When we last visited Income Investor selection Tuesday Morning
For the first quarter ended March 31, Tuesday Morning earned just $1 million, or $0.03 per diluted share, after earning $6.5 million, or $0.16 per diluted share, in the first quarter last year. Although net sales edged up 0.7% to $189.2 million, comps were 5.4% lower as fewer people visited its stores, but spent a bit more per visit.
Tuesday Morning may offer a diverse lineup of discounted products, but it relies heavily on home furnishings. This is an area that's been difficult for many companies lately. While it performed a bit better than its lowly expectations, Pier 1
Despite these facts and its own recent struggles, Tuesday Morning management feels strongly about making improvements throughout the remainder of the year. It expects to earn between $0.85 and $0.90 per share for the year. That's above analysts' estimates of $0.80 per share, but essentially flat compared to the $0.87 per share it earned last year. Meanwhile, it expects comps to be flat, or even down as much as 2%.
While it is hardly off to the races, Tuesday Morning is at least beginning to show signs of life. The retailer is reasonably priced, maintains a good cash balance, and pays a dividend that is currently yielding about 5.7%. If it can steadily improve throughout the year and into next year, I think it will make a decent investment for patient, long-term investors.
For more on the happenings at Tuesday Morning and the home-furnishings biz, grab a comfy chair and read:
Just as Tuesday Morning can give your house a fresh look, stocks that pay dividends can help keep your portfolio returns looking fresh. To find out how Income Investor is outperforming the market, come sign up today for a free 30-day trial.Fool contributor Mike Cianciolo welcomes feedback and doesn't own any of the companies in this article. Bed Bath & Beyond is both a Stock Advisor and an Inside Value selection. The Fool has a disclosure policy.