Lumber Liquidators Income Falls in Quarter
Toano, VA, Oct. 22, 2014 -- Lumber Liquidators lowered its full-year sales and income guidance after third quarter net income fell well below year-ago levels.
The company reported that third quarter net income was $15.7 million, or $0.58 per share, compared to $20.4 million, or $0.73 per share, a year ago.
Net sales increased $11.8 million, or 4.6%, to $266.1 million from $254.3 million in the third quarter of 2013.
Comparable stores net sales decreased 4.9%. Non-comparable store net sales increased $24.2 million and included net sales from five new stores opened during the third quarter of 2014.
Gross margin was 39.2% compared to 41.8% in the third quarter of 2013 due primarily to sales mix, greater promotions, retail discounting and greater costs of inventory shrink and obsolescence.
The company now expects full year net sales in the range of $1.05 billion to $1.065 billion, down from its previous estimate of $1.05 billion to $1.10 billion, with the fourth quarter ranging from $275 million to $290 million.
It also expects net income of $2.38 to $2.52, down from a previous range of $2.65 to $3.00.