FINANCE

Tuesday Morning swings net loss to profit

BY Dan Berthiaume

Dallas – Tuesday Morning reported net income for the second quarter of fiscal 2014 of $17.7 million, compared to a net loss of $21.5 million in the same period last year. The company’s net sales were $285.8 million, essentially flat with $285.3 million for the second quarter of fiscal 2013.

Net sales for the second quarter of fiscal 2013 included the contribution of 24 more stores, as well as e-commerce sales. Same-store sales increased by 3.1% compared to the second quarter of fiscal 2013 and were comprised of a 7% increase in customer transactions, partially offset by a 3.9% decrease in average ticket.

“During the second quarter, our experienced team executed a disciplined program aimed at improving operations, enhancing merchandising and strengthening the Tuesday Morning offering to our value-oriented consumer,” said Michael Rouleau, CEO of Tuesday Morning. “Our progress to date includes improved customer service in well-stocked stores displaying fresh, new merchandise at great values, all of which yielded solid comparable store sales results, increased inventory turnover, and a strong cash position. We are pleased with our progress and results this quarter and are confident we will demonstrate continued improvement in the second half of our fiscal 2014, yet remain focused on the significant work ahead necessary to complete our business turnaround program."

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FINANCE

Wayfair reports $915 million revenue for 2013

BY Dan Berthiaume

Boston – Wayfair reported $915 million in revenue to close the year 2013, with an annual revenue growth rate of 55% and order intake exceeding $1 billion. The company said its portfolio of home brands experienced steady growth throughout 2013 capped off by strong holiday sales in the fourth quarter.

"We were expecting impressive sales growth in 2013 and are pleased to see our model is working to drive increased brand awareness, customer acquisition and retention," said Niraj Shah, CEO and co-founder of Wayfair. "We are focused on delivering an exceptional shopping experience specifically geared to home goods and will continue to address the unique requirements of this market category with innovation across all aspects of our business."

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OPERATIONS

Study: Online retailers don’t meet expectations for returns

BY Dan Berthiaume

New York — In a study of the returns and refunds performance of the 25 largest online retailers, StellaService found that the majority of retailers evaluated aren’t meeting consumer expectations.

StellaService analysts ordered the same product from each retailer to be delivered to the three separate regions of East, West and Midwest. They then returned the product, tracking metrics such as the presence of a prepaid, adhesive return label, total time to receive a return authorization and refund speed. The average refund speed of was 10.7 days.

In a survey on consumer expectations during the holidays, StellaService found that 69% of consumers expect to receive a refund in less than 10 days. Only 36% of the top 25 met those expectations for returns requested by StellaService analysts during the study period.

The two fastest refund speeds came from the same companies who topped a similar study in November 2012, Shopping.HP.com and Amazon.com, respectively. Shopping.HP.com was fastest with an average of about two days, followed by Amazon.com at four days. The average refund speed of the bottom five performers was more than 17 days. That’s about four days slower than the bottom five performers from the November 2012 study.

The five fastest retailers, who all processed refunds in less than seven days, were: Shopping.HP.com, Amazon.com, Costco.com, Store.Apple.com and Macys.com.

StellaService analysis found the key to Shopping.HP.com’s swift refund process is that once the returns were scanned by the carrier, the retailer initiated the refund immediately. What slowed most retailers was a long processing time once the product hit the warehouse. In one case, an order sat in the warehouse for 15 days before a refund was issued.

Only three retailers included prepaid labels in all packages: HSN.com, Nordstrom.com and VictoriasSecret.com. Also of interest, Store.Apple.com was the only retailer to use express shipping for returns.

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