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• A specialized Home Depot, focused exclusively on tiles and installation supplies.

• Think of it as a Pottery Barn or Restoration Hardware, but selling only tiles and related products for home renovation.

• Like a smaller, more niche version of Floor & Decor.

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• Natural Stone Tiles: Offers a wide selection of natural stone options including granite, marble, travertine, and slate for various flooring and wall applications.
• Man-Made Tiles: Provides a diverse range of manufactured tiles such as ceramic, porcelain, glass, metal, and mosaic in numerous styles and finishes.
• Tile Installation Materials & Tools: Sells essential supplies like thinset mortar, grout, sealers, backer boards, and specialized tools required for tile installation projects.
• Design Services: Delivers complimentary in-store and virtual design assistance to help customers plan, visualize, and execute their tile projects.

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The Tile Shop (symbol: TTSH) primarily sells its products to individuals and the trade professionals who serve them, classifying its business model as primarily B2C (Business-to-Consumer). While it does serve some commercial clients, its core focus is on residential projects.

The company serves the following categories of customers:

1. Homeowners / DIY Enthusiasts: Individuals who are directly undertaking home renovation, remodeling, or new construction projects (e.g., bathrooms, kitchens, living spaces) for their personal residences. These customers visit The Tile Shop's showrooms or website to select and purchase tiles and related materials for their projects.
2. Residential Trade Professionals: This category includes independent contractors, tile installers, and interior designers who purchase tiles and installation materials from The Tile Shop. While these are often small businesses or self-employed individuals, they are buying on behalf of or for the residential projects of their individual homeowner clients.
3. Small Commercial Project Clients: Businesses or individuals undertaking smaller-scale commercial renovation or new construction projects. These customers choose The Tile Shop for projects such as local restaurants, boutiques, small offices, or other light commercial spaces where the company's specialized product selection, design services, and aesthetic appeal are a good fit.

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Cabell Lolmaugh, President, Chief Executive Officer

Cabell Lolmaugh was appointed President and Chief Executive Officer in January 2019. He joined The Tile Shop in 2001, starting in the warehouse of its Roseville, Minnesota store, after serving four years in the U.S. Marine Corps. Mr. Lolmaugh progressed through various roles, including Store Manager, leading the company's pro customer strategy in 2014, becoming the first Director of Talent Development in 2016, and Vice President of Retail Stores West in 2017. He was promoted to Senior Vice President and Chief Operating Officer in February 2018 before taking on his current role.

Mark Davis, Senior Vice President, Chief Financial Officer, and Secretary

Mark Davis was named Senior Vice President, Chief Financial Officer, and Secretary in April 2024. He joined The Tile Shop in 2014 as Controller and was promoted to Vice President of Investor Relations and Chief Accounting Officer in 2019. Before his tenure at The Tile Shop, Mr. Davis worked for Target for five years in various financial reporting and accounting management positions and spent eight years at KPMG LLP, where he earned his CPA certification.

Joseph Kinder, Senior Vice President of Supply Chain and Distribution

Joseph Kinder was appointed Senior Vice President of Supply Chain and Distribution in July 2020, overseeing all supply chain activities. Mr. Kinder began his career at The Tile Shop in March 1993 as a sales associate in Bloomington, Minnesota. He subsequently served as Assistant Store Manager and held various other management roles within the company until June 2012.

Christopher Davis, Chief Information Officer

Christopher Davis was hired as Chief Information Officer in October 2020. In this role, he is responsible for the company's information technology. Prior to joining The Tile Shop, Mr. Davis led technology efforts at other organizations.

Daniel Brewster, Vice President, Real Estate and Construction

Daniel Brewster was appointed Vice President, Real Estate and Construction in April 2024. He joined The Tile Shop in 1999 as a sales associate. Throughout his career at the company, he has held increasing responsibilities, including managing four different stores, serving as Regional Manager, Senior Regional Manager, and Vice President Retail Stores West. Before joining The Tile Shop, Mr. Brewster spent seven years in store-level positions at Target Corporation.

