TTSH - Earnings call transcript Q2 2019 | Tile Shop Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Mark Davis

Good morning to everyone on the call and welcome to the Tile Shop's second quarter earnings call.

Joining me on today's call are Cabby Lolmaugh, our Chief Executive Officer; and Kirk Geadelmann, our Chief Financial Officer.

Following our prepared remarks, the call will be opened for analyst questions. Certain statements made during the call today constitute forward-looking statements made pursuant 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. are in our SEC. our uncertainties issued press and and earlier filings risks described earnings in release Those with the forward-looking do are this today statements. to statements the forward-looking The of date update as these call undertake not of we any obligation and made will call certain non-GAAP Today's measurements. include also for reconciliation those our financial non-GAAP see Please a measures. earnings release of With that, let me turn the call over to Cabby. Cabby?

Cabby Lolmaugh

morning, everyone. good and Mark, Thanks

decline decrease was revenues $X.X of we by a the reported of period. $XX.X The representing in prior quarter, customer sales compared X.X% million soft a driven to continued quarter. resulted traffic. the During million, for This second loss net

We disappointed very our is opportunity drive and are our customers retail single historical higher Getting for to unique core awareness with prospective We priority. traffic with pro back be to value believe these results. customers. to propositions will biggest retail both continue of levels top our

value tile now for X,XXX SKU believe entire solid assortment which now And are sizes. and of to our deliver ground. the in covers us we service luxury in-store premium spectrum all and project positions experience Our back in customers types tiles option,

we comp mid-single year-over-year one, our brand now Two, all retail of customers traffic These with traffic. traffic growth quarter three, changes our growing our conversion digit for store increase all awareness, we ultimately sales. sales goal our the to is rate retail formula brand achieve believe prospective retail increasing our We in be pro So aware some website the growing winning as customers. of will and great customer XXXX fourth and during the to sure are recent made marketing strategy. the make offer. things changes retail We've and our are designed

two During our most quarter, achieved of those goals. we three recent

our sales low was pro positive. single-digit growth only However,

pro for double-digit positive, is be sales to we do. clearly some have to work goal so Our

traffic for next months. area pro us is another so several And and the over increased sales important focus

pro our pro continue pro to reaccelerate managers Our and to is rewards leverage events market of program, plan to sales. team pro our

working strategies implement to have also due whose progress made other new enterprise re-engage In last marketing frequency develop resource second speed addition, some additional improving pro the the checkout our some We POS over or to months and quarter. several declined we're good performance of factors. to of our system may pros planning designed during our

up our POS more on who on April times our discussed per speed. to than that during elevated our improved were pro to frequent certain normal longer roll customers often week, slower POS and times checkout checkout we source checkout a expectation speed. The the impact a quarter complete As system more to taking significant the process. customer to call, with had POS May, some first we for two were are transactions significantly able late several out new In times functionality accustomed who POS

result, cut our times a effectively half, we improving by our As experience. over customer POS checkout

tile our channel pro scores few continue our to last these of are now have competitor increase retail we back our retail to Sales no for that the our sequentially XX back believe customers. offering new key remain other second partners that level close serve who the key often other to influencers key and the pro We were for designer we service satisfaction during customer, confident customers. to we all-time a choices her quarter. introduced other come over improvements, well. and normal to retail the customer available we months With as to products highs for And X,XXX as can high present

team initiative optimize assortment on XXX% and diversify product our continuing is Now has complete, a merchandising our product to focus sourcing. our shifted of that XX-month long their

supply sources parts our we now, years of to world. the have working to two nearly various For been diversify hard

we've China. the from in we amount As anticipate tile source of previously, will we products reduction efforts significant these the result messaged

year China points XXXX. in roughly we with down China product substantially the XXXX, X In to from fact, in amount from source last of XX% from had percentage XX% begun approximately already decrease

expect our to XXXX. product more We continue China decrease mix even to throughout significantly

works While now at over you through significant financial Kirk deliver call strategy in great who opportunity we amount found to great will of has the over prices I'll tiles some this work the final we're details. the of can Kirk? energy, because believe benefits to be turn all world. required stages take time diversification the and customer incremental a and now and this of the this has financial

Kirk Geadelmann

Thanks Good morning, everyone. Cabby.

