Tuesday Morning is turning things around

The chief executive at Tuesday Morning says the company efforts to rehabilitate sales growth are working, as the company posted an increase in same store sales.

The Texas-based retailer of closeout home furnishings said net sales in the fourth quarter ended June 30 increased 0.2% to $213 from $212.6 million, impacted by the net closure of 41 stores in the current fiscal year. Same store sales increased 3.6%.

"Our fourth quarter and Fiscal 2015 performance reflects clear progress in implementing the strategic initiatives that will help ensure sustained profitability and a revitalized company built for long-term success. These initiatives include, among others, successfully transitioning our merchandise strategy, improving our store portfolio, and commencing our Rebuilding Program," said CEO Michael Rouleau.

For full year fiscal 2015, Tuesday Morning swung to net income of $10.4 million from net loss of $10.2 million in fiscal 2014. The retailer reported net sales growth of 5% to $906.4 million from $864.8 million. Same-store sales grew 7.2%.

Rouleau added: "Notable early returns from these efforts include a significant year-over-year improvement in earnings and a comparable same store sales increase in the fourth quarter of 8.5%, excluding the impact of last year's merchandise clearance efforts. Looking ahead, we expect Fiscal 2016 to be another important year as we accelerate critical investments in support of our Rebuilding Program. Key elements of this Program include relocating underperforming stores, opening a new distribution center, upgrading our systems, and enhancing our buying processes. Though an investment year, we expect to deliver continued comparable sales growth and, given these investments, very modest operating margin expansion in Fiscal 2016."

During fiscal 2016, Tuesday Morning intends to continue pursuing initiatives including transitioning its merchandise strategy, improving the store portfolio, and commencing a rebuilding program.