Lumber Liquidators reported a net loss of $1.97 million in the first quarter of 2018, a dramatic improvement from the same period last year, when the company had a net loss of $26.3 million.
Lumber Liquidators reported a net loss of $1.97 million in the first quarter of 2018, a dramatic improvement from the same period last year, when the company had a net loss of $26.3 million.
Net sales increased 5.4 percent in the quarter, rising from $248.4 million to $261.8 million. Net sales in comparable stores rose 2.9 percent to $7.3 million, while net sales in non-comparable stores increased $6.1 million.
Operating loss was $1.4 million compared with a loss of $25.4 million in the same quarter in 2017.
Lumber Liquidators added five new stores during the first quarter of 2018, bringing its number of locations to 398.
The company’s stock plunged 16.7 percent following the report of the first quarter loss, putting the company on track to close at a 13-month low, according to MarketWatch.
CEO Dennis Knowles said in a statement that the company has made progress across its installation and Pro initiatives during the quarter, as well as expanding its gross margin and improving its SG&A leverage.
“We continued solid execution of our strategy in the first quarter,” said Knowles. “In addition, we continue to receive positive customer feedback, particularly around our expanded and exclusive product offerings. We remain focused on driving traffic, increasing customer conversion and leveraging our complete service offering as we make beautiful flooring possible and easy for all.”
Lumber Liquidators has been in recovery mode ever since a 2015 report on “60 Minutes” about potentially unsafe levels of formaldehyde in the company’s laminate products from China, resulting several class action lawsuits.
The company reported a net loss of $37.8 million in 2017.