Why Tuesday Morning Corporation Shares Shined

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 Tuesday Morning Corporation  (NASDAQ: TUES  ) woke up on the right side of the bed today, gaining as much as 20%, and finishing up 16% after delivering a promising earnings report last night. 

So what: The closeout retailer seemed to make further progress in its turnaround strategy, as comparable sales jumped 6.4% in the quarter on an 8.4% increase in traffic. Tuesday Morning has been closing stores recently, so overall revenue only improved 2.6%, to $182.8 million, short of estimates at $184.9 million. The company also saw inventories decline by 13.1% as it looks to streamline its product selection and exit unprofitable categories. Those two drivers helped Tuesday Morning deliver an adjusted per-share loss of $0.13, beating expectations of a $0.15 loss.

Now what: CEO Michael Rouleau said the company's "hard work is beginning to produce results," as it began the final phase of its turnaround process. Tuesday Morning did not provide forward guidance, but the company seems to be headed for a full-year profit after a large loss last year, as the comparable-sales growth is a particularly positive sign. Shares have already doubled in the past year, however, so they may be pushing their limit for now, as high expectations seem to be baked into the share price.

Will this stock be your next multi-bagger?
Give me five minutes, and I'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer handpicks one stock with outstanding potential. But it's not just any run-of-the-mill company; it’s a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year, his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252%, and 1,303% during the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.


Read/Post Comments (0) | Recommend This Article (1)

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.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2951882, ~/Articles/ArticleHandler.aspx, 10/21/2014 7:09:08 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