings to be in the range of a net loss of 2 cents a share to net income 2 cents a share.

Tuesday Morning said stores with the largest sales declines continue to be in states hit hardest by the housing collapse: Florida, California, Nevada and Arizona.

The company operated 850 stores in 43 states and during the quarter opened 10 new stores, closed 17 existing stores and relocated 9 stores.

It plans to continue to relocate and expand stores, because even during the recession, those stores have had double-digit sales gains and improved profit margins.

To see more of The Dallas Morning News, or to subscribe to the newspaper, go to
http://www.dallasnews.com. Copyright (c) 2009, The Dallas Morning News
Distributed by McClatchy-Tribune Information Services. For reprints, email
tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax
to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave.,
Suite 303, Glenview, IL 60025, USA.

For full details for TUES click here.

More News: Market Updates | Stock Alerts | All Trading News | Stock Index

Archives

Feedback

Email Article Link

Close X

RELATED SITES

Please call 1-213-955-5858 ext. 1

Tax Relief Bank Levy Wage Garnishment

Disclaimer:

The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.

It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302

All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.