Tile Shop Hldgs ( (TTSH) ) has released its Q3 earnings. Here is a breakdown of the information Tile Shop Hldgs presented to its investors.
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Tile Shop Holdings, Inc. is a specialty retailer offering a diverse range of natural stone, man-made, and luxury vinyl tiles, along with related accessories, primarily in the United States. The company is known for its high-quality products, exclusive designs, and exceptional customer service, operating 142 stores across 31 states and the District of Columbia.
In its third quarter of 2024, Tile Shop Holdings reported a decrease in net sales by 8.3% to $84.5 million compared to the same period in 2023. The company also saw a decline in comparable store sales by 7.9%. Despite these declines, the gross margin improved slightly to 66.5% due to reduced product costs. The company maintained a strong balance sheet, remaining free of bank debt and holding $25 million in cash.
Key financial metrics highlighted in the report included a net income of $41 thousand, a significant drop from $1.8 million in the previous year, and an adjusted EBITDA of $5.0 million compared to $8.3 million. The company has taken proactive steps to manage expenses by closing its distribution center in New Jersey and reducing staffing levels. These actions are expected to reduce annual SG&A expenses by up to $4.1 million.
Looking ahead, Tile Shop Holdings remains confident in its strategic initiatives, focusing on strengthening its relationship with professional customers, expanding product offerings, and enhancing e-commerce capabilities. The management believes these efforts, along with their strong financial position, will enable the company to navigate current industry challenges and continue serving its customer base effectively both in-store and online.
