LL Flooring reported net sales for the fourth quarter decreased 7.5% to $263.9 million from net sales of $285.3 million in the fourth quarter of 2022.
The specialty flooring retailer noted that growth in sales to pro customers during the quarter was partially offset by a decrease in consumer sales. Total comparable store sales declined 9.5% for the period.
Net sales for the full year fell 3.6% to $1.11 billion from full-year sales of $1.15 billion in the prior year. Full-year comp sales were down 5.8% compared to the previous year.
LL Flooring posted a $15.1 million net loss for the quarter in comparison to a net income of $10.3 million for the same period a year ago. For the full fiscal year, the retailer reported a net income of $41.7 million, down 32% from a net income of $61.4 million last year.
During the fourth quarter, LL Flooring opened three new stores, bringing total stores to 442 as of Dec. 31, 2022. The company plans to open three new stores in 2023.
The Bottom Line: As consumer sales fall, overall sales decline 7.5% and LL Flooring reports a loss of $15.1 million for the fourth quarter.
What the CEO said: "2022 was a challenging year for LL Flooring. We are disappointed that we did not deliver on the net sales and profitability growth that we expected,” said LL Flooring President and CEO, Charles Tyson. “To that end, we reported comparable store sales down 5.8% as double-digit growth in sales to pro customers was more than offset by a decrease in sales to consumers. This was combined with an operating loss due to continued material and transportation cost headwinds impacting gross margin, and a higher cost structure reflecting the investments made in our strategic growth initiatives that we expect will generate strong returns over the longer term."
Company info: Read the full fourth quarter and fiscal 2022 report from LL Flooring here.