Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Tile Shop Holdings (NASDAQ:TTS) were down as much as 17% this morning following the company's earnings release but finished 7% higher as shares soared in the afternoon

So what: The specialty tile retailer came up short on the top and bottom lines as sales grew 13.3% to $64.4 million, and earnings improved to $0.09 a share. Analysts had expected $67.4 million and $0.11, respectively. Management said sales were affected by "harsh winter weather conditions" as same-store sales fell 2.3% in the quarter. For the full year, Tile Shop expects to open 20 new stores and sees a same-store sales increase of 4%-6% and EPS of $0.41-$0.45, in line with estimates at $0.44. 

Now what: Given the weak quarter and average outlook, Tile Shop's jump this afternoon was a bit of a mystery. Shares of fellow flooring retailer Lumber Liquidators (NYSE:LL) were down as much as 8% this morning on its own underwhelming earnings report before recovering to positive territory as the two stocks tracked in tandem. Apparently, investors saw a buying opportunity on these two embattled high-growth housing plays, and they pounced. With ambitious store expansion expected from Tile Shop, there was certainly an argument this morning that the shares were undervalued, but I wouldn't jump in unless I saw solid growth from the housing market once again. 

Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Lumber Liquidators and Tile Shop Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.