Tile Shop(TTSH)

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TTSH Stock Declines Post Q4 Earnings Amid Lower Sales, Margins Improve
ZACKS· 2025-03-03 18:10
Shares of Tile Shop Holdings, Inc. (TTSH) have lost 3.1% since the company reported its earnings for the quarter ended Dec. 31, 2024. This compares to the S&P 500 Index’s 0.1% loss over the same time frame. Over the past month, the stock gained 3.8% versus the S&P 500’s 2.2% decline.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Financial PerformanceTile Shop reported a net sales decline of 7.9% to $347.1 million in 2024 from $377.1 million in 2023. Comparable store sales decreased 7 ...
Tile Shop(TTSH) - 2024 Q4 - Annual Report
2025-02-27 21:10
Financial Performance - For the year ended December 31, 2024, net sales decreased to $347.1 million, down 8% from $377.1 million in 2023 and 12% from $394.7 million in 2022[145] - Comparable store sales decreased by 7.8% in 2024 due to lower traffic, partially offset by an increase in average ticket value[145] - Net sales decreased by $30.1 million, or 8.0%, in 2024 compared to 2023, with comparable store sales declining by 7.8%[163] - Gross profit decreased by $15.2 million, or 6.2%, in 2024, with a gross margin rate of 65.7% compared to 64.4% in 2023[164] - The company reported a net income of $2.3 million in 2024, down from $10.1 million in 2023[162] - Adjusted EBITDA for 2024 was $22.6 million, with an adjusted EBITDA margin of 6.5%[162] - Adjusted EBITDA for 2024 is $22.6 million, a decrease from $38.8 million in 2023, representing 6.5% of net sales[172] - Net income for 2024 is $2.3 million, down from $10.1 million in 2023, with a net income margin of 0.7%[172] Expenses and Cost Management - Selling, general and administrative expenses decreased by $2.5 million or 1.1% to $224.4 million in 2024 compared to 2023[147] - The anticipated annualized benefit from cost-reduction actions is expected to reduce selling, general and administrative expenses by $2.8 million to $4.1 million[148] - Selling, general and administrative expenses decreased by $2.5 million, or 1.1%, in 2024, primarily due to a reduction in depreciation and variable compensation expenses[165] - Interest expense decreased by $1.9 million in 2024, attributed to lower average debt levels compared to 2023[166] Cash Flow and Liquidity - Cash balances increased by $12.4 million from $8.6 million on December 31, 2023, to $21.0 million on December 31, 2024, primarily due to $27.1 million of operating cash flow[149] - Cash and cash equivalents increased to $20.96 million in 2024 from $8.62 million in 2023[162] - Cash and cash equivalents at December 31, 2024, total $21.0 million, with $73.8 million available for borrowing under the revolving line of credit[174][177] - Net cash provided by operating activities increased to $62.1 million in 2024 from $27.1 million in 2023[184][185] - The company has no outstanding borrowings on its line of credit as of December 31, 2024[177] - The company expects to maintain liquidity for ongoing operations and capital expenditures over the next twelve months[179] Store Operations and Strategy - The company plans to close two unprofitable stores in 2025 and does not intend to open any new stores during the year[148] - The company operated 142 stores across 31 states and the District of Columbia as of December 31, 2024[142] - The company maintained 142 stores open at the end of the period, consistent with the previous year[162] - Capital expenditures for 2024 amount to $14.5 million, slightly down from $15.3 million in 2023, focusing on store remodels and IT infrastructure[181] Market Conditions and Risks - The decrease in existing home sales by nearly 35% from 2021 to 2024 has adversely impacted demand for remodeling projects[145] - The company is exposed to inflationary pressures affecting the cost of sales, which may impact gross profit and selling, general and administrative expenses as a percentage of revenues[200] - A one percentage point increase in interest rates for the next 12-month period would not affect pre-tax earnings or cash flow, as the company had paid off its debt balance as of December 31, 2024[201] - The company does not engage in any interest rate hedging activity and does not intend to trade derivative securities for profit[202] - Cash balances are maintained at financial institutions with strong credit ratings, but amounts may exceed FDIC insurance limits, exposing the company to credit concentration risk[203] Asset Management - Total assets as of December 31, 2024, were $319.6 million, a slight increase from $316.7 million in 2023[162] - Total assets as of December 31, 2024, are $322.1 million, with capital employed at $122.6 million[173] - The company recorded asset impairment charges of $0.9 million, $1.0 million, and $0.4 million for the fiscal years ended December 31, 2024, 2023, and 2022, respectively[197] - The pretax return on capital employed for 2024 is 2.9%, significantly lower than 12.4% in 2023[173]