were mentioned, primary Cabby comp X.X%. for our decline the As continued week reason trends sales of traffic

year-over-year. generate questions. X.X% of We down profit our goal. $XX.X aware and Net a the distribution $XX.X higher we've for and approximately completing points was approximately and XXXX. to fixtures stores. of And all XXXX, for last increases significant need over of shrink XX quarter centers in new physical overview quarter a points that damage that was investments due disruption keenly decrease of ERP compared the traffic second months. over due the financial from last points, of decline of it quarter in on our provide centers same were brief the million turn the year. The approximately of during and the year approximately last year. of I'll we damaged Gross we'll than made higher XX XX conversion margin year-over-year is return key million by XX costs, and in resulting achieving stores basis primarily basis merchandising second to quarter. higher the distribution to increased cost Shrink over stores basis then Both installation inventories sales during all improving the following was XXX to a to decreased and quarter Gross quarter the X.X% last sales are was performance were XX% than our second and

related The administrative of and of selling, Our and quarter compared to quarter investments, to new $XX.X ERP, expense depreciation million. $X.X million strategic of second to our annualized the due was were primarily general expense. $X.X costs XXXX the increase for higher million XXXX

invested we an last compared during six to year Adjusted in were anticipate prior anticipated quarter. sales. expenses basis XXX also additional offset $X.X a was including concluded One lower four increases stores quarter partially in with EBITDA first million Adjusted the opening move open compared We associated one in million by XX%, with will in year. the the advertising year. stores. relocation. variable now second We to a XXXX expense which These last EBITDA decrease the year, We XXX of in margin originally second of the the quarter next months $X.X quarter. the store, would to point decline was

our sheet. the balance Turning and quarter We $X long-term of with cash million $XX million to ended debt. of

or quarter $X during fourth $XXX.X Capital remodel Our share second investment. the to were by due million. the the expenditures million repurchases during CapEx related our approximately million store Inventory debt increased quarter, of approximately from $XX.X million, million to $XX second and fourth to year-to-date primarily million X%. and decreased This quarter, brings $XX merchandise of the quarter. approximately approximately $X from

during us and our initiatives distribution year-over-year in-house which continue cost product trucking We the basis. on reduction helped initiatives between cost various stores a strategy, lower on centers quarter. moving included the has to focus These of our our

refinements deployed some year efficiency our that making information, also are are maximizing ensure to we last return investment. various we and to service to With we are now questions. strategies on ready our that We take

Operator

Securities. our is Daniel Moore from And first question CJS from Instructions] [Operator

open. now is line Your

DanielMoore

in color morning, the good of Cabell; of or found of each Kirk. detail inventory and that in the you And would how morning, half? Good start or issue into you Wanted what Thank the those the might with gross the nature, consider quarter? of shrink inventory -- you How kind much ongoing damaged be on second true-ups margin. linger and for given issues. the to one-time much

KirkGeadelmann

Dan. was news there but nine months, quarter, also six, good that It's last of a suspect to of during lot and only say throughout We guess, nearly just whole the it's factors, did. work stores stores is all I couple compressed during think we to the complete. two morning, pinpoint quarter to weeks but the work place of I last of and first work And March over May. XX the the been. really, and that it's did, work the we damage, is was six that increased remerchandized in in that eight, one stores, -- That of the a Good Dan, exactly April, weeks that fair largely the not work seven XXX or the merchandising the XX the within took shrink we then was what seven, And merchandising led a the timeframe. difficult pretty the months, bigger chain,

us what we be on of forward just out will with for be and just do in that. cost and control get going think day manage I inventory day we'll So the to focused basics back to opportunity to sort

DanielMoore

Okay. been feel key steps they're I really feel the might what on conversions an in far that improve And of of to lingering, just are alleviate I on issues you guess, quarter like implementation might little as impact, the impacted and aren't in bit at this by addressed? to to but pro in or changes try same-store you system; like more last maybe terms customer drill you or shifting it strategy the parts more the order the up as -- down drive the that of issue. sounds statement, to color that more a has any back sales, what traffic traffic ERP you that? take -- story steps is clicking obviously, like, the Two, income quarter ERP least, guess, a one, are

CabbyLolmaugh

with We're go believe But after little we for also Sure. our a see checkout to Hey, $X,XXX what on pricing a better when pro. some need testing with some know strategies We Can some bit be sales. I'd and mid-range media that of at our of a out. probably think we different to where marketing focusing life do speed, look had that's of it's customer currently Dan. usually of had good to customers $X,XXX a different impact increased got issues implementation lot related that we job Cabell. with strategies, and This the spend. that especially through stores, our is job in and with we've is a we of content, do we and digital around base content, mid-level, going stronghold whose customer of do you a different we pros, total our could segment question. went customer pro speed an you to believe traffic cycle With when customers. and in lag our conversion back Thanks the ERP Yes, our we that. we're declines the

going Now, that's and up we're think after XXXX. to here traffic medium-level help the back going pick half in us our I that customer, declines of

