Q3 2020 Tile Shop Holdings Inc Earnings Call
[music].
Hi, conciliation, those non-GAAP financial measures, which has been posted to our company website.
With that let me now turn the call over to Kathy Kathy.
Saint Mark's and good morning, everyone.
At the beginning of 2020, we established three key strategic priorities for the year.
Our first priority focus retail execution.
We set goals for each of our stores targeting discounting conversion.
Drink.
Great collection average ticket and sales productivity.
We provided detailed reporting and facilitated coaching conversations to help our store teams focused on improving execution in each of these areas while.
While I am pleased with the progress we've been able to make we still have opportunities for improvement and I believe we can continue to make headway through ongoing monitoring of the metrics and training.
Professional customers include tile setters.
Setters General contractors interior designers and custom homebuilders.
Our pro loyalty program is designed to provide incentives to professional customers in the form of tiered discounts.
Rebased on referrals.
Free samples and other incentives.
I am committed to continuing this practice to protect the health of our employees and our customers.
Over the last 12 months, we've taken steps to reduce the level of inventory we carry on our balance sheet. Additionally, we've been working towards the goal of Resourcing a number of the products. We have historically purchased from vendors based in China due to increases in tariffs introduced in 2018 in 2019.
The transition to the new vendors spread across Asia, Europe, and South America was well underway when the onset of Covid forced many of our suppliers to temporarily shut down their manufacturing operations.
This has resulted in a delay and replenishment and challenges maintaining adequate stock levels.
We are working closely with our vendors to secure delivery of back order products.
In closing I am very pleased with the results of the last quarter and the progress we've been able to make during 2020.
In advertising costs, and a $1.1 million decrease in consulting audit legal and IP cost reduced SGN expenses year over year.
We concluded the quarter with 142 stores as compared to 140 at the end of the same quarter in 2019 free.
Previously we shared our plan to open one new store in 2020. The store opening has now been moved into 2021 net.
Net income for the third quarter was $1.9 million and fully diluted earnings per share was four cents.
[music].
[music].
[music].
[music].