Tile Shop Hldgs, Inc. (NASDAQ:TTS), the specialty retailer of manufactured and natural stone tiles, setting and maintenance materials, and related accessories, reported better than expected numbers for the third quarter 2016.
The stock shot up 8.36% to close Tuesday at $18.15 with 1.72 million shares changing hands.
“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,” said Chris Homeister, CEO.
Tile Shop Hldgs, Inc. (NASDAQ:TTS): Online delivers strong sales, solid margins
For the third quarter 2016 Tile Shop reported EPS of $0.10 which beat by $0.02, and revenue of $78.6 million, which was in line with expectations and up 8.6% year on year.
“Our online channel continued to deliver strong double-digit growth during the quarter. We delivered this top-line strength while also delivering a 70.2% gross margin rate for the quarter,” the company said.
Over the past year, Tile Shop has generated substantial cash flow from strong operations, and reduced long term debt by over 60%.
The company opened three new stores during the quarter.
Tile Shop Hldgs, Inc. (NASDAQ:TTS) expands presence in Chicago area
The company announced yesterday that it had opened two new retail showrooms in Algonquin (1,050 sq. feet) and Hoffman Estates (12,000 sq. feet), Illinois.
Customers at the new showrooms can utilize the design and education centers as well as digital design tools to virtually assess how their tile project will look upon completion, the company said.
Tile Shop Hldgs, Inc. (NASDAQ:TTS) revamps guidance for 2016
The company revised upwards its guidance for the full year 2016. It now expects net sales in the range $324 – $327 million (previously $322 – $329 million) and adjusted earnings per share between $0.45 and $0.47 (previously $0.41 to $0.45).