Financial Data and Key Metrics Changes - Second quarter sales for comparable stores decreased by 3.5% due to lower levels of store traffic [12] - Gross margin rate during the second quarter was 64.4%, representing a 160 basis point decrease compared to the previous year [13] - Operating cash flow generated during the second quarter was $13.5 million, with cash balance growing to $27.8 million at the end of the quarter [14] Business Line Data and Key Metrics Changes - Unit volume sales showed a modest improvement, but were offset by increased discounting and sales of lower-priced products, impacting average ticket size [6][12] - The company expanded its product assortment, including LVT offerings and large format tiles, contributing to increased square footage volumes [7][8] Market Data and Key Metrics Changes - The housing market remains challenging with historically low turnover levels, impacting the entire industry [6] - The company is not overly reliant on a single country for sourcing, with products sourced from over 20 countries, which helps mitigate tariff risks [9] Company Strategy and Development Direction - The company is focusing on reducing expenses, limiting capital spending, and identifying efficiencies while navigating the challenging housing market [11][14] - New product lines, such as the Signature line, have been launched to appeal to a broader customer base [8] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the adverse effects of the extended difficult housing market on profitability and has made tough decisions to curtail spending [10] - The company believes it is well-positioned to handle evolving tariff policies and is actively monitoring changes [9] Other Important Information - The company closed two distribution centers and one store, with plans for further evaluations to reduce expenses [10][11] - SG&A expenses decreased by $2.1 million compared to the previous year, primarily due to reductions in asset impairment and marketing costs [13] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the Q&A session may have been brief or not included in the records [15]
Tile Shop(TTSH) - 2025 Q2 - Earnings Call Transcript