Tuesday Morning Corporation Reports Q3 Sales of $174.3M; Expects Q3 EPS of $0.01 to $0.03

Tuesday Morning Corporation TUES today reported net sales for the third quarter ended March 31, 2011 were $174.3 million compared to $172.0 million for the quarter ended March 31, 2010, an increase of 1.3%. Comparable store sales for the quarter ended March 31, 2011 increased by .7% comprised of a 3.2% decrease in traffic and a 3.9% increase in ticket. For the nine-month period ended March 31, 2011, net sales were $626.4 million compared to $627.5 million during the same period last year. Comparable store sales for the nine-month period ended March 31, 2011 decreased 0.1%. Based on the third quarter sales results, the Company currently expects to have improved earnings of $0.01 to $0.03 per share for the three month period ended March 31, 2011 compared to the same period last year. We expect the loss per share for the third quarter ended March 31, 2011 to be in the range of $0.07 to $0.09 versus a loss of $0.10 for the quarter ended March 31, 2010. While we remain positive about our business, we are revising our guidance for the full fiscal year ending June 30, 2011. Net sales are expected to be in the range of $830 million to $836 million. Comparable store sales are expected to be flat and diluted earnings per share are expected to be in the range of $0.30 to $0.34 compared to $0.25 in the prior fiscal year ended June 30, 2010. Capital expenditures are expected to be $19 million, and we expect to end this fiscal year with 10 to 13 more stores than we had at the end of the previous year.