Tile Shop Holdings, Inc. reported a decline in financial performance for the fiscal year ending December 31, 2025, with net sales of $336.8 million, down 3.0% from $347.1 million in 2024. The company experienced a loss from operations of $5.8 million, compared to an income of $3.5 million in the previous year. The decrease in sales was attributed to lower customer traffic, although this was partially offset by an increase in average ticket value. The gross margin rate also fell from 65.7% in 2024 to 63.8% in 2025, primarily due to rising product costs and increased tariffs on imported goods.
In terms of operational changes, Tile Shop Holdings closed its distribution centers in New Jersey and Wisconsin during 2025, which contributed to a reduction in selling, general, and administrative expenses by $3.5 million. The company also sold its former distribution center in Wisconsin for $1.2 million in February 2026, resulting in a gain of $0.8 million. As of December 31, 2025, the company operated 140 stores across 31 states and the District of Columbia, maintaining an average store size of approximately 20,000 square feet.
The company undertook significant financial maneuvers, including a reverse stock split followed by a forward stock split, which reduced the number of record holders of its common stock below 300, allowing it to suspend its reporting obligations under the Securities Exchange Act. This transaction resulted in approximately $32.2 million being paid to stockholders who held fewer than 3,000 shares. As of December 31, 2025, Tile Shop Holdings had total assets of $301.7 million and total debt of $25 million, with cash and cash equivalents decreasing to $10.1 million from $21 million in the previous year.
Looking ahead, Tile Shop Holdings is focused on enhancing its operational efficiency and product offerings while navigating ongoing macroeconomic challenges, including inflation and trade policy changes. The company plans to leverage its established supplier relationships and proprietary brands to maintain competitive pricing and product quality. However, it acknowledges the uncertainty surrounding future economic conditions and their potential impact on consumer spending and overall business performance. The company aims to continue monitoring these factors closely as it develops its strategic initiatives for 2026 and beyond.
About TILE SHOP HOLDINGS, INC.
The Tile Shop is a specialty retailer offering a broad selection of natural stone, man-made, and luxury vinyl tiles, along with installation and maintenance materials. Serving homeowners and professionals across the U.S., it emphasizes product variety, proprietary brands, customer service, and efficient distribution. The company leverages global sourcing, in-store showrooms, and an integrated online platform to deliver high-quality products at competitive prices.
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