Earnings at Lumber Liquidators More Than Double

Net income at Lumber Liquidators (Toano, Va.) reached $12.2 million in the second quarter, increasing 130.4 percent from $5.3 million during the same period last year, according to the company's latest earnings report released today.

Sales during the second quarter of 2012 rose 19.9 percent to $210.3 million, up from $175.5 million in the second quarter of 2011. These figures were helped by a 12.4 percent rise in same-store sales for the quarter, driven by a 6.3 percent increase in the average sale and a 5.8 percent increase in the number of customers invoiced at these stores. The company opened 10 stores during the quarter, and it posted non-comparable-store sales of $13.2 million.

"We are pleased that our team delivered record results through the important spring remodeling season and continued to execute on our key strategic initiatives," said CEO Robert Lynch. "We drove consistently strong customer demand during the quarter as greater recognition of our value proposition was achieved through our efforts to expand our advertising reach and frequency. Through our team's coordinated efforts and commitment to continuous improvement in everything we do, we captured market share and expanded operating margin in the second quarter."

The company also took the opportunity to report six-month results and update its outlook for fiscal 2012.

For the first six months of this year, the company's net sales increased 18.9 percent to $398.4 million from $335.1 million in the first six months of 2011. Comparable store net sales increased 10.1 percent for the first half of 2012, compared to a decrease of 6.2% for the first half of 2011. Non-comparable store net sales increased $29.7 million over the prior year. The company opened 14 new stores during the first six months of 2012 and as of June 30 operated 277 stores in 46 states and Canada.

Based on the company's financial results so far this year, it expects to achieve the following in 2012:

• Net sales for the full year in the range of $750 million to $775 million, up from the previous range of $720 million to $750 million.
• An increase in comparable store net sales in the mid-single digits.
• The opening of a total of 20 to 25 new store locations, including two to four in Canada.

"Our team is excited and motivated by the opportunities that lie ahead," Lynch added. "We believe Lumber Liquidators is successfully navigating through what remains a challenging and uncertain retail environment, particularly for large-ticket, discretionary purchases. Our value proposition continues to resonate well with consumers, and as we look toward both the back half of the current year and into the next, we are confident in our ability to continue to drive traffic, improve our operations, expand our operating margin and grow our footprint."