Tuesday Morning Eyes Home to Cure Comp Sag
Cecile Corral -- Gifts & Dec, May 1, 2006
Dallas —Keeping most details close to the vest, Tuesday Morning Corp. alluded to plans that would play up better performing categories such as bedding and electronics, as the chain continues to struggle with comp-store sales down 4.5% in the first quarter.
“We have certain categories of merchandise that are continuing to give us double-digit comp store increases that are outside the seasonal area,” said Kathleen Mason, president and ceo of the off-price retailer, during its first- quarter conference call.
Mason also expected good results from some special buys in categories that are trending up, Mason said, such as a “sheet omnibus” — designer sheets and bedding — that the retailer will pitch to customers in May. Advertising is also slated for enhancement.
Tuesday Morning nearly maintained even profit levels while comps dragged. For the first quarter, overall volume was up 1.2% to $187.8 million. Net income declined 2.9% to $6.5 million, from $6.7 million a year ago.
The 734-store, national off-price chain has “ticked down our seasonal and decorative quite a bit,” said Mason.
“The categories trending up are non-seasonal and non-decorative, which is basically the rest of the store,” she said. “We're seeing good results in all of the categories across the board, it's just that we've been so seasonal weighted in the past that it takes a while to get out of that.”
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