Tile Shop Q2 sales fall 3.4%, gross margin down
Overview
Tile Shop Q2 net sales fall 3.4%, comparable store sales down 3.5%
Co's gross margin declines to 64.4% due to higher discounting and costs
Tile Shop ends Q2 with $27.8 mln cash, no debt outstanding
Outlook
Company sees pressure from low housing turnover affecting store traffic
Tile Shop aims to broaden customer appeal with refined product assortment
Company anticipates annualized benefit of $1 mln from distribution center closure
Result Drivers
PRODUCT ASSORTMENT - Expanded entry-level product assortment led to modest improvement in unit volumes, per CEO Cabell Lolmaugh
LOWER SELLING PRICES - Increased demand for lower-priced products and discounting offset volume gains
HOUSING TURNOVER - Historic lows in housing turnover pressured store traffic and comparable store sales
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales |
| $88.26 mln |
|
Q2 EPS |
| $0.01 |
|
Q2 Net Income |
| $392,000 |
|
Q2 Adjusted EBITDA |
| $4.94 mln |
|
Q2 Gross Margin |
| 64.4% |
|
Press Release: ID:nGNXcbVtty
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