Lumber Liquidators reports rise in Q1 sales
Toano, Va.-based hardwood flooring retailer Lumber Liquidators posted first-quarter net sales of $159.7 million, a 5.6% increase from sales of $151.2 million in the first quarter of 2010. Comparable-store sales decreased 4.3% for the quarter, compared with an increase of 8.0% for the first quarter of the prior year. The drop in same-store sales was attributed to “the adverse impact of inconsistent servicing of new demand following the implementation of the company’s integrated technology solution in August 2010,” according to a press release.
Net income for the quarter, which ended March 31, was $5.8 million, compared with $7.0 million a year ago, a 17.1% decline. The company opened 16 stores during the first quarter of 2011, including three in Canada.
"We are pleased with our progress across a range of strategic initiatives,” said Jeffrey Griffiths, president and CEO. “We believe our store operations have regained pre-implementation levels of productivity and have improved execution in converting demand to net sales.”
Looking forward, the company anticipates net sales for the full year in the range of $700 million to $730 million. Comp-store sales are expected to increase in the low to mid-single digits in 2011. The opening of a total of 40 to 50 new store locations, with 35 to 40 in the United States and the remainder in Canada, are planned for this fiscal year.
Stanley sees strong Q1 sales and earnings
New Britain, Conn.-based Stanley Black & Decker posted first quarter sales of $2.381 billion, up 89% from the year ago period — thanks largely to the incremental sales achieved through Black & Decker.
The company, which marked its one -year anniversary of the Stanley and Black & Decker merger last month — the companies merged March 12, 2010 — said 71% of the sales increase was from Black & Decker, other acquisitions made up 9%, unit volume resulted in 7% growth, and currency rates added 2%.
The company’s earnings for the quarter were $158.7 million, compared to a loss of $108.6 million in the first quarter of 2010.
Stanley Black & Decker’s President and CEO, John F. Lundgren described the company as enthusiastic about the coming year. "Our plans to achieve $300 – $400 million in revenue synergies by 2013 remain on track and there was some compelling evidence of these opportunities in the first quarter, particularly in Latin America."
In the consumer and DIY division, Stanley reported the following:
• Pro forma organic sales volumes for the combined hand and power tool businesses grew 3%;
• Organic sales for Hand Tools, Fasteners & Storage were flat as a soft retail channel in North America offset strength in Latin America, Asia and Europe.
• Legacy Black & Decker Power Tools & Accessories pro forma organic sales increased
approximately 4%, driven by unit volume; and
• Sales of Professional Power Tools & Accessories increased in the mid-teens driven primarily by the continued success of the lithium ion cordless product line.
Lundgren added the company’s ability to raise its dividend by 21% in February reflects its confidence in business and commitment to shareholders.
Recall announced for snowblowers, mowers
Some 23,000 Toro Power Clear snowblowers and another 6,200 or so 20-inch Recycler mowers are being recalled.
The U.S. Consumer Product Safety Commission and Health Canada, in cooperation with Toro announced a voluntary recall of the products because the carburetors develop fuel leaks and can ignite when exposed to an ignition source, posing a fire or burn hazard.
No fires or injuries have been reported, but there have been about 500 reports of carburetor leaks.
The products were sold at Toro Dealers in the United States and Canada from September 2009 through March 2011.