Tuesday Morning revises FY guidance after soft June sales
HTT Staff -- Home & Textiles Today, 6/15/2011 11:48:50 AM
Dallas - Upscale decorative home and gifts closeout chain Tuesday Morning Corporation has revised its guidance below original expectations for the fiscal year ending June 30.
Total sales are now expected to be in the range of $820 million and $830 million, and comparable store sales are expected to be slightly negative for the full year. Diluted earnings, based on these sales results, are now expected to be approximately 25 to 30 cents per share.
This compares to the company's announcement in late April that it was projecting sales to hit between $830 million and $836 million, comps to be flat, and earnings per diluted share to range between 30 to 34 cents versus 2010 fiscal year's EPS of 25 cents.
Kathleen Mason, president and ceo, explained that while the company expects to be "debt-free with a solid cash position at year end," Tuesday Morning still decided to revise its full-year guidance upon "the disappointing start of June sales through this past weekend."
She blamed food and fuel inflation, combined with the challenging housing market, with affecting the disposable income of Tuesday Morning's customer base.
"The resulting pull back in discretionary spending has impacted the incremental portion of our sales," Mason continued. "Despite this, our balance sheet remains strong and we continue to generate earnings and positive cash flow for fiscal 2011."
Tuesday Morning, which operates 840 stores in 41 states, will announce fourth quarter and fiscal 2011 sales results on July 12.
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