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The Tile Shop The Tile Shop Reports Third Quarter 2021 Results November 4 , 2021 MINNEAPOLIS , Nov. 04 , 2021 ( GLOBE NEWSWIRE ) -- Tile Shop Holdings , Inc. ( Nasdaq : TTSH ) ( the " Company " ) , a specialty retailer of natural stone and man - made tiles , setting and maintenance materials , and related accessories , today announced results for its third quarter ended September 30 , 2021 . Management Commentary - Cabell Lolmaugh , CEO " Our net sales results represent the highest level of third quarter revenue in our company history . While we're pleased with the overall sales results , we are seeing an increase in the cost to purchase products from our suppliers as well as the cost to ship inventory from our suppliers to our distribution centers . We have and will continue to take steps to protect our gross margin . In addition , our selling , general and administrative costs have increased as we take steps to fund initiatives that position us for growth . We're excited to see the results that we've been able to generate to date and believe that these investments will position us for continued growth in the future . " ( unaudited , dollars in thousands , except per share data ) Net sales Net sales ( decline ) growth ( 1 ) Comparable store sales ( decline ) growth ( 2 ) Gross margin rate Income from operations as a % of net sales Net income Net income per diluted share Adjusted EBITDA Adjusted EBITDA as a % of net sales Number of stores open at the end of period ( 1 ) ( 2 ) Third Quarter Summary Net Sales Increased 13.2 % Comparable Store Sales Increased 12.8 % Gross Margin of 68.2 % Net income of $ 2.2 Million ; Adjusted EBITDA of $ 10.4 Million Diluted Earnings per Share $ 0.04 $ $ $ Three Months Ended September 30 , 2020 2021 92,240 $ 13.2 % 12.8 % 68.2 % 3.4 % 2,175 $ 0.04 $ 10,407 $ 11.3 % 143 81,492 $ ( 5.2 ) % ( 6.5 ) % 67.9 % 3.6 % $ $ $ 13.7 % 142 1,914 0.04 11,124 Nine Months Ended September 30 , 2020 2021 280,517 $ 15.2 % 14.9 % 69.0 % 6.3 % 12,966 $ 0.25 $ 40,487 $ 14.4 % 143 243,501 ( 7.0 ) % ( 8.3 ) % 68.0 % 1.5 % 4,656 0.09 29,110 12.0 % 142 As compared to the prior year period . The comparable store sales operating metric is the percentage change in sales of comparable stores period over period . A store is considered comparable on the first day of the 13th full month of operation . When a store is relocated , it is excluded from the comparable store sales calculation . Comparable store sales includes total charges to customers less any actual returns . The Company includes the change in allowance for anticipated sales returns applicable to comparable stores in the comparable store sales calculation . Comparable store sales data reported by other companies may be prepared on a different basis and therefore may not be useful for purposes of comparing the Company's results to those of other businesses . Company management believes the comparable store sales operating metric provides useful information to both management and investors to evaluate the Company's performance , the effectiveness of its strategy and its competitive position . THIRD QUARTER 2021 Net Sales Net sales for the third quarter of 2021 increased $ 10.7 million , or 13.2 % , compared with the third quarter of 2020. The sales results during the three months ended September 30 , 2020 were adversely impacted by the ongoing COVID - 19 pandemic , which resulted in reduced store hours , lower levels of traffic and an overall decrease in sales . Over the last 12 months , we have seen improved sales due to strong demand for home improvement products , which , combined with the execution of the Company's strategy and an improvement in average ticket have contributed to a 12.8 % increase in sales at comparable stores during the three months ended September 30 , 2021 . Gross Profit Gross profit for the third quarter of 2021 increased $ 7.6 million , or 13.8 % , compared with the third quarter of 2020 , primarily due to the increase in sales . The gross margin rate was 68.2 % and 67.9 % for the three months ended September 30 , 2021 and 2020 , respectively . The increase in gross margin rate was primarily driven by better pricing and an improvement in customer delivery collection rates , partially offset by increased costs for our products during the three months ended September 30 , 2021 compared to the three months ended September 30 , 2020 . Selling , General and Administrative Expenses