Lumber Liquidators Increases 4Q Sales

Lumber Liquidators (Toano, Va.) had net sales of $153.2 million last quarter, according to Lumber Liquidators' fourth quarter earnings report released today. This was an 11.8% increase over 2009 fourth quarter net sales of $137.1 million. While Lumber Liquidators opened 10 new stores during the fourth quarter, same-store net sales increased 1.2%; in the same quarter last year that figure increased 5.5%. Net income during the fourth quarter decreased 17% to $5.9 million from $7.1 million during the final quarter of 2009.

For all of 2010, Lumber Liquidators' net sales increased 13.9% to $620.3 million from $544.6 million in 2009. Comparable store net sales increased 2.1% in 2010, compared to flat comparable store net sales in the prior year. The company opened 37 new stores in 2010 and operated 223 stores in 46 states as of Dec. 31.

"We steadily regained traction throughout the fourth quarter and are pleased to have ended the year strongly," said CEO Jeffrey W. Griffiths. "Our results reflected residual productivity challenges of our recent SAP implementation. However, we experienced solid demand as customers continue to respond positively to our expanded product assortment and our value proposition."

In 2011 Lumber Liquidators expects net sales in the range of $700-$730 million and a comparable store net sales increase in the low to mid-single digits. It also expects to open a total of 40 to 50 new stores, with 35 to 40 in the U.S. and the remainder in Canada.

On 2011 expectations, Griffiths said, "Our first Canadian stores are expected to open in March 2011, highlighting an expansion in the number of new stores we plan to open annually. While we anticipate continuing to operate in a challenging economic environment this year and are cautious in our near-term outlook, we strongly believe that our value proposition will allow us to gain further share in the fragmented wood flooring market."