Exhibit 99.1

FOR IMMEDIATE RELEASE

CONTACT:	Loren K. Jensen
	Chief Financial Officer
	TUESDAY MORNING CORPORATION
	972/934-7299
	Laurey Peat
	LAUREY PEAT + ASSOCIATES
	214/871-8787

TUESDAY MORNING CORPORATION

ANNOUNCES RECORD RESULTS FOR 2003

Company achieves 21% increase in EPS and 13% increase in sales

DALLAS, Feb. 24/PRNewswire-FirstCall/ — Tuesday Morning Corporation (Nasdaq: TUES) today reported net income of $53.7 million and earnings of $1.29 per fully diluted share for the year ending December 31, 2003. These results represent an increase of 21% from 2002 earnings of $1.07 per fully diluted share. The year-end results include a charge taken in the fourth quarter for early retirement of long-term debt. Excluding this charge, earnings would have been up 26% to $1.35 per fully diluted share in 2003 compared to the previous year. Net sales for the 2003, as previously reported, increased 13% to $822.6 million, up from $728.8 million in the prior year. Comparable store sales gains were 2.9% for 2003.

For the fourth quarter of 2003, Tuesday Morning reported net income of $34.9 million, or $0.83 per fully diluted share, an increase of 11% over earnings of $0.75 per fully diluted share in 2002. Excluding the early debt redemption charge taken in the fourth quarter, earnings would have been up 19% over the previous year to $0.89 cents per fully diluted share. For the fourth quarter of 2003, revenues increased 15% to a record $321.0 million, driven by a 3.2% gain in comparable store sales for the quarter.

“Tuesday Morning delivered consistent sales and earnings growth throughout 2003,” stated Kathleen Mason, President and Chief Executive Officer. “Our top-line growth benefited from both same-store sales gains and new store openings. An expansion in operating margin created even higher levels of growth in earnings per share. We are moving confidently into 2004 with a strong balance sheet and platform for growth.”

For fiscal year 2004, Tuesday Morning expects to open between 60 and 70 net new store locations and forecasts a total sales increase of approximately 14%, which includes an assumption of comparable same-store growth of 2% to 4% for the year.  Based on achieving its sales plan, Tuesday Morning estimates 2004 annual earnings per diluted share of $1.63 to $1.65.

About Tuesday Morning

Tuesday Morning is the leading closeout retailer of upscale, decorative home accessories and famous-maker gifts in the United States. The Company opened its first store in 1974 and operated 577 stores in 42 states at December 31, 2003. Tuesday Morning is nationally known for bringing its more than 7.1 million loyal customers a treasure hunt of high-end, first quality, brand name merchandise at prices 50% to 80% below 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. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” variations of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those projected or implied in the forward- looking statements. Such risks and uncertainties include: the success of new store openings, competitive factors, access to merchandise and unanticipated changes in consumer demand and economic trends, as well as other risks detailed in the company’s filings with

the Securities and Exchange Commission, including the Company’s Registration Statement on Form S-3 and Annual Report on Form 10-K for the period ending December 31, 2002.

Tuesday Morning Corporation

Consolidated Statement of Operations

	Three Months Ended December 31,								Full Year Ended December 31,
(In thousands, except per share data)	2003			2002			% Change		2003			2002			% Change
Net Sales	$	320,980		$	279,840		+15	%	$	822,646		$	728,846		+13	%
Cost of sales	193,856			171,486			+13	%	513,097			461,317			+11	%
Gross profit	127,124			108,354			+17	%	309,549			267,529			+16	%
Selling, general and administrative expenses	64,751			55,010			+18	%	210,158			181,810			+16	%
Operating income	62,373			53,344			+17	%	99,391			85,719			+16	%
Interest & other income(expense):
Loss on early extinguishment of debt	(3,854		)	—			NM		(3,854		)	—			NM
Interest expense	(2,132		)	(2,695		)	-21	%	(9,274		)	(13,775		)	-33	%
Interest income	34			69			-51	%	95			263			-64	%
Other income (expense), net	246			(485		)	NM		896			(271		)	NM
Interest & other income(expense)	(5,706		)	(3,111		)	+83	%	(12,137		)	(13,783		)	-12	%
Income before income taxes	56,667			50,233			+13	%	87,254			71,936			+21	%
Income taxes provision	21,762			19,253			+13	%	33,593			27,855			+21	%
Net income	$	34,905		$	30,980		+13	%	$	53,661		$	44,081		+22	%
Earnings Per Share:
Net income per common share:
Basic	$	0.85		$	0.77				$	1.32		$	1.10
Diluted	$	0.83		$	0.75				$	1.29		$	1.07
Weighted average number of common shares:
Basic	40,831			40,195					40,513			40,037
Diluted	41,866			41,226					41,442			41,238

Consolidated Balance Sheets

	December 31,
(in thousands)	2003		2002
Assets
Current assets:
Cash and cash equivalents	$	23,536	$	31,929
Inventories	143,023		134,947
Prepaid expenses and other assets	4,948		4,265
Deferred income taxes	5,106		2,934
Total current assets	176,613		174,075
Property and Equipment, net	74,875		67,496
Other long-term assets:
Deferred financing costs	907		2,879
Other assets	999		844
Total Assets	$	253,394	$	245,294
Liabilities and Stockholders’ Equity
Current liabilities:
Current portion, long-term debt	$	—	$	650
Accounts payable	66,091		59,075
Accrued liabilities	36,321		25,790
Income taxes payable	13,247		13,365
Total current liabilities	115,659		98,880
Long-term debt, excluding current portion	—		72,574
Revolving credit facility, excl. current portion	—		—
Deferred taxes	5,641		4,665
Total Liabilities	121,300		176,119
Stockholders’ equity	132,094		69,175
	$	253,394	$	245,294

Tuesday Morning Corporation (continued)

Consolidated Statement of Cash Flows

	Twelve-Months Ended Dec 31,
(in thousands)	2003			2002
Net cash flows from operating activities:
Net income	$	53,661		$	44,081
Adjustments to reconcile net income to net cash (used in) operating activities:
Depreciation and amortization	9,883			7,591
Amortization of financing fees	702			2,353
Loss on early extinguishment of debt	3,854			—
Other non-cash charges	2,779			622
Net change in operating assets and liabilities	8,514			20,133
Net cash provided by operating activities	79,393			74,780
Net cash flows from investing activities:
Capital expenditures	(17,273		)	(34,294		)
Other	—			175
Net cash used in investing activities	(17,273		)	(34,119		)
Net cash flows from financing activities:
Proceeds from revolving credit facility	—			—
Repayment of long-term debt	(75,758		)	(92,981		)
Other	5,245			1,979
Net cash used in financing activities	(70,513		)	(91,002		)
Net decrease in cash and cash equivalents	(8,393		)	(50,341		)
Cash and cash equivalents, beginning of period	31,929			82,270
Cash and cash equivalents, end of period	$	23,536		$	31,929