Tuesday Morning ready to swing into action
Home & Textiles Today Staff -- Home Textiles Today, August 21, 2013
Dallas - Tuesday Morning will sharpen its pricing as it begins implementing a new merchandising strategy, reducing markdowns in the process.
"As you know in the past, we bring in an item at a certain price and then we mark it down once, we mark it down twice, we mark it down three times, we mark it down four times, then out the door. So the idea would be, why not bring it in at the fourth markdown right off the bat and sell out?" ceo Michael Rouleau said during the company's quarterly conference call with analysts yesterday afternoon.
The 828-unit closeout chain has been freshening the look of its stores, installing new cash registers and standardizing merchandise presentations, particularly on end caps. The aim is to market Tuesday Morning "more Target-like," said Rouleau, who spent 20 years at the discounter.
"We have our merchandise strategy just about fully developed. What we will or will not be in, who we buy it from, how we buy, how we price. We've identified super growth categories, no growth categories," he said. "All our buyers are now on board, and we're now pushing forward with the implementation."
The company's net loss widened in its fiscal fourth quarter, which ended June 30. Net loss was $15.6 million compared to a net loss of $2.0 million in the year-ago period. The results included $10.1 million in non-recurring charges.
Sales for the quarter rose 2.9% to $202.1 million. Comps increased 4.6% and were comprised of a 6.2% increase in customer traffic offset by a 1.6% decrease in average transaction.
For the full fiscal year, the net loss of $56.4 million compared to net income of $3.9 million in the previous fiscal year. Sales were up 3.1% to net sales totaled $838.3 million. Same-store sales increased 3.9%, with customer traffic up 1.4% and average transaction up 2.5%.
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