Lumber Liquidators’ total profit in 2014 dove 18.1 percent to $63.4 million from $77.4 million in 2013. The company made a profit of $17.3 million in the fourth quarter of 2014, $3.5 million less than in the same period one year ago.
Fourth quarter sales for the Toano, Va.-based flooring retailer were higher than the same period one year ago, $272 million versus $258.4 million, but comparable stores sales decreased 4.2 percent.
Net sales during the entire year were $1.05 billion, a 4.7 percent increase from $1 billion in 2013. However, comparable stores in 2014 saw a 4.3 percent decrease in sales compared with 2013.
The results were “short of expectations,” said Robert Lynch, president and CEO, in a statement.
However, he added, the number of customers invoiced increased 8 percent in December and the company ended the year with a 69 percent increase in open orders.
The company also finished its new distribution center in Virginia and began transitioning and consolidating employees and operations from its four existing facilities.
“Though we experienced a number of challenges in 2014 as well as significant infrastructure investments, I believe we are well positioned for a stronger 2015," he said.
In 2015, the company predicts sales in the range of $1.14 billion to $1.21 billion and the opening of 30 to 35 new store locations.
“We expect to win market share in 2015 with a value proposition that offers a widening customer base the largest assortment of high-quality, readily available flooring, that is offered at truly outstanding values and recommended by our flooring experts,” Lynch said. “We made significant investment in the infrastructure supporting our long-term growth and we intend to begin levering those investments in 2015 to once again expand operating margin."
