The Tile Shop Reports Double-Digit Sales Jump In Q4
The Tile Shop capped off 2015 with double-digit sales growth in its fourth quarter and expects the momentum to carry into this year, the company said Tuesday.
In the three-month period ending December 31, 2015, net sales at The Tile Shop grew 13.5 percent to $71.9 million. During the same span of time in 2014, sales were $63.3 million.
The company also reported profits of $3.8 million and earnings of 8 cents per share—one cent more than what analysts surveyed by Zacks Investment Research had predicted.
The Plymouth-based retailer of tiling and home maintenance materials also said its stores have seen a range of growth, carried largely by its newer locations.
“We talk about what’s been driving growth of our stores by class, or which year they were opened,” said Tile Shop spokesman Adam Hauser. “The 2013 class had high teens to 20 percent growth, and the 2014 class has seen sales growth of 50 percent or more. As for the last two quarters, our more mature stores—stores opened from 2012 or earlier—have had mid-single digit increases.”
Hauser said The Tile Shop plans to continue training its workforce while improving its sales on the “pro” market—a term designated for regular Tile Shop customers, such as designers or contractors—which make up roughly one-third of its transactions.
Faux wood, white marble, subway tile, and glass tile have been the company’s top-selling surfaces, according to Hauser.
“We’ve also seen strength across most geographies. It hasn’t been isolated favorability,” he said of The Tile Shop’s 114 stores in 31 states.
The tiling retailer is expecting 2016 net sales of $312 million to $325 million, a 9.5 percent increase from 2015’s sales of $293 million. The Tile Shop also said it would open up to a dozen new locations this year.
Last December, TCB named The Tile Shop a “Company To Watch” in 2016.