Tuesday Morning Corporation (TUEM) stock plummeted 5.18% in the premarket trading session at the price of $2.38 despite no recent updates on the company’s website. The last reported news on 16th September was the appointment of Mr. Paul Metcalf as Principal and Chief Merchant. TUEM is the leading off-price retailer that manufactures and commercializes high-quality products for home decoration. The main product categories include upscale home textiles, furnishings, housewares, gourmet food, toys, and seasonal decor.
Appointment of Paul Metcalf as Chief Merchant
On 16th September 2021, TUEM published that it had named Mr. Paul Metcalf as Principal and Chief Merchant of the company. The appointment became effective from 14th September 2021. With over 30 years of retail experience, Mr. Metcalf has a proven history of optimizing financial growth for retail businesses. He has been serving the company as Acting Chief Merchant since April 2019. Before this position, Paul worked at Burlington Stores as Executive Vice President and Chief Merchandising Officer. CEO of TUEM, Fred Hand, remarked that he is happy to welcome Paul as the permanent team member. As an exceptional merchant, Paul’s successful track record will help advance the company’s growth, he added.
TUEM Fourth Quarter & Fiscal 2021 Financial Results
On 9th September 2021, TUEM published its financial results for the fourth quarter and full fiscal year ended 30th June 2021. Additionally, the company announced several changes in the management team. It appointed Marc Katz as its Principal and Chief Operating Officer, Jennifer Robinson as Chief Financial Officer, and Bill Baumann as Chief Information Officer.
TUEM Fourth Quarter Fiscal 2021 Financial Results
TUEM reported a total of 490 operated stores as of the end of the fourth quarter fiscal 2021. The total operated stores were 714 at the end of the fourth quarter of fiscal 2019. Comparable store sales for the 490 stores gained 1.2% compared to the same period in fiscal 2019 despite store inventory ending down 34%.
Fiscal 2021 Earnings Report
TUEM reported net sales of $690.8 million for the fiscal ended 30th June 2021. Net sales were $874.9 million for fiscal 2020. Gross profit was $206.0 million for fiscal 2021 compared to $284.9 million for fiscal 2020. The gross margin decreased 29.8% for the fiscal 2021compared to 32.6% the previous year. The decline in gross margin was driven by high supply chain costs offset by improved merchandise margin. The company reported an operating loss of $49.0 million for fiscal 2021. The operating loss of $159.2 million, reported in fiscal 2020. Net income was $3.0 million, or $0.05 per share, for fiscal 2021.
Net loss was $166.3 million, or $3.68 per share, for fiscal 2020. The year-over-year change in net income was caused by a $49.2 million net gain in fiscal 2021. TUEM ended fiscal 2021 with $6.5 million in cash and cash equivalents. The reported cash and cash equivalents were $46.7 million for fiscal 2020. Inventories were $145.1 million at the end of fiscal 2021 compared to $114.9 million in the last year.
