Why Tuesday Morning Shares Tumbled

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of closeout retailer Tuesday Morning (NASDAQ: TUES  ) were falling sharply today, down as much as 19% after its CEO suddenly resigned.

So what: The discount houseware specialist said that CEO Brady Churches was stepping down after just six months on the job. He will be replaced by Michael Rouleau as interim CEO. Tuesday Morning didn't provide a reason for Churches' departure but said he will remain with the company in a "consultative capacity." There was no specific reason provided for the change, but Churches said "the transition was in the company's best interest."

Now what: Churches, a former executive at Big Lots, had come on to replace Kathleen Mason, who was fired and subsequently sued the company on charges of discrimination. Two leadership changes in six months certainly don't bode well for the company's stability, and its financial performance has been headed in the wrong direction as well. In its last fiscal year, ended in August, it earned just $0.22 a share, down from $0.09 a year ago, and took a $41.8 million inventory charge in its most recent quarter. All signs seem here to say "stay away."

Don't miss the next update on Tuesday Morning. Add the company to your Watchlist by clicking here.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 2292112, ~/Articles/ArticleHandler.aspx, 4/24/2014 5:05:58 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement