Tuesday Morning Q4 net sales increased 0.2% to $213 million
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Operating loss for the fourth quarter was $4.0 million, and diluted loss per share was $0.10, a 41% improvement over the same period in the prior year.
Net sales increased 0.2% to $213.0 million, compared to $212.6 million for the fourth quarter of fiscal 2014. The company's sales comparison to the prior year is impacted by the net closure of 41 stores in the current year.
Comparable store sales increased 3.6% compared to the same period a year ago, and were comprised of a 2.8% increase in customer transactions and a 0.8% increase in average ticket.
Comparable store sales during the company's fourth quarter of fiscal 2015 were impacted by a significant reduction in the level of clearance inventory sold compared to the prior year quarter, due to a two week final clearance program conducted in fiscal 2014.
Excluding the impact from the special clearance program, comparable store sales increased 8.5% in the current year period.
Sales at the 30 stores relocated during the past 12 months increased approximately 40% on average for the fourth quarter of fiscal 2015 as compared to the prior year quarter and contributed 180 basis points to the comparable store sales increase of 3.6%.
The company's operating loss for the fourth quarter of fiscal 2015 was $4.0 million, compared to an operating loss of $6.2 million in the fourth quarter of fiscal 2014.
For the fourth quarter of fiscal 2015, Tuesday Morning reported gross profit of $73.2 million and gross margin of 34.4% compared to $71.3 million of gross profit and gross margin of 33.5% in the fourth quarter of fiscal 2014. Selling, general and administrative expenses (SG&A) decreased 0.4% to $77.2 million, compared to $77.5 million in the same period last year.
As a percent of net sales, SG&A was 36.3% for the fourth quarter of fiscal 2015 compared to 36.5% in the same period last year. Our net loss was $4.2 million, or $0.10 per share, in the fourth quarter of fiscal 2015 compared to a net loss of $7.4 million, or $0.17 per share, in the fourth quarter of fiscal 2014.
The company ended the fourth quarter of fiscal 2015 with $44.8 million in cash and cash equivalents, compared to $49.7 million at the end of the prior fiscal year, with no borrowings under its line of credit.
Inventories at the end of the fourth quarter of fiscal 2015 were $210 million compared to $207.7 million at the end of the fourth quarter of fiscal 2014, up $2.3 million or 1.1%. The company's inventory turnover for the trailing five quarters is 2.6 turns, consistent with our prior year trailing five quarter turnover of 2.6 turns.
Twelve months ended june 30, 2015 results of operations - GAAP basis
For the twelve months ended June 30, 2015, net sales increased 4.8% to $906.4 million, compared to $864.8 million for the same period last year. The company's sales comparison to the prior year is impacted by the net closure of 41 stores in the current year.
Comparable store sales increased 7.2% compared to the same period a year ago, and were driven by a 7.0% increase in customer transactions, along with a 0.2% increase in average ticket.
Sales at the 43 stores relocated since the beginning of the prior fiscal year increased approximately 49% on average for fiscal 2015 as compared to the same period last year and contributed 150 basis points to the comparable store sales increase of 7.2%.
Stores that have been relocated for more than one year maintained much higher post-relocation sales volumes.
Tuesday Morning reported gross profit of $326.6 million and gross margin of 36.0% in fiscal 2015 compared to $302.2 million of gross profit and gross margin of 34.9% in the prior year.
SG&A increased 1.3% to $314.3 million, compared to $310.2 million in the same period last year.
As a percent of net sales, SG&A was 34.7% for fiscal 2015 compared to 35.9% in the same period last year. Our net income was $10.4 million, or $0.24 per share, in fiscal 2015 compared to a net loss of $10.2 million, or $0.24 per share, in the prior year.
Fourth quarter 2015 results of operations - adjusted basis (non-GAAP)
For the fourth quarter of fiscal 2015, Tuesday Morning reported gross profit of $73.2 million and gross margin of 34.4% compared to $74.7 million of adjusted gross profit and adjusted gross margin of 35.2% in the fourth quarter of fiscal 2014.
This reduction was primarily due to increased supply chain freight costs, partially offset by reductions in markdowns. For the fourth quarter of fiscal 2015, the company's SG&A expenses decreased 0.8% to $77.2 million, compared to adjusted SG&A of $77.8 million in the same period last year.
This decrease was driven primarily by reduced store payroll expense in the quarter compared to the same period in the prior year. As a percent of net sales, SG&A was 36.3% in the fourth quarter of fiscal 2015 compared to adjusted SG&A of 36.6% in the same period last year.
The company reported a net loss of $4.2 million, or $0.10 per share, in the fourth quarter of fiscal 2015 compared to an adjusted net loss of $3.4 million, or $0.08 per share, in the fourth quarter of fiscal 2014.
Twelve months ended June 30, 2015 results of operations - adjusted basis (non-GAAP)
For the fiscal year, Tuesday Morning reported gross profit of $326.6 million and gross margin of 36.0% compared to $307.4 million of adjusted gross profit and adjusted gross margin of 35.5% in fiscal 2014.
This expansion was due to reductions in markdowns partly offset by slightly lower initial merchandise mark-up. For fiscal 2015, the company's SG&A expenses increased 2.8% to $314.3 million, compared to adjusted SG&A of $305.7 million last year.
SG&A increased primarily due to higher stock compensation expense, payroll and employee expense, rent expense and professional services and consulting fees.
As a percent of net sales, SG&A was 34.7% in fiscal 2015 compared to adjusted SG&A of 35.3% last year. The company's net income was $10.4 million, or $0.24 per share, in fiscal 2015 compared to adjusted net income of $0.3 million, or $0.01 per share, in fiscal 2014. ■