Tile Shop Holdings got a big boost to its coffers in the form of a 14.7% net sales increase in the second quarter, the company reported Monday.
Net sales for the three months ended June 30 were $66.7 million, compared with $58.1 million in year-ago terms. Comparable-store sales increased 0.3%.
Net income for the quarter was $3.8 million, up from $3.6 million in the second quarter of 2013. Tile Shop also saw green for the six-month period, posting income of $7.5 million compared with a loss of $41.1 million the year before.
“Our stores delivered a slight increase in comparable store sales in the second quarter over the very strong levels achieved last year, despite a challenging environment," said CEO Robert Rucker. "Our two-year comparable-store sales growth for the quarter was 15%, which we believe continues to demonstrate that we are taking share in our industry and further validates the overall strength of The Tile Shop model."
COO Chris Homeister added that Tile Shop's sales and operating teams delivered 70% gross margin as well as a decline in inventory levels.
Additionally, Tile Shop expanded by five new stores during the second quarter, all of which were in new markets across the country.
Rucker added that larger economic factors at play may lead to a full-year outlook for 2014 that's substantially different than last year.
"As recently noted across many retail segments, it has become clear that certain macroeconomic factors that supported strong sales levels throughout much of 2013 have substantially weakened in 2014, most notably for our business, existing-home sales," he said. "Our expectation when the year began was that similar trends from 2013 would continue during 2014, but this has not proven to be the case.”