Tile Shop Holdings Reports 2024 Financial Results

Tile Shop Hldgs ( (TTSH) ) has released its Q4 earnings. Here is a breakdown of the information Tile Shop Hldgs presented to its investors.

Tile Shop Holdings, Inc., a specialty retailer of natural stone, man-made, and luxury vinyl tiles, operates in the home improvement sector with 142 stores across 31 states and the District of Columbia. The company has reported its financial results for the fourth quarter and full-year 2024, highlighting a challenging year with a decline in net sales and comparable store sales. Despite these challenges, Tile Shop Holdings maintained a strong gross margin and ended the year with no debt and a healthy cash position.

In the fourth quarter of 2024, Tile Shop Holdings experienced a 5.9% decrease in net sales and a 5.8% decline in comparable store sales compared to the same period in 2023. The company reported a net loss of $0.6 million for the quarter, translating to a net loss per share of $0.01. For the full year, net sales decreased by 8.0%, and comparable store sales declined by 7.8%. However, the company achieved a gross margin of 65.7% and a net income of $2.3 million, with diluted earnings per share of $0.05.

The company’s management attributed the sales decline to reduced customer traffic, partially offset by an increase in average order value. The gross margin benefited from lower international freight rates and cost reductions with suppliers, although inventory write-offs related to assortment transitions impacted the margin. Selling, general, and administrative expenses saw a reduction due to lower depreciation, compensation, and marketing costs, despite increased occupancy and IT expenses.

Looking ahead, Tile Shop Holdings’ management remains optimistic about the company’s position in the market. CEO Cabell Lolmaugh emphasized the steps taken to enhance product lines and expand offerings, which are expected to position the company well for future opportunities in 2025.