Dallas Tuesday Morning Corp. said Tuesday it swung to a loss in the fiscal third quarter, hurt by the continued slump in the home-furnishings sector.
Losses for the quarter ended March 31 totaled $4.7 million, compared with profit of $1 million a year ago.
Sales dropped 6% to $178.4 million from $189.2 million, with same-store sales falling 8.2% due to less customer traffic and lower sales per ticket.
"We believe the results are indicative of the slump in the home-furnishings sector, not a deterioration in the company's execution," said Kathleen Mason, president and CEO, in a prepared statement. "The sharp drop in home prices has brought home starts and remodels to a standstill. Record high fuel prices and rising food prices along with the drop in home values have restricted disposable income, resulting in exceptionally low consumer confidence."