Josh Arnold
Long/short equity

The Tile Shop: Structural Tailwinds And Tremendous Growth Catalysts

Thesis

The Tile Shop (NASDAQ:TTS) is a specialty retailer that operates 73 stores that offer manufactured and natural stone tile, maintenance materials and related accessories. The 750+ employee company was founded in 1985 and has experienced rapid growth in the past couple of years. The company has been a beneficiary of the Federal Reserve's quantitative easing efforts, causing a refinance boom among homeowners and investors in rental properties. This resurgence in home remodeling has sent TTS shares soaring to new highs and estimates for revenue and profits say the good times will continue to roll. I intend to show, however, that Street estimates on this name are too low and are discounting the tremendous amount of growth this...

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