Shares of Tile Shop Holdings (TTS +0.95%) are down more than 38% today after Gotham City Research released a report that the company had overstated its 2013 earnings by about 200%. Motley Fool One senior analyst Bryan White doesn't know if the report is completely accurate, but he can't deny that he thinks the company's unbelievably strong margins are too good to be true. Tile Holdings, much like Lumber Liquidators, provides goods that homeowners need to be able to rely on, and Bryan thinks that both companies are so profitable because they're undercutting competition on prices and the only way to do that is to have cheap, less reliable materials. That, combined with the news from Gotham, makes Bryan think that investors should steer clear of Tile Shop Holdings.
Tile Shop Just Got Smashed
By Mark Reeth and Bryan White – Nov 14, 2013 at 4:00PM
NASDAQ: TTSH
Tile Shop
Market Cap
$284M
Today's Change
(0.95%) $0.06
Current Price
$6.36
Price as of November 12, 2025 at 4:00 PM ET
Shares of Tile Shop Holdings are way down after a damning report from Gotham City Research.
About the Author
Mark Reeth wasn't born incredibly handsome, like so many are--he had to work hard to get to where he is today. Thankfully, through much blood, sweat, and hair products, Mark Reeth is now one incredibly good-looking Consumer Goods Editor. But Mark Reeth wasn't born a Consumer Goods Editor--he started as a writer for Fool.com, became a Blog Editor, and now loves reading all the latest Consumer Goods news. If you want to read all the latest Consumer Goods news, follow him on Twitter @ChristmasReeth.