Tuesday Morning reports 2Q sales drop

DALLAS Tuesday Morning today reported that net sales for the second quarter were $308.7 million compared to $321.3 million for the same period last year, a decrease of 3.9%.

The company reported that comparable-store sales decreased 7.6% for the quarter compared to the same quarter for the prior year. The decrease in comparable-store sales was comprised of a 7.2% decrease in traffic and a 0.4% decrease in average ticket. Net income for the second quarter ended Dec. 31 was $20.5 million or 50 cents per diluted share, compared to $23.8 million or 57 cents per diluted share during the same quarter last year.

Kathleen Mason, president and ceo, stated, "We are aggressively responding to the pressures of the home furnishings macro environment. We believe the flexibility of our format will enable us to continue generating positive cash flows and long term profitability."

For the fiscal year 2008, the company expects net sales to be in the range of $920 million to $940 million. Comparable-store sales are projected to be in the negative low single digits; and diluted earnings per share are projected to be in the range of 55 cents to 62 cents.