Tile Shop profit meets, revenue beats Street in Q2; plans new stores

Plymouth Minn. – Tile Shop Holdings Inc. had a successful second quarter of fiscal 2015, meeting Wall Street expectations for profit and beating them for revenue. Net income rose 20% to $4.8 million from $4 million the same period a year earlier, with higher pretax income compensation for increased expenses related to the opening of 12 new stores.



Net sales grew 14% to $75.7 million from $66.7 million, driven partially by revenue from new stores open less than 12 months. Same-store sales rose 6%. The retailer plans to open seven to eight new stores during the fiscal year.



"We are pleased to report a strong second quarter that continued to show positive returns on our key initiatives," said Chris Homeister, CEO. "Consistent with our first quarter, another sequential improvement in comparable store sales growth, sound expense control, working capital management, strong operating cash flow and continued improvement in key talent metrics all contributed to strong top and bottom line results in the second quarter."



During fiscal 2015, Tile Shop expects net sales to grow from $257.2 million in fiscal 2014 to $280 million - $290 million. Same-store sales are expected to grow in the mid-single-digits.