EXHIBIT 99.1

Tuesday Morning Corporation Announces Fourth Quarter Fiscal 2013 Results

DALLAS, Aug. 20, 2013 (GLOBE NEWSWIRE) -- Tuesday Morning Corporation (Nasdaq:TUES), a leading closeout retailer with 828 stores across the United States specializing in selling deeply discounted, upscale decorative home accessories, housewares, seasonal goods and famous-maker gifts, today announced financial results for the fourth quarter and fiscal year ended June 30, 2013. For the fourth quarter, the Company's net sales increased 2.9% to $202.1 million from $196.4 million in the fourth quarter of fiscal 2012. Including the impact of certain non-recurring charges detailed below, the Company reported a net loss for the quarter of $15.6 million, or $0.37 per share, compared to a net loss of $2.0 million of $0.05 per share in the same period last year. Excluding these non-recurring charges, non-GAAP adjusted net loss was $5.4 million or $0.13 per share for the fourth quarter ended June 30, 2013 compared to a non-GAAP adjusted net loss of $0.7 million or $0.02 per share in the same period last year.

Michael Rouleau, Interim Chief Executive Officer, stated, "We have made some good progress on the short-term priorities we laid out for the organization and that is evidenced in visibly cleaner stores, reduction in the level of clearance merchandise and improved flow of fresh merchandise as well as new cash registers being rolled out across the store base. Our sights are now set on the next set of priorities as we further position ourselves to execute the turnaround of Tuesday Morning. We look forward to discussing the details of our plan on the conference call later today."

For the Quarter ended June 30, 2013:

• Comparable stores sales increased by 4.6% for the fourth quarter of fiscal 2013 and were comprised of a 6.2% increase in customer traffic offset by a 1.6% decrease in average transaction.
• Gross profit was $66.8 million and gross margin was 33.0% compared to $73.5 million in gross profit and gross margin of 37.4% in the fourth quarter of fiscal 2012. This rate decline was attributable to higher markdowns on clearance inventory and a flow-through of more buying, distribution and freight costs which negatively impacted our gross margin in this quarter.
• Selling, general and administrative expenses ("SG&A") increased 1.4% to $78.1 million from $77.0 million in the same period last year. As a percent of net sales, SG&A was 38.6% compared to 39.2% in the same period last year. The increase in SG&A was primarily attributable to $1.5 million in non-recurring charges related to legal, consulting, severance, and recruitment expenses as well as store reorganization and clean up costs and charges related to discontinuing our e-commerce operations.
• Operating loss was $11.3 million as compared to an operating loss of $3.5 million in the fourth quarter of fiscal 2012. The Company's operating results were impacted by non-recurring charges related to legal, consulting, severance, recruitment expenses, store reorganization and clean-up costs, and charges related to discontinuing our e-commerce operations in addition to a decline in gross margin.
• Net loss was $15.6 million or $0.37 per share compared to a net loss of $2.0 million or $0.05 per share in the fourth quarter of fiscal 2012. The Company's results were impacted by the effects of the items described above, a loss on the disposal of systems of $4.0 million and a reduction of tax benefit due to recording a deferred tax valuation allowance of $5.5 million. Excluding these non-recurring charges, non-GAAP adjusted net loss was $5.4 million or $0.13 per share for the fourth quarter ended June 30, 2013 compared to a non-GAAP adjusted net loss of $0.7 million or $0.02 per share in the same period last year.

For the Twelve Months ended June 30, 2013:

• Comparable stores sales increased by 3.9% for the twelve months ended June 30, 2013 and were comprised of a 2.5% increase in average ticket and 1.4% increase in traffic.
• Gross profit was $259.4 million and gross margin was 30.9% compared to $308.9 million in gross profit and gross margin of 38.0% for the fiscal year ended June 30, 2012. The decrease in gross margin related primarily to an inventory valuation charge of $41.8 million. This inventory charge was required to devalue certain inventory based on a strategic decision to accelerate the selloff of such inventory.
• Selling, general and administrative expenses (SG&A) increased 4.8% to $315.9 million from $301.4 million in the same period last year primarily a result of non-recurring charges of $13.3 million related to store reorganization and clean-up, severance costs, consulting, legal, recruitment expenses and charges related to discontinuing our e-commerce operations. As a percent of net sales, SG&A was 37.7% compared to 37.1% in the same period last year.
• Operating loss was $56.5 million as compared to operating income of $7.4 million for the fiscal year ended June 30, 2012. The Company's operating results were significantly impacted by a charge of $41.8 million for the write-down of inventory and $15.2 million in charges related to store reorganization and clean-up, severance costs, consulting, legal, recruitment expenses and charges related to discontinuing our e-commerce operations.
• Net loss was $56.4 million or $1.33 loss per share compared to net income of $3.9 million or $0.09 per share for the twelve months ended June 31, 2012. The Company's results were impacted by the effects of the items described above, a loss on the disposal of systems of $5.6 million and a reduced tax benefit due to recording a deferred tax asset valuation allowance of $16.2 million. Excluding these non-recurring charges, non-GAAP adjusted net loss was $0.8 million or $0.02 per share for the year ended June 30, 2013 compared to non-GAAP adjusted net income of $5.2 million or $0.12 per share in the same period last year.

