Tile Shop (TTS) Misses Q1 EPS by 4c, Revenues Miss, Comp. Sales Down 4.2%; Board Approves $15M Share Buyback

Tile Shop (NASDAQ: TTS) reported Q1 EPS of $0.03, $0.04 worse than the analyst estimate of $0.07. Revenue for the quarter came in at $86.91 million versus the consensus estimate of $93.58 million.

• Net Sales Decreased 4.6%
• Comparable Store Sales Decreased 4.2%
• Gross Margin Increased to 71.2%
• Net Income of $1.3 million
• Adjusted EBITDA of $11.6 million
• Opened 1 store in Q1
• Board of Directors Approves $15 million Share Repurchase Program
• Dividend of $0.05 per Common Share Declared

Management Commentary

Cabell Lolmaugh, CEO“We implemented two significant new systems in January to position our company for long-term growth. This included our new ERP system on January 1 and our new website platform in mid-January. The conversions to these new systems negatively impacted our traffic, customer experience and sales during the quarter primarily due to challenges with POS functionality, speed and performance. First quarter traffic and sales were also negatively impacted by poor weather conditions in the upper Midwest and in the Northeast. Looking ahead to the remainder of the year, we will focus on improving traffic and sales by featuring our industry leading tile assortment, executing various retail marketing strategies, and working to enhance the performance of our ERP system and website platform.”

Repurchase Program

On April 29, 2019, the Board of Directors of the Company authorized a share repurchase program (the “Share Repurchase Program” or “Program”), pursuant to which the Company may, from time to time, purchase shares of its common stock for an aggregate repurchase price not to exceed $15,000,000. The Program will begin on May 2, 2019 and will continue indefinitely until the full repurchase amount has been utilized or the Board of Directors terminates the Program.

For earnings history and earnings-related data on Tile Shop (TTS) click here.

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