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1. Company Snapshot

1.a. Company Description

Tile Shop Holdings, Inc.operates as a specialty retailer of natural stone and man-made tiles, setting and maintenance materials, and related accessories in the United States.It offers natural stone products, such as marble, travertine, granite, quartz, sandstone, slate, and onyx tiles; and man-made products, including ceramic, porcelain, glass, cement, wood look, and metal tiles primarily under the Rush River and Fired Earth brands.


The company also manufactures setting and maintenance materials, such as thinset, grout, and sealers under the Superior brand name; accessories, including installation tools, shower and bath shelves, drains, and related products; and offers customers delivery service through third-party freight providers.As of March 3, 2022, it operated 143 stores in 31 states and the District of Columbia, the United States.Tile Shop Holdings, Inc.


was founded in 1985 and is headquartered in Plymouth, Minnesota.

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1.b. Last Insights on TTSH

Tile Shop Holdings' recent performance was driven by the expansion of its exclusive collaborations with renowned designers, enhancing its product offerings and appeal to customers. The company's partnership with Jeffrey Alan Marks, launched in June 2025, introduced two new coastal-inspired designs, further solidifying its position in the specialty tile market. Additionally, the upcoming collaboration with Nate Berkus, set to debut in fall 2026, is expected to bring timeless designs in classic hues, catering to customers seeking elevated options for their floors and walls.

1.c. Company Highlights

2. Tile Shop's Q2 Earnings: Navigating a Challenging Housing Market

The company's second-quarter financial performance was marked by a 3.5% decrease in comparable store sales, primarily due to lower store traffic. Despite this, tile volume sales showed improvement, but were offset by lower average selling prices. The gross margin rate stood at 64.4%, a 160-basis-point decrease driven by increased discounting and product costs. Earnings per share (EPS) came in at -$0.01, missing estimates of $0.01. Operating cash flow generated during the quarter was $13.5 million, and the cash balance grew to $27.8 million at the end of the quarter.

Publication Date: Aug -28

📋 Highlights
  • Product Expansion & Cross-Selling Growth: Launched LVT, laminate, and engineered wood options, driving unit volume sales with 10%+ growth in complementary categories.
  • Cost Reduction Initiatives: Closed 2 distribution centers, reduced corporate workforce by 33%, and cut SG&A expenses by $2.1M year-over-year.
  • Financial Resilience: Generated $13.5M operating cash flow, boosting cash reserves to $27.8M despite 3.5% comp store sales decline.
  • Gross Margin Pressure: 160-basis-point drop to 64.4% due to increased discounting and higher product costs, offsetting volume gains.

Operational Highlights

During the second quarter, Tile Shop navigated a challenging housing market characterized by low housing turnover. However, the company reported a modest improvement in unit volume sales driven by its refined assortment, including expanded luxury vinyl tile (LVT) offerings, added laminate and engineered wood flooring options, and the introduction of a signature line of wall tile and matching trim products. As Cab Lolmaugh, CEO, noted, "We're seeing growth in tickets by selling mudroom or basement flooring when we sell tile for bathrooms or kitchens," indicating a successful strategy to appeal to a broader customer base.

Expense Reduction and Cash Flow

The company has taken significant steps to reduce expenses, including closing two distribution centers, reducing its corporate workforce by a third, and aggressively cutting budgets. SG&A expense decreased by $2.1 million due to lower asset impairment, marketing, and depreciation. The company's efforts to manage expenses and maintain a healthy cash position are evident in its $13.5 million of operating cash flow and $27.8 million cash balance at the end of the quarter.

Valuation Metrics

With a P/E Ratio of -12723.91 and a P/S Ratio of 0.88, the market appears to be pricing in significant challenges for the company. The EV/EBITDA ratio stands at 24.78, indicating a relatively high valuation considering the company's earnings before interest, taxes, depreciation, and amortization. The company's Return on Equity (ROE) and Return on Invested Capital (ROIC) are both negative, at -0.02% and -0.05%, respectively, suggesting that the company is currently not generating returns for its shareholders.

3. NewsRoom

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Tile Shop Announces Special Meeting Results, Stock Split Ratio and Intention to Delist from Nasdaq

Dec -03

Source: globenewswire.com

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The Tile Shop Expands Exclusive Collaboration With Designer Kelli Fontana, Adds New Patterned and Porcelain Tile Designs

Dec -02

Source: globenewswire.com

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Tile Shop Stock Gains Post Mixed Q3 Earnings Reflect Margin Pressure

Nov -07

Source: zacks.com

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The Tile Shop Reports Third Quarter 2025 Results

Nov -04

Source: globenewswire.com

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The Tile Shop to Report Third Quarter 2025 Financial Results

Oct -31

Source: globenewswire.com

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Tile Shop's Board of Directors Approves Plan to Terminate Registration of Its Common Stock

Oct -06

Source: globenewswire.com

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Tile Shop Stock Down Following Q2 Earnings on Lower Sales and Margins

Aug -13

Source: zacks.com

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Tile Shop: Q2 Performance Had Mixed Takeaways (Rating Downgrade)

Aug -12

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (1.56%)

6. Segments

Man-made Tiles

Expected Growth: 1.8%

The 1.8% growth of Man-made Tiles from Tile Shop Holdings, Inc. is driven by increasing demand for affordable and durable flooring options, rising popularity of DIY home renovations, and strategic partnerships with home improvement retailers. Additionally, the company's focus on product innovation, expanding product lines, and effective supply chain management contribute to its growth.

