Lumber Liquidators Reports Lower Income

Toano, VA, April 27, 2011 -- Lumber Liquidators reported that net income fell 17.1% to $5.8 million, or $0.20 per share, in the first quarter.

That's down from $7.0 million, or $0.25 per share, a year ago.

Net sales increased $8.5 million, or 5.6%, to $159.7 million, up from $151.2 million last year.

Comparable store net sales fell 4.3% for the quarter, compared to an increase of 8.0% for the first quarter of the prior year.

The company acknowledged that it is still having problems implementing its new business software.

Non-comparable store net sales increased $15.0 million over the prior year period as the company opened a record 16 new stores during the first quarter, including three in Canada. Seven of the 16 locations were opened in March.

Gross margin was 36.2% in the first quarter, up slightly from 35.4% in the first quarter of 2010.