About Tuesday Morning Partners, Ltd.
Tuesday Morning offers big discounts to customers every day of the week. The closeout retailer sells discontinued merchandise from name-brand manufacturers at steep discounts. Its merchandise typically includes upscale linens, china, cookware, rugs, and collectibles that are not seconds, irregulars, or factory rejects. Tuesday Morning's 725-plus stores in about 40 states operate seven days a week excluding holidays. The retailer keeps costs down by selling from low-rent locations and using seasonal help -- only about 25% of its workers are full-time employees. Its customers are primarily from middle- and upper-income households.
Tuesday Morning has seen a growth trend over the past five years with sales up 16% since fiscal 2014.
The company's fiscal 2018 (ended June) revenue climbed 4% to $1 billion. Comparable store sales rose nearly 4% in fiscal year 2018, compared to just more than 2% the prior year. The growth was powered by an increase in customer transactions of nearly 3% and an increase in average ticket of 1% in fiscal year 2018.
Tuesday Morning has posted net income losses in recent years, including $21.9 million in fiscal year 2018 and $32.5 million in fiscal year 2017. Selling, general, and administrative expenses have increased by 16% in the past five years.
Cash at the end of fiscal 2018 was $9.5 million, an increase of 50% from the prior year. Cash from operations contributed $27.2 million to the coffers, while investing activities used $30.7 million, mainly for capital expenditures associated with store relocations, new store openings, expansions, and improvements to existing stores. Cash provided by financing activities totaled $6.8 million.
The deep-discount chain buys upscale brand-name home and lifestyle merchandise and sells it at 20%-60% below its competitors' prices. The company buys its inventory from a variety of sources including direct from the manufacturer, closeout sellers, and other retailers.
Following several years of struggling sales, the company implemented a turnaround strategy. Steps included exiting certain product categories, freshening up and reorganizing its stores, reducing its clearance merchandise selection, and eliminating assets that were no longer needed. It also improved its supply chain efficiency, implemented a new marketing strategy, improved its merchandise assortment, and repositioned its real estate portfolio. Since fiscal year 2016, the company has closed more than 40 underperforming stores and relocated nearly 150 stores to locations with better foot traffic and larger square footage as part of its real estate strategy.
The company maintains a low-frills store environment to keep costs lower, but has been improving the finishes in some stores to improve the in-store experience for customers and better reflect the quality of products offered by the company.
6250 LBJ Fwy
Dallas, TX 75240-6354
Phone: 1 (972) 387-3562
Employer Type: Privately Owned
Employees (This Location): 300
Employees (All Locations): 300