Lumber Liquidators Net Income Rises 18%

Toano, VA, May 6, 2009--Lumber Liquidators said that first quarter net income increased 18.1% to $5.1 million, or $0.19 per share, compared to $4.3 million, or $0.16 per share a year ago.

Net sales increased $9.3 million, or 8.1%, to $123.9 million from $114.6 million in 2008

Comparable store net sales decreased 5.8% for the quarter compared to an increase of 7.0% for the first quarter of the prior year. Non-comparable store net sales increased $15.9 million. Lumber Liquidators opened 10 new stores during the first quarter.

Gross margin increased to 36.0% in the first quarter of 2009 compared to 35.0% in the same period of 2008. The improvement was primarily due to changes in product line sales mix as well as a continued shift by customers to premium products within the product lines, the company said.

In addition, lower transportation costs contributed to gross margin expansion.

"We continued to gain market share in the highly-fragmented wood flooring market," said CEO Jeffrey W. Griffiths.

"Further, our call-to-action advertising focused on specific offerings resonated with consumers in the current environment."

The company said that net sales for the full year are expected to be in the range of $515 million to $530 million, with a decrease in comparable store net sales in the low- to mid-single digit range and the opening of 30 to 36 store locations.