Core Viewpoint - Tile Shop Holdings, Inc. (TTSH) has experienced a significant stock price increase of 14.8% following its Q1 2025 earnings report, outperforming the S&P 500 Index's 0.5% rise during the same period [1] Q1 Performance Snapshot - For Q1 2025, Tile Shop reported net sales of $88 million, a decline of 4.1% year over year from $91.7 million [2] - Comparable store sales dropped 4% year over year, attributed to decreased store traffic [2] - Net income fell sharply to $172,000 from $1.7 million in the prior-year period, resulting in diluted earnings per share of $0.00 compared to $0.04 in the prior year [2] Adjusted EBITDA and Margins - Adjusted EBITDA declined 38.4% to $4.6 million, or 5.2% of net sales, down from $7.4 million, or 8.1% of net sales, a year ago [3] - Gross margin improved by 20 basis points to 66% from 65.8%, driven by lower inventory write-offs, partially offset by higher delivery costs [3] Other Key Business Metrics - Total operating income decreased to $183,000 from $2.3 million, compressing the operating margin to 0.2% from 2.5% [4] - Selling, general, and administrative (SG&A) expenses declined 0.3% year over year to $57.9 million from $58 million, primarily due to a decrease in depreciation and costs associated with the closure of a distribution center [4] Cash Position and Capital Employed - Tile Shop ended the quarter with $27.1 million in cash, up from $20.9 million at the end of 2024, with no outstanding debt [5] - Operating cash flow totaled $9.9 million in the quarter compared to $18.6 million in the year-ago period [5] - Pretax Return on Capital Employed fell to 1.2% on a trailing 12-month basis, down from 11.3% a year earlier [5] Management Commentary - CEO Cabell Lolmaugh noted the impact of low housing turnover and macroeconomic headwinds but emphasized a focus on improving customer experience and managing costs [6] - The increase in tile volume sold was attributed to an expanded product assortment, particularly entry-level options and luxury vinyl tile [6] Supplier Diversification Strategy - The company sources from over 25 countries, which is expected to help navigate increased tariffs on certain imported goods [7] - Partnerships with domestic manufacturers are being developed to offset some international sourcing risks [7] Product Mix and Average Ticket Values - Despite a shift in product mix, the company maintained average ticket values due to stronger volumes [8] - New engineered hardwood and laminate products, along with large-format tiles, contributed positively [8] Factors Influencing Financial Performance - The decline in net sales and earnings was primarily driven by lower store traffic and the absence of an extra sales day that benefited the prior-year quarter [9] - The company maintained average ticket size by offsetting lower average selling prices with increased tile volumes [9] Guidance - Tile Shop did not provide formal financial guidance but expressed confidence in the spring selling season and the effectiveness of its inventory strategy and global supplier diversification [11] Other Developments - The company subleased its New Jersey distribution center, expected to yield $2 million in income, with half benefiting SG&A expenses in 2025 [12] - Tile Shop expanded its design collaboration with Alison Victoria to differentiate its product portfolio [13]

Tile Shop (TTSH) Q1 2025 Earnings Call May 08, 2025 09:00 AM ET Company Participants Ken Cooper - Investor RelationsCabby Lolmaugh - CEO & PresidentMark Davis - SVP & CFO Operator Good morning, and welcome to the Quarter One twenty twenty five Tile Shop Holdings Incorporated Earnings Conference Call. This is Franz, and I'll be the operator assisting you today. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you ...

Tile Shop (TTSH) Q1 2025 Earnings Call May 08, 2025 09:00 AM ET Speaker0 Good morning, and welcome to the Quarter One twenty twenty five Tile Shop Holdings Incorporated Earnings Conference Call. This is Franz, and I'll be the operator assisting you today. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star then followed by the number one on your te ...