Tile Shop Q3 Earnings Show Margins Under Pressure Despite Cost Cuts

Tile Shop Holdings reported Q3 net sales of $83.1 million, down 1.7% YoY, and a net loss of $1.6 million. Gross profit declined 7% to $52.3 million, and adjusted EBITDA dropped 59.5% to $2 million. The number of stores fell to 140 from 142 a year earlier. Despite cost controls, the company recorded an operating loss of $1.9 million. Management attributed the performance to muted demand and pricing pressure.