Lumber Liquidators earned $15.7 million in profit in the third quarter of 2014, a decrease of 5.3 percent from the second quarter and a 22.9 percent drop year-over-year, according to the company’s financial statement released today.
While net sales increased 4.6 percent to $266.1 million year-over-year, comparable store net sales decreased 4.9 percent. Selling, general and administrative expenses in the third quarter increased $5.3 million, or 7.2 percent, to $78.4 million due to higher advertising, occupancy and legal and professional expenses, the company said.
“While 2014 has been a challenging year in a number of areas, we believe the significant investments we have made in our infrastructure and the continued implementation of our key strategic initiatives have positioned us well for future growth and operating margin expansion," said President and CEO Robert Lynch in a statement.
The company adjusted its future outlook and now expects:
- Net sales in the range of $1.05 billion to $1.065 billion, down from a previous range of $1.05 billion to $1.1 billion.
- A decrease in comparable store net sales in the low single digits; the previous full year range was low single digits, either positive of negative.
When the stock market opened this morning, Lumber Liquidators stock started out at $50.01, down 13 percent from where it closed at the end of trading Tuesday. As of press time, the stock was listed at $52.00.
Lumber Liquidators shares have decreased 44 percent since the beginning of the year, and 47 percent in the last 12 months.