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1. Macroeconomic Conditions and Cyclical Nature of the Retail Industry: Tile Shop's performance is significantly influenced by macroeconomic factors, including housing starts, discretionary income, and the overall health of the construction and home improvement markets. The retail industry is cyclical, and economic downturns or housing market slowdowns can lead to reduced consumer spending on home renovations, directly impacting Tile Shop's sales and profitability.
2. Intense Competition: The retail tile industry is highly competitive, with Tile Shop facing rivals ranging from large national home improvement centers like Home Depot and Lowe's, which benefit from economies of scale and potentially more attractive pricing, to regional specialty retailers, factory-direct stores, and online-only competitors. The relatively low barriers to entry in the retail tile market also mean that new or existing businesses can easily increase competitive pressure.
3. Supply Chain Disruptions and Inflationary Pressures: Tile Shop is vulnerable to disruptions in its supply chain, which can lead to increased costs, shipping delays, and issues with inventory levels and product availability. Furthermore, inflationary cost pressures from vendors and elevated international shipping rates have exerted pressure on the company's gross margins. The specialized handling required for transporting tiles due to their weight, size, and fragility also adds to logistical complexities.

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The continued rapid market penetration and technological advancements of Luxury Vinyl Plank/Tile (LVP/LVT) pose a clear emerging threat. LVP/LVT offers significant advantages in terms of durability, water resistance, ease of installation (often DIY-friendly), and often lower cost compared to traditional tile, while increasingly mimicking the aesthetics of natural stone and ceramic tile. This makes it a compelling alternative for many residential and commercial applications where tile was traditionally preferred, potentially eroding Tile Shop's market share, particularly among price-sensitive customers or those prioritizing ease of maintenance and installation.

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For Tile Shop's (TTSH) main products, the addressable markets are as follows:

• Man-made Tiles (Ceramic and Porcelain): The U.S. Ceramic and Porcelain Tiles Market was valued at USD 19.40 billion in 2025 and is expected to reach USD 38.09 billion by 2034, growing at a Compound Annual Growth Rate (CAGR) of 7.72% during the forecast period 2025-2034.
• Natural Stone Tiles: The U.S. natural stone market size was estimated at USD 2.20 billion in 2024 and is projected to grow at a CAGR of 4.1% from 2025 to 2030, reaching USD 2.76 billion by 2030.
• Setting and Maintenance Materials and Related Accessories: null

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Here are 3-5 expected drivers of future revenue growth for Tile Shop (symbol: TTSH) over the next 2-3 years:

1. Growing Focus on Professional Customers: Tile Shop is actively working to strengthen its connections with professional customers and expand its product assortment to cater to their specific needs. This strategy is anticipated to boost future revenue as professional clients tend to exhibit stronger home improvement demand and brand loyalty.
2. Expanded Product Assortment: The company has broadened its product offerings to include new flooring options such as LVT, laminate, engineered wood, and large format tile, as well as introducing a "Signature Tile Collection." This expansion aims to appeal to a wider customer base and drive sales through a more diverse product portfolio.
3. Potential Market Recovery Driven by Easing Interest Rates: Management has indicated that a more favorable interest rate environment could lead to an improvement in existing home sales. This, in turn, is viewed as a significant catalyst for increased demand in the home improvement and remodeling sectors, which would positively impact Tile Shop's revenue.
4. Enhancement of E-commerce Capabilities: Tile Shop is proactively working on improving its e-commerce platform. Strengthening its online presence and functionality is expected to expand its reach to a broader customer base and enhance the overall shopping experience, thereby contributing to revenue growth.

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Share Repurchases

• The Tile Shop's Board of Directors authorized a $30 million share repurchase program on August 16, 2022, which has no expiration date.
• Approximately $503,000 was allocated to share repurchases in 2024.

Share Issuance

• The number of shares outstanding increased by 0.18% in the last year.
• A plan approved in October 2025, expected to be effective in December 2025, involves a reverse stock split (between 1-for-2,000 and 1-for-4,000) where fractional shares will be cashed out at $6.60 per share, aiming to delist and deregister the company's common stock.

Inbound Investments

• Fund 1 Investments, LLC, a major shareholder, consistently purchased shares almost daily since June 2024, with significant acquisitions in December 2024 totaling approximately $6.59 million.

Capital Expenditures

• Capital expenditures were $14 million in 2022, $15 million in 2023, and $14 million in 2024.
• The capital expenditures are generally focused on supporting the company's retail operations, which include 140 stores across 31 states and the District of Columbia.