Tuesday Morning loss widens in 4Q

Tuesday Morning 4Q loss deepens on cost of closing its Web store, more markdowns

Associated Press

DALLAS (AP) -- Retailer Tuesday Morning's loss deepened in its fiscal fourth quarter, hurt by the cost of closing its Web store.

Tuesday Morning shut down its online shopping in July so it could focus on its stores. The company sells discounted housewares and home decor, and says its business is better suited to in-person sales.

The company said Tuesday that it lost $15.6 million, or 37 cents per share, in the three months ended June 30. In the same period a year ago, it lost $2 million, or 5 cents per share.

Excluding charges related to its online store, writing down the value of its inventory and other one-time items, its per-share loss came to 13 cents, compared with last year's 2-cent loss, as markdowns increased.

Tuesday Morning's revenue grew 3 percent, to $202.1 million from $196.4 million. Revenue at stores open at least a year grew 4.6 percent. That's considered an important measurement of retailer health because it excludes results from stores that opened or closed in the last year. Tuesday Morning said customer traffic at established stores increased, but customers spent less per visit.

Tuesday Morning runs 828 stores in the U.S.

For the full year the company said it lost $56.4 million, or $1.33 per share, compared with profit of $3.9 million, or 9 cents per share, the year before. Revenue rose 3 percent to $838.3 million.

Shares of Tuesday Morning Corp. rose 3.2 percent to close at $11.41 on Tuesday, up 83 percent this year. The stock was unchanged in aftermarket trading.

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