Tile Shop(TTSH) - 2024 Q4 - Earnings Call Transcript
2025-02-27 19:39
Financial Data and Key Metrics Changes - Fourth quarter comparable store sales decreased by 5.8%, primarily due to lower store traffic, although there was a modest improvement in average order value [16] - For the full year, comparable store sales decreased by 7.8%, attributed to softer store traffic influenced by elevated interest rates affecting existing home sales and demand for home improvement projects [17] - Gross margin rate decreased by 50 basis points to 64.2% in Q4 2024, impacted by increased inventory write-offs due to product transitions, but partially offset by efforts to source products at lower price points [18] - For the year, gross margin rate improved by 130 basis points to 65.7%, driven by stabilizing international freight rates and reduced inventory purchasing costs [19] - Operating cash flow generated in 2024 was $27.1 million, leading to an increase in cash balance of over $12 million, ending the year with $21 million in cash and no bank debt [21] Business Line Data and Key Metrics Changes - Sales volumes of the Superior product line improved in Q4, following its relaunch in June 2024, aimed at increasing sales to professional customers and improving attachment rates of installation products [10][12] - Year-over-year declines in tile volumes sold were noted, but growth in Superior volumes sold during the second half of 2024 was highlighted as a positive trend [12] - The company is expanding its selection of entry-level competitively priced products, which is expected to attract a broader customer base, particularly for smaller remodeling projects [13] Market Data and Key Metrics Changes - The company faced a challenging housing backdrop, with existing home sales levels remaining near historic lows, impacting demand for home improvement projects [7] - The management noted that the near-term outlook remains uncertain due to changing political landscapes and potential impacts on tariffs, consumer sentiment, and jobs [7] Company Strategy and Development Direction - The company plans to be selective with incremental investments in 2025 and aims to right-size its expense structure, with no new store openings planned for the year [9] - Two unprofitable stores are anticipated to close in 2025, reducing the store count to 140 by year-end [9] - The strategy focuses on curating a strong assortment of tile products and providing exceptional customer service, reinforcing the company's value propositions [14][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing challenges in the industry but expressed optimism about a potential recovery in housing turnover and remodeling activity in the future [7] - The company is proactively taking measures to respond to market challenges and believes it is well-positioned with a strong balance sheet and a capable team [21] Other Important Information - The company closed one distribution center and reduced staffing levels at its corporate office in response to market conditions [8] - The company does not plan to update its forward-looking statements beyond the date of the call [5] Q&A Session Summary - No questions were raised during the Q&A session, and the call concluded with closing remarks from the CFO [23][24]
Tile Shop(TTSH) - 2024 Q4 - Earnings Call Transcript
2025-02-27 20:48
Financial Data and Key Metrics Changes - Fourth quarter sales at comparable stores decreased by 5.8%, primarily due to lower store traffic, partially offset by a modest improvement in average order value [16][37] - For the year, sales at comparable stores decreased by 7.8%, attributed to softer store traffic influenced by elevated interest rates affecting existing home sales and demand for home improvement projects [37] - Gross margin rate decreased by 50 basis points to 64.2% in Q4 2024, due to elevated inventory write-offs from product transitions, though partially offset by efforts to source products at lower price points [18][38] - For the year, gross margin rate improved by 130 basis points to 65.7%, driven by stabilizing international freight rates and reduced inventory purchasing costs [39] Business Line Data and Key Metrics Changes - Sales volumes of the Superior product line improved in Q4 2024, following the relaunch of the private label Superior line of installation products in June [10][31] - Despite year-over-year declines in tile volumes sold, growth in Superior volumes was noted during the second half of 2024, providing a tailwind for future growth [12][32] - The company is expanding its selection of entry-level competitively priced products to attract a wider customer base, particularly those on a budget [13][32] Market Data and Key Metrics Changes - Existing home sales levels remain near historic lows, impacting demand for home improvement projects [7][28] - The company anticipates that the changing political landscape and new policies will affect tariffs, consumer sentiment, and jobs, which are critical