Lumber Liquidators reports sales in line with lowered guidance
After a delay of several days, Lumber Liquidators has released its second-quarter earnings report, which reflected an estimated aggregate net sales shortfall of up to $18 million in certain product categories. Net sales for the quarter still increased, however, by 2.3%, totaling $263.1 million (compared with $257.1 million in the same quarter last year).
Comparable-store sales decreased by 7.1%, with the average sale declining 1.8%. Net income was $16.6 million for the three months ended June 30, down 18.7% from last year’s $20.4 million.
The report comes on the heels of a revised full-year guidance from Lumber Liquidators, which caused its stock to plummet in recent days. Its full-year 2014 outlook now stands at net sales in the range of $1.05 billion to $1.10 billion, and earnings per diluted share in the range of $2.65 to $3.00.
"Our second-quarter net sales and earnings per diluted share were in line with our revised expectations communicated earlier this month," said president and CEO Robert Lynch. "Despite the challenges we faced in the second quarter and results that were not at the level we would have hoped, our value proposition is as strong and relevant as ever to our customers. We remain focused on continuous improvement across our operations and implementing our multi-year strategic initiatives to position the company for long-term growth."
Gross margin came in at 40.4% last quarter, down from 41.3% in the second quarter of 2013. Lumber Liquidators primarily attributed this to adverse net shifts in sales mix, greater discounting at the point of sale and higher net transportation costs.
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Lowe’s to carry expanded line of Osram Sylvania LEDs
Massachusetts-based lighting company Osram Sylvania announced that it would be expanding it’s lineup of LED light bulbs. This month, Lowe’s will start stocking the seven new bulbs.
Among the company’s new LED bulb offerings are the ones meant to replace 40- and 60-watt incandescent bulbs. The 60-watt LED bulb puts out the same amount of light as a 60-watt incandescent with 8.5 watts of electricity.
"Up until this point, consumers have been forced to compromise on the appearance of their light bulb in order to receive the long life and energy savings associated with LED technology," said Lowe’s merchandising VP lighting, Dean Kochalka. "Our new line of 60-watt and 40-watt replacement bulbs gives consumers the best of light bulb design and energy efficiency, providing a perfect solution for replacing traditional light bulbs in the home."
Some of the new products expand the company’s soft white and natural daylight light bulb offerings with LEDs that emit as much light as 40-, 60- and 70-watt incandescent bulbs. Additionally, Osram Sylvania is releasing dimmable LED bulbs in 40-, 60. 75- and 100-watt varieties.
According to Osram Sylvania’s VP retail sales, Matt McCarron, “these new LED light bulbs come at a perfect time and offer what consumers want most from lighting — brightness, energy savings and a long life — that is all available in the familiar shape of the incandescent bulbs they replace."