Shares of Tile Shop Holdings (NASDAQ:TTS) 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.
Mark Reeth is an incredibly handsome Consumer Goods editor, and is an expert on all things that fall within the Consumer Goods sector (especially video games). Follow him on Twitter for all of the most important CG news.
- Nov 14, 2013 at 4:00PM
- Consumer Goods
Tile Shop Holdings
- Tile Shop Holdings (TTS) Q4 2018 Earnings Conference Call Transcript
- Why Middleby, Tile Shop Holdings, and Uniti Slumped Today
- Why Tile Shop Holdings Stock Went Down 15% After Earnings
- Tile Shop Holdings (TTS) Q3 2018 Earnings Conference Call Transcript
- Tile Shop Holdings Returns to Growth: Key Earnings Takeaways