Lumber Liquidators (Toano, Va.) first quarter 2014 results showed a decrease in net income, which the company blames on inclement winter weather.
Net income decreased 13.2 percent, or $2.1 million. The worth of Lumber Liquidator's diluted shares dropped from $0.57 in Q1 2013 to $0.49 this year.
The company's net sales increased 6.9 percent to $246.3 million. The average sale across all 331 store locations operating as of March 31 rose 2.6 percent, but there was a 3.2 percent decrease in the number of customers invoiced. In comparable stores, net sales decreased 0.6 percent overall.
The company blames the severe winter weather.
"Like so many, our team was frustrated by the severity, scale and duration of the harsh winter and the adverse impact it had on our net sales," said Robert Lynch, the company's president and CEO.
Estimates by the company show weather impacting as many as 135 of the stores. Net sales declined in these stores 3.8 percent, while all other stores saw an increase of 14.6 percent. Of comparable weather-impacted stores, there was a 13.1 percent decrease.
Lumber Liquidator's gross margin was an improvement from last year's first quarter, 41.1 percent compared with 40.4 percent. The company said in a statement that the increase is due to changes in sales mix and lower product costs, balanced by higher net transportation costs partly attributable to starting up a West Coast distribution center in March.
"The key strategic initiatives we have implemented over the last two years have strengthened our operations, and we believe we are more capable than ever of serving customers who postponed their flooring purchase in the first quarter," Lynch said.
