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 ...

Elevator Pitch Tile Shop Holdings, Inc. (NASDAQ:TTSH) shares are rated as a Buy. My prior article published on March 6, 2024 analyzed Tile Shop's financial results for the final quarter of last year. The current update focuses on the key growth drivers for TTSH. I stick with a Buy rating for Tile Shop, as I have a positive view of the growth outlook for the company's e-commerce channel and its new product offerings. Online Sales Channel Has Potential For Expansion My opinion is that Tile Shop's e-commerce b ...

Financial Data and Key Metrics Changes - First quarter sales in comparable stores decreased by 10.2% due to lower levels of store traffic, with an estimated $1 million increase in sales attributed to an extra day in the leap year [22] - Gross margin rate during the first quarter was 65.8%, representing a 160 basis point increase compared to the first quarter of 2023 [16] - The company generated $18.6 million of operating cash flow and ended the quarter with a $24 million cash balance, carrying no debt [23] Business Line Data and Key Metrics Changes - The company is focused on growing sales of LVT and backshelf products, which have a lower gross margin rate profile compared to tile products [8] - E-commerce sales increased by over 25% during the first quarter of 2024 compared to the same period in 2023, with e-commerce sales now comparable to one of the larger stores [20] Market Data and Key Metrics Changes - The company observed weakness in existing home sales, which negatively impacted traffic in stores during the first quarter of 2024 [19] - International freight rates have recently increased due to reduced water levels in the Panama Canal and hostilities in the Red Sea, which may pressure gross margin rates in the coming quarters [16] Company Strategy and Development Direction - The company intends to enhance relationships with professional customers, expand product offerings for middle market customers, and invest in e-commerce capabilities [14] - The introduction of competitively priced tile products is aimed at appealing to customers completing smaller remodel projects on a budget [5] Management's Comments on Operating Environment and Future Outlook - Management noted that macroeconomic challenges have adversely affected top line results, but the strong relationships with professional customers have helped mitigate some impacts [19] - The company believes it is well-positioned to navigate industry challenges and achieve continued growth as macro pressures ease [14] Other Important Information - The company plans to relaunch its private label superior line of backshelf products, which includes in-house manufactured items [13] - SG&A expenses for the first quarter were $58 million, a decrease of $3.4 million compared to the first quarter of 2023 [8] Q&A Session Summary - No specific questions and answers were provided in the content, as the call concluded without a detailed Q&A segment [17][18]

Financial Performance - Net sales for the first quarter of 2024 were $91.7 million, a decrease of $10.3 million, or 10.1%, compared to the first quarter of 2023 [79]. - Net income for Q1 2024 was $1.7 million, representing 1.8% of sales, down from $2.5 million (2.5% of sales) in Q1 2023 [88]. - Adjusted EBITDA for Q1 2024 was $7.4 million (8.1% of sales), compared to $10.3 million (10.1% of sales) in Q1 2023 [88]. - Comparable store sales decreased by 10.2% during the three months ended March 31, 2024, attributed to lower traffic levels [69]. Profitability and Margins - Gross profit decreased by $5.2 million, or 8.0%, in the first quarter of 2024, with a gross margin rate of 65.8% compared to 64.2% in the first quarter of 2023 [80]. - Gross margin rate improved by 160 basis points from the first quarter of 2023 to 65.8% for the three months ended March 31, 2024 [71]. - Pretax return on capital employed decreased to 11.3% in Q1 2024 from 15.2% in Q1 2023 [89]. Expenses and Cash Flow - Selling, general and administrative expenses decreased by $3.4 million, or 5.5%, from $61.4 million in the first quarter of 2023 to $58.0 million in the first quarter of 2024 [81]. - Operating cash flow generated during the three months ended March 31, 2024, was $18.6 million, with cash and cash equivalents increasing to $24.0 million [73]. - Net cash provided by operating activities was $18.6 million in Q1 2024, a decrease from $25.8 million in Q1 2023, mainly due to a prior year tax refund [99]. Assets and Capital Expenditures - Total assets as of March 31, 2024, were $322.7 million, down from $346.7 million in 2023 [89]. - Capital expenditures for Q1 2024 were $2.7 million, down from $3.4 million in Q1 2023, primarily for new stores and technology investments [96]. - Working capital increased to $39.0 million as of March 31, 2024, compared to $35.8 million at December 31, 2023 [102]. Debt and Liquidity - The company had no borrowings outstanding on its line of credit as of March 31, 2024 [73]. - The company had no borrowings outstanding on its line of credit as of March 31, 2024, with $73.6 million available for borrowing [94]. - The company expects to use its liquidity for maintaining existing stores and purchasing additional merchandise inventory [90]. Tax and Interest - Interest expense decreased from $0.8 million in the first quarter of 2023 to $0.2 million in the first quarter of 2024 [82]. - The effective tax rate decreased to 20.2% in the first quarter of 2024 from 24.5% in the first quarter of 2023 [83]. Store Operations - The company operated 142 stores across 31 states and the District of Columbia as of March 31, 2024 [67].

Exhibit 99.1 THE TILE SHOP REPORTS FIRST QUARTER 2024 RESULTS MINNEAPOLIS – May 9, 2024 – 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, 2024. First Quarter 2024 Summary Net Sales Decreased 10.1% Comparable Store Sales Decreased 10.2% Gross Margin of 65.8% Net Income of $1.7 Million and Adjusted EBITDA of $7.4 Million Diluted Earnings per Share of $0.04 Cash Provided ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ Annual report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2023 or ☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number: 001-35629 TILE SHOP HOLDINGS, INC. (Exact name of registrant as specified in its charter) Delaware 45-5538095 (State or other jur ...

Tile Shop Holdings, Inc. (NASDAQ:TTSH) Q4 2023 Earnings Conference Call February 29, 2024 9:00 AM ET Company Participants Mark Davis - Vice President, Investor Relations and Chief Accounting Officer Cabell Lolmaugh - President and Chief Executive Officer Karla Lunan - Senior Vice President and Chief Financial Officer Conference Call Participants Operator Good day, and thank you for standing by. Welcome to the Fourth Quarter 2023 Tile Shop Holdings, Inc. Earnings Conference Call. [Operator Instructions] Plea ...

Exhibit 99.1 THE TILE SHOP REPORTS FOURTH QUARTER AND FULL-YEAR 2023 RESULTS MINNEAPOLIS – February 29, 2024 – 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 fourth quarter and full-year ended December 31, 2023. Fourth Quarter 2023 Summary Net Sales Decreased 3.4% Comparable Store Sales Decreased 3.2% Gross Margin of 64.7% Net Income of $0.6 Million; Adjusted EBITDA of $6.6 Million Diluted Earni ...

Tile Shop Holdings, Inc. (NASDAQ:TTSH) Q3 2023 Earnings Conference Call November 2, 2023 9:00 AM ET Company Participants Mark Davis - Vice President, Investor Relations and Chief Accounting Officer Cabell Lolmaugh - President and Chief Executive Officer Karla Lunan - Senior Vice President and Chief Financial Officer Conference Call Participants Maxwell Michaelis - Lake Street Capital Markets Operator Good day. And thank you for standing by. Welcome to the Quarter Three 2023 Tile Shop Holdings, Inc. Earnings ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________ FORM 10-Q _____________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2023 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from – to – Commission file number: 001-35629 _____________________________ TILE SHOP HOLDINGS, INC ...