Tile Shop(TTSH)

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TTSH Stock Gains Despite Y/Y Q3 Earnings Decline, Gross Margin Expands
ZACKS· 2024-11-07 17:35
Core Insights - Tile Shop Holdings, Inc. (TTSH) reported breakeven earnings per share (EPS) in Q3 2024, compared to an EPS of 4 cents in the same quarter last year [1] Revenue Performance - TTSH registered revenues of $84.5 million in Q3 2024, reflecting an 8.3% decline year over year [2] - Comparable store sales decreased by 7.9% year over year, primarily due to reduced customer traffic [2] Gross Margin Analysis - Gross profit for Tile Shop declined by 5.6% year over year to $56.2 million [3] - The gross margin improved to 66.5% in Q3 2024 from 64.7% in the prior year, marking a 187 basis points expansion attributed to lower product costs [3] Operating Expenses - Selling, general, and administrative expenses decreased by 1.3% year over year to $55.9 million [4] Profitability Metrics - Operating income totaled $0.3 million, a significant decrease of 91.2% from the previous year [5] - The operating margin contracted by 278 basis points to 0.3% [5] - Net income was $0.04 million compared to $1.8 million in the same quarter last year [5] - Adjusted EBITDA for the quarter was $5 million, down 38.9% year over year [5] Liquidity and Cash Flow - Tile Shop ended Q3 2024 with cash and cash equivalents of $25.1 million, slightly down from $25.3 million at the end of Q2 [6] - Cumulative net cash provided by operating activities was $28.5 million, down from $56.2 million a year ago [6] Overall Assessment - The company experienced disappointing top-line and bottom-line results in Q3 2024, with a concerning decline in comparable store sales and operating margin contraction [7] - However, the expansion in gross margin is a positive sign, and management is enhancing e-commerce capabilities despite ongoing challenges in the home improvement industry [7]
Tile Shop(TTSH) - 2024 Q3 - Quarterly Results
2024-11-07 12:30
Financial Performance - Net sales for Q3 2024 decreased by $7.6 million, or 8.3%, compared to Q3 2023, with comparable store sales down 7.9% due to decreased traffic[5] - Net income for Q3 2024 was $41 thousand, a significant decline from $1.8 million in Q3 2023[3] - Adjusted EBITDA for Q3 2024 was $5.0 million, down from $8.3 million in Q3 2023, representing 6.0% of net sales[10] - Net sales for the three months ended September 30, 2024, were $84.5 million, a decrease of 8.7% compared to $92.1 million for the same period in 2023[25] - Net income for the nine months ended September 30, 2024, was $2.9 million, a significant decrease from $9.4 million in the same period of 2023[25][27] Cost and Margin Analysis - Gross margin improved to 66.5% in Q3 2024 from 64.7% in Q3 2023, primarily due to decreases in product costs[6] - 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[6] - Gross profit for the nine months ended September 30, 2024, was $176.9 million, down from $188.4 million in the same period of 2023, reflecting a gross margin rate of 66.1% compared to 64.4%[25][26] - Selling, general and administrative expenses for the nine months ended September 30, 2024, were $172.5 million, slightly down from $173.7 million in the same period of 2023[25] Operational Efficiency - The company anticipates annualized SG&A expense reductions of $2.8 million to $4.1 million from recent operational adjustments, including closing a distribution center[7] - The company plans to continue focusing on operational efficiency and cost management to improve profitability in the upcoming quarters[25] Cash and Assets - The company remains debt-free with $25.1 million in cash and no borrowings on its $75 million line of credit as of September 30, 2024[9] - Cash and cash equivalents rose to $25.1 million as of September 30, 2024, from $8.6 million at December 31, 2023[24][27] - Total current assets increased to $123.2 million as of September 30, 2024, compared to $114.6 million at December 31, 2023[24] Tax and Liabilities - The effective tax rate increased to 77.0% in Q3 2024 from 22.4% in Q3 2023, largely due to a decrease in pre-tax income[8] - Total liabilities increased slightly to $197.5 million as of September 30, 2024, compared to $197.0 million at December 31, 2023[24] Store Operations - The number of stores open at the end of Q3 2024 was 142, unchanged from the previous year[3] - Pretax Return on Capital Employed was 4.8% for the trailing twelve months as of Q3 2024, down from 12.4% in the prior year[13]
The Tile Shop to Host Third Quarter 2024 Earnings Conference Call
GlobeNewswire News Room· 2024-10-31 21:00
Core Viewpoint - Tile Shop Holdings, Inc. will release its financial results for the third quarter ended September 30, 2024, on November 7, 2024, at 7:00 a.m. Eastern Time [1] Group 1: Financial Results Announcement - The Company will host a conference call via webcast for investors starting at 9:00 a.m. Eastern Time on November 7, 2024 [2] - The call will be led by the Chief Executive Officer, Chief Financial Officer, and Investor Relations [2] - A webcast of the call can be accessed through the Company's Investor Relations page [3] Group 2: Disclosure Practices - The Company intends 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 United States [5] - The Company operates 142 stores across 31 states and the District of Columbia [5] - Tile Shop is a member of several industry associations, including ASID, NAHB, NKBA, and NTCA [6]
