Revenue during the quarter grew 8.76 percent to $92.14 million from $84.71 million in the previous year period. Gross margin for the quarter contracted 21 basis points over the previous year period to 70.27 percent. Total expenses were 85.31 percent of quarterly revenues, down from 86.12 percent for the same period last year. This has led to an improvement of 81 basis points in operating margin to 14.69 percent.

Operating income for the quarter was $13.53 million, compared with $11.76 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $21.10 million compared with $19.28 million in the prior year period. At the same time, adjusted EBITDA margin improved 14 basis points in the quarter to 22.90 percent from 22.76 percent in the last year period.

“We are very pleased to report a strong start to 2017,” said Chris Homeister, Chief executive officer. “The continued effort and dedication from our teams to provide exceptional service to homeowners and professionals on their home improvement projects led to a successful quarter for our business across all key metrics. We are excited to build upon our first quarter accomplishments as we seek to deliver significant growth in sales, operating margins and earnings per share throughout 2017.”

For fiscal year 2017, Tile Shop Holdings, Inc expects revenue to be in the range of $350 million to $370 million and its expects net income to be in the range of $25 million to $29 million and its adjusted net income to be in the range of $26 million to $29 million and its diluted earnings per share to be in the range of $0.49 to $0.56 and its adjusted diluted earnings per share to be in the range of $0.50 to $0.57.