Tuesday Morning sees wider loss on cost of CEO departure
DALLAS — Tuesday Morning's net loss widened to $2 million, or 5 cents per diluted shared for its fourth quarter, from $1.4 million, or 3 cents per diluted share for the same period last year.
According to the company, the loss was due in part to the departure of former CEO, Kathleen Mason, who is suing the company on the claim that Tuesday Morning fired her because she was diagnosed with breast cancer. Excluding costs associated with the departure of Mason, net loss for the fourth quarter was $0.7 million, or a 2 cents per share.
As previously announced, net sales for the fourth quarter of fiscal 2012 were $196.4 million compared with $194.8 million for the quarter ended June 30, 2011, an increase of 0.8%. Comparable-store sales increased 0.2% for the fourth quarter, consisting of a 2.9% increase in average ticket offset by a 2.7% decrease in traffic.
Michael Marchetti, president and interim CEO, stated, "As we move into the new fiscal year, we are focused on improving our sales performance. 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. With our strong balance sheet, characteristic cost discipline and the initiatives to drive sales, we are well positioned to deliver improved financial performance in fiscal 2013."
As of June 30, Tuesday Morning operated 852 stores in 43 state. During the fourth quarter of fiscal 2012, the company opened 4 stores, relocated 8 stores and closed 4 stores. During the fiscal year ended June 30 the company opened 24 stores, closed 33 stores and relocated 45 stores.
For fiscal 2013, the company expects net sales to range from $820 million to $830 million. Comparable-store sales are planned to be roughly flat and earnings per diluted share to be in the range of 18 cents to 23 cents.