Lumber Liquidators Q1 Sales Up 1.7% on Higher Losses
Toano, VA, April 30, 2019-Lumber Liquidators announced Q1 2019 net sales increased 1.7%, compared to Q1 2018.
Net sales from stores open less than 13 months were $6.4 million for Q1 2019; however, net sales in comparable stores decreased 0.8%, as compared to Q1 2018, as a slight decline in merchandise sales was partially offset by the expansion of installation services.
The company opened two new stores and closed two stores in Q1 2019.
Net loss for Q1 2019 was $4.9 million, compared to a net loss of $2 million in Q1 2018.
Dennis Knowles, chief executive officer, commented, "With key legacy product legal issues behind us, we have moved quickly to execute our transformation strategy and accelerate growth initiatives. In the first quarter, we continued to see strong performance across our Installation and Pro businesses while making progress against our commitment to focus on customer engagement. This includes enhancing our digital presence and omni-channel approach, and modernizing our marketing efforts through a new advertising agency partnership. Furthermore, our new larger store concept has yielded attractive returns for our initial prototype, and we are excited to launch similar test formats in other markets throughout the year. As we look ahead, we are confident we have the right balanced approach to drive profitable growth, which supported by a strong balance sheet and capital allocation framework, will ultimately deliver long-term shareholder value."
Stifel reports that, “Comp growth was driven by installation revenue with merchandise sales down on a comp basis due to reduced promotional activity and weakness in bamboo and hardwood product sales.”