Tile Shop Holdings, Inc. (NASDAQ:TTSH) Q4 2023 Earnings Call Transcript
Tile Shop Holdings, Inc. (NASDAQ:TTSH) Q4 2023 Earnings Call Transcript February 29, 2024
Tile Shop Holdings, Inc. isn’t one of the 30 most popular stocks among hedge funds at the end of the third quarter (see the details here).
Operator: Good day, and thank you for standing by. Welcome to the Fourth Quarter 2023 Tile Shop Holdings, Inc. Earnings Conference Call. [Operator Instructions] Please note that today's conference is being recorded. I would now like to pass the call over to Mark Davis, Vice President of Investor Relations and Chief Accounting Officer. Please go ahead.
Mark Davis: Thank you. Good morning to everyone, and welcome to the Tile Shop's Fourth Quarter Earnings Call. Joining me today are Cab Lolmaugh, our Chief Executive Officer; and Karla Lunan, our Chief Financial Officer. Certain statements made during the call today constitute forward-looking statements made pursuant to and within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 as amended. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. Those risks and uncertainties are described in our earnings press release issued earlier and in our filings with the SEC. The forward-looking statements made today are as of the date of this call, and we do not undertake any obligation to update these forward-looking statements.
Today's call will also include certain non-GAAP measurements. Please see our earnings release for a reconciliation of those non-GAAP financial measures, which has also been posted on our company website. With that, let me now turn the call over to Cab.
Cabell Lolmaugh: Thanks, Mark. Good morning, everyone, and thank you for joining us today for an update on our business. During 2023, we're able to execute our strategy, manage expenses and reduced inventory levels, which put us in a position to fully pay off our debt before the end of the year. I'm proud of this accomplishment, which highlights the cash flow generating strength of our business model even in the face of a challenging macro backdrop. It's important to note that macroeconomic headwinds presented significant challenges to our business over the last year. During 2023, existing home sales turnover, which we view as a key leading indicator to remodeling activity continued to decline year-over-year. While this trend appears to be starting to moderate, it has created challenges across the home improvement industry.
In recent months, consumer surveys indicated continued pressure in the levels of intent to complete home improvement projects, which extends to the hard surface flooring category. Given this backdrop, it is critical that we continue to execute our strategy to grow our share of wallet with our core customers. Growing our business with our professional customers remains important to our strategy. Professional customers represent a meaningful portion of our sales mix and the referral business provided by professional customers is critical to our success. We invest in relationships and processes to help simplify the shopping experience for our pros. We're happy to host the pro in our stores as they work with their customers to make product selections or by taking the lead in the design process with the pros and clients to help maximize the time they can spend on their job sites.
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