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What's happening?
Shares of Tile Shop (TTSH 4.23%) have dropped as much as 10% following the company's disappointing pre-market earnings report.
Why it's happening
Tile Shop reported third-quarter revenue of $62.8 million and earnings of $0.03 per share, below the top-line consensus for $65.2 million and the bottom-line consensus for $0.06 per share. The company also announced that founder and CEO Robert Rucker would retire as of Jan. 1, and would be replaced by COO Chris Homeister.
Tile Shop now expects its full-year revenue in a range from $257 million to $261 million, with comparable-store sales ranging from a decline of 1% to an improvement of 1%. Full-year earnings per share is expected to range from $0.23 to $0.25. Wall Street had expected $263.4 million in revenue and $0.29 in EPS for 2014, so both of Tile Shop's guidance ranges look somewhat weak.
