Tuesday Morning Corporation (NASDAQ:TUES) Q2 2015 Earnings Conference Call - Final Transcript
Jan 29, 2015 • 04:30 pm ET
Good day, ladies and gentlemen, and welcome to the Tuesday Morning Corporation Second Quarter 2015 Results Conference Call (Operator Instructions) I would now like to turn the conference over to Jen Sanders. You may begin.
Thank you, operator. And good afternoon, everyone. I'd like to welcome you all to the Tuesday Morning Corporation Second Quarter Fiscal 2015 Earnings Conference Call. On today's call are Michael Rouleau, Chief Executive Officer; and Jeff Boyer, Executive Vice President, Chief Administrative Officer and Chief Financial Officer.
If you've not yet received a copy of today's earnings release, you may obtain one by visiting the Investor Relations section of the Tuesday Morning website at www.tuesdaymorning.com. (Forward -Looking Cautionary Statements)
We will start with a few opening comments from Michael Rouleau, then Jeff Boyer will give the financial review of the quarter. Michael will then follow up with comments on the company's progress in the second quarter and some thoughts on focus areas for the balance of the year. At the close, we'll open the call for your questions.
R. Michael Rouleau
Thank you, Jen. Good afternoon, everyone, and thanks for joining us on our call today. Before Jeff provides a financial review, I want to make a few comments. On our last several calls, I told you that there are three key measures that I believe tell the story of our continued progress. They are our quarterly comps store sales results, our inventory turnover and the current condition of our inventory and then our overall financial condition. First, our comp store sales for the quarter increased 7.6%. However, excluding last year's discontinued products, our ongoing category sales increased a robust 12.6%.
Second, our inventory turnover continues to improve. On a trailing 5-quarter basis, our inventory turnover has climbed to 2.7x versus 2.5x last year at this time. At the end of this December, inventory was much fresher and more current than at the end of December last year. The average age of our store inventory has decreased to 4.5 months from about 5.0 months last year at this time. We have a lot of fresh merchandise arriving at our stores
R. Michael Rouleau
this January versus last January. And third, our cash position, at the end of quarter 2 was $54.8 million versus $53.3 million at the same time last year, with no debt and very limited use of our revolver this quarter. I'll be back in a few minutes to talk a little bit more about these results, give you a flavor of what we are currently working on and some thoughts about the upcoming spring selling season. Now let me turn the call over to Jeff.
Jeffrey N. Boyer
Thanks, Michael. And good afternoon, everyone. Earlier today, the company reported net sales of $301.4 million for the second quarter of fiscal 2015, a 5.5% increase versus the same period last year. Comparable store sales for the second quarter increased 7.6% were comprised of an increase in customer transactions of 7.7%, offset by a decrease in average ticket of 0.1%. Sales at the 31