Tuesday Morning turning things around

Off price retailer Tuesday Morning enjoyed an 11.3% surge in its first quarter same store sales as it benefitted from the introduction of new and expanded merchandise categories.



The operator of nearly 800 stores said sales for the quarter ended Sept. 30 increased 10.1% to $202.2 million with the 11.3% comp increase driven almost entirely by increased customer traffic. The company still lost money during the period, but much less than the prior year. A net loss of $6.2 million, or 14 cents a share, was roughly half the prior year net loss of $12 million, or 28 cents a share.



"During the first quarter, we successfully completed the turnaround phase of our program to transform Tuesday Morning,” said CEO Michael Rouleau. “This encompassed the exit of non-core categories, the introduction of new and expanded categories, comprehensive improvements in store conditions and operations, redirection of our real estate program, and the streamlining of our supply chain. Looking ahead, we currently expect to build on this momentum and deliver a successful fall and holiday season."



Tuesday Morning’s value proposition is selling deeply discounted, upscale decorative home accessories, housewares, seasonal goods and famous-maker gifts.



In the prior fiscal year, the company said it executed a number of critical programs under its business turnaround initiative. These programs included changes in senior management and board composition, exiting certain categories, cleaning up and relaying all stores, structurally reducing the level of clearance merchandise, enhancing company policies, and eliminating obsolete assets.