LL Flooring's Net Sales Declined 1.6% in Q1, Net Income Declined 62%
Richmond, VA, May 4, 2022-For Q1 2022, LL Flooring reported a net sales decrease of 1.6% to $244.3 million, compared to net sales of $250 million in Q1 2021. The company reported record sales to Pro customers and a 4.1% increase in net services sales, which partially offset a decrease in sales to homeowners
In Q1 2022, comparable store sales decreased 3.6% from Q1 2021 but increased 3.3% on a two-year stack basis. The decrease in comparable store sales primarily reflected the same drivers as the change in net sales.
Net income in Q1 2022 decreased 62% to $4 million from $10.6 million in Q1 2021.
During the first quarter of 2022, the company opened seven new stores, bringing total store count to 431 as of March 31, 2022.
President and chief executive officer Charles Tyson said, “Our first quarter financial results were in line with our expectations, with comparable store sales down 3.6%, marking a sequential improvement from the fourth quarter of 2021 and a 3.3% increase on a two-year stack basis. We faced macroeconomic headwinds from inflation and a shift in consumer spending to travel and leisure this year compared to stimulus and nesting spending in the first quarter of 2021. In addition, much of the increase in our total inventories to $319 million remained in transit throughout the quarter. Finally, in January, we experienced significant store closures related to a Covid-19 variant. We reported operating margin of 1.8%, also in line with our expectations, as we continued to navigate gross margin headwinds as well as make increased investments in our long-term growth strategies.”
Related Topics:Lumber Liquidators