Lumber Liquidators Expansion Helps Double Earnings

Toano, VA, Aug. 6, 2008--Lumber Liquidators, Inc. reported that net income more than doubled in the second quarter compared to last year on the strength of its expansion program, and the company upped its sales and earnings guidance.

Net income rose to $5.9 million, or $0.22 per diluted share, in the second quarter of 2008 compared to $2.3 million, or $0.10 per diluted share, in the second quarter of 2007.

Net sales increased 21.1 percent to $128 million in the second quarter from $105.7 million in the second quarter of 2007.

Comparable store net sales increased 2.7 percent for the quarter on top of an increase of 9.0 percent for the second
quarter of the prior year.

Non-comparable store net sales increased $19.5 million from the second quarter of 2007, and represented 87.3 percent of the
total increase in the company's net sales. Lumber Liquidators opened 10 new stores during the second quarter.

Gross margin increased to 34.6 percent from 32.5 percent in the same period of 2007. The improvement in gross margin reflects an increase in sales of higher-margin, premium products, sales of liquidation purchases, and a reduction in the tariff on certain bamboo products.

"We generated net income in the second quarter that was the best in our company's history," said CEO Jeffrey W. Griffiths.

Net sales increased 22.7 percent to $242.6 million in the first six months of 2008 from $197.7 million in the first six months of 2007.

Lumber Liquidators now believes sales will range from $480 million to $490 million compared to its previously expected range of $475 million to $490 million and earnings will be $0.73 to $0.78 per share compared to previous expectations of $0.70 to $0.78 per diluted share.