Tuesday Morning 2Q sales up 5.6%

DALLAS Tuesday Morning Corp. today reported net sales for the second quarter ended June 30 were $219.4 million, up 5.6% from second quarter 2006 sales of $207.7 million. For the six-month, year-end period ended June 30 net sales were $408.5 million, up 3.3% from 2006 same-period sales of $395.4 million. Comparable-store sales increased 0.1% for the second quarter and decreased 2.5% for the six-month, year end period ended June 30.

Based on the second quarter sales results, the company currently expects diluted earnings per share for the second quarter to be in the range of 4 cents to 6 cents. Diluted earnings per share last year were 7 cents for the second quarter of 2006.

Kathleen Mason, president and ceo, stated, "Our second quarter comp-store sales results were firmly within our expectations and we are pleased with the improvement in the quarter. Earnings expectations for the quarter are just below plan as a result of a slightly higher cost related to energy. Nonetheless, these results continue to demonstrate our ability to generate positive operating income and earnings per share in what continues to be a challenging operating environment."