[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Tile Shop Holdings, Inc. reported decreased Q1 2025 profitability with net sales down 4.1% and net income sharply reduced [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $324.8 million by March 31, 2025, driven by higher cash and inventories, while liabilities also rose Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $27,059 | $20,957 | | Inventories | $88,145 | $86,267 | | Total Current Assets | $127,699 | $119,822 | | Total Assets | $324,792 | $319,603 | | **Liabilities & Equity** | | | | Total Current Liabilities | $86,483 | $78,394 | | Total Liabilities | $201,597 | $196,691 | | Total Stockholders' Equity | $123,195 | $122,912 | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Net sales decreased 4.1% to $88.0 million in Q1 2025, leading to a sharp decline in net income and diluted EPS Q1 2025 vs Q1 2024 Income Statement (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net sales | $88,009 | $91,728 | -4.1% | | Gross profit | $58,070 | $60,319 | -3.7% | | Income from operations | $183 | $2,283 | -92.0% | | Net income | $172 | $1,689 | -89.8% | | Diluted EPS | $0.00 | $0.04 | -100% | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly decreased to $10.0 million in Q1 2025, while cash and cash equivalents increased to $27.1 million Cash Flow Summary (in thousands) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $9,994 | $18,589 | | Net cash used in investing activities | $(3,625) | $(2,719) | | Net cash used in financing activities | $(267) | $(455) | | **Net change in cash** | **$6,102** | **$15,407** | | **Cash at end of period** | **$27,059** | **$24,027** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail the company's specialty tile retail business, revenue sources, liquidity, and post-quarter sublease agreements - The company operates 142 stores in 31 states and is a specialty retailer of man-made and natural stone tiles, luxury vinyl tiles, and related materials[24](index=24&type=chunk) Revenue Disaggregation by Product Category | Product Category | Q1 2025 % of Revenue | Q1 2024 % of Revenue | | :--- | :--- | :--- | | Man-made tiles | 55% | 53% | | Natural stone tiles | 20% | 22% | | Setting and maintenance materials | 15% | 15% | | Accessories | 8% | 8% | | Delivery service | 2% | 2% | - As of March 31, 2025, the company had no borrowings outstanding on its $75.0 million revolving line of credit, with **$73.8 million available**[44](index=44&type=chunk)[94](index=94&type=chunk) - Subsequent to Q1 2025, the company entered into two sublease agreements for its closed New Jersey distribution center, which are expected to generate approximately **$1.0 million in sublease income in 2025** and another **$1.0 million in 2026**[49](index=49&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=14&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes decreased net sales to lower store traffic, while gross margin improved slightly and liquidity remains strong despite lower Adjusted EBITDA [Overview and Recent Trends](index=15&type=section&id=Overview%20and%20Recent%20Trends) Comparable store sales declined 4.0% in Q1 2025 due to moderated home sales, while gross margin rate improved to 66.0% - Comparable store sales decreased by **4.0% in Q1 2025** and **10.2% in Q1 2024**, attributed to lower store traffic resulting from moderated existing home sales trends[74](index=74&type=chunk) - Gross margin rate improved to **66.0% in Q1 2025** from **65.8% in Q1 2024**, mainly due to lower levels of inventory write-offs[75](index=75&type=chunk) [Results of Operations](index=17&type=section&id=Results%20of%20Operations) Net sales declined 4.1% in Q1 2025, leading to a 92.0% drop in income from operations despite a slight decrease in SG&A expenses Q1 2025 vs Q1 2024 Operations Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Net sales | $88,009 | $91,728 | -4.1% | | Gross profit | $58,070 | $60,319 | -3.7% | | SG&A expenses | $57,887 | $58,036 | -0.3% | | Income from operations | $183 | $2,283 | -92.0% | - The decrease in SG&A was primarily due to a **$0.7 million decrease in depreciation** and a **$0.4 million decrease from a DC closure**, partially offset by a **$0.7 million increase in advertising costs**[85](index=85&type=chunk) [Non-GAAP Measures](index=17&type=section&id=Non-GAAP%20Measures) Adjusted EBITDA significantly decreased to $4.6 million in Q1 2025, and trailing twelve months pretax return on capital employed also declined sharply Adjusted EBITDA Reconciliation (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income | $172 | $1,689 | | Interest income/(expense), net | $(18) | $166 | | Provision for income taxes | $29 | $428 | | Depreciation and amortization | $4,005 | $4,742 | | Stock based compensation | $378 | $392 | | **Adjusted EBITDA** | **$4,566** | **$7,417** | - Pretax Return on Capital Employed (trailing twelve months) decreased to **1.2% at March 31, 2025**, compared to **11.3% at March 31, 2024**[90](index=90&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity with $27.1 million cash and $73.8 million available credit, sufficient for future operations and capital expenditures - Principal sources of liquidity are **$27.1 million of cash and cash equivalents** and **$73.8 million available for borrowing** on the revolving line of credit as of March 31, 2025[91](index=91&type=chunk)[94](index=94&type=chunk) - The company was in compliance with all financial covenants of its Credit Agreement as of March 31, 2025[93](index=93&type=chunk) - Capital expenditures were **$3.6 million in Q1 2025**, compared to **$2.7 million in Q1 2024**, primarily for investments in store remodels, merchandising, and IT[96](index=96&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=19&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) No material changes in market risk exposures or their management have occurred since the 2024 Annual Report on Form 10-K - There have been no material changes in the company's primary risk exposures or management of market risks from those disclosed in the 2024 Form 10-K[103](index=103&type=chunk) [Controls and Procedures](index=19&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during Q1 - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[105](index=105&type=chunk) - No changes in internal control over financial reporting occurred during Q1 2025 that materially affected or are likely to materially affect the controls[106](index=106&type=chunk) [PART II. OTHER INFORMATION](index=20&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=20&type=section&id=Item%201.%20Legal%20Proceedings) Management anticipates no material adverse effect on financial results from ongoing legal proceedings arising in the normal course of business - In management's opinion, the outcome of pending legal claims and disputes is not expected to have a material adverse effect on the company's financial results or position[107](index=107&type=chunk) [Risk Factors](index=20&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred in the company's risk factors since the 2024 Annual Report on Form 10-K - No material changes have been made to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2024[108](index=108&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=20&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase shares, but 227,975 shares were forfeited and 38,534 withheld for tax obligations on vested awards - In Q1 2025, **227,975 shares were forfeited** as vesting conditions were not met, and **38,534 shares were withheld** to satisfy tax obligations on vested awards. These were not part of a public repurchase program[109](index=109&type=chunk)[110](index=110&type=chunk) [Other Information](index=21&type=section&id=Item%205.%20Other%20Information) No directors or executive officers adopted, modified, or terminated any Rule 10b5-1 trading plans during Q1 2025 - No directors or executive officers adopted, modified, or terminated any Rule 10b5-1 trading plans during the quarter ended March 31, 2025[113](index=113&type=chunk)

