Tuesday Morning Corp. posted a modest comparable store gain while beating a Wall Street estimate for sales and earnings.
In the quarter, Tuesday Morning beat a Yahoo Finance-published analyst estimate that included an eight cents per share loss and for sales of $235.6 million.
The company posted net sales of $251.4 million versus $198.6 million for the year-previous quarter as comparable sales increased 1% for the 486 stores that were open in the 2022 and 2020 periods, Tuesday Morning noted. At the end of the second quarter, the company operated 492 stores compared to 705 stores at the end of the fiscal 2020 second quarter and 490 stores at the end of the fiscal 2021 second quarter. Operating income was $3.4 million versus an operating loss of $4.3 million in the year-before period.
Credit analyst Pulse Ratings noted that the gains Tuesday Morning made were based on already subdued post-bankruptcy expectations but viewed increased liquidity as a positive.
Fred Hand, Tuesday Morning CEO, stated, “We are pleased with our overall execution during the second quarter and with the fact that we achieved a positive comparable store increase versus fiscal 2020 despite ending with 26% less store inventory and being up against 14 promotional events. We ended the second quarter with minimal seasonal carryover, and are very pleased with the level and currency of our inventories heading into the third quarter. While we are operating in a dynamic macro environment, we continue to be focused on improving our execution of the off-price model across all areas of the organization.”