for housing turnover and remodeling activity [7][28] Company Strategy and Development Direction - The company plans to be selective with incremental investments in 2025 and does not intend to open new stores, instead focusing on closing two unprofitable stores [9][30] - The strategy includes curating a strong assortment of tile products and providing exceptional service to differentiate from competitors [14][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges in the industry but remains optimistic about a potential recovery in housing turnover and remodeling demand [7][28] - The company ended the year with no debt and $21 million in cash, positioning itself strongly to navigate current challenges [8][29] Other Important Information - SG&A expenses decreased by $1.3 million in Q4 2024 compared to the previous year, with a total annual decrease of $2.5 million [19][40] - Operating cash flow for 2024 was $27.1 million, contributing to an increase in cash balance of over $12 million during the year [21][41] Q&A Session Summary Question: No questions were raised during the session - The operator noted that there were no questions at this time, and the call was turned back to Mark Davis for closing remarks [44]
Tile Shop(TTSH) - 2024 Q4 - Annual Results
2025-02-27 12:30
Financial Performance - Fourth quarter 2024 net sales decreased by $5.0 million, or 5.9%, compared to the fourth quarter of 2023, with comparable store sales down 5.8%[2] - Full-year 2024 net sales decreased by $30.1 million, or 8.0%, with comparable store sales declining 7.8%[5] - Adjusted EBITDA for the fourth quarter of 2024 was $3.4 million, compared to $6.6 million in the fourth quarter of 2023, and for the full year, it was $22.6 million compared to $38.8 million in 2023[10] - The company reported a net loss of $0.6 million in the fourth quarter of 2024, with a diluted loss per share of $0.01, while full-year net income was $2.3 million with diluted earnings per share of $0.05[2] - The company reported a net loss of $628,000 for the three months ended December 31, 2024, compared to a net income of $636,000 for the same period in 2023[26] Gross Margin and Profitability - Gross margin for the fourth quarter of 2024 was 64.2%, down from 64.7% in the fourth quarter of 2023, while the full-year gross margin improved to 65.7% from 64.4%[6] - Gross profit for the twelve months ended December 31, 2024, was $227,874,000, down from $243,061,000 in 2023, reflecting a gross margin rate of 65.7% compared to 64.4% in the previous year[26] - The adjusted EBITDA margin rate for the twelve months ended December 31, 2024, was 6.5%, down from 10.3% in 2023[26] Expenses and Cost Management - Selling, general and administrative expenses decreased by $1.3 million, or 2.4%, in the fourth quarter of 2024 compared to the same period in 2023[7] - Selling, general and administrative expenses for the twelve months ended December 31, 2024, were $224,357,000, slightly down from $226,903,000 in 2023[26] - The company plans to continue focusing on operational improvements and cost management strategies to enhance profitability in the upcoming periods[24] Assets and Liabilities - As of December 31, 2024, the company had no debt outstanding and cash and cash equivalents of $21.0 million[9] - Total current assets increased to $119,822,000 as of December 31, 2024, from $114,558,000 in 2023, primarily due to an increase in cash and cash equivalents[25] - Cash and cash equivalents at the end of the period were $20,957,000, significantly higher than $8,620,000 at the end of 2023[27] - The company’s total liabilities decreased marginally to $196,691,000 as of December 31, 2024, from $196,985,000 in 2023[25] Capital and Future Outlook - The pretax return on capital employed was 2.9% for the trailing twelve months as of the end of the fourth quarter in 2024, down from 12.4% in the previous year[13] - The company maintained 142 stores open at the end of both the fourth quarter of 2024 and 2023[3] - Management expressed confidence in capitalizing on opportunities in 2025 through enhancements in product lines and expansion of offerings[3] - The company experienced a cash flow from operating activities of $27,107,000 for the twelve months ended December 31, 2024, compared to $62,060,000 in 2023[27]
The Tile Shop Reports Fourth Quarter and Full-Year 2024 Results
Globenewswire· 2025-02-27 12:00
