Toano, Va.-based Lumber Liquidators announced net income for the third quarter ended Sept. 30 increased 57.2% to $6.7 million, compared with $4.3 million in the third quarter of the prior year. Net sales increased 16.8% to $172.0 million in the third quarter, compared with $147.2 million in the year-ago period.
Comparable-store net sales increased 3% for the third quarter, versus a decrease of 5.7% in the third quarter of 2010. Net sales at non-comparable stores increased $20.3 million over the prior-year period.
Lumber Liquidators opened 33 new store locations in 2011, including six that opened in the third quarter.
"We made good progress on our strategic initiatives in the third quarter, despite a difficult macroeconomic environment which has caused our customers to remain cautious and price sensitive with regard to large-ticket discretionary purchases,” said CEO Jeffrey Griffiths.
“During the quarter, we further laid the foundation for the company's long-term success by continuing our investment in our sourcing initiatives. Specifically, with the recent acquisition of certain of Sequoia's assets, we further strengthened our direct relationships with mills in China, allowing us to more efficiently and effectively control the quality and costs of products sourced in this region. We believe these enhancements will enable us to strengthen the value proposition to our customer, ultimately expanding our operating margins over the longer-term.”
Net income for the first nine months decreased 12.5% to $17.8 million, compared with $20.3 million in the prior-year period. Net sales for the nine-month period increased 8.6% to $507.1 million, compared with $467.1 million in the first nine months of 2010.
The company expects full-year net sales to be in the range of $674 million to $681 million, from the previous range of $673 million to $686 million.
In other company news, Carl Daniels has joined Lumber Liquidators as senior VP supply chain, effective Oct. 31, 2011. Daniels will oversee the company's international and domestic logistics, warehousing and distribution operations. He will report directly to Robert Lynch, president and chief operating officer.
Daniels most recently served as senior VP supply chain and operations at Harbor Freight Tools. He has also served in executive level logistics positions at Michaels Inc., Retail Ventures Services and Midas International, among others.