Tile Shop Q4 Faces Sales Dip And Lower EPS Amid Market Challenges
Portfolio Pulse from Akanksha Bakshi
Tile Shop Holdings Inc (NASDAQ:TTSH) reported a Q4 fiscal 2023 sales decline of 3.4% YoY to $84.46 million, missing expectations. Comparable store sales fell 3.2%, with a slight offset from higher average ticket values. Gross margin increased slightly to 64.7%, but operating margin dropped to 1.7%. Adjusted EBITDA decreased by 25.9% to $6.62 million. EPS was $0.01, aligning with consensus. The company repaid $45.4 million in borrowings and ended the year with $8.6 million in cash. Operating activities generated $62.06 million in net cash, significantly up from the previous year. Shares dropped 0.50% to $6.91.
February 29, 2024 | 4:58 pm
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NEGATIVE IMPACT
Tile Shop Holdings Inc reported a decline in Q4 sales and EPS amid market challenges, with a slight increase in gross margin but a decrease in operating margin and adjusted EBITDA.
The reported decline in sales and EPS, along with a decrease in operating margin and adjusted EBITDA, indicates potential short-term negative impact on TTSH's stock price. The slight increase in gross margin may not be sufficient to offset the negative aspects of the report, leading to a negative outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100