Tuesday Morning saw improved results in its fiscal year and fourth quarter, with comps gaining although higher expenses cut into earnings.
In its fiscal year ended June 30, Tuesday Morning Corp. posted net income of $3.7 million, or eight cents per diluted share, versus $10.4 million, or 24 cents per diluted share, in the year-prior period.
Comparable store sales gained 7.8% year over year based on a 7.9% increase in customer transactions partially offset by a 0.1% decrease in average ticket. Net sales were $956.4 million versus $906.4 million in the fiscal year earlier, the company reported. Operating income was $2.4 million compared with $12.4 million in the fiscal year before.
For its fourth quarter, Tuesday Morning posted a net loss of $3.9 million, or nine cents per diluted share, versus a net loss of $4.2 billion, or 10 cents per diluted share, in the year-earlier quarter. A MarketBeat-published analyst average estimate called for a 13-cent loss in the quarter.
Comps advanced 6% in the fourth quarter based on a 5.1% increase in customer transactions and a 0.9% increase in average ticket. Net sales were $222.8 million versus $213 million in the year-earlier quarter. Operating loss was $6.3 million compared with an operating loss of $4 million in the period a year before.
The company said it posted higher SG&A expenses for the fiscal year and the fourth quarter, as it opened a new distribution center, as well as higher cost of goods sold.
“In fiscal 2016, we made tangible progress on each of our strategic priorities, including real estate, merchandising, marketing, infrastructure and talent,” said Steve Becker, Tuesday Morning CEO. “Our real estate initiative has demonstrated consistent success. Our most recent store openings feature the latest evolution of our shopping experience. While these changes are modest, they are exciting our customers and are driving strong performance. We continue to believe the transformation of our real estate portfolio presents a compelling multi-year opportunity, with an especially attractive return on investment. As seen by both our fourth quarter and our record-high full-year sales results, our top-line performance continues to benefit from these efforts along with the progress we have made improving our assortment and overall customer experience. On the infrastructure front, we successfully opened our new Phoenix distribution center during the fiscal fourth quarter and are currently ramping this facility towards its full capacity. The Phoenix distribution center will be instrumental in helping us reduce inefficiencies that have limited our top and bottom line performance.”
During the fiscal year, Tuesday Morning relocated 46 stores, expanded seven stores, opened 16 stores and closed 34 stores resulting in a total of 751 stores in operation.
