Lumber Liquidators Reports Earnings

Toano, VA, Nov. 4, 2009--Lumber Liquidators, Inc. said that third quarter net income increased 42.1% to $7.8 million, or $0.28 per share, compared to $5.5 million, or $0.20 per share a year ago.

Analyst Stifel Nicolaus rates the stock a "hold."

Net sales increased $17.5 million, or 14.2%, to $140.5 million from $123.1 million last year.

Comparable store net sales increased 1.9% for the quarter, in comparison to a decrease of 1.8% for the second quarter of 2009 and an increase of 2.0% for the third quarter of the prior year. Non-comparable store net sales increased $15.2 million over the prior year period. The Company opened nine new stores during the third quarter.

Gross margin was 36.4% for the third quarter of 2009, up from 35.3% in the third quarter of 2008.

"We remained focused on delivering a unique combination of price, selection, quality and availability, and we are pleased to have returned to comparable store net sales growth during the quarter," said CEO Jeffrey W. Griffiths.

"We also continued to enhance this value proposition through strategic investments in our infrastructure, and we were able to gain share in our highly fragmented market. Additionally, we opened nine new store locations during the third quarter, including four in new markets, and we are on target to complete our 2009 store opening plan by the end of November."

For the first nine months, net sales increased 11.4% to $407.5 million from $365.6 million in the first nine months of 2008.

The company expects full year net sales of $535 million to $543 million, compared to the previously expected range of $528 million to $538 million.

The company also raised its earnings per share to $0.90 to $0.95, while Stifel estimates $0.88 per share.


Related Topics:Lumber Liquidators