Josh Arnold
Long/short equity

The Tile Shop: Taking A Mea Culpa On This Unmitigated Disaster

Last summer I began researching The Tile Shop (NASDAQ:TTS), a small, rapidly growing retailer of hard surface flooring in the US. The company had everything; world-beating margins, infrastructure to grow, a perfect balance sheet and a growing store footprint with blistering comp sales growth. I was smitten and I ended up putting my thoughts into an article here on SA. That article, written last June, has turned out to be my worst call ever. In this article, we'll take a look at why it went wrong and why the investment case I made for TTS never materialized.

The catalyst for this review was last night's earnings report which was, again, an unmitigated disaster. Comp sales have continued...

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