Core Insights - Tile Shop Holdings, Inc. reported a decline in net sales and comparable store sales for both the fourth quarter and full year of 2024, reflecting ongoing challenges in the home improvement sector [2][3][6] - The company maintained a strong gross margin, with a slight decrease in the fourth quarter compared to the previous year, but an overall improvement for the full year [7][30] - The management expressed optimism about future performance, citing strategic enhancements to product lines and customer service initiatives [3] Fourth Quarter 2024 Summary - Net sales decreased by 5.9% to $79.5 million compared to the fourth quarter of 2023 [2][6] - Comparable store sales also fell by 5.8% during the same period [2][6] - Gross margin was reported at 64.2%, down from 64.7% in the previous year [7][30] - The company incurred a net loss of $0.6 million, translating to a net loss per share of $0.01 [2][3] - Adjusted EBITDA for the quarter was $3.4 million, down from $6.6 million in the fourth quarter of 2023 [11][30] Full-Year 2024 Summary - For the full year, net sales decreased by 8.0% to $347.1 million compared to 2023 [3][6] - Comparable store sales declined by 7.8% year-over-year [3][6] - Gross margin improved to 65.7% from 64.4% in 2023, attributed to lower international freight rates and supplier price reductions [7][30] - The company reported a net income of $2.3 million for the year, down from $10.1 million in 2023 [3][29] - Adjusted EBITDA for the year was $22.6 million, compared to $38.8 million in the previous year [11][30] Management Commentary - CEO Cabell Lolmaugh highlighted the team's execution and strategic initiatives aimed at enhancing product offerings and customer service as key factors for potential recovery in 2025 [3] Capital Structure and Liquidity - As of December 31, 2024, the company had no debt and $21.0 million in cash [10][27] - The company maintained a stable number of stores, with 142 locations at year-end [2][3] Tax Provision - The benefit from income taxes was $0.2 million in the fourth quarter of 2024, compared to a provision of $0.6 million in the same quarter of 2023 [9] - The effective tax rate decreased to 25.9% in the fourth quarter of 2024 from 48.1% in the previous year [9] Return on Capital Employed - The pretax return on capital employed was reported at 2.9% for the trailing twelve months ending December 31, 2024, a significant decrease from 12.4% in the prior year [14]
The Tile Shop to Host Fourth Quarter 2024 Earnings Conference Call
Newsfilter· 2025-02-20 21:00
Core Points - Tile Shop Holdings, Inc. will release its financial results for the fourth quarter ended December 31, 2024, on February 27, 2025, at 7:00 a.m. Eastern Time [1] - A conference call for investors will be held on the same day at 9:00 a.m. Eastern Time, hosted by the CEO, CFO, and Investor Relations [2] - The call will be accessible via the Company's Investor Relations page, with a replay available afterward [3] Company Overview - Tile Shop is a specialty retailer of natural stone tiles, man-made and luxury vinyl tiles, and related materials, operating 142 stores across 31 states and the District of Columbia [5] - The Company emphasizes high-quality products, exclusive designs, knowledgeable staff, and exceptional customer service in its showrooms [5] - Tile Shop is affiliated with several industry organizations, including ASID, NAHB, NKBA, and NTCA [6]
Tile Shop Is A Buy Considering Client Mix And Gross Margin (Rating Upgrade)
Seeking Alpha· 2025-01-10 17:46
Group 1 - The article discusses the investment service "Asia Value & Moat Stocks," which targets value investors looking for Asia-listed stocks with significant discrepancies between price and intrinsic value [1] - The focus is on deep value balance sheet bargains, such as net cash stocks and low price-to-book (P/B) stocks, as well as wide moat stocks that represent high-quality businesses [1] - The analyst has recently become bullish on Tile Shop Holdings, Inc. (NASDAQ: TTSH), indicating a shift in sentiment after previously mixed evaluations of the company's financial performance [1] Group 2 - The investment group provides monthly updates and watch lists for investors, particularly emphasizing opportunities in the Hong Kong market [1]
Tile Shop(TTSH) - 2024 Q3 - Earnings Call Transcript
2024-11-09 16:51
Financial Data and Key Metrics Changes - Comparable store sales decreased by 7.9% in Q3 2024 compared to Q3 2023, reflecting lower store traffic and challenges in the home improvement market [15] - Gross margin rate improved to 66.5%, a 50 basis point increase from Q2 2024 and a 180 basis point increase from Q3 2023, attributed to lower inventory costs and improved delivery collection rates [16] - Year-to-date gross margin rate increased by 170 basis points from 64.4% in 2023 to 66.1% in 2024, driven by stabilizing international freight rates and reduced inventory purchasing costs [17] - SG&A expenses for Q3 2024 were $56 million, a decrease of $700,000 compared to Q3 2023, primarily due to lower variable compensation and depreciation expenses [18] - Year-to-date SG&A expenses decreased by $1.2 million to $172.5 million, largely due to a decrease in depreciation and variable compensation expenses [19] Business Line Data and Key Metrics Changes - The relaunch of the Superior brand private label installation products aims to increase sales to professional customers and improve attachment rates [9] - Expansion of entry-level competitively priced products is tracking in line with expectations, aimed at strengthening the value proposition for budget-conscious