Lumber Liquidators Earnings Rise, Ups Estimates

Toano, VA, Aug. 5--Lumber Liquidators said second quarter net income increased 18.1% to $6.9 million, or $0.25 per share compared to $5.9 million, or $0.22 per share, a year ago.

Net sales increased $15.1 million, or 11.8%, to $143.1 million from $128.0 million in the second quarter of 2008.

Comparable store net sales decreased 1.8% for the quarter, in comparison to an increase of 2.7% for the second quarter of the prior year and a decrease of 5.8% for the first quarter of 2009.

Non-comparable store net sales increased $17.3 million over the prior year period. The company opened eight new stores during the second quarter.

Gross margin increased to 35.3% compared to 34.6% in the same period of 2008. The improvement in gross margin was primarily due to continued changes in product line sales mix, as well as a continued shift by customers to premium products within the product lines, the company said.

Net sales for the first six months increased 10.1% to $267.0 million from $242.6 million in the first six months of 2008.

The company also raised its sales and earnings guidance for the full year. It said its expects sale to range of $528 million to $538 million compared to the previously expected range of $515 million to $530 million. It expects
full year 2009 earnings per share in the range of $0.85 to $0.91, compared to the previous estimate of $0.76 to $0.86.