Financial Data and Key Metrics Changes - Overall comparable store sales decreased by 4% during the first quarter, attributed to lower store traffic and market conditions [6][12] - Gross margin rate improved to 66%, a 20 basis point increase compared to the first quarter of the previous year, driven by a decrease in inventory write-offs [13] - Operating cash flow generated was $10 million, with cash balance growing to $27.1 million at the end of the quarter [14] Business Line Data and Key Metrics Changes - An increase in tile volume sold was noted, driven by the introduction of competitively priced entry-level products and the Arbor collection of luxury vinyl tile [7][10] - The addition of engineered hardwood and laminate products contributed to volume increases in large format tiles [7] Market Data and Key Metrics Changes - The company faced challenges from lower housing turnover, market volatility, and consumer confidence concerns during the first quarter [6] - The impact of tariff policies on sourcing and pricing was acknowledged, with efforts made to diversify the supplier base across over 25 countries [8] Company Strategy and Development Direction - The company is focused on providing an exceptional customer experience and effectively managing expenses amidst external challenges [6] - Partnerships with leading designers and brands are being expanded to create unique and exclusive tile products [9][10] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the changes made to the product assortment contributing to increased tile volume sold, despite ongoing industry challenges [10] - The company believes it is well-positioned to navigate the current environment with a strong assortment and balance sheet [15] Other Important Information - The company anticipates receiving $2 million in sublease income from a distribution center, which will help reduce SG&A expenses [14] Q&A Session Summary - There were no questions during the Q&A session [18]

Financial Data and Key Metrics Changes - Comparable store sales decreased by 4% during the first quarter, attributed to lower store traffic and the absence of an extra day in 2025 compared to the leap year in 2024, which resulted in an estimated sales loss of approximately $1,000,000 [6][12] - Gross margin rate improved to 66%, representing a 20 basis point increase compared to the first quarter of 2024, driven by a decrease in inventory write-offs [13] - Operating cash flow generated was $10,000,000, with cash balance increasing to $27,100,000 at the end of the quarter [14] Business Line Data and Key Metrics Changes - An increase in tile volume sold was noted, driven by the introduction of competitively priced entry-level products and the Arbor collection of luxury vinyl tile products [6][7] - The assortment of products has been enhanced with the addition of engineered hardwood and laminate products, contributing to improved sales volume [8][10] Market Data and Key Metrics Changes - The company continues to face challenges from lower housing turnover, market volatility, and consumer confidence concerns, which are impacting overall sales [6] - The company has diversified its supplier base across over 25 countries to mitigate risks associated with evolving tariff policies [9] Company Strategy and Development Direction - The company is focused on providing an exceptional customer experience and effectively managing expenses amidst external challenges [6] - Partnerships with leading designers and brands are being leveraged to create unique and exclusive tile products, enhancing the product offering [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the changes made to the product assortment contributing to increased tile volume sold, despite ongoing industry challenges [11] - The company believes it is well-positioned to navigate the current environment with a strong assortment, balance sheet, and talented team [15] Other Important Information - The company anticipates receiving $2,000,000 in sublease income from the distribution space in New Jersey, which will help reduce SG&A expenses [14] Q&A Session Summary Question: No questions were raised during the session - There were no questions from participants during the Q&A session [17]

