Tuesday Morning 4Q Loss Increases; Fiscal-Year Net Falls 59 Percent
DALLAS-Closeout retailer Tuesday Morning ended a troubled fiscal year with a fourth-quarter net loss of $2 million, compared to a net loss in last year's fourth quarter of $1.4 million.
For its fiscal year as a whole ending on June 30, Tuesday Morning's net income plummeted 59.2 percent to $3.9 million. Net sales for the quarter edged up 0.8 percent to $196.4 million, including an increase in same-store sales of 0.2 percent. For the year as a whole, net sales dropped 1 percent to $812.8 million, including a same-store sales decline of 3.1 percent.
Expenses leveled a significant hit to the retailer's bottom line in the quarter. Tuesday Morning reported that selling, general and administrative expenses increased 3.7 percent in dollar terms and 107 basis points as a percentage of sales, to 39.2 percent. Part of the increase in expenses was $2.7 million in costs associated with the departure of Kathleen Mason, who was terminated as president and CEO by the board on June 5.
The increase in expenses offset a gain of 13 basis points in gross margin, which finished the quarter at 37.4 percent.
Michael Marchetti, president and interim CEO, said Tuesday Morning will go forward with a focus on improving sales. "Innovative sourcing of new merchandise, implementing merchandise initiatives with respect to better allocation and in-stock positions, improved e-commerce performance, a new customer loyalty program and continued improvement in our store portfolio are all being deployed to drive sales growth and improve profitability," Marchetti said.