Natural Stone Tiles

Expected Growth: 1.5%

The 1.5% growth of Natural Stone Tiles from Tile Shop Holdings, Inc. is driven by increasing demand for premium home decor, rising popularity of natural and sustainable materials, and growing consumer preference for unique, high-end aesthetic. Additionally, the company's strategic expansion into new markets and effective supply chain management contribute to the segment's growth.

Setting and Maintenance Materials

Expected Growth: 1.2%

Tile Shop Holdings, Inc.'s Setting and Maintenance Materials segment growth of 1.2% is driven by increasing demand for premium tile products, expansion of commercial business, and strategic pricing initiatives. Additionally, the company's focus on enhancing customer experience through improved product offerings and store remodels contributes to the growth.

Accessories

Expected Growth: 1.0%

Tile Shop Holdings, Inc.'s Accessories segment growth is driven by increasing demand for home improvement and renovation projects, rising popularity of DIY home decor, and strategic partnerships with suppliers to offer a wide range of products, resulting in a 1.0 growth rate.

Delivery Service

Expected Growth: 0.8%

The 0.8 growth of Delivery Service from Tile Shop Holdings, Inc. is driven by increasing demand for home improvement projects, expansion into new markets, and strategic partnerships with suppliers. Additionally, the company's focus on customer convenience, fast delivery, and competitive pricing contribute to its growth.

7. Detailed Products

Natural Stone

Tile Shop Holdings, Inc. offers a wide selection of natural stone products, including granite, marble, travertine, and slate, suitable for flooring, countertops, and walls.

Porcelain and Ceramic Tile

The company provides a vast array of porcelain and ceramic tile products, including glazed and unglazed options, suitable for flooring, walls, and backsplashes.

Mosaic and Glass Tile

Tile Shop Holdings, Inc. offers a variety of mosaic and glass tile products, including glass, metal, and stone blends, suitable for accent walls, backsplashes, and decorative features.

Luxury Vinyl Tile (LVT)

The company provides a range of LVT products, including wood-look and stone-look options, suitable for flooring and walls.

Installation Materials and Accessories

Tile Shop Holdings, Inc. offers a variety of installation materials and accessories, including adhesives, grouts, and sealants, suitable for tile installation and maintenance.

8. Tile Shop Holdings, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Tile Shop Holdings, Inc. is medium due to the availability of alternative flooring options such as hardwood, laminate, and carpet. However, the company's focus on tile and stone products helps to differentiate it from competitors.

Bargaining Power Of Customers

The bargaining power of customers is low due to the company's strong brand reputation and wide range of product offerings, which makes it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the company's dependence on a few large suppliers for its products. However, the company's strong relationships with suppliers help to mitigate this risk.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the flooring industry, including the need for significant capital investment and established relationships with suppliers.

Intensity Of Rivalry

The intensity of rivalry is high due to the competitive nature of the flooring industry, with many established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.90%
Debt Cost 3.95%
Equity Weight 46.10%
Equity Cost 11.08%
WACC 7.23%
Leverage 116.94%

11. Quality Control: Tile Shop Holdings, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Buckle

A-Score: 6.8/10

Value: 4.5

Growth: 3.9

Quality: 7.5

Yield: 10.0

Momentum: 8.0

Volatility: 7.0

1-Year Total Return ->

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Karat Packaging

A-Score: 6.6/10

Value: 6.1

Growth: 7.9

Quality: 7.4

Yield: 9.0

Momentum: 3.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Haverty Furniture

A-Score: 4.8/10

Value: 3.9

Growth: 3.4

Quality: 3.8

Yield: 9.0

Momentum: 3.0

Volatility: 5.7

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Stock-Card
Live Ventures

A-Score: 4.2/10

Value: 8.7

Growth: 3.7

Quality: 3.4

Yield: 0.0

Momentum: 9.0

Volatility: 0.3

1-Year Total Return ->

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Stock-Card
Tile Shop Holdings

A-Score: 3.5/10

Value: 4.7

Growth: 3.4

Quality: 3.1

Yield: 2.0

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
LL Flooring Holdings

A-Score: 3.3/10

Value: 9.5

Growth: 2.0

Quality: 2.8

Yield: 0.0

Momentum: 5.0

Volatility: 0.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.52$

Current Price

6.52$

Potential

-0.00%

Expected Cash-Flows