Tuesday Morning (TUES) Tops Q4 EPS by 6c

Tuesday Morning (NASDAQ: TUES) reported Q4 EPS of ($0.23), $0.06 better than the analyst estimate of ($0.29). Revenue for the quarter came in at $230.5 million versus the consensus estimate of $224.45 million.

Guidance:

The Company currently expects comparable store sales for fiscal 2019 to increase 3% to 5%. The Company also expects year over year improvement in gross margin driven by improved product margin and lower supply chain expenses, partially offset by higher transportation costs. Selling, general and administrative expenses are expected to deleverage modestly due to the normalization of incentive compensation based on the Company’s expectation of achieving its fiscal 2019 financial goals and the impact of retention costs as disclosed in its third quarter fiscal 2018 filing with the Securities and Exchange Commission. For the year, the Company expects significant EBITDA improvement compared to fiscal 2018.

The Company currently plans to open 10 to 12 new stores, relocate 15 to 20 stores, expand one to three stores and close 20 to 30 stores in fiscal 2019. Net capital expenditures for fiscal 2019 are expected to be in the range of approximately $15 million to $20 million. The reduced level of capital spend from prior years reflects fewer relocations and new stores, partially offset by higher investments in information technology. The Company currently does not anticipate its fiscal 2019 ending net debt balance to increase from its fiscal 2018 ending position and currently expects to have approximately $65 million of availability on its line of credit at its seasonal borrowing peak.

For earnings history and earnings-related data on Tuesday Morning (TUES) click here.

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