The Company ended fiscal 2013 with $28.9 million in cash and cash equivalents with no borrowings under its line of credit. Inventories at the end of the fiscal 2013 were $211.9 million compared to $265.6 million at the end of fiscal 2012, down $53.7 million or 20.2%.

About Tuesday Morning

Tuesday Morning (Nasdaq:TUES) is a leading closeout retailer of upscale decorative home accessories, housewares, seasonal goods and famous-maker gifts. The Company is nationally known for providing a fresh selection of brand name, high-quality merchandise – never seconds or irregulars – at prices well below those of department and specialty stores, catalogues and online retailers. Based in Dallas, Texas, the Company opened its first store in 1974 and currently operates 828 stores in 43 states. More information and a list of store locations may be found on our website at www.TuesdayMorning.com.

Conference Call Information

Tuesday Morning Corporation's management will hold a conference call to review fourth quarter 2013 financial results today, August 20, 2013, at 4:00 p.m. Central Time. The call may also include discussion of company developments, forward-looking information and other material information about business and financial matters. A real-time webcast of the call will be available in the Investor Relations section of the Company's website at www.tuesdaymorning.com, or you may dial into the conference at 1-877-312-5376 (no access code required). A replay of the webcast will also be accessible through the Company's website or by dialing (855) 859-2056, conference ID number 96619601, until September 20, 2013.

Non-GAAP Financial Measures

The Company reports and discusses its operating results using financial measures consistent with accounting principles generally accepted in the United States ("GAAP"). From time to time, in press releases, financial presentations, earnings conference calls or otherwise, the Company may disclose certain non-GAAP financial measures. The non-GAAP financial measures presented in this earnings release should not be viewed as alternatives or substitutes for the Company's reported GAAP results. A reconciliation of the most directly comparable GAAP financial measure is set forth in the tables that accompany this release.

Cautionary Statement Regarding Forward-Looking Statements

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 position, and our business outlook or state other "forward-looking" information. Forward-looking statements in this press release include, but are not limited to, statements or management's plans and expectations in this press release.

Reference is hereby made to the Company's filings with the Securities and Exchange Commission, including, but not limited to, "Item 1A. Risk Factors" of the Company's Annual Report on Form 10-K for the year ended June 30, 2012, 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 and the impact, depth and duration of current economic conditions; 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 or 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 in highly competitive markets and to compete effectively; our ability to operate information systems and implement new technologies effectively; our ability to generate strong cash flows from our operations; our ability to anticipate and respond in a timely manner to changing consumer demands and preferences; our ability to generate strong holiday season sales; and other factors. The Company's filings with the SEC are available at the SEC's web site at www.sec.gov.

The forward-looking statements made in this press release relate only to events as of the date on which the statements were made. Except as may be required by law, 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. Investors are cautioned not to place undue reliance on any forward-looking statements.

TUESDAY MORNING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Unaudited)

GAAP Net Income (Loss) to Non-GAAP Adjusted Net Income (Loss):

The following table sets forth a reconciliation of the Company's GAAP net income (loss) to Non-GAAP adjusted net income (loss) for the periods shown (in thousands):

GAAP Net Income (Loss) Per Share to Non-GAAP Adjusted Net Income (Loss) Per Share:

The following table sets forth a reconciliation of the Company's GAAP net income (loss) per share to Non-GAAP adjusted net income (loss) per share for the periods shown:

The Company believes that the non-GAAP financial measures above provide useful information to the Company's management, investors, and other interested parties about the Company's operating performance because they allow them to understand and compare the Company's operating results during the 2013 fiscal year to the prior year periods in a more consistent manner. Non-GAAP adjusted net income (loss), as used in this press release, may not be comparable to similarly titled measures used by other companies. The Company calculated the tax effect of non-GAAP adjustments by applying an applicable estimated jurisdictional tax rate to each specific non-GAAP item.

The Non-GAAP financial measures presented in the tables above should not be viewed as an alternative or substitute for the Company's reported GAAP results.

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

         MEDIA:
         Jonathan Morgan/Jennifer Sanders
         PERRY STREET COMMUNICATIONS
         214-965-9955