Minneapolis – Tile Shop Holdings Inc. swung from a net loss to profit during the fourth quarter of fiscal 2013, but still reported a net loss for the full fiscal year. During the fourth quarter, Tile Shop reported net earnings of $1.4 million compared to a net loss of $35.8 million to the same period a year earlier.
However, during fiscal 2013, Tile Shop reported a net loss of $35.7 million, an improvement from $46.9 million during fiscal 2012. Net sales fared better, growing 25.2% to $57.8 million for the fourth quarter compared with $46.2 million in fourth quarter 2012. The $11.6 million increase in sales was driven by an increase in same-store sales of 10.1%, and incremental net sales of $6.9 million from stores not included in the same-store sales base. Sales results were impacted late in the fourth quarter due to harsh winter weather conditions in important markets.
During the full year, net sales improved 25.7% to $229.6 million, compared to $182.7 million for the previous fiscal year. Same-store sales grew 12.4%. CEO Robert Rucker cited significant expenditures Tile Shop made during the year that affected profits.
“We have made significant investments in the company in 2013 including the opening of 20 new stores, a new distribution and manufacturing facility and additional corporate infrastructure, all of which are necessary and valuable for the future of the company,” said Rucker. “While we made progress in strengthening The Tile Shop brand and infrastructure this past year, we recognize that we have more work in 2014 and beyond. We continue to firmly believe that as our new stores mature, the company will return to the historical levels of profitability.”