Boston, MA 05/12/2014 (wallstreetpr) – Closeout retailer, Tuesday Morning Corporation (NASDAQ:TUES), continues to make impressive turnaround in the industry seen by impressive quarterly earnings in which sales jumped by 6.4% as traffic also increased by 8.4%. A decline in the company’s inventory is a demonstration that the company is streamlining its product selection as well as exiting unprofitable categories.
TUES to Return Profits
Tuesday Morning Corporation (NASDAQ:TUES)’s hard work is finally bearing fruits according to the company’s CEO as the company engages the final phase of its turnaround process. Despite not giving a full year guidance, all seem set for the company to return profits in the year after registering huge losses last year. Comparable store sales continue to record impressive gains in the market and expected to be the primary drive of growth in the coming years
Tuesday Morning looks to be in the right stride having seen its stock more than double in value for the past one year. The company’s final turn around phase involves the sell-off of exited categories that have been ailing in terms of returns. This move looks to have reduced the company’s clearance merchandise further enhancing store layouts. Increased inventory turnover accompanied with improved cash position continue to demonstrate the Tuesday Morning’s massive improvements going forward.
Tuesday Morning Q3 Financial
Freight and distribution efficiencies continue to prove the difference as Tuesday Morning Corporation (NASDAQ:TUES) saw its gross profit scale to a high of $68.1 million up from $66.2 million reported in the thirds quarter of 2013. Gross margin, on the other hand, stood at 37.3% against 37.2% the prior year. Turnaround can also be seen in the company reducing its net loss to $8.4million, down from $12.4 million as of last year same period.
Cost cutting measures continue to have a major impact in the company’s operational margin seen by a 2.8% reduction in Selling, general and administrative expenses. Net sales increased by 2.6% to $182.8 million with comparable store sale also increasing by 6.4%. During the quarter, Tuesday Morning Corporation (NASDAQ:TUES) exited a number of non-core categories as a result of poor sales such as Women’s apparel and footwear.