Yahoo Finance Tile Shop Holdings, Inc. (NASDAQ:TTSH) Q1 2024 Earnings Call Transcript
Tile Shop Holdings, Inc. (NASDAQ:TTSH) Q1 2024 Earnings Call Transcript May 10, 2024
Tile Shop Holdings, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good day and thank you for standing by. Welcome to the Tile Shop Earnings Conference Call. [Operator Instructions] Please be advised that today’s conference is being recorded. I would now like to hand the conference over to your first speaker today, Ken Cooper, Head of Investor Relations.
Ken Cooper: Thank you, and good morning to everyone. Welcome to the Tile Shop’s first quarter earnings call. Joining me today are Cab Lolmaugh, Chief Executive Officer; and Mark Davis, Chief Financial Officer. Certain statements made during the call today constitute forward-looking statements made pursuant to and within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. Those risks and uncertainties are described in our earnings press release issued earlier and in our filings with the SEC. The forward-looking statements made today are as of the date of this call, and we do not undertake any obligation to update these forward-looking statements.
Today’s call will also include certain non-GAAP measurements. Please see our earnings release for a reconciliation of those non-GAAP financial measures, which has also been posted on our company website. With that, let me turn the call over to Cab.
Cab Lolmaugh: Thank you, Ken. Good morning, everyone, and thank you for joining us today for an update on our business. Our first quarter results showcased the cash flow-generating power of our business model despite challenging macro conditions, which had an adverse impact on our top line results. Throughout the first quarter, we observed weakness in existing home sales, which continues to present headwinds across the home improvement industry. These challenges extend to the hard surface flooring category and contributed to a decrease in traffic in our stores during the first quarter of 2024 when compared to the same period in the prior year. The decrease in traffic and the impact this had on our comparable store sales was tempered, in part, due to the strong relationships we have with our network of professional customers.
Our pro loyalty program, which includes pure discounts for our pros and cash rebates for referred sales has proven to be a powerful benefit to pros who choose to grow their business with us. We believe we have the most robust discount rebate program for pros in the industry, and it is a significant differentiator for us. We also carry products that are curated specifically with our professional customer in mind. During the second quarter, we were excited to relaunch our private label superior line of backshelf products. This includes products such as thinsets and levelers that we manufacture in-house. Over the last year, we have enhanced our formulas and made significant improvements in product quality and performance. We believe our new lines perform at levels that are competitive with some of the top brands in the industry, and the best part is that we’ll be able to offer these products to our pros at exceptional price points.
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