A 'challenging' first quarter for LL Flooring
LL Flooring reported net sales for the first quarter 2023 declined 13.7% to $240.7 million compared to sales of $279 million for the first quarter last year.
The Richmond, Va.-based company also posted a net loss of $10.6 million for the quarter. In the prior first quarter, the company reported a net income of $4 million. LL Flooring also reported an operating income loss of $13.2 million.
In its fourth quarter 2022 financial report, the retailer reported a $15.1 million net loss.
Total comparable store sales decreased 15.4% versus the same period last year.
The specialty flooring retailer reported merchandise sales fell nearly 14% to $210.5 million in the quarter from merchandise sales of $210.5 million in the first quarter of 2022.
Service sales declined 13% to $30.2 million compared to service sales of 34.8 million in the prior first quarter.
LL Flooring attributed its first quarter falloff to lower spending from consumers along with a decline in sales to professional customers.
During the quarter, LL Flooring opened one new location giving it a total of 443 stores as of March 31. Plans for the year call for the retailer to open 3 new locations this year.
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The Bottom Line: LL Flooring reports a $10.6 million loss for the first quarter as sales fall nearly more than 13%.
What the CEO said: “As expected, the first quarter was very challenging and our performance reflected the impact the difficult macro backdrop had on discretionary home improvement spending,” said Charles Tyson, LL Flooring president and CEO. “In addition, we continue to experience pressure from brand awareness and operational challenges that impacted first quarter results.”
“Despite the headwinds that we are facing, we remain confident in our ability to deliver the high-touch service of an independent flooring retailer combined with the value, assortment and convenience of a national brand. To that end, we continue to execute on our strategic initiatives of growing sales to Pro customers, building brand awareness, improving the customer experience and innovating new products,” Tyson added.
Company Info: The full first quarter financial report from LL Flooring is available here.
