Tuesday Morning reports Q1 loss

Constraints due to inventory levels took a toll on Tuesday Morning’s first quarter earnings.



The off-price home decor retailer reported a net loss of $8.9 million for the first quarter ended Sept. 30, 2016. Net sales for the quarter were $211.9 million, which is an increase from $9.6 million from the prior year. Same-store store sales increased 5.1%, however the company’s operating loss for the first quarter was $9.2 million.



“During the quarter, we experienced issues related to the ramp of our newly opened Phoenix distribution facility — issues that resulted in lower than plan store-level inventories during the quarter which affected sales in our entire store base,” said the company’s CEO Steve Becker.



“Despite these constraints, we delivered a 5.1% comp sales increase for the quarter,” he added. “We believe that we have addressed the majority of the issues associated with the Phoenix distribution center ramp, and have reached a healthy in stock inventory position as we move into the holidays.”