Lumber Liquidators Net Income Falls in 2007

Toano, VA, March 12, 2008—Lumber Liquidators, the largest specialty retailer of hardwood flooring in the U.S. reported that net income in 2007 fell from a year ago, to $11.3 million, or $0.48 per diluted share, compared with $12.9 million, or $0.56 per diluted share in 2006.

However, net sales increased 24.4 percent, to $105.5 million in the fourth quarter of 2007 from $84.8 million in the fourth quarter of 2006.

The company said that comparable store sales increased 8.6 percent for the quarter.

Lumber Liquidators said it opened five stores in the fourth quarter, achieving its plan of 25 new store openings in 2007.

Gross margin increased to 33.9 percent in the fourth quarter compared to 31.7 percent in the same period of 2006. The increase primarily resulted from the introduction of higher-margin product lines in 2007 and a significant reduction in promotional discounts from levels in the fourth quarter of 2006.

Net income was $3.1 million, or $0.12 per diluted share, in the fourth quarter of 2007 compared to $1.6 million, or $0.07 per diluted share, in the fourth quarter of the prior year.

"We are very pleased with the strong results we achieved in our first quarter as a public company,” said CEO Jeffrey W. Griffiths.