DanielMoore

or return cost and look of of these some and strategy put point would the XX rather initiatives, Okay. you obviously, And expected? over that not of nothing But, to question, costs these this aren't if you shifting I'll kind kind At the we've and say months, XX back. at a what managers, last return my of jump incremental more mode tweaking the angle on then point. some at last a of return just investments reduction different don't mid-level lot you than continue see incremental generating to

CabbyLolmaugh

Dan. Absolutely, Yes.

are we're sure abandoning expense out structure been make taken the or most our here, that provide them what's looking them, we to things at that and best sure to got what's there without profits. of I've them looking making responsible As sure opportunity working that have And with make to I already investments leader initial we're sure financially we the give make judicial constantly and place at we get but these not. leaving to always

that at every we every action take look and we day so And week.

already that, Dan. we're at So looking

Operator

Thank you.

Our next question Piper from is Keith Peter Jaffray. from

is line Your open. now

PeterKeith

decision maybe everyone. pull down morning, your ago Good on a from to wanted to into specifically but question, last the website. Thanks. drill I pricing year that Hi. follow up

to view a of midsize, the by store. intimidated lack is to me, there timeframe with pricing that clear till isn't the wait customer affluent decision the You of perhaps it's or so, pull type to talked to when that you reevaluated? some making trip that about pricing end and is now customer, web the Maybe, from But need I'm wrong. is moderately challenges quite maybe of year that the

CabbyLolmaugh

of Hey, today. do are markets actively you on Peter. know as Yes, we online website country, now. I don't we're certain in the is Cabell. pricing have right in where log This in, pricing testing but the you if

So going all in types our to websites getting testing That's our stores. we're -- different their from of traffic drive again and convert means digital customer.

So, absolutely.

PeterKeith

time to to just the QX drill about we then a I quarter, ERP spent and dynamic. the down want Last challenges. Okay. weather to And talking of lot QX challenges

now, impacting you the in space the the relatively come months? so, you you Could that for versus what's And in that QX, recent same you macro And do backdrop internal apart, slowed believe perhaps, parse at with level. your maybe macro?

KirkGeadelmann

growth think hard making we're that throughout do or feel Good feel morning, think we other type on sure We as and systems it's We're Peter. about back doing to we've always quantify the Q&A we highs, The we I the preventing at serving level. And nothing high don't like and And progress systems a traffic. functionality. there's do here feel just every main to at for time, in We ways look I we're markets further in And can The investments. a it's remarks. who to now. we about sales so always is I think single sales we're start is key like the lot the being just that's so our day we've But retail we've time the us stores customers any these home into various soft the prepared And coming also like going customers. to about as from we been in specifically, and different We all to for we're of us. but that a of the that. existing other And about who are or we've talked the helpful. many main do overcome is improve our our that, to growing customer and day thing And in year-over-year, challenge getting customers in pretty anything for down that obviously really talked all-time improved a talked customers to some here are of work stores to quite traffic. there made to satisfaction the speed talking to people things that. months. same made We're on try that variety our more will need our help and we're stores. that things key been whether it's Cabby with internally systems growing happy Yes, thing our And need sales in doing stores remarks; just here us that in is home are pretty that. doing things metric we acknowledge good that's, what existing has in aware prepared and metric but scores. feel

PeterKeith

XX% that Okay. to assess topic a in increase Last the trend. And about last order to just again one on you sort the then I'm follow-up of trying talked QX book. QX quarter

QX. of perhaps of, QX into that out shifted delays with sales Some weather

two between you what can was the are quarters? those complete that quantify that think sales you quarters shift Now you can

KirkGeadelmann

modest, pretty was Peter. It

our we elevated at orders positive month We're out our Our, order a more in the But modest and order levels end March the a it now of for normal to open two I'm impact turn had to times of in back pretty over April. closed end the was tend sorry at April. bank. April, so

Operator

Markets. Capital Loop from Chukumba Anthony from questions next Our

Your is line now open.

