Tuesday Morning (TUES) is a discount retailer whose share price has quadrupled since the start of 2012 and doubled since the start of 2013. After posting huge losses on inventory in fiscal 2013 -- but a slight sales gain -- the stock soared. Here we propose a short thesis which rests on the historical results of the business, the high current valuation, and the fact that retail is a challenging business. Retail, after all, has high fixed costs, is frequently driven by fads, and exists in a highly competitive environment.
Tuesday Morning is facing its first holiday season since its latest CEO change up. Check out its recent CEO history:
- June 2012 -- CEO Kathleen Mason is fired.
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