Tile Shop Holdings Inc. shares surged 7% in premarket trade Thursday, after the retailer of natural stone and man-made tiles beat profit estimates for the first quarter. The company said it had net income of $4.0 million, or 8 cents a share, in the quarter, down from $8.0 million, or 15 cents a share, in the year-earlier period. Sale fell to $91.1 million from $92.1 million. The FactSet consensus was for EPS of 8 cents and sales of $92.8 million. Same-store sales fell 6.8%, matching the FactSet consensus. Interim Chief Executive Robert Rucker said the company eliminated advertised price promotions in the quarter, that allowed it to maintain its gross margin at 70.3%. "Without using the promotional lever in the quarter we did experience the volatility in traffic and sales at comparable stores relative to last year that we expected," he said. "However, we are getting our new tile product on the floors of our showrooms fast and I am encouraged by the initial sales results from the new products we've recently added to our assortment." Shares have fallen 72% in the last 12 months, while the S&P 500 has gained 16%.