Lumber Liquidators 2Q net income rises 32 percent on higher sales

Lumber Liquidators 2Q net income rises

RICHMOND, Va. — Hardwood flooring retailer Lumber Liquidators said Wednesday strong consumer demand drove an increase in revenue, helping its net income climb about 32 percent in the second quarter.

For the three months ending June 30, the Toano, Va., company said it earned $9.1 million, or 32 cents per share, compared with $6.9 million, or 25 cents per share, a year ago.

Its net sales increased about 18 percent in the quarter to $168.7 million from $143.1 million a year ago.

Analysts surveyed by Thomson Reuters expected earnings of 33 cents a share on revenue of $169.9 million.

Meanwhile, sales at stores open at least a year grew 5.5 percent. Same-store sales are a key retail performance metric because they measure sales growth from existing stores rather than newly opened ones.

“Our unique value proposition of price, selection, quality and availability continued to resonate well with customers and increase traffic,” CEO Jeffrey W. Griffiths said in a news release.

But Lumber Liquidators Holdings Inc. said its gross margin fell slightly because of changes in its sales mix, increased product costs, and promotional pricing designed to drive consumer demand and sales.

Its shares fell $1.60, or 6.5 percent, to $22.99 in late trading.

The company with more than 200 stores opened six new locations during the quarter. It plans to open between 19 and 23 stores in the second half of the year, including its first store in Canada in the fourth quarter.

Lumber Liquidators said it expects the drive in consumer demand to continue as it sees gradual improvement in the economic environment.

For the full year, the company expects earnings of $1.13 to $1.23 per share on revenue of $630 million to $650 million. Analysts expect earnings of $1.21 a share on revenue of $643 million.