Tuesday Morning Takes Preemptive Strike on Cotton Prices
Home & Textiles Today Staff -- Home Textiles Today, May 10, 2011
DALLAS - Trying to delay the inevitable increasing of prices on cotton-made and home textiles merchandise, Tuesday Morning said it stocked up recently inventory in these core categories - a strategy that the closeout chain said has proved successful.
During its third quarter earnings conference call late last the 840-unit chain's evp cfo, Stephanie Bowman, said Tuesday Morning "took advantage opportunistic buys" that became available in the second quarter, and now "this inventory is selling through as we planned."
Added president and ceo, Kathleen Mason: "We invested excess cash in certain merchandise categories to hold pricing, primarily in cotton and textile categories" - which together account for more than one-third of Tuesday Morning's business, she said.
"Although we don't have a true commodity business, this is as close as we get to a commodity item. And we feel very good about that inventory, and we have definitely addressed any inventory that we believe needs price reduction," she continued.
Some of the product categories Mason cited included mattress pads, pillows, rugs, "and that kind of thing."
Proof that the pricing strategy was the right move is evident Tuesday Morning's recent textile product sales, which Mason described as "fairly good right now across the board. We are certainly pleased with where our textiles business is right now."
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