UPDATE 2-Tuesday Morning sees Q4 EPS above Street, sales beat

* Sees Q4 EPS $0.02-$0.04 vs est $0.01

* Reports Q4 net sales of $200.8 mln, beats estimates

* Q4 same-store sales up 6 percent

* Shares rise 26 percent (Recasts; adds background, details, updates share movement)

July 12 (Reuters) - Close-out retailer Tuesday Morning Corp (TUES.O) forecast fourth-quarter earnings slightly ahead of market expectations as improved traffic boosted same-store sales, sending its shares surging 26 percent.

Retailers like Tuesday Morning, which sell everything from electronics to gourmet food at much cheaper prices than competitors, have seen customers queue at their stores amid a tough consumer environment.

Same-store sales at the company rose 6 percent, driven by a 5.7 percent increase in traffic and a 0.3 percent increase in average ticket size. [ID:nWNAB4717]

Net sales rose 6.4 percent to $200.8 million.

Based on the sales growth, the company expects to earn 2 cents a share to 4 cents a share in the fourth quarter.

Analysts were expecting the company to earn 1 cent a share on sales of $197 million, according to Thomson Reuters I/B/E/S.

The company now expects full-year earnings of 24 cents to 26 cents a share, up from its prior view for earnings of 18 cents to 20 cents a share.

Shares of the company, due to report results on Aug. 24, were up 8 percent at $4.64 Monday morning on Nasdaq. (Reporting by Abhishek Takle in Bangalore; Editing by Anne Pallivathuckal)