Tuesday Morning Corp New · OTC:TUEMQ
Tuesday Morning Corp New — Tuesday Morning — Investor Presentation (October 2019)
27 slides from Tuesday Morning Corp New's investor presentation, Oct 2, 2019
Slide 1: Safe Harbor Statement
SAFE HARBOR STATEMENT Cautionary Statement Regarding Forward-Looking Statements improvement related to the distribution retrofit project and other supply are inventory ard industry related risk and regulations. The Company's filings with the SEC The forward-looking statements made in this presentati
Slide 2: Founding & Early Years 1970-1990s
Founded in a rented Dallas. Texas warehouse by Lloyd Ross Opened our first permanent store Opened our first warehouse Went public with 57 stores and 1,500 employees Company incorporated as a pop-up shop format with four 6-week sales a year Our first event mailer was produced 1970-1990'5 Founding & E
Slide 3: Rapid Growth Years 1990-2000s
Our Inwood warehouse became automated Went public with 354 stores Moved to a new corporate office location Began to open our 441 stores year-round Company reached 315 stores and was acquired by Madison Dearborn Began to remodel and enlarge stores 1990-2000'5 Rapid Growth Years 4
Slide 4: Today - Positioned for Success
Opened our Phoenix distribution center Celebrated our 45tr Anniversary Website & social channels launched Began to relocate to better locations Achieved $1 billion in sales Today - Positioned for Success 5
Slide 5: 700+ Strategic Nationwide Locations
700+ Strategic Nationwide Locations MA (2) NV (6) (4) CA (61) DE (3) MD (14) \" (6) TX (109) •as of 6/30/19 Today - Positioned for Success 6 MO (18) KS (8) OK (12) NM ND (1) SD (1) NE
Slide 6: Well-Positioned in the Off-Price & Home Furnishings Sector
Tuesday Morning is Well-Positioned in the Off-Price & Home Furnishings Sector RH Crate&Barrel POTTERY BARN T-J·mmt( Mla1rshalllls 'I]overstock.com a.m..a_z..,on .11ier1 lUIPOrts· #"' ... WORLD MARKET. KI RKLAND'S. (!) TARGET . StAI;n. iZOSS Mlc.ha&.s C»urlington ..,... '<);,ms HOBBY LOBBY. JO-ANN fa
Slide 7: Well-Positioned in the Off-Price & Home Furnishings Sector
Tuesday Morning is Well-Positioned in the Off-Price & Home Furnishings Sector amazon KIRKLAND, Wot Mamet [KOHLS| Sem Mant. vance Hopsy Wlchaels Surlington S22 JQANN BI (ixeay theme oo Today - Positioned for Success
Slide 8: Growing Sales on a Reduced Store Base
Growing Sales on a Reduced Store Base ($Millions) $1,100 900 $1,000 850 $900 800 $800 750 $700 700 $600 $500 Annual Sales Ending Store Count 650 FY10 $828 85 2 FY11 $821 861 FY12 $813 852 FY13 $838 828 FY14 $86 5 810 FY15 $906 769 FY16 $956 751 FY17 $967 731 FY18 $1,00 726 FY19 $1,00 714 - - Sales H
Slide 9: Growing Sales on a Reduced Store Base
Growing Sales on a Reduced Store Base ($ Millions) $1,100 $1,000 $900 $800 $700 $600 $500 fyio FY FYI2” =FYI9.oFYI4FYIS. VIG. FYITFYIG FYI memes Armia Sales $028 $a2l_—«$8I3.«« $838 «= $865 $906_«—« $956 $967—$1,00_—$1,00 Ending Store Count 952 861-8522 ISSC769~—S7S1S731— 726714 Sales History 900 85
Slide 10: Compelling Assortment with Focus on Home-Related Categories
Compelling Assortment with Focus on Home-Related Categories • TEXTILES • HOME DECOR/FURNITURE 14% SEASONAL • HOUSEWARES/FOOD CRAFTS/TOYS/PETS • OTHER 12% *FY19 ActuaL Other category Includes Baby, Accessones, Gift Wrap, Party, Bath & Body, Luggage, and Stationery Products - compelling Values 11
Slide 11: Products - Compelling Values
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Slide 12: Products - Compelling Values
ITEMS AVAILABLE AUGUST 25 Products — Compelling Values
Slide 13: Attractive Customer Demographic Who Appreciates Tuesday Morning's Offering & Value
Attractive Customer Demographic Who Appreciates Tuesday Morning's Offering & Value Our Core Customers are Shopping Aficionados1: Self-professed deal hunters who bask in the satisfaction of nabbing a perfect find at a great price Think shopping is a great way to relax Balanced Customer Profile Across
Slide 14: Attractive Customer Demographic Who Appreciates Tuesday Morning's Offering & Value
Attractive Customer Demographic Who Appreciates Tuesday Morning’s Offering & Value nados!: _—_ Balanced Customer Profile Across Ages and Focus on Growing Younger Customer Base”: Our Core Customers are Shopping A Self-professed deal hunters who bask in the satisfaction of nabbing a perfect find at a
