Before it announced a fourth quarter and full year loss, Tuesday Morning revealed that it had closed a strategic transaction to secure $35 million in convertible debt financing that could reshape how the company is positioned in the marketplace and raise the profile of the Pier 1 brand at the same time.
For the fourth quarter, Tuesday Morning reported a net loss of $28.1 million, or 33 cents per diluted share, versus a net loss of $18.9 million, or 29 cents per diluted share, in the period a year before.
A Yahoo Finance-published analyst estimate called for a 36 cents per diluted share loss and $163.1 million in sales for the quarter.
Comparable store sales slipped 8% in the quarter year over year, the company indicated.
Net sales were $161.9 million versus $177.3 million for the year-previous period. Operating loss was $26.9 million, Tuesday Morning noted, versus an operating loss of $16.2 million in the fiscal 2021 quarter.
For the full fiscal year, Tuesday Morning posted a net loss of $59 million, or 70 cents per diluted share, versus net income of $3 million, or five cents per diluted share, in the annum prior.
Net sales were $749.8 million versus $690.8 million for the year earlier. Operating loss was $51.5 million, the company indicated, versus an operating loss of $49 million in fiscal 2021.
The transaction included a $32 million investment from a special purpose vehicle formed by Ayon Capital and Retail Ecommerce Ventures, the owner of a portfolio of consumer brands including Pier 1 Imports, Linens ‘n Things, Stein Mart and Modell’s Sporting Goods. The deal also includes $3 million provided Tuesday Morning management team members including CEO Fred Hand.
In announcing the financial results, Hand said, “We continue to believe in the long-term opportunities ahead for Tuesday Morning. While the back half of fiscal 2022 presented significant macro-related challenges, I am proud of how our teams remained focused and committed to delivering our customers an improved treasure-hunt experience. That said, the start of fiscal 2023 has also been pressured by the ongoing difficult consumer environment and the disruption in receipt flow as we were finalizing the strategic investment. Looking beyond this softer start, our guidance for the year assumes sequential topline improvement as well as continued disciplined expense management. With the recent support of our new investors, we move forward into fiscal 2023 with a strengthened balance sheet, incremental liquidity and a strategic partner who we believe over time will have a positive influence on driving incremental traffic and sales to our stores.”
