TUESDAY MORNING CORPORATION PROVIDES COVID-19 RELATED BUSINESS UPDATE
March 26 2020 - 8:30AM
Tuesday Morning Corporation (NASDAQ: TUES) today
announced that it temporarily closed all of its 687 stores across
the country at 5 p.m. local time yesterday. Prior to yesterday’s
closings, Tuesday Morning had approximately 400 stores closed in
compliance with state and local regulations. The Company will
follow the guidance provided by the Centers for Disease Control and
Prevention, as well as local and state government officials, when
making decisions to reopen stores.
Steve Becker, Chief Executive Officer, stated,
“The health of our associates and customers is our top priority. We
have communicated with our associates on how we intend to support
them at this time. We are also aggressively managing our overall
cost structure and capital outlay during this period, even as we
work to ensure we are ready to reopen our stores and service our
customers on short notice.”
In addition, the Company elected to draw down
$55 million from its secured revolving credit facility to provide
additional liquidity and has approximately $91 million currently
outstanding under the revolving credit agreement.
Given the complexity and rapidly evolving nature
of the situation created by the COVID-19 pandemic, the Company will
work to maintain its flexibility and may change its plans in
response. The COVID-19 pandemic is having a material impact on
the Company and our industry, and may further materially impact our
operations, business plans, liquidity, financial condition and
results of operations.
About Tuesday MorningTuesday Morning Corporation
(NASDAQ: TUES) is one of the original off-price retailers
specializing in name-brand, high-quality products for the home,
including upscale home textiles, home furnishings, housewares,
gourmet food, toys and seasonal décor, at prices generally below
those found in boutique, specialty and department stores, catalogs
and on-line retailers. Based in Dallas, Texas, the Company
opened its first store in 1974 and currently operates 687 stores in
39 states. More information and a list of store locations may
be found on the Company’s website at www.tuesdaymorning.com.
Cautionary Statement Regarding Forward-Looking
StatementsThis press release contains forward-looking statements,
which are based on management’s current expectations, estimates and
projections. Forward-looking statements typically are
identified by the use of terms such as “may,” “will,” “should,”
“expect,” “anticipate,” “believe,” “estimate,” “intend” and similar
words, although some forward-looking statements are expressed
differently. Forward-looking statements also include
statements regarding actions and plans in response to the impact of
the novel coronavirus (COVID-19), liquidity and capital expenditure
plans.
Reference is hereby made to the Company’s
filings with the Securities and Exchange Commission, including, but
not limited to, "Cautionary Statement Regarding Forward-Looking
Statements" and "Item 1A. Risk Factors" of the Company's most
recent Annual Report on Form 10-K, for examples of risks,
uncertainties and events that could cause our actual results to
differ materially from the expectations expressed in our
forward-looking statements. These risks, uncertainties and
events also include, but are not limited to, the following: the
continuing impacts of the novel coronavirus (COVID-19), which may
further materially impact our operations, business plans,
liquidity, financial condition and results of operations; our
ability to successfully implement our long-term business strategy;
changes in economic and political conditions which may adversely
affect consumer spending; our ability to identify and respond to
changes in consumer trends and preferences; our ability to mitigate
reductions of customer traffic in shopping centers where our stores
are located; our ability to continuously attract buying
opportunities for off-price merchandise and anticipate consumer
demand; our ability to successfully manage our inventory balances
profitably; our ability to effectively manage our supply chain
operations; loss of, disruption in operations, or increased costs
in the operation of our distribution center facilities; unplanned
loss or departure of one or more members of our senior management
or other key management; increased or new competition; our ability
to maintain and protect our information technology systems and
technologies and related improvements to support our growth;
increases in fuel prices and changes in transportation industry
regulations or conditions; our ability to generate strong cash
flows from operations and to continue to access credit markets;
increases in the cost or a disruption in the flow of our imported
products; our ability to successfully execute our real estate
strategy; changes in federal tax policy including tariffs; the
success of our marketing, advertising and promotional efforts; our
ability to attract, train and retain quality employees in
appropriate numbers, including key employees and management;
increased variability due to seasonal and quarterly fluctuations;
our ability to protect the security of information about our
business and our customers, suppliers, business partners and
employees; our ability to comply with existing, changing, and new
government regulations; our ability to manage risk to our corporate
reputation from our customers, employees and other third parties;
our ability to manage litigation risks from our customers,
employees and other third parties; our ability to manage risks
associated with product liability claims and product recalls; the
impact of adverse local conditions, natural disasters and other
events; our ability to manage the negative effects of inventory
shrinkage; our ability to manage exposure to unexpected costs
related to our insurance programs; and increased costs or exposure
to fraud or theft resulting from payment card industry related risk
and regulations. The Company’s filings with the SEC are
available at the SEC’s web site at www.sec.gov.
The forward-looking statements made in this
press release relate only to events as of the date on which the
statements were made. Except as may be required by law, the Company
disclaims obligations to update any forward-looking statements to
reflect events and circumstances after the date on which the
statements were made or to reflect the occurrence of unanticipated
events. Investors are cautioned not to place undue reliance
on any forward-looking statements.
INVESTOR RELATIONS: |
Farah Soi /
Caitlin Churchill |
|
ICR |
|
203-682-8200 |
|
Farah.Soi@icrinc.com |
|
Caitlin.Churchill@icrinc.com |
MEDIA: |
Jonathan Morgan |
|
PERRY STREET COMMUNICATIONS |
|
214-965-9955 |
|
JMorgan@perryst.com |
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