Tuesday Morning Corporation (NASDAQ:TUES) Gets Lukewarm Response From Investors
Tuesday Morning Corporation (NASDAQ:TUES), a closeout retailer with 811 stores across the U.S. that specialize in selling discounted but upscale decorative home accessories and gifts, announced its third-quarter fiscal year 2014 financial results.
Despite beating the analyst consensus estimate for earnings per share by 2 cents, the stock is not getting the usual bounce associated with exceeding expectations. It is possible the lukewarm interest from investors may be because Tuesday Morning Corporation is still awash in red ink with a higher year-on-year loss in terms of EPS.
Tuesday Morning Corporation Third Quarter FY 2014 Results
The Company reported third quarter fiscal year 2014 net sales of $182.8 million, representing an increase of 2.6% as compared to the $178.1 million in sales reported for the same quarter in FY 2013. The non-GAAP net loss for the third quarter of FY 2014 was $5.7 million, or $0.13 per share.
This EPS is two cents lower than the analyst consensus estimate of a $0.15 EPS loss, but it is also two cents higher than the net loss of $4.8 million, or $0.11 per share, reported by the Company in the same quarter in FY 2013.
Statement by Tuesday Morning Corporation CEO Michael Rouleau
Tuesday Morning Corporation CEO Michael Rouleau said that, “During the third quarter we commenced work on the final phase of the Company’s turnaround efforts which includes the sell-off of exited categories, further reduction of our clearance merchandise and enhancements to our store layouts.”
Investors do not seem to be too happy with the results, but Rouleau said they are pleased with the company’s continued progress and results for the quarter. He added that they “remain focused on the significant work ahead to complete the final phase of our turnaround efforts before the holiday selling season.”