Net income at Toano, Va.-based Lumber Liquidators fell 41.9 percent during the second quarter as same-store net sales decreased 7.9 percent, prompting the company to place the blame on a "value-conscious consumer" that "became more price sensitive and cautious with regard to large-ticket discretionary purchases," according to the company's latest financial report.
The company's most recent financial report was in line with a downward forecast it delivered earlier this month. Net income was $5.3 million, down more than 40 percent from the $9.1 million the company earned during the second quarter of 2010. Net sales increased 4.0 percent to $175.5 million in the second quarter of 2011 from $168.7 million in the second quarter of 2010.
Despite the disappointing results, company CEO Jeffrey W. Griffiths said Lumber Liquidators remains "focused on further improving our operations and building a foundation for long-term success, and believe that we are well positioned to continue our growth."
Relative to the second quarter in 2010, the company saw its SG&A costs eat up a bigger slice of its net sales during the second quarter of 2011, as its gross margin fell 34.7 percent. The company opened 11 new stores during the second quarter of 2011.
