It could be a stormy Monday for

Tuesday Morning

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The retailer Monday slashed financial guidance for the fourth quarter and full year, citing a "challenging environment."

The closeout retailer of home accessories said EPS for the quarter ending Dec. 31 is expected to be flat compared with a year ago, when it earned 83 cents a share, including a 6-cents-a-share charge for the early extinguishment of debt. Analysts were expecting $1.05 a share, according to Thomson First Call

Full-year revenue is expected to rise 8% to approximately $890 million with same-store sales down low single digits. EPS is seen at $1.44 vs. $1.29 a year ago, which included the 6-cent charge. The consensus estimates are for revenue of $935 million and EPS of $1.67.

The Dallas-based company blamed "a challenging environment for home furnishings," adding that business in some "key decorative home categories, as well as in seasonal merchandise, has not met expectations."

The company will report fourth-quarter results on Jan. 6.

Shares ended at $36.28 Friday, less than 50 cents below their 52-week high.