AnthonyChukumba

my thanks Good morning for and question. taking

into are are to to is back? issue just sounds that Thank they I'm win So going new, it do I want pros to if guess a abated. necessarily more pros what do need you. like little because what the the dig figure not where those And bit going? that, sounds like out it to you hasn't trying pros the with I'm

CabbyLolmaugh

question, Yes. Thanks the for Anthony.

We our the on finger tight of the have pulse pretty now. pro right

means communications We attrition of market communication pro have different our and with who strategies salesforce managers functionality, such daily our data reports. as work through

in was up. well. bit business we so a back and pros are a communications down it little as picking We're what shift slow hearing but so And monitor we're more hearing is that for them the

But we're it's into the package. there We're So pros about that more benefit our that. clear pro expecting message stores. happy getting hear our rewards, with roll to to out

getting people exactly you And program. to present in an of And we're cadence seeing more converting how it's so uptick our rewards our the stores into it.

spend that we're into the are of more them. And so pros seeing roll out program, this

lost rolled get not market pro So we're on of going with QX. that hyper until we for we out in had to QX, focus continue our program, to our the managers, because when --some our ERP pro working managers. our we of They market rewards them did back necessary our tools some give our tools

we're are going right more high our now So of hoping bring help speed at stores. are into us tools to pros that these that running the

AnthonyChukumba

that's to pro? Can on Got an us; the a give helpful. rewards overview just kind of just the high provide at you some program. pro it, And of just for level the just benefits of

CabbyLolmaugh

Absolutely.

So are and their different referral tiers, shipping. platinum, going discounts sometimes included also on spend. there's They're other they depending that are have And get benefits different gold, program. diamond, a free to

So if referrals back stores amount they have track. come in into certain a that cash they we now get that our

market communication lot different a I it's the rewards manager referral in as delivery, can cash pro said, where then discounts they have area their like and direct of So things well. with

Operator

you. Thank

next question is Our from Telsey. Feldman Joseph from

open. now is line Your

JosephFeldman

guys. the for Thanks Hi, taking question.

on in we least So Should a consumer value out to see get few you better guess, the the even a of trying message you've TV, is just to out Like times there get the ask I it change and a marketing, you, to or wanted at that working message you're of us mean, big a the Cabell, it that there? you're little more, I Can how me, means? pro perception. quite getting mentioned more the to email to it trying I up tactics, media? how? step what advertising? is understanding I'm give is

CabbyLolmaugh

the our our see to comes come test, continue all we instance, really and media increase comes on as close on we're course we're with our we're as such lot showing when support TCNA, us. are the We what content, spend. promote these long, created that delivering lot our to benefits And actual you've stores testing what to of organizations is, the give own with question. don't directed different we're different doing for to events metrics ASID; associations; what events, courses testing; with We working because it to test, we test. of get new support they is of pros them, what an our ASID. to a heads channel. the Joe. in job. NKBA, our in the We're Shop, got Tile credits different have NTCA, to suppliers website, But emails, can by just comes Sure, coming a And with and for work to the we've and Appreciate to in-store well it partnering use, doing in when we're the CEU value We business of credits. directly not down an not people did in it hosting media we trying doing the in

do different and with seeing So in on this. how shift we different capitalize we're different markets, tests

how different with going for the in we're pros test. continue about to has transformed months they digital to XX brands. today So last interact really The landscape

to in you'll things us. get emails them to trigger to business on our see with website so, do and And our some different

JosephFeldman

this industries this guess do but Got had -- speaking, home And you obviously, I sales know, industry broadly then wide think it. I guys obviously of you was is some some Thank pressure, or you. more are or -- are is you are bit, -- when challenged, look down view would industry the but they at sales, you where up, they how little been that? -- this a have is

CabbyLolmaugh

some in previous from seeing what I shipping, free seen to and currently, I'm activity seen discounts, promotional our all very sector. the larger of I Joe, monitor than Well, view, sales, and competitors heavy years. foreign more I've so going I've

So I right now. industry issue believe it an is

JosephFeldman

continue wanted from how ask there it. we one at sneak I year, XXXX, that? we should like, to more could have to Got away mind were I in with a low-XXs for about And China you shift understand XX% supply or this see year, think for last I in. like you if if mid-XXs, should target guys just you do

KirkGeadelmann

specific I XX%. actively We than number. Well, significantly give lower definitely get don't to to want doing like you that. We're a

diversify we're our So chain. to continue going supply to

We have the over great relationships world. all

and an And what's so this on I available opportune of this outside think is to do time capitalize Asia. to

Operator

And our question from Baird. from Kleber next Justin is

Your line now is open.

