Lumber Liquidators (Toano, Va.) beat its once-narrowed third-quarter net sales prediction by increasing sales 16.8 percent to $172.0 million, according to its latest earnings report filed Oct. 27. During the third quarter of 2010, the company had net sales of $147.2 million.
On the whole, the company's third quarter numbers were up. Better sales resulted in improved net income, which increased 57.2 percent to $6.7 million from $4.3 million during the same period in 2010. Comparable store net sales increased 3.0 percent for the third quarter of 2011, in comparison with decreasing 5.7 percent during for the third quarter of 2010. Net sales at non-comparable stores increased $20.3 million over the same period in 2010, and the company opened six new stores during the third quarter, bringing the 2011 total to 33.
The company's SG&A costs decreased slightly during the third quarter to 29.3 percent of net sales from 30.5 percent during the same time last year, and the company attributed it to a national advertising campaign and its improved productivity after a software flub in 2010 that increased its open orders.
Lumber Liquidators also announced that it has named Carl Daniels senior vice president, supply chain, effective Oct. 31. Daniels will oversee the company's international and domestic logistics, warehousing and distribution operations; he will report directly to Robert Lynch, Lumber Liquidator's president and COO. Daniels most recently served as senior vice president of supply chain and operations at Harbor Freight Tools, where he was responsible for distribution, transportation, international consolidations and procurement.
In addition, the company narrowed its fiscal outlook for the remainder of 2011 and expects:
- Net sales for the full year in the range of $674 million to $681 million, from the previous range of $673 million to $686 million
- Fourth-quarter net sales in the range of $167 million to $174 million, from the previous range of $170 million to $180 million
- The opening of seven to nine new store locations during the fourth quarter, for a total of 40 to 42 new store locations in 2011
- Earnings per diluted share in the range of approximately $0.96 to $1.02, from the previous range of approximately $1.00 to $1.08
- Fourth-quarter earnings per diluted share in the range of approximately $0.33 to $0.39, from the previous range of $0.39 to $0.44.
