The Tile Shop Continues Double-Digit Revenue, Profit Growth In Q2
The Tile Shop reported double-digit, year-over-year increases in profits and revenue – a positive announcement that adds to its continued string of successes.
The Plymouth-based retailer of natural stone tiles, setting and maintenance materials recorded an 11.3 percent climb in its sales from the same three-month period ending June 30 last year. Across its 117 locations in 31 states, The Tile Shop racked up $84.3 million in net sales compared to $75.7 million prior.
Nearly three-quarters of that $8.6 million growth was attributable to same-store sales, or stores open for a year or more. Altogether, the retailer’s same-store sales were up 8.2 percent from a year ago.
Profits leaped 52.5 percent from $4.5 million in the 2015 period to $6.8 million most recently.
“We are pleased to report a second quarter with very strong results for our business,” Chris Homeister, CEO of The Tile Shop, said in a statement. “We continue to deliver against our key initiatives and the outcome was another quarter with outstanding sales performance and significant earnings growth.”
One of those initiatives, Homeister noted, has been to reduce the required costs to open new locations. So far this year, that effort has been successful. Of the six store openings in 2016, the historical $1.4 million investment to build a store has dropped 20 percent, or approximately $280,000.
“A significant amount of time and effort has been placed against reducing the capital outlay associated with our new store openings,” Homesiter said. “Our latest openings give us confidence in building new stores.”
During the next three months, the company said it would relocate its Coon Rapids store to Maple Grove.
On Tuesday, The Tile Shop also unveiled its new digital shopping experience called Design Studio. The application, which can be used in store or on desktop and mobile devices, allows shoppers to digitally map rooms within their house and then superimpose tile patterns on surfaces within the room.
“With our new design tool, we have significantly improved our capability to simplify the design process for our customers while also bringing their customized ideas to life in an innovative way,” Homeister said. “We know consumers want added confidence in their tile selections, and this delivers on that need.”
News of both The Tile Shop’s second quarter report and new design app sunk its shares by nearly 10 percent, or $1.91. The company closed Tuesday with its stock priced at $17.84.