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What: Shares of Tile Shop Holdings (NASDAQ:TTS) were crumbling today, falling as much as 19% and finishing down 7% after it came up short on earnings.
So what: Earnings came up short for the tile retailer as it posted an adjusted profit of $0.08 a share on expectations of $0.10. Revenues, meanwhile, matched estimates, increasing 28.3% to $56.8 million. Tile Shop also had an impressive 14.3% gain in same-store sales in the quarter. CEO Robert Rucker noted that it was the company's second straight quarter with comps north of 14%, and said its strategy has proven to be a winning combination for consumers. Tile Shop maintained its full-year revenue guidance of $227 million to $337 million, whose midpoint matches the analyst consensus.
Now what: With the housing recovery still moving along, an aggressive store expansion, and double-digit same-store sales, Tile Shop looks poised for future growth. Analysts expect sales growth of 30% next year, and the strong comps will improve profitability. I'd say today's drop presents an appealing buying opportunity.
Fool contributor Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Tile Shop Holdings. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.