LL Flooring slowing down store openings
LL Flooring, the hard-surface specialty flooring retailer, has provided a business update in advance of its upcoming investor meeting.
This includes slowing down the rate of opening new locations.
The retailer recently opened new locations in Bellingham, Wash. and Joplin, Mo., for a total of 18 new store openings in 2022. But the company plans to open just three or four new stores in 2023.
In a statement issued by the company, LL Flooring said it will continue to evaluate its store opening strategy “based on the operating environment.”
“We are confident in our long-term growth strategies and our unique positioning of offering the high-touch service of an independent combined with the value and convenience of a national brand,” said LL Flooring President and CEO Charles Tyson. “In light of the current macroeconomic environment, we believe it is prudent to slow our new store opening cadence and allocate capital toward share repurchases under our current authorized plan.”
LL Flooring also said that it has $43 million available for the repurchase of stocks under its existing repurchase program. The timing and amount of any share repurchases under the authorization will be determined by management at its discretion and based on market conditions and other considerations.
Repurchases under the program will be funded from the company’s existing cash and cash equivalents, borrowings against the company’s credit agreement and future cash flow, LL Flooring said.
As of Sept. 30, the company had $127.8 million available for borrowing on its revolving line of credit and $6.1 million of cash and cash equivalents.
Based in Richmond, Va., LL Flooring operates 442 locations nationwide. The company offers about 500 varieties of hard-surface floors featuring a range of styles and on-trend designs.
LL Flooring's selection includes waterproof hybrid resilient, waterproof vinyl plank, solid and engineered hardwood, laminate, bamboo, porcelain tile, and cork, with a wide range of flooring enhancements and accessories to complement projects.
Last month, LL Flooring reported third quarter sales declined 4.8% to $268.8 million from third quarter 2021 sales of $240.8 million. The flooring retailer said sales for the quarter were impacted by continued lower consumer spending versus last year. The decline in consumer spending also offset near double-digit growth in sales to pro customers.
The former Lumber Liquidators also posted an operating loss of $4.1 million for the period compared to an income of $12 million in the prior third quarter.
