We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Tile Shop Holdings, Inc. (TTSH - Free Report) reported earnings per share of 3 cents in the second quarter of 2024, which decreased 75% from the year-ago quarter’s figure of 12 cents.
Revenues in Detail
Tile Shop registered revenues of $91.4 million in the second quarter, down 7.3% year over year.
Comparable stores sales decreased 6.9% year over year in the second quarter of 2024, primarily due to a decline in traffic. This resulted from continued softness in existing home sales and resulting lower traffic in Tile Shop’s stores.
Tile Shop Holdings, Inc. Price, Consensus and EPS Surprise
In the quarter under review, Tile Shop’s gross profit declined 4.7% to $60.3 million. The gross margin increased to 66% in the second quarter of 2024 from 64.2% in the year-ago period. The 179 basis points (bps) expansion in the gross margin was primarily on the back of decreases in product costs.
Operating Expenses Analysis
Selling, general and administrative expenses increased 5.2% to $3.5 million.
Profitability
The operating income totaled $1.9 million, which decreased 76.1% from the prior-year quarter. The operating margin in the second quarter contracted 582 basis points to 2%.
In the second quarter, Tile Shop’s net income was $1.2 million, down 75.9% from the year-ago quarter.
Adjusted EBITDA during the reported quarter was $6.7 million, down 50.4% from the year-ago quarter.
Liquidity & Debt Management
Tile Shop exited second-quarter 2024 with cash and cash equivalents of $25.3 million compared with $24 million at the first-quarter end.
Cumulative net cash provided by operating activities at the end of second-quarter 2024 was $23.5 million compared with $41.4 million a year ago.
Our Take
Tile Shop exited the second quarter of 2024 with dismal top-line and bottom-line results. The decline in comparable stores sales was also discouraging. The operating margins contraction during the quarter did not bode well.
On a positive note, the sequential improvement in Tile Shop’s comparable store sales results was impressive. The gross margin expansion during the quarter bodes well. Encouraging early results from recent actions to enhance the company’s Superior line of installation products and expand the selection of tile products that cater to customers seeking to complete smaller projects raise our optimism.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Tile Shop (TTSH) Q2 Earnings Decline Y/Y, Gross Margin Expands
Tile Shop Holdings, Inc. (TTSH - Free Report) reported earnings per share of 3 cents in the second quarter of 2024, which decreased 75% from the year-ago quarter’s figure of 12 cents.
Revenues in Detail
Tile Shop registered revenues of $91.4 million in the second quarter, down 7.3% year over year.
Comparable stores sales decreased 6.9% year over year in the second quarter of 2024, primarily due to a decline in traffic. This resulted from continued softness in existing home sales and resulting lower traffic in Tile Shop’s stores.
Tile Shop Holdings, Inc. Price, Consensus and EPS Surprise
Tile Shop Holdings, Inc. price-consensus-eps-surprise-chart | Tile Shop Holdings, Inc. Quote
Tile Shop Gross Margin
In the quarter under review, Tile Shop’s gross profit declined 4.7% to $60.3 million. The gross margin increased to 66% in the second quarter of 2024 from 64.2% in the year-ago period. The 179 basis points (bps) expansion in the gross margin was primarily on the back of decreases in product costs.
Operating Expenses Analysis
Selling, general and administrative expenses increased 5.2% to $3.5 million.
Profitability
The operating income totaled $1.9 million, which decreased 76.1% from the prior-year quarter. The operating margin in the second quarter contracted 582 basis points to 2%.
In the second quarter, Tile Shop’s net income was $1.2 million, down 75.9% from the year-ago quarter.
Adjusted EBITDA during the reported quarter was $6.7 million, down 50.4% from the year-ago quarter.
Liquidity & Debt Management
Tile Shop exited second-quarter 2024 with cash and cash equivalents of $25.3 million compared with $24 million at the first-quarter end.
Cumulative net cash provided by operating activities at the end of second-quarter 2024 was $23.5 million compared with $41.4 million a year ago.
Our Take
Tile Shop exited the second quarter of 2024 with dismal top-line and bottom-line results. The decline in comparable stores sales was also discouraging. The operating margins contraction during the quarter did not bode well.
On a positive note, the sequential improvement in Tile Shop’s comparable store sales results was impressive. The gross margin expansion during the quarter bodes well. Encouraging early results from recent actions to enhance the company’s Superior line of installation products and expand the selection of tile products that cater to customers seeking to complete smaller projects raise our optimism.