Tile Shop Hldgs, Inc. Stock Down 17% on Downgrade: Here's What the Sellers Are Missing
Shares of specialty home-improvement retailer Tile Shop Hldgs, Inc. (NASDAQ: TTS) are down 16.5% at 12:20 p.m. EDT on Sept. 27 following a downgrade of the stock by Piper Jaffray analyst Peter Keith, who lowered his rating on the stock from "overweight" to "neutral" on concerns that the company's efforts to transition its product lineup has it headed straight for a poor second half of the year.
According to the analyst note, Tile Shop's product transitions "generate uncertainty" for the company, adding to concerns for some investors following a second quarter that fell short of expectations.
Tile Shop's stock is down more than 43% from its 2017 peak at this writing after a disappointing second quarter and now this downgrade by Piper Jaffray. That's quite painful for anyone who bought shares at any point in the first half of the year. And to some extent, the company has "earned" some of this beat-down, falling short of expectations on both revenue and same-store sales growth and lowering its full-year guidance as a result.
Source: Fool.com
