DALLAS, Oct. 9, 2008 (GLOBE NEWSWIRE) -- Tuesday Morning Corporation (Nasdaq:TUES) today reported net sales for the first quarter ended September 30, 2008 were $173.4 million compared to $201.7 million for the quarter ended September 30, 2007, a decrease of 14.0%. Comparable store sales for the quarter ended September 30, 2008 decreased by 17.3% comprised of a 14.0% decrease in traffic and a 3.3% decrease in average ticket. Based on the first quarter sales results, the Company currently expects diluted earnings per share for the first quarter to be in the range of ($0.09) to ($0.11) compared to $0.03 for the same period last year.
Our business was impacted in September by severe weather conditions stemming from hurricanes Ike and Gustav. These hurricanes hit during a major sales event causing a loss in comparable store sales of approximately $4.2 million and a negative effect on earnings per share of approximately $0.02. Without the impact of hurricanes Ike and Gustav, earnings per share for the quarter would have been in the range of ($0.07) to ($0.09).
"Our September direct mail event began on a positive note but was impacted by the hurricanes as well as the unprecedented financial crisis. The latter served to impact sales for the remainder of September," stated Kathleen Mason, President and Chief Executive Officer. "Our customer is especially cautious with discretionary spending during this time of economic uncertainty. We continue to focus on managing our inventories and keeping expenses in line with revenues."
Tuesday Morning Corporation management will review first quarter financial results in a teleconference call on October 28, 2008 at 10:00 a.m. Eastern Time. The Company will release first quarter results prior to the call.
About Tuesday Morning
Tuesday Morning is a leading closeout retailer of upscale, decorative home accessories, housewares and famous-maker gifts in the United States. The Company opened its first store in 1974 and currently operates 851 stores in 45 states. Tuesday Morning is nationally known for bringing its more than 9.0 million loyal customers a unique treasure hunt of high-end, first quality, brand name merchandise...never seconds or irregulars...at prices well below those of department and specialty stores and catalogues.
This press release contains forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995, which are based on management's current expectations, estimates and projections. Forward-looking statements typically are identified by the use of terms such as "may," "will," "should," "expect," "anticipate," "believe," "estimate," "intend" and similar words, although some forward-looking statements are expressed differently. You should carefully consider statements that contain these words because they describe our expectations, plans, strategies and goals and our beliefs concerning future business conditions, our future results of operations, our future financial positions, and our business outlook or state other "forward-looking" information.
Reference is hereby made to "Item 1A. Risk Factors" of the Company's Transition Report on Form 10-K for the fiscal year ended June 30, 2008 for examples of risks, uncertainties and events that could cause our actual results to differ materially from the expectations expressed in our forward-looking statements. These risks, uncertainties and events also include, but are not limited to, the following: uncertainties regarding our ability to open stores in new and existing markets and operate these stores on a profitable basis; conditions affecting consumer spending; inclement weather; changes in our merchandise mix; timing and type of sales events, promotional activities and other advertising; increased or new competition; loss or departure of one or more members of our senior management, as well as experienced buying and management personnel; an increase in the cost or a disruption in the flow of our products; seasonal and quarterly fluctuations; fluctuations in our comparable store results; our ability to operate information systems and implement new technologies effectively; our ability to generate strong cash flows from our operations; our ability to maintain internal control over financial reporting; and our ability to anticipate and respond in a timely manner to changing consumer demands and preferences. The forward-looking statements made in this press release relate only to events as of the date on which the statements were made. We undertake no obligations to update our forward-looking statements to reflect events and circumstances after the date on which the statements were made or to reflect the occurrence of unanticipated events.