Tile Shop sees FY18 capital investment of approx. $32M
The Company updated its previously communicated annual outlook: Capital investment of approximately $32M, including remodeling and store display investment to support its product presentation strategy. Inventory investment of approximately 10% to 20% year over year by year-end. In the third quarter, we expect our inventory levels to remain closer to second quarter levels as the Company plans to continue to make additional investments in its assortment. Selling, general and administrative expense increase of approximately $7M to support its service strategy, including increased expenses for the addition of regional sales leader positions, sales and warehouse staff compensation, customer relationship management and content management capabilities, and the addition of approximately 20 professional market managers. The approximately $7M increase in SG&A expense is incremental to the expected SG&A expense increases associated with a full year of operations for the fifteen stores opened in 2017 and the three new stores opening in 2018.