The Tile Shop Sets New Sales Record In Q1
After kicking off 2016 with a record $84.7 million in first quarter sales, The Tile Shop said Tuesday that it surpassed last year’s numbers, beating them by 9 percent for a total of $92.1 million.
While many retailers industry-wide have declared bankruptcy, closed stores or announced extensive remodel campaigns to counteract flat sales and decreasing foot traffic, The Tile Shop has been steadily rising.
With nine more stores opened since the same time last year, the Plymouth-based natural stone tiles and tiling materials retailer reported a nearly 5 percent increase in same-store sales.
Approximately $4 million of The Tile Shop’s year-over-year sales growth was attributable to its comparable sales increase, the company said.
“We are very pleased to report a strong start to 2017,” said Chris Homeister, CEO of The Tile Shop. In a conference call with investors, he noted that the company’s sub-white tile, faux wood, marble, porcelain, glass and cement tile products were the strongest performers.
In addition, more homeowners and home improvement professionals have been turning to The Tile Shop for outdoor projects involving tile. “We feel that there is a growing trend within home improvement to bring outdoor living for a year round event to most homes, regardless of their climate,” Homeister said. “I feel that this is a natural extension of our business that we can have great success in over time.”
Kirk Geadelmann, chief financial officer of The Tile Shop, said the retailer remains on pace to meet annual goals, including a 40 percent gain in its full-year earnings per share and the opening of up to 15 new stores.
For the three-month period ending March 31, The Tile Shop earned $8.2 million, or 16 cents a share, compared with $7.2 million, or 14 cents a share, during the year-ago period.
“We are excited to build upon our first quarter accomplishments as we seek to deliver significant growth in sales, operating margins and earnings per share throughout 2017,” Homeister added.
Investors responded favorably to The Tile Shop’s report as shares rose 8 percent, or $1.55, from its Monday close of $19.40.