Sales & Earnings Down for The Tile Shop in Q1
Minneapolis, MN, May 1, 2019-The Tile Shop reported net sales for Q1 2019 fell 4.6% YOY.
Comparable store sales decreased 4.2%. The company opened one store in Q1.
Net income fell from $4.0 million in Q1 2017 to $1.3 million in Q1 2018.
Said CEO Cabell Lolmaugh of the results, “We implemented two significant new systems in January to position our company for long-term growth. This included our new ERP system on January 1, and our new website platform in mid-January. The conversions to these new systems negatively impacted our traffic, customer experience and sales during the quarter primarily due to challenges with POS functionality, speed and performance. First quarter traffic and sales were also negatively impacted by poor weather conditions in the upper Midwest and in the Northeast. Looking ahead to the remainder of the year, we will focus on improving traffic and sales by featuring our industry leading tile assortment, executing various retail marketing strategies, and working to enhance the performance of our ERP system and website platform.”
On April 29, the company’s board of directors authorized a share repurchase program, pursuant to which the company may, from time to time, purchase shares of its common stock for an aggregate repurchase price not to exceed $15,000,000. The program will begin on May 2 and will continue indefinitely until the full repurchase amount has been utilized or the board of directors terminates the program.