Tuesday Morning Corporation Announces Third Quarter Fiscal 2008 Sales

DALLAS, April 10 /PRNewswire-FirstCall/ -- Tuesday Morning Corporation
(Nasdaq: TUES) today reported net sales for the third quarter ended March 31,
2008 were $178.4 million compared to $189.2 million for the quarter ended
March 31, 2007, a decrease of 5.7%. Comparable store sales for the quarter
ended March 31, 2008 decreased by 8.2% comprised of a 6.6% decrease in traffic
and a 1.6% decrease in ticket. For the nine month period ended March 31,
2008, net sales were $688.8 million compared to $704.8 million for the same
time last year. Comparable store sales for the nine month period decreased
6.1% comprised of a 5.2% decrease in traffic and a 0.9% decrease in ticket.
Based on the third quarter sales results, the Company currently expects
diluted earnings per share for the third quarter to be in the range of ($0.10)
to ($0.12). Diluted earnings per share were $0.03 for the quarter ended
March 31, 2007.
"The general economic conditions have resulted in lower discretionary
spending by consumers. The home furnishings sector has been particularly
impacted by the drop in home values and the slowdown in housing starts," said
Kathleen Mason, President and Chief Executive Officer. "As we weather the down
turned sector and economic cycle, we are confident in the long term
profitability of the Company."
Guidance for the fiscal year 2008 ending on June 30, 2008 is as follows:
-- Net Sales are projected to be in the range of $895 million to
$910 million;
-- Comparable store sales are projected to be in the negative mid single
digits; and
-- Diluted earnings per share are projected to be in the range of $0.38 to
$0.45.

Tuesday Morning Corporation management will review third quarter financial
results in a teleconference call on April 29, 2008 at 10:00 a.m. Eastern Time.
The Company will release third quarter results prior to the call.
About Tuesday Morning
Tuesday Morning is a leading closeout retailer of upscale, decorative home
accessories, housewares and famous-maker gifts in the United States. The
Company opened its first store in 1974 and currently operates 821 stores in
47 states. Tuesday Morning is nationally known for bringing its more than
9.0 million loyal customers a unique treasure hunt of high-end, first quality,
brand name merchandise...never seconds or irregulars...at prices well below
those of department and specialty stores and catalogues.
This press release contains forward-looking statements within the meaning
of the federal securities laws and the Private Securities Litigation Reform
Act of 1995, which are based on management's current expectations, estimates
and projections. Forward-looking statements typically are identified by the
use of terms such as "may," "will," "should," "expect," "anticipate,"
"believe," "estimate," "intend" and similar words, although some
forward-looking statements are expressed differently. You should carefully
consider statements that contain these words because they describe our
expectations, plans, strategies and goals and our beliefs concerning future
business conditions, our future results of operations, our future financial
positions, and our business outlook or state other "forward-looking"
information.
Reference is hereby made to "Item 1A. Risk Factors" of the Company's
Transition Report on Form 10-KT for the six month period ended June 30, 2007
and the Company's Quarterly Report on Form 10-Q for the three month period
ended December 31, 2007 for examples of risks, uncertainties and events that
could cause our actual results to differ materially from the expectations
expressed in our forward-looking statements. These risks, uncertainties and
events also include, but are not limited to, the following: uncertainties
regarding our ability to open stores in new and existing markets and operate
these stores on a profitable basis; conditions affecting consumer spending;
inclement weather; changes in our merchandise mix; timing and type of sales
events, promotional activities and other advertising; increased or new
competition; loss or departure of one or more members of our senior
management, as well as experienced buying and management personnel; an
increase in the cost or a disruption in the flow of our products; seasonal and
quarterly fluctuations; fluctuations in our comparable store results; our
ability to operate information systems and implement new technologies
effectively; our ability to generate strong cash flows from our operations;
our ability to maintain internal control over financial reporting; and our
ability to anticipate and respond in a timely manner to changing consumer
demands and preferences. The forward-looking statements made in this press
release relate only to events as of the date on which the statements were
made. We undertake no obligations to update our forward-looking statements to
reflect events and circumstances after the date on which the statements were
made or to reflect the occurrence of unanticipated events.

CONTACT: Stephanie Bowman
Chief Financial Officer
TUESDAY MORNING CORPORATION
972-934-7251

Laurey Peat
LAUREY PEAT + ASSOCIATES
214-871-8787

SOURCE Tuesday Morning Corporation

Stephanie Bowman, Chief Financial Officer of TUESDAY MORNING CORPORATION,
+1-972-934-7251; or Laurey Peat of LAUREY PEAT + ASSOCIATES, +1-214-871-8787,
for TUESDAY MORNING CORPORATION