The Tile Shop Announces New Additions to Exclusive Annie Selke Tile Collaboration
GlobeNewswire News Room· 2024-10-24 22:35
Core Insights - The Tile Shop has expanded its collaboration with Annie Selke Companies by introducing two new tile designs, "Botanical" and "Bloom," adding a total of five new products to their collection [1][2][3] - The Annie Selke Tile collection, launched in 2019, now features over 120 unique products, making it the retailer's most extensive designer collaboration [1][4] About the New Designs - **Botanical**: This 6" x 6" square porcelain tile features vibrant leaf shapes in hues of green, olive, and chartreuse, ideal for kitchen backsplashes or bathrooms, with a matte finish to prevent slipping [2][3] - **Bloom**: A 12" x 14" porcelain mosaic tile with curved shapes and a textured surface, available in four colors: Barely Blue, Coconut, Vapor Blue, and White, designed to complement other tiles in the collection [3] Company Overview - Tile Shop Holdings, Inc. operates 142 stores across 31 states and the District of Columbia, specializing in natural stone, man-made, and luxury vinyl tiles, along with related accessories [4] - The company is a member of several industry associations, including the American Society of Interior Designers (ASID) and the National Kitchen and Bath Association (NKBA) [4] About Annie Selke - The Annie Selke Companies, founded in 1994, has been a leader in home décor, known for its innovative designs and collaborations with renowned designers [5]
The Tile Shop and Morris & Co. Expand Collaboration With Exclusive New Tile Designs
GlobeNewswire News Room· 2024-09-16 20:44
Company Overview - Morris & Co. is a British heritage brand founded by William Morris in 1861, known for its influential Arts & Crafts designs [9] - The company became part of Sanderson & Sons in 1940 and continues to produce designs inspired by its extensive archive [10] Product Launch - The Tile Shop has expanded its exclusive collaboration with Morris & Co. by introducing new tile designs that incorporate iconic patterns from William Morris's wallpaper [1][2] - The latest additions include the St. James Ceiling and Willow Boughs patterns, which were originally designed in 1881 and 1887, respectively [2] Design Features - The St. James tile is an 8" x 8" matte ceramic tile featuring an ornate floral pattern, available in two colorways: WANDLE RIVER and FARRINGDON GREY [4] - The Hawkdale Willow Olive tile is a glossy 3" x 9" ceramic tile with five unique willow branch patterns, allowing for versatile installation options [5] Retail Presence - The Tile Shop operates 142 stores across 31 states and the District of Columbia, offering a wide selection of high-quality tiles and exceptional customer service [7] - The Morris & Co. Tile collection is available exclusively at tileshop.com and all Tile Shop locations in the U.S. [6]
Tile Shop(TTSH) - 2024 Q2 - Earnings Call Transcript
2024-08-10 01:32
Financial Data and Key Metrics - Comparable store sales decreased by 6.9% in Q2 2024 compared to Q2 2023 due to lower store traffic, but improved by 330 basis points sequentially [7] - Gross margin rate increased to 66% in Q2 2024, up 20 basis points from Q1 2024 and 180 basis points from Q2 2023 [7] - SG&A expenses increased by $2.9 million in Q2 2024 compared to Q2 2023, driven by higher bonus, occupancy, IT, and marketing expenses, partially offset by decreases in depreciation and variable compensation expenses [8] - The company ended the quarter with $25.3 million in cash and no bank debt, generating $23.5 million in operating cash flow as of June 30, 2024 [9] Business Line Data and Key Metrics - The company launched an enhanced line of private label installation products under the Superior brand, targeting both professional and retail customers [4] - Sales of entry-level priced products are tracking in line with goals, with expectations to build on this success in the second half of the year [6] - Online orders grew by over 25% in Q2 2024 compared to Q2 2023, driven by investments in e-commerce capabilities and increased traffic and conversion rates on the website [6] Market Data and Key Metrics - The company faced challenges due to softness in existing home sales trends, which impacted traffic in stores [4] - International freight rates have fallen, allowing the company to secure products at lower price points, reducing inventory costs [7] Company Strategy and Industry Competition - The company is focusing on deepening relationships with professional customers through the Superior product line, aiming to capture a larger share of the tile installation products market [5] - Expansion of entry-level priced products is part of the strategy to attract middle-market customers and strengthen competitive positioning with professionals [6] - Investments in e-commerce capabilities are seen as a long runway for continued growth [6] Management Commentary on Operating Environment and Future Outlook - Management acknowledged external headwinds but highlighted progress on key initiatives, including product quality improvements and e-commerce growth [4][6] - The company believes it is well-positioned to navigate current challenges with a strong team, balance sheet, and customer service enhancements [9] Other Important Information - The company recorded $900,000 in asset impairment charges related to the write-down of certain store assets [8] - Non-GAAP financial measures were discussed, with reconciliations provided in the earnings release and on the company website [3] Q&A Session Summary - No specific questions or answers were provided in the transcript [9]
Tile Shop (TTSH) Q2 Earnings Decline Y/Y, Gross Margin Expands
ZACKS· 2024-08-09 17:50
Core Insights - Tile Shop Holdings, Inc. reported a significant decline in earnings per share, dropping 75% to 3 cents in Q2 2024 from 12 cents in the same quarter last year [1] - The company experienced a 7.3% year-over-year decrease in revenues, totaling $91.4 million in Q2 2024 [2] - Comparable store sales fell by 6.9% year-over-year, attributed to reduced traffic due to ongoing softness in existing home sales [2] Revenue Analysis - Tile Shop's gross profit decreased by 4.7% to $60.3 million, while the gross margin improved to 66% from 64.2% year-over-year, reflecting a 179 basis points expansion due to lower product costs [3] - Selling, general and administrative expenses rose by 5.2% to $3.5 million [4] Profitability Metrics - Operating income fell 76.1% to $1.9 million, with the operating margin contracting by 582 basis points to 2% [5] - Net income for the quarter was $1.2 million, down 75.9% from the previous year [5] - Adjusted EBITDA decreased by 50.4% to $6.7 million compared to the same quarter last year [5] Liquidity and Cash Flow - At the end of Q2 2024, Tile Shop had cash and cash equivalents of $25.3 million, an increase from $24 million at the end of Q1 2024 [6] - Cumulative net cash provided by operating activities was $23.5 million, down from $41.4 million a year ago [6] Overall Assessment - The company faced disappointing top-line and bottom-line results, with a concerning decline in comparable store sales and operating margin contraction [7] - However, there was a sequential improvement in comparable store sales, and gross margin expansion is viewed positively [8] - Early results from initiatives to enhance the Superior line of installation products and expand tile product offerings for smaller projects are encouraging [8]
The Tile Shop to Host Second Quarter 2024 Earnings Conference Call
Newsfilter· 2024-08-01 21:30
Core Points - Tile Shop Holdings, Inc. will release its financial results for the second quarter ended June 30, 2024, on August 8, 2024, at 7:00 a.m. Eastern Time [1] - A conference call for investors will take place on the same day at 9:00 a.m. Eastern Time, hosted by the CEO, CFO, and Investor Relations [2] - The conference call can be accessed via the Company's Investor Relations page or by dialing specific phone numbers for participants [3] Company Overview - Tile Shop is a leading specialty retailer in the U.S. for natural stone, man-made and luxury vinyl tiles, as well as related materials and accessories [5] - The Company operates 142 stores across 31 states and the District of Columbia, offering a wide selection of high-quality products and exceptional customer service [5] - Tile Shop is affiliated with several industry organizations, including ASID, NAHB, NKBA, and NTCA [6]
The Tile Shop to Host Second Quarter 2024 Earnings Conference Call
GlobeNewswire News Room· 2024-08-01 21:30
MINNEAPOLIS, Aug. 01, 2024 (GLOBE NEWSWIRE) -- Tile Shop Holdings, Inc. (Nasdaq: TTSH) (the "Company"), a specialty retailer of natural stone, man-made and luxury vinyl tiles, setting and maintenance materials and related accessories, today announced that the Company will release financial results for the second quarter ended June 30, 2024 at 7:00 a.m. Eastern Time on Thursday, August 8, 2024. The Company will host a conference call via webcast for investors and other interested parties beginning at 9:00 a. ...
Zacks Initiates Coverage of Tile Shop With Neutral Recommendation
ZACKS· 2024-07-16 16:40
Tile Shop's stock has significantly outperformed its industry peers but has underperformed the broader market over the past year. Currently trading at low valuation multiples relative to industry standards, the stock presents a potential upside for investors, particularly when considering TTSH's strategic market positioning and potential for profitability improvements. Tile Shop, headquartered in Plymouth, MN, is a specialty retailer of natural stone, man-made and LVT, setting and maintenance materials, and ...