Lumber Liquidators plans expansion following Q3 results
Lumber Liquidators increased its net income in the third quarter of fiscal 2013 58.4% to $20.4 million, from $12.9 million in the year-ago period.
Net sales grew 24.5% to $254.3 million, from $204.3 million in the same period a year earlier. Same-store sales grew 17.4%, driven by a 9.8% increase in the number of customers invoiced and a 6.9% increase in the average sale.
"We experienced consistently strong demand across the third quarter as our superior value proposition continues to resonate with a growing customer base,” said Robert M. Lynch, president and CEO of Lumber Liquidators. “We continue to gain share in a highly-fragmented market through our outstanding team of hardwood flooring experts, delivery of a wide assortment of high-quality products and by maintaining our position as the low-price leader.”
Looking ahead, Lumber Liquidators expects to open 10-12 new stores in the fourth quarter of the year, for a total of 29-31 new stores in fiscal 2013. Net sales for the full year are expected to be in the range of $985 million to $995 million, from a previous range of $940 million to $963 million. Same-store sales are expected to grow 14%-15% for the year and 9%-14% during the fourth quarter.
The third quarter ended on Sept. 30, 2013, only four days after federal agents raided Lumber Liquidators offices in what remains an ongoing investigation of imported wood flooring sold at Lumber Liquidators. The retailer is cooperating with the investigation. It is uncertain what if any impact the publicity surrounding the investigation could have on sales, but based on positive forecasts for the fourth quarter and full year it appears Lumber Liquidators does not expect any significant negative effect.