Tuesday Morning Ekes Out Net Sales, Comp Increases
May 16, 2013,
Net sales in the quarter, ended March 31, increased 3.1% to $178.1 million from $172.7 million a year ago, and comparable stores sales rose 2.8%, comprised of 1.4% increases in both average ticket and in customer traffic.
However, due to $4.8 million in non-recurring charges related to severance costs and legal, consulting and recruitment expenses, the company suffered a net loss in the quarter of $12.4 million, or 29 cents per share. Excluding these nonrecurring charges, the company reported a non-GAAP adjusted net loss of $4.8 million or11 cents per share, compared to a net loss of $4.2 million or 10 cents per share in the same period last year.
"Tuesday Morning's third quarter results show improvement in the top-line as evidenced by increases in both customer traffic and average ticket," said Michael Rouleau, interim ceo of the 829-unit closeout retailer. "Although there is still a great deal of work to be done, we have now realigned our entire organization to focus on the company's key priorities with the objective of returning to profitability and providing a great store experience for our customers."
Year-to-date results included: a 3.2% increase in net sales to $636.2 million from $616.4 million a year-ago period; a 3.7% gain in comps, comprised of a 3.7% increase in average ticket and flat traffic; and a net loss was $40.8 million or 97 cent loss per share compared to net income of $5.9 million or 14 cents per share.
Regarding the latter, the company explained it was "significantly impacted" in the nine-month period by a non cash charge of $41.8 million for the write-down of inventory and $11.7 million in charges related to store cleanup, severance costs, and legal, consulting, search and recruitment expenses, as well as a reduced effective tax rate due to recording a deferred tax asset valuation allowance of $10.8 million.