In the News – The Tile Shop Reports Fourth Quarter And Full Year 2016 Results
3.1% Comparable Store Sales Growth in Q4; 7.6% Full Year
69.6% Gross Margin in Q4; 70.0% Full Year
Settlement of shareholder litigation during the quarter, leading to Diluted Earnings per Share of $0.01 in Q4; $0.36 Full Year, growth of 16%
Non-GAAP Diluted Earnings per Share of $0.07 in Q4; $0.45 Full Year, growth of 41%
Company announces initiation of quarterly dividend beginning Q1 2017
MINNEAPOLIS, Feb. 14, 2017 (GLOBE NEWSWIRE) — Tile Shop Holdings, Inc. (NASDAQ:TTS) (the “Company”), a specialty retailer of manufactured and natural stone tiles, setting and maintenance materials, and related accessories, today announced results for its fourth quarter and fiscal year ended December 31, 2016.
Net sales grew 6.5% to $76.6 million for the fourth quarter ended December 31, 2016 compared with $71.9 million for the fourth quarter ended December 31, 2015. The $4.7 million increase in net sales was due to a comparable store sales increase of 3.1%, or $2.2 million, and incremental net sales of $2.5 million from stores not included in the comparable store base. Full year net sales for fiscal 2016 were $324.2 million compared with $293.0 million for fiscal 2015, representing growth of 10.6%. Comparable store sales for the full year ended December 31, 2016 increased 7.6%.
“2016 was an outstanding year of growth and achievement across all of our key initiatives,” said Chris Homeister, CEO. “The fourth quarter was at the low end of our expectations, driven by both lower revenue and abnormally high costs associated with employee benefits. We are extremely pleased with delivering a year with approximately 8% comparable store sales growth, increased gross margin and 41% growth in earnings per share. We are eager to build upon our continued success from 2016 as we work to deliver another year of significant growth in sales, operating margins and earnings per share in 2017.”
Gross margin for the fourth quarter of 2016 was 69.6% compared with 70.4% for the fourth quarter of 2015. The gross margin rate decline was driven primarily by a heavier mix of promoted sales during the quarter. Full year gross margin for fiscal 2016 was 70.0% compared with 69.5% for fiscal 2015.
Selling, general and administrative costs for the fourth quarter of 2016 were $51.7 million compared with $43.7 million for the fourth quarter of 2015. Special charges related to litigation accounted for $5.5 million of the increase. Nearly half of the remaining $2.5 million increase in selling, general and administrative costs during the quarter resulted from higher than normal employee benefit claims, with the remainder of the increase related to opening and operating new stores and variable expenses associated with revenue growth. Full year selling, general and administrative costs for fiscal 2016 were $194.0 million compared with $174.4 million for fiscal 2015. Special charges related to litigation accounted for $6.3 million of the increase.
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