Tile Shop Holdings, Inc.

Second-quarter comparable store sales decreased 3.5% due to lower store traffic. Gross margin was 64.4%, down 160 basis points from Q2 2024, driven by higher discounting and product costs. SG&A expense was $56.4 million, down $2.1 million year over year. For the first half of 2025, the company generated $13.5 million of operating cash flow and increased cash by $6.8 million to $27.8 million at quarter end. No explicit revenue or EPS figures were stated on the call. Management did not provide formal next-quarter or full-year financial guidance, but said it expects continued emphasis on reducing expense, limiting capital spending, and identifying efficiencies while the housing backdrop remains challenged.

Cab Lolmaugh said the company is still operating in a very difficult housing market, but he pointed to modest improvement in unit volume sales from assortment changes, including expanded LVT, laminate, engineered wood, and large-format tile. He emphasized that the newer assortment is helping Tile Shop appeal to a broader remodeling customer and drive larger baskets in some cases, such as adding mudroom or basement flooring to bathroom or kitchen projects. His tone was guarded but constructive, with a focus on adapting the business and positioning it for 2H 2025 and 2026.

Mark Davis highlighted that comparable store sales declined 3.5% and gross margin fell to 64.4%, down 160 basis points year over year, due to discounting and higher product costs. SG&A was $56.4 million, down $2.1 million from last year, helped by lower impairment, distribution center closure costs, marketing, and depreciation, partially offset by a merchandising supplies write-off. He also said the Spring Valley, Wisconsin distribution center closure should reduce annual SG&A by about $1 million, and that first-half operating cash flow was $13.5 million with cash rising to $27.8 million.

There was no analyst Q&A; the call ended after prepared remarks. As a result, no additional concerns or management responses beyond the scripted commentary were raised.