Slide 15: It's All about The Deal: Focus on Off-Price
It's All about The Deal: Focus on Off-Price • Re-focused Merchant team to drive success across all categories through the Off-Price Model • Engaged Off-Price consultant to refine strategic positioning and restructure our Merchant organization • • Enhanced talent through recent hires of veteran Off-P
Slide 16: It's All about The Deal: Focus on Off-Price
It’s All about The Deal: Focus on Off-Price + Re-focused Merchant team to drive success across all categories through the Off-Price Model + Engaged Off-Price consultant to refine strategic positioning and restructure our Merchant organization + Enhanced talent through recent hires of veteran Off-Pri
Slide 17: Next Phase of Supply Chain Transformation: Retrofitting Dallas DC
Embarking on Next Phase of Supply Chain Transformation: Retrofitting Dallas DC Building • Currently own three non-contiguous buildings in Dallas that will be consolidated into one retrofitted facility Project will take 2 years, with expected completion date of Summer 2021 Project will include instal
Slide 18: Focus on Optimizing Marketing Spend & Effectiveness
Focus on Optimizing Marketing Spend & Effectiveness • Diversified media dollars, shifting more spend to digital channels and younger customers, increasing brand awareness and driving store traffic • Improved customer data collection allowing for more efficient and sophisticated marketing programs •
Slide 19: Focus on Optimizing Marketing Spend & Effectiveness
Focus on Optimizing Marketing Spend & Effectiveness * Diversified media dollars, shifting more spend to digital channels and younger customers, increasing brand awareness and driving store traffic * Improved customer data collection allowing for more efficient and sophisticated marketing programs *
Slide 20: Go Forward Real Estate Opportunity: Rent Re-Negotiations
Go Forward Real Estate Opportunity: Rent Re-Negotiations Rent Expense ($Millions) $122 $118 $120 $108 $110 $98 $100 $90 $80 $70 FY16 FY17 FY18 FY19 • Pace of overall rent expense growth has declined as focus has shifted to opportunistic approach for relocations with a primary focus on rent re-negoti
Slide 21: All Strategic Initiatives Culminate in Improving Sales Trend
All Strategic Initiatives Culminate in Improving Sales Trend across the Store Fleet Average Sales per Store $2,180 $ 2.200 $ 2.050 $ 2.070 $ 2.000 $1,920 $1.840 $1,500 $1,000 $500 $-FY14 FY15 FY16 •Top 100 •Bottom 100 FY17 Total FY18 FY19 ''Includes only stores open for entire 12 month period
Slide 22: All Strategic Initiatives Culminate in Improving Sales Trend
All Strategic Initiatives Culminate in Improving Sales Trend across the Store Fleet Average Sales per Store 1000 [$640 —_ FY14 FYIS FYI6 FYI7 FYI8. FYI9 "Top 100 wBottem 100 Total ‘includes only stores open for entire 12 month period REAL STRATEGIC PROGRESS ee
Slide 23: Financial Overview
FINANCIAL OVERVIEW
Slide 24: Comp Sales Trend
Comp Sales Trend nae com astack 120% ‘7 100% 3 87% 87% as 8.0% 2x. TA% Joax sox 608 “Ex sow 3ax| ass 42% | 3.0% aye aK 2a , am 4 ax ax ox ony cox fo @om em om a | sa oon) or a2 3 4 or 2 cy 4 or 2 a3 on comes mstace FYI FYIS FYI9 ‘Annual COMP 2.2% Annual COMP 3.9% ‘Annual COMP 0.4% Two-Year STACKED 1
Slide 25: Path to Profitable Growth
Path to Profitable Growth • Continue to drive compelling value throughout the merchandise offering • Drive continued margin expansion through improved product margin, markdown management and Supply Chain cost efficiencies • Focus on improved store sales productivity through merchandising, marketing
Slide 26: Path to Profitable Growth
Path to Profitable Growth * Continue to drive compelling value throughout the merchandise offering * Drive continued margin expansion through improved product margin, markdown management and Supply Chain cost efficiencies * Focus on improved store sales productivity through merchandising, marketing
Slide 27: DEALS TuesdlqjM_ornlng GREAT SINCE 1974
DEALS 28 TuesdlqjM_ornlng GREAT SINCE 1974
Tuesday Morning — Investor Presentation (October 2019) on 6ix