Tuesday Morning Corporation Announces First Quarter Fiscal 2011 Results

DALLAS, Oct. 25, 2010 (GLOBE NEWSWIRE) -- Tuesday Morning Corporation (Nasdaq:TUES) today reported that, as previously announced, net sales for the first quarter ended September 30, 2010 were $172.8 million compared to $165.9 million for the quarter ended September 30, 2009, an increase of 4.2%. Comparable store sales for the quarter ended September 30, 2010 increased by 4.3% comprised of a 6.1% increase in traffic offset by a 1.8% decrease in average ticket. Net loss for the first quarter ended September 30, 2010 was $2.6 million, or $0.06 loss per diluted share, compared to a net loss of $4.7 million, or $0.11 loss per diluted share, for the same period last year. 

Kathleen Mason, President and Chief Executive Officer, stated, "We achieved an increase in comparable store sales and customer traffic for the fourth consecutive quarter. We ended the quarter with a solid inventory position that prepares us well for the upcoming holiday selling season. The increased sales, combined with leveraged expenses, resulted in a 43% improvement in our bottom line. This clearly reflects the intended results of our recent initiatives."

Financial Results for the First Quarter Ended September 30, 2010

Gross Profit - Gross profit increased $3.4 million, or 5.4%, to $66.8 million for the first quarter ended September 30, 2010 as compared to gross profit for the same quarter last year of $63.4 million. As a percentage of net sales, gross profit increased to 38.7% for the quarter compared to 38.2% for the same period in fiscal 2009. This increase in gross profit dollars is largely the result of higher sales volume during the quarter ended September 30, 2010. The increase in gross profit percentage was primarily due to a decrease in the cost of merchandise, a result of opportunistic buys.

Selling, General and Administrative Expenses ("SG&A") - SG&A was unchanged at $70.3 million in the first quarter of fiscal year 2011 as compared to SG&A in the same quarter last year. As a percentage of net sales, SG&A decreased 1.7% to 40.7% in the first quarter of fiscal 2011 from 42.4% in the same quarter last year primarily due to improved expense leveraging on higher sales volume.

Interest Expense - Interest expense for the quarter ended September 30, 2010 decreased to $690,000 from $751,000 for the same period last year due to lower borrowings. 

Balance Sheet

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