JustinKleber

as Wanted south with your don't Justin start weather of I Last should It's color a look any quarter, regional guys. on that the you the the of the many spread sales Kleber. on maybe for the Hey, in positive. much that as stood questions in taking this Thanks the particularly out? Curious in cadence throughout issue And to top an question, think have quarter, significant part that then here. stores performance line. sales XQ? Yes. disparity been mentioned quarter how just regional comping of

CabbyLolmaugh

Sure, Thank of It's landscape. the same you. kind Justin.

We not. testing all I strategies we that are are very the on comping comment and we right markets of the with have really kind cadence some watching but We on obviously closely, currently. place and over media struggling ones our it's that and where the don't different of now. mean, focus some

that. So we've got

JustinKleber

you? expect comp it a mean, think you some get near more mean, do half know marketing or And of get you start color in these you're of is in then, the but difficult? investments us any year? term thinking specific payback the guys bit I not is terms comparisons the there could of how to share I for the to Okay. weaker you're just back actually some I guidance, generate providing with there about reasonable to

KirkGeadelmann

It And it's to really difficult offering fair I said, And, not we're Good predict us but as very is. for the you key Hey, moment. Justin. the at that. traffic. question, morning. top just line really It's think is a guidance

softness seeing investments. need start the that's little and need we return or home existing whatever industry a doing. metric, to If a clearly that the to to there's for here to we sales we're way look a think overcome on I what

of So of to a things the try we'll improvement year. move see as little into hopefully, a traffic primary focus. our that we're variety really increase and we be here to rest able is doing to the And,

JustinKleber

Okay. Thanks, Kirk.

color margin could here prices I've tariffs question feel what that you type around gross XX%, now rate? unit have then on you products As you've maintain maybe margin are elasticity on guys at comfortable expectations, ability seen, another you of Just seen? tariffs? do to any share that still XX% the a And on hit been retail with raising some been have in

KirkGeadelmann

Yes. can offer Certainly that. points I some Justin, on there,

as that, we've been a our lot the We talked about benefits. remarks, again, costs as work done. all And something coming the have about out tariffs really I part prepared we've in as up, labor and not even a that with continue of sourcing year. always freights the Cabell journey. costs, before of increased that in has going last two-year of in and been China. been variety It's costs effort about sourcing in with everybody, talked latter just And, it's talked of different of expensive started China his good diversification to about including got feel mean, we've And times, many

insulate continue feel it to that diversification do to that just like about many to that the we're good deployed the and are there we should and feel we trade. reasons us of from diversify. happening And too in latter we've do like are with feel effort So changes the all strategy stages --

attention price months that getting high-quality of and think to let that that to most think a hopefully, And, that our we all we serve price we in We nice is the a in of of our traffic. pro. us, do prepared consume noted And to of this and, going really again, a and variety and, job set retail different need the starts frankly, we customers products do pretty educating some couple good, that's of know that. have for customers I and message points have points. best is drive the out of a better really even our both retail next to job of opportunity pros all remarks, better at customers, do can our really here better on I to prospective

Operator

Thank you.

question Our Moore CJS Daniel is from from next Securities.

is line Your now open.

DanielMoore

Thank again. you,

parse maybe out to bit more. wanted little a Just

comping some or are You of are to that's performing are Presumably, mentioned, any lower-end Any that denominators that or locations etc? the the stores store there maybe double-digits. around range? over of the well board. Cabell, stores sort common all you've at regionally down, X%, below base got that closures, the within kind closer consolidation thoughts maybe And of that shrinkage,

CabbyLolmaugh

you Yes, What tenured most trend the noticed in in is market relationships in market, of with all tenure I've Dan. pros. Thank the longer you. -- cases. cases, tenured you have not the some really But when have longer a

than are -- more a to markets as a better see traffic new a most. tenured history well. markets have and little are is bit hey, But who that more who what performing there lot with -- storm with pros, seem had some lot so you And the great weather us have

KirkGeadelmann

only really of was more such we more talked we the been Dan, last the that there, add I'll you of markets time deeper our them, have higher accompanying to all have mature the pro for of we've Cabell's and I first relationships can years, Cabell some mature saw have five call, it is -- about to talked think but comment April a And where a we just as with at difference in pro markets, bit great recall, be a point the markets, I are and pronounced been certainly least other do we've that just of with more a call And, markets that a well comping negative negative than markets markets, on just like comp; said, got lot doing and, not Northeast. and quite more But our is. This tend It's sort it's down. mature it's customers. markets, perhaps, days, Midwest like just lot usually last up point, mix Cabell makes are as Southern positive. -- it about obviously, XX those more varied we and we a store that the markets between that are little Upper on

