Lumber Liquidators Income Plummets

Lumber Liquidators' (Toano, Va.) net income plummeted 44.8 percent to $4.3 million, or 15 cents per diluted share, in the third quarter of 2010. "Our performance in the third quarter reflects declines in productivity both at the store-level and in the flow of product through our warehouse following implementation," said President and CEO Jeffrey W. Griffiths in a statement. The company's net income in the third quarter of 2009 was $7.8 million, or 28 cents per diluted share. The company's net sales increased $6.7 million, or 4.7 percent, to $147.2 million in the third quarter from $140.5 million last year. The company's same-store net sales rose 7.3 percent. According to a story from the Associated Press, Lumber Liquidators missed Wall Street's expectations for this quarter, causing the company to alter its 2010 forecast; analysts surveyed by Thomson Reuters expected earnings of $0.32 per share from revenue of $161.5 million. The company now expects fourth quarter 2010 net earnings per diluted share of $0.21 to $0.27, and full year earnings per diluted share in the range of $0.93 to $0.99. Meanwhile, fourth quarter 2010 net sales should hit $151 million to $157 million, bringing its full year net sales within the range of $618 million to $624 million. The company's full third-quarter results can be viewed here.