Tuesday Morning Corporation (NASDAQ:TUES) Q3 2019 Earnings Conference Call Transcript
May 07, 2019 • 09:00 am ET
Good day, ladies and gentlemen, and welcome to the Tuesday Morning Corporation Third Quarter 2019 Results Conference Call. At this time all participants are in a listen-only mode. Later, we'll conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this call is being recorded.
I would now like to introduce your host for today's conference, Stacie Shirley, CFO. Ma'am, you may begin.
Thank you, operator, and good morning, everyone. I'd like to welcome you all to the Tuesday Morning Corporation's Third Quarter Fiscal 2019 Earnings Conference Call. Joining me on the call today is Chief Executive Officer, Steven Becker. If you have 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 tuesdaymorning.com.
Before we begin today's discussion, I would like to make you all aware that some of the information presented today may contain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those implied in the forward-looking statements. Information regarding the company's risk factors was included in our press release and is also included in our filings with the SEC. Any forward-looking statements made during this call speak only as of the date of this call.
Today's presentation will also include certain non-GAAP financial measures, including EBITDA and adjusted EBITDA. A reconciliation of the non-GAAP financial measures used in this presentation to the most directly comparable GAAP financial measures can be found in the Investor Relations section of the Tuesday Morning website at tuesdaymorning.com.
Steve will provide an overview of the results and strategy and I will follow with the review of our financial results before we open the call to questions.
I will now turn the call over to Steve.
Thank you, everyone, for joining us this morning for our third quarter call. For the quarter, comparable store sales declined 5.3% as we anniversaried a very strong 9.1% comp increase from last year. During the March quarter of last year, we had three of our traditional ad events. As part of our continued efforts to rationalize our promotional activities, this year we ran only one of these ad events, which is smaller in size than the event from last year. Additionally, we were impacted by the Easter shift. While difficult to precisely quantify, our best current estimate for the size of the comp headwind as a result of both the ad reduction and Easter shift is approximately 350 basis points. Like many of our peers, we also saw the effects of unfavorable weather and a general softness in the environment. While we are disappointed with these results, we did see strong performance in some of our largest families, where we continue to execute the off-price model well, delivering great product at very sharp prices.
There is a clear opportunity to replicate this success throughout the merchandising organization. During the quarter, we engaged a consultant with deep off-price roots to