Lumber Liquidators Sees Lower Q2 Income

Toano, VA, July 7, 2011 -- Lumber Liquidators said it expects weaker sales and profits for the second quarter than it initially estimated.

Net sales in the second quarter of are expected to increase approximately 4.0% to $175.5 million, from $168.7 million in the second quarter of 2010, the company said in a press release.

At comparable stores, net sales are expected to decrease approximately 8.0% for the quarter, in comparison to an increase of 5.5% for the second quarter of the prior year.

Sales from new stores are expected to increase $20.1 million over last year period as the company opened 11 new stores during the second quarter, and has opened 27 new stores in the first half of 2011.

Lumber Liquidators now anticipates second quarter earnings per share of $0.18 to $0.20, compared to $0.32 a year ago.

"Our second quarter net sales were weaker than expected as we believe value-conscious consumers became more price sensitive and cautious in their discretionary spending," said CEO Jeffrey W. Griffiths.

"We had not anticipated the rapid softening in customer demand given the improved sales trends at the end of the first quarter. The pressures challenging large-ticket purchasing decisions may continue to be volatile into the second half of the year, potentially resulting in continued consumer caution. However, certain internal demand indicators such as catalog and sample requests remain positive in comparison to 2010, and we believe our store operations are more focused on, and more capable than ever of, converting early demand to open orders and ultimately invoiced sales."