Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



What's Next for Tile Shop?

It's been quite a week for Tile Shop (NASDAQ: TTS  ) . After a fraud accusation from Gotham City Research last Thursday, shares dropped more than 50%, but have since moved higher as major financial firms and some analysts came to the defense of the upstart home-improvement retailer.

For now, shares seem to have found an equilibrium around $16-$17, or about 25% less than where they stood before the short-seller released its thesis. What should investors look for going forward? Fool contributor Jeremy Bowman explains what you need to know about Gotham City's allegation and what investors can expect from Tile Shop in the near future.

One growth stock for 2014
The market stormed out to huge gains across 2013, leaving investors on the sidelines burned. However, opportunistic investors can still find huge winners. The Motley Fool's chief investment officer has just hand-picked one such opportunity in our new report: "The Motley Fool's Top Stock for 2014." To find out which stock it is and read our in-depth report, simply click here. It's free!

Read/Post Comments (2) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 23, 2013, at 8:03 PM, laKitKat wrote:

    almost all consumer retail puts employee expense in operating expense. That doesn't make TTS any different than its peers. Why do you present this as a reason they are allowed a higher gross margin?

  • Report this Comment On November 27, 2013, at 11:19 AM, TMFHobo wrote:


    Thanks for the question. Yes, employee expense is always an operating expense, but there are two primary kinds of operating expenses - Cost of Goods Sold (COGS)and Selling, General & Administrative expenses (SG&A).

    In order to get gross profit, you subtract Cost of Goods Sold from revenue. SG&A comes after. COGS generally includes labor and product costs, but Tile Shop charges their labor to SG&A as a selling expense, since their salesmen are paid on commission.

    Hope that helps. Take a look at any company's income statement for more information.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2736813, ~/Articles/ArticleHandler.aspx, 9/25/2016 10:19:07 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 18,261.45 -131.01 -0.71%
S&P 500 2,164.69 -12.49 -0.57%
NASD 5,305.75 -33.78 -0.63%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/23/2016 4:00 PM
TTS $15.75 Down -0.02 -0.13%
Tile Shop Holdings CAPS Rating: ****