DALLAS–Tuesday Morning’s first-quarter net loss reached $5.7 million, up from a net loss of $2.6 million in its first quarter of one year ago.
Declines in sales and gross margin, plus increases in operating expenses, accounted for the redder ink on the bottom line. Net sales fell 1.2 percent to $170.7 million, including a 4.1 percent drop in same-store sales. Gross margin decreased 60 basis points to 38.1 percent, due to the increased rate of markdowns and rising freight costs.
Selling, general and administrative expenses were up in both dollar terms and as a percentage of sales. In dollars, SG&A rose 4.5 percent and as a percentage of sales, gained 240 basis points to 43.1 percent.
One of the few bright spots in the quarter, according to Kathleen Mason, Tuesday Morning’s president and CEO, was the “favorable margins on textiles. We were able to maintain favorable pricing on textiles in all categories” in the quarter, Mason said in a conference call to financial analysts yesterday.
Tuesday Morning said it now expects net sales for fiscal 2012, which ends next June, to be in the range of $828 million to $834 million, with same-store sales expected to rise in the low single digits.