Tile Shop tops Q3 estimates

The surge in home improvement projects is helping fuel sales at The Tile Shop.



Tile Shop Holdings Inc. on Tuesday reported third-quarter profit of $4.6 million for the third quarter, ended Sept. 30. Earnings, adjusted for non-recurring costs, came to 10 cents per share.



The results topped Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 9 cents per share.



The wall and flooring retailer said its net sales grew 8.5% to $78.6 million in the quarter, also exceeding Street forecasts. Same-store sales increased 5.7%.



“We are pleased to report another quarter with strong results and continued momentum for our business,” said Chris Homeister, CEO, Tile Shop, which operates 120 stores in 31 states. “Our ability to deliver sustained progress across all of our key initiatives resulted in another quarter with outstanding sales performance and significant earnings growth, as well as an increase to our full year outlook. We look forward to building upon our accomplishments as we seek a strong finish to 2016 and the continued delivery of significant growth in sales, operating margins and earnings per share in 2017.”



For the nine months ended September 30, 2016, net sales grew 12.0% from $221.1 million in 2015 to $247.5 million in 2016. Comparable store sales for the nine month period increased 9.0%.