The Tile Shop Holdings, Inc. announced its financial results for the first quarter ended March 31, 2025, on May 8, 2025. Net sales for the quarter decreased by 4.1% compared to the first quarter of 2024, with comparable store sales declining by 4.0%.
Despite the sales decline, the gross margin rate improved by 20 basis points to 66.0% in the first quarter of 2025, compared to 65.8% in the prior year. This improvement was primarily due to lower levels of inventory write-offs, partially offset by an increase in customer delivery costs.
The company reported net income of $0.2 million and Adjusted EBITDA of $4.6 million for the quarter. Selling, general, and administrative expenses decreased by 0.3% to $57.9 million, driven by reductions in depreciation and distribution center closure impacts.
As of March 31, 2025, The Tile Shop had no outstanding borrowings on its $75.0 million line of credit and reported $27.1 million in cash and cash equivalents. Management stated it is evaluating options to manage anticipated cost pressures from recent changes to U.S. trade policy, including sourcing adjustments and pricing strategies, leveraging its diversified tile supplier base.
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