Net income at Lumber Liquidators fell 17.1 percent during the first quarter of 2011, according to the company's latest earnings report. During the same quarter last year, the company earned $7.0 million.
Net sales at Lumber Liquidators increased 5.6 percent during the first quarter to $159.7 million from $151.2 million in the same period of 2010. The company's same-store net sales increase was off from the same quarter last year due to its failure to meet customer demand after implementing new order fulfillment software.
Lumber Liquidators opened a record 16 stores during the quarter, including three in Canada, boosting non-comparable net store sales $15 million over last year.
"We are pleased with our progress across a range of strategic initiatives," said the company's CEO Jeffrey Griffiths. About the company's software woes, Griffith said, "We believe our store operations have regained pre-implementation levels of productivity and have improved execution in converting demand to net sales."
The earnings report also detailed the company's forecast for the full year of 2011. Lumber Liquidators expects net sales in the range of $700 million to $730 million; a same-store net sales increase in the low to mid-single digits; the opening of 40 to 50 new store locations, with 35 to 40 in the U.S. and the remainder in Canada.
"We are encouraged by our solid start to 2011 and expect to continue building momentum as we move through the remainder of the year," Griffiths said.
