Tile Shop Holdings: Falls to record low on Q1 miss, "material weakness" disclosure
30/04/2019 15:54
** Shares of tile retailer TTS.O fall 20% to hit record
low at $4.56 after a surprise decline in Q1 same-store sales and
disclosing "material weakness"
** Stock set for its worst day since Feb. 2018
** TTS expects to report two material weaknesses in internal
controls over financial reporting
** Says "material weakness" is primarily due to ineffective
design and implementation of controls related to its Enterprise
Resource Planning system implemented in Jan. and to its IT
general controls for information system
** Also posts surprise qtrly same-store sales fall with 4.2%
decline in Q1 vs est. of 2%, according to IBES data from
Refinitiv urn:newsml:reuters.com:*:nGNX9fbpbw
** Reports second consecutive qtrly profit miss and first
sales miss after three straight qtrs of beat due to lower
traffic
** TTS says traffic was hit by co's shift to new Enterprise
Resource Planning System and new website platform in January
** Also notes Q1 store traffic and sales were hit by poor
weather condition in the upper Midwest and in the Northeast
** TTS down about 17% this year
(Reporting by Soundarya J in Bengaluru)
((Reuters Messaging:
soundarya.j.thomsonreuters.com@reuters.net))