The Tile Shop's Q2 Net Sales Fell 4.3% YOY

Minneapolis, MN, July 26, 2019--The Tile Shop reported net sales for Q2 2019 decreased $4.0 million, or 4.3%, from $92.9 million in the second quarter of 2018 to $88.9 million in the second quarter of 2019.

Comparable store sales decreased $3.8 million, or 4.2% YOY, for the second quarter of 2019 compared to the second quarter of 2018 primarily due to lower customer traffic. Net sales generated by stores not included in the comparable store base decreased $0.2 million.

Gross profit decreased $4.0 million, or 6.1%, from $65.3 million in the second quarter of 2018 to $61.4 million in the second quarter of 2019. The gross margin rate was 69.0% for the second quarter of 2019 and 70.3% for the second quarter of 2018. The decrease in the gross margin rate was primarily due to increased shrink expense and damaged inventory recognized upon completion of physical inventory counts at all stores and distribution centers during the second quarter of 2019.

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