Tile Shop posts 4.3% same store sales growth

The Tile Shop had good results for its first fiscal quarter of 2015, with double-digit sales growth and steady progress in other key areas. But with the housing market rebounding, one may wonder why sales weren't even stronger.

"We are pleased to report a strong first quarter that signals solid early returns on our key initiatives," said Chris Homeister, CEO. "Positive comparable store sales growth, continued gross margin strength, working capital management, strong operating cash flow, improvement in key talent metrics and sound expense control all contributed to strong bottom line results in the quarter."

Net sales for the quarter ended March 31 were up 13.3% at $73.0 million, compared to $64.4 million during the first quarter of 2014. Comparable store sales growth rose 4.5% or $2.9 million, which, in addition to incremental net sales of $5.7 million, contributed to the sales growth. Net income for the quarter was $3.95 million, down from $4.39 million in the year-ago period. Additionally, there were two new store openings last quarter in brand new markets: Tampa, Florida; and Altamonte Springs, Florida.

The Tile Shop also managed to accomplish an $18.4 million reduction of debt (approximately 20%). The company said it was reaffirming its previous full-year fiscal guidance of net sales in the range of $275 million to $290 million, as well as eight to 10 new store openings.

With the opening of the two new locations, The Tile Shop now operates 109 locations in 31 states.