customers [10] - Introduction of the Arbour collection, a new line of high-quality LVT products, is expected to enhance margins while offering attractive price points [12] Market Data and Key Metrics Changes - The existing home sales report from September indicated the lowest housing turnover since 2010, impacting demand for home improvement projects [8] - The company anticipates that further interest rate cuts by the Federal Reserve could improve existing home sales trends, serving as a catalyst for remodel demand [15] Company Strategy and Development Direction - The company is focusing on curating a strong assortment of tile products and enhancing e-commerce capabilities to better serve customers [6][14] - Strategic decisions include closing the Dayton distribution center and reducing corporate staffing to manage expenses effectively [20] - Anticipated annualized benefits from recent structural changes are estimated to range from $2.8 million to $4.1 million [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing macro headwinds in the home improvement industry but remains committed to providing exceptional service and product assortment [6][14] - The company is optimistic about potential improvements in home sales due to recent Federal Reserve actions [7] Other Important Information - The company ended the quarter with $25.1 million in cash and no bank debt, generating $28.5 million in operating cash flow year-to-date [22] Q&A Session Summary - No specific questions or answers were documented in the provided content, as the call concluded without a detailed Q&A segment [22][23]
Tile Shop(TTSH) - 2024 Q3 - Quarterly Report
2024-11-07 21:16
Financial Performance - Comparable store sales decreased by 7.9% and 8.4% for the three and nine months ended September 30, 2024, respectively, due to lower traffic levels [76]. - Net sales for Q3 2024 decreased by $7.6 million, or 8.3%, compared to Q3 2023, with comparable store sales down by 7.9% [86]. - Net income for Q3 2024 was $41, a decrease from $1,844 in Q3 2023, reflecting a significant decline in pretax income [86]. - Total revenues for the nine months ended September 30, 2024, were $267.6 million, down from $292.7 million in the same period of 2023 [91]. - Net sales for the nine months ended September 30, 2024, decreased by $25.1 million, or 8.6%, compared to the same period in 2023, with comparable store sales down 8.4% due to reduced store traffic [92]. Cost Management - Gross margin rate improved by 180 basis points to 66.5% in Q3 2024, primarily due to decreases in product costs [77]. - The company anticipates annualized benefits from recent cost-cutting measures to reduce SG&A expenses by $2.8 million to $4.1 million [80]. - Selling, general and administrative expenses decreased by $0.7 million, or 1.2%, from $56.7 million in Q3 2023 to $56.0 million in Q3 2024 [78]. - Selling, general, and administrative expenses decreased by $1.2 million, or 0.7%, primarily due to a reduction in depreciation and variable compensation costs, despite increases in occupancy and IT expenses [94]. Taxation - The effective tax rate increased to 77.0% in Q3 2024 from 22.4% in Q3 2023, primarily due to a decrease in pretax income [90]. - The provision for income taxes decreased by $2.2 million due to lower taxable income, with the effective tax rate rising to 27.9% from 26.1% in the previous year [95]. Cash Flow and Liquidity - Operating cash flow generated during the nine months ended September 30, 2024, was $28.5 million, funding $11.8 million in capital expenditures [81]. - Net cash provided by operating activities was $28.5 million for the nine months ended September 30, 2024, a decrease from $56.2 million in the same period of 2023 [111]. - Cash and cash equivalents increased by $16.4 million from $8.6 million on December 31, 2023, to $25.1 million on September 30, 2024 [81]. - Cash and cash equivalents totaled $25.1 million at September 30, 2024, up from $8.6 million at December 31, 2023, with working capital increasing to $42.1 million [114]. - The company had no borrowings outstanding on its line of credit as of September 30, 2024, with $73.8 million available for borrowing [106]. - The company expects its cash flow from operations, along with existing cash and credit availability, to be sufficient for operations and capital expenditures over the next twelve months [107]. Capital Expenditures - Capital expenditures increased to $11.8 million for the nine months ended September 30, 2024, compared to $11.0 million in 2023, focusing on store remodels and IT assets [108]. Profitability Metrics - Adjusted EBITDA for the nine months ended September 30, 2024, was $19.2 million, or 7.2% of sales, down from $32.2 million, or 11.0% of sales, in 2023 [101]. - Gross profit for the nine months ended September 30, 2024, decreased by $11.5 million, or 6.1%, while the gross margin rate improved to 66.1% from 64.4% in 2023, attributed to lower product costs and stabilizing international freight costs [93].