Exhibit 99.1 THE TILE SHOP REPORTS FIRST QUARTER 2025 RESULTS MINNEAPOLIS – May 8, 2025 – Tile Shop Holdings, Inc. (Nasdaq: TTSH) (the "Company"), a specialty retailer of natural stone, man-made and luxury vinyl tiles today announced results for its first quarter ended March 31, 2025. First Quarter 2025 Summary Net Sales Decreased 4.1% Comparable Store Sales Decreased 4.0% Gross Margin of 66.0% Net Income of $0.2 Million and Adjusted EBITDA of $4.6 Million No Debt Outstanding and $27.1 million of Cash at Qu ...

Financial Performance - Net sales for the first quarter of 2025 decreased by $3.7 million, or 4.1%, compared to the first quarter of 2024, with comparable store sales also declining by 4.0% due to decreased traffic [2][5] - Gross profit decreased by $2.2 million, or 3.7%, but the gross margin rate improved by 20 basis points to 66.0% compared to 65.8% in the prior year, attributed to lower inventory write-offs [6] - Net income for the first quarter of 2025 was $0.2 million, a significant decrease from $1.7 million in the same period of 2024, with adjusted EBITDA falling to $4.6 million from $7.4 million [2][10][27] Operational Insights - The company maintained a gross margin of 66.0% and reported income from operations as a percentage of net sales at 0.2%, down from 2.5% in the previous year [2][28] - Selling, general, and administrative expenses slightly decreased by $0.1 million, primarily due to reductions in depreciation and costs associated with the closure of a distribution center [7] - The company had no debt outstanding and reported cash and cash equivalents of $27.1 million at the end of the quarter, an increase from $21.0 million at the end of 2024 [9][25] Management Strategy - The CEO emphasized the focus on innovation and customer experience, particularly for professional customers, while also addressing cost pressures from recent U.S. trade policy changes, including increased tariffs [3] - The company is evaluating multiple options to manage anticipated cost pressures, including sourcing adjustments and pricing strategies, leveraging a diversified supplier base [3] Market Position - As of March 31, 2025, the company operated 142 stores across 31 states and the District of Columbia, maintaining the same number of stores as the previous year [22] - The company continues to be a specialty retailer of natural stone, man-made, and luxury vinyl tiles, with a commitment to high-quality products and exceptional customer service [22]

Core Viewpoint - Tile Shop Holdings, Inc. is set to release its financial results for the first quarter ended March 31, 2025, on May 8, 2025, at 7:00 a.m. Eastern Time [1] Group 1: Financial Results Announcement - The Company will host a conference call via webcast for investors on May 8, 2025, at 9:00 a.m. Eastern Time [2] - The call will be led by the CEO, CFO, and Investor Relations [2] - A webcast replay will be available on the Company's Investor Relations page [3] Group 2: Disclosure Practices - The Company plans to use its website for disclosing material non-public information in compliance with Regulation FD [4] - Investors are encouraged to monitor the Company's website for updates, press releases, and SEC filings [4] Group 3: Company Overview - Tile Shop is a specialty retailer of natural stone tiles, man-made and luxury vinyl tiles, and related accessories in the U.S. [5] - The Company operates 142 stores across 31 states and the District of Columbia [5] - Tile Shop is affiliated with several industry organizations, including ASID, NAHB, NKBA, and NTCA [6]

Company Overview - Tile Shop Holdings, Inc. is a leading specialty retailer in the United States, offering natural stone, man-made and luxury vinyl tiles, setting and maintenance materials, and related accessories [8] - The company operates 142 stores across 31 states and the District of Columbia, providing a wide selection of high-quality products and exceptional customer service [8] Product Launch - The Alison Victoria Tile collection, initially launched in 2022, has expanded with new products that reflect contemporary color palettes and distinctive details [2][4] - The latest additions include five new products inspired by locations such as California and Paris, featuring designs like "Malibu Edit" and "La Petite" [4][6] Design Inspiration - Alison Victoria draws creative inspiration from her travels, particularly from California coastlines and Paris, which influence her tile designs [5][6] - The "Malibu Edit" features a modern marble mosaic inspired by ocean movements, while "La Petite" captures the romance of Paris through its vintage design elements [6] Collaboration and Brand Partnerships - The Tile Shop collaborates with various renowned designers, including Alison Victoria, Jeffrey Alan Marks, Kelli Fontana, and Nikki Chu, enhancing its exclusive Designer Collections [7]

The latest styles from The Tile Shop and HGTV star are available now, only at tileshop.com and Tile Shop showrooms.MINNEAPOLIS, April 02, 2025 (GLOBE NEWSWIRE) -- Interior designer and HGTV star Alison Victoria has transformed countless spaces with her visionary eye and signature “city chic” style. Now, fans have even more ways to bring Victoria's designs off their screens and into their homes with the latest additions to the exclusive Alison Victoria Tile collection. Initially launched in 2022 and availabl ...

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 ...

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]