DanielMoore

stay your it. quarters allocation, move pre-dividend? I'll $XX the level dividend, bought a next obviously, little Got sequentially, higher and around, declared worth me, we up. bit of a of But continuing over million wrap to with Last the for about break-even stock, debt couple what's debt if back higher moderately sort ticked capital comfort of,

KirkGeadelmann

something quarterly structure just capital basis to evaluate on with Yes. continue our we Board. is Dan, always a

I say main to half year, a going think increasing little debt and, down focus to back well. it's the hopefully, traffic the fair in be paying is and sales as our

DanielMoore

expectation The cash free little be positive flow in a debt half? would least and pay the down back be Okay. to maybe solidly at

KirkGeadelmann

our That's goal.

from CapEx four substantially quarters. see our run come You'll down pretty over rate the last

which help But it's for traffic that'll of a really sure. just function traffic. a then increase our line, to after is So of top ability that function and

Operator

you. Thank

Jaffray. Peter question next Keith Piper is Our from from

now Your open. line is

PeterKeith

China. want relating to around I question imported investigation to the get for of tile and a the guys. anti-dumping again, Thanks, from did kind ceramic

of hit ruling and end there year, early some implications final that a If anti-dumping? us if you updated next maybe thoughts the this you the of could year, could give potential there's the some on by

CabbyLolmaugh

reacting suppliers I November. and Hey, actively orders to goes such known before, suppliers and anti-dumping that right chain we're happen trending any honestly comes would to rates different in comes Peter, going that probably set structures great now. our ruling we've about where up -- lot different have when on any and it quite world in, can't But any it, is and it will the that the we we're for in need that that's to avoid a to like it of right and thought way all sure, of when this shipping have I -- in ceramic I -- avoiding in November. say we're that over to may been we but new the when tile and out said able probably favorable freight risk. up. we've to We're place we've supply anti-dumping been at be we've it, burden Yes, hopefully, of of placed duty or question. to, all avoid China of come

PeterKeith

mean have you of China Thanks, that Cabell. in countries already you about November? other implemented that you've in places. have before And that in Does have you orders can place outside orders talked

CabbyLolmaugh

supplied, Well, country, I always was, anything when want at comes to that is it leaves those So well you? coming are so right if here from? the time. responsible sure when resourcing it what be it we're hit of If the with the China the make to have moves we're we looking anti-dumping. to orders we you don't get we Meaning, right sure is when our D.C., in, we're at we're another making need to anything hit when need what meant make we any making where sure country, stores it in to in product does out by lands

PeterKeith

times it there Okay. seem on does And, I'm days. to this like lastly, the periods at XX expert of in I subject, are XX look-back understand. an topic, not but certainly

you period of your impact well? direct with as risk could point look-back that there October -- maybe any November, around So some imports from final is of determination as a September, out,

KirkGeadelmann

for I our going will trying our do, now. for main Peter, months think to on from we're just we it, just said, countries, really it's of replenishment so what predict thing tile. also, to And been that, again, Cabell the and be actively is most nearly something other diversify again, something and in started we've obviously, sourcing, working it's a two to addition that, difficult it's years that ceramic not few ago; coming change forward

in you think on hard some be -- caught time. it we're for very quite a I could and flat-footed been So working but we've been position, we better haven't always

finalized, So things your get certainly Q&A and out play commentary. as completely clear not But, End as in now, things we'll of acknowledged offer question. additional it's you right

Operator

further this back remarks. Thank to turn you. closing I like would Davis questions. showing for time, I'm to At the over call no Mark

Mark Davis

and look We you providing have day. update in Thanks forward next your interest listening a call. Shop, great to our earnings our Tile to October. for Thank in the to conference

Operator

for gentlemen, concludes conference. today's and you program. thank Ladies in participating This the

You may disconnect. now

Mark Davis	Investor Relations
Cabby Lolmaugh	President and Chief Executive Officer
Kirk Geadelmann	Senior Vice President, Chief Financial Officer
Daniel Moore	CJS Securities
Peter Keith	Piper Jaffray
Anthony Chukumba	Loop Capital
Joseph Feldman	Telsey
Justin Kleber	Baird

Tile Shop (TTSH) 23 Jul 192019 Q2 Earnings call transcript