Lumber Liquidators reported a net income of $12 million in the first quarter of 2020 after losing $4.9 million during the same time period last year. Net sales for the quarter rose 0.4% to $267 million.
The company was aided by an income tax benefit of $4.4 million during the quarter, driven by provisions of the CARES Act, which allowed the Lumber Liquidators to “carryback certain losses to prior periods and deduct certain capital expenditures from prior periods more quickly giving rise to a $4.9 million Federal tax refund which is expected to be received later this year,” the company said.
Interim CEO Charles Tyson was named president and CEO of the company at the end of the quarter.
"Despite experiencing the impact of COVID-19 late in the first quarter, we were extremely pleased with our performance,” Tyson said in a statement. “Our store teams were engaged and delivering expert service, and we saw evidence that our new brand messaging, digital tools and promotional cadence are gaining traction."
Tyson added that as of May 28, approximately 60% of the company’s 420 stores are fully operational, 25% are scheduling appointments for showroom visits, and approximately 15% are using warehouse-only models.
The first quarter 2020 results mark the second consecutive quarter the company has reported a profit. The company has struggled financially since a 2015 “60 Minutes” report questioned the formaldehyde levels in its Chinese-made laminate flooring.
