Tuesday Morning In 50-Store Push

Kathleen Mason, president and CEO, said during a report conference call Wednesday that consumers have shifted their desires for commodity items versus decorative items. However, she said that the company is good at balancing its margin and driving in traffic. "We read the tea leaves every week in terms of customer response to product, and we're flexible enough to do that," she said during the call. "We're positioned to meet our goals to profitably grow sales and to produce positive operating cash flow in the second quarter." The company has a unique sales model. Ten times a year, coinciding with the retail industry's peak selling seasons, the company receives new merchandise shipments that are priced 50% to 80% off regular retail prices. Closing between sales only to restock inventory, the stores are open about 300 days a year.

As of Sept. 30, the company had 813 stores in 47 states. During the first fiscal quarter, the company opened a net three stores, opening six and closing three, as well as relocating eight stores and expanding seven stores. In fiscal 2008, the company expects to relocate 15 stores, with no lease buyouts.

For the next fiscal year, company executives said they project net sales for the next fiscal year to be in the range of $987 million to $997 million, with diluted earnings per share at 85 cents to 95 cents, with the assumption that comp store sales range from staying flat to a 1.5% increase.