Mixed results for Lumber Liquidators in second quarter
Toano, Va.-based Lumber Liquidators second-quarter sales increased 4.0% to $175.5 million, up from $168.7 million in the same quarter last year.
But sales at comparable stores decreased 7.9%, and net income decreased to $5.3 million in the second quarter, down from $9.1 million in the second quarter of the prior year.
CEO Jeffrey W. Griffiths sated: “Our second-quarter net sales and earnings-per-diluted share were in-line with our revised expectations communicated earlier this month. As we previously reported, we believe value-conscious consumers became more price sensitive and cautious in their discretionary spending in the second quarter. However, our annual Big Sale drew a strong customer response due to the strength of our value proposition and targeted promotional pricing. We remain focused on further improving our operations and building a foundation for long-term success and believe that we are well positioned to continue our growth.”
Gross margin decreased from 34.7% in the second quarter of 2010 to 34.0% in the second quarter of 2011. High transportation costs, a greater proportion of net sales at promotional prices, and increased investment in international quality control procedures were all cited as factors that negatively affected the gross margin for the second quarter, though these were said to have been partially offset by benefits from sourcing initiatives and net sales mix shifts.
Selling, general and administrative expenses for the second quarter of 2011 were $51.1 million, or 29.1% of net sales. This compares with $43.9 million, or 26.0% of net sales, for the second quarter of 2010.
The company outlook for 2011 includes an expectation of net sales for the full year in the range of $670 million to $700 million, with third-quarter net sales in the range of $165 million to $180 million, and fourth quarter net sales in the range of $170 million to $185 million.
Comparable-store net sales for the full year are expected to decrease in the low single digits, with third-quarter comparable-store net sales ranging from a decrease of 1% to an increase of 8%, and fourth-quarter comparable-store net sales ranging from a decrease of 3% to an increase of 6%.
No comments found
New Menards location to be developed in Ohio
Menards plans to open a new location in Miami Township, Ohio, on Springboro Pike, according to a report in the Dayton Business Journal. The store will take the place of an existing plaza, the Lyons Crossing shopping center, which will be demolished to make room for the approximately $9 million project.
Discussions on July 26 to consider an agreement with Menards followed a Miami Township Trustee meeting on July 12, at which the trustees determined to remove the existing plaza from the Dayton Mall’s tax increment financing district.
Greg Hanahan, the township administrator, told the Journal that after the developer has had the property revalued, a new TIF district will be created for the center. Menards has not yet released specific plans for the building, and the developer of the site has not been named.
No comments found
Newman Design Group launches “Made in America” tag
This month, Newman Design Group introduced a new vinyl shelf tag to the market. The 1-and-1/4-in. high by 1-and-1/2-in. wide tag is printed with an American flag and the words “Made in America,” and is intended for retailers wishing to promote American-made products in their stores. Newman Group said the tag is easy to clean and may be displayed a number of ways.
Newman’s “Made in America” tags are now in stock for retailers, ship from Indiana and come in rolls of 500. They are priced at $71.30/roll for one to five rolls, $59.18/roll for six to 10 rolls, and $50.30/roll for 11 or more rolls.
The tag should say "Made in
The tag should say "Made in the USA". The tag is supposed to make the customer believe the product was made in this country. Made in America could be Canada, Mexico or for that matter, since North or South isn't mentioned, it could be any country in South America and still be an accurate. Misleading, but accurate.
This is kinda a double
This is kinda a double standard selling lables not made in America but promoting made in America.