Tile Shop Holdings, Inc. (NASDAQ: TTS) released subpar earnings today, leading to a 25% slide in the stock price and concerns about the future.
The tile shop has fallen below its 200-day moving average, as well as reached an 8-month low today after reporting an EPS of $0.14 and comparable store growth of 0.5%. Investors were not pleased with the company missing both Street expectations for EPS, $0.16, as well as recording upsettingly low comparable store growth numbers. To ground it, Tile Shop had comparable store sales growth of 8.2% this time last year.
“Despite the topline shortfall, we were pleased to deliver solid growth in earnings per share in the quarter, generate significant free cash flow to reduce debt to the lowest level in five years and continue to successfully open new stores, with seven stores opened year to date and an additional seven to eight scheduled to open in the second half of the year,” said Chris Homeister, CEO of Tile Shop Holdings Inc.
The company’s growth has also stagnated, even with new locations opening up, with an adjusted EBITDA growth of 0.8% and a net sales growth of 6.2%.
Tile Shop has also released guidance for 2017, with an EPS estimation of $0.48 - $0.55, even though the Street is expecting $0.56. With more stores planned to be opened this year, these numbers may yet be hit, but chances are the Tile Shop is in for a hard 2017.
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