New day dawning at Tuesday Morning

New day dawning at Tuesday Morning Tuesday Morning CEO Michael Rouleau declared the company’s turnaround complete after same store sales popped 7.6% and operating profits surged 32% during the second quarter ended Dec. 31.

The operator of 800 stores reported that the same store sales increase was as a result of a 7.7% increase in customer transactions, offset by a 0.1% decrease in average ticket. Sales at the 31 stores relocated during the past 12 months increased approximately 50% and contributed 140 basis points to the comparable store sales increase of 7.6%.

The company said operating income increased 32% during the second quarter of fiscal 2015 to $24.2 million, compared to operating income of $18.3 million in the second quarter of fiscal 2014. The Company reported a $3.9 million or 19% increase in operating income over fiscal 2014 non-GAAP adjusted operating income of $20.3 million for the second quarter of fiscal 2014. Non-GAAP adjusted operating income excludes business turnaround charges incurred in the prior year period.

"Tuesday Morning's second quarter, which included total comparable store sales growth of 7.6%, core category comparable sales growth of 12.6%, and increased operating profits of 19%, provides affirmation that our turnaround phase is complete,” Rouleau said. “We are now able to focus on rebuilding and making the necessary investments to be more efficient and competitive while supporting the long term, profitable growth of the business through new initiatives. These include relocating or closing underperforming stores, improving our supply chain, upgrading our systems, and enhancing our buying processes. Our entire Tuesday Morning team is doing an outstanding job and executing to deliver superior results in the near term as we rebuild the company for long term success."

Based in Dallas, Texas, the company opened its first store in 1974 and currently operates nearly 800 stores in 41 states.