The Tile Shop’s Q1 Results Send Shares Soaring
The Tile Shop stock price jumped on Tuesday morning following news that the company’s first quarter sales grew 16 percent and profits nearly doubled from a year ago.
The Plymouth-based retailer of natural stone tiles, setting and maintenance materials reported sales of $84.7 million in the three-month period ending March 31—an $11.7 million year-over-year increase. The Tile Shop also started off the year with $7.2 million in net income, a significant improvement from the $4 million it reported in the first quarter of 2015.
Its same-store sales were a strong reason for its growth with a 13.2 percent year-over-year rise, amounting to $9.6 million of the quarter’s sales.
The Tile Shop also opened two new stores in Atlanta and Deptford, New Jersey during the first quarter—the first two openings in a set of 9 to 12 new stores the company plans to introduce this year. (Currently, The Tile Shop operates 116 stores in 31 states.)
“Our continued efforts against key initiatives concluded with another quarter of very strong results and significant momentum for the business,” Chris Homeister, CEO of The Tile Shop, said in a statement.
From its Monday close at $15.95, company stock rose roughly 14 percent or $2.20 per share to $18.15 by mid-day Tuesday.
With its quarterly release, the company also increased its full-year outlook, estimating it would take in sales of $320 million to $329 million in 2016 and earnings per share of 40 cents to 45 cents.
We are eager to build upon our first quarter accomplishments,” Homeister added, “as we seek to deliver significant growth in sales, operating margins and earnings per share throughout the remainder of 2016 and beyond.”
The Tile Shop was picked by a Piper Jaffray analyst as a company to keep an eye on this year as part of TCB’s Companies To Watch In 2016 list.