Lumber Liquidators posts weaker-than-expected results
Navigating soft demand and network security in a challenging quarter.
Toano, Va.-basd Lumber Liquidators reported sales of $264 million in the third quarter ended Sept. 30. That’s down 2.4% from the prior year. Comp-store sales declined 3.6% for the three months.
Net income for the three months ended September 30, 2019 was $1 million, down from $5.9 million a year ago.
The company’s soft sales at the beginning of the quarter were compounded by a network security incident in late August. On the positive side, comparable store sales showed significant improvement in the month of September driven by growth in transaction count and higher average ticket.
The comopany said it is lowering its full-year 2019 sales and operating margin guidance to reflect its weaker-than-expected third quarter results.
Lumber Liquidators opened four new stores and relocated one store in the third quarter of 2019. At the end of the quarter, it operated 419 stores.
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The bottom line: Net income was $1.045 million, down from $5.923 million in the third quarter of 2018.
What the CEO said: “We had a challenging quarter that included soft demand in July as well as a network security incident in August, but despite these headwinds, we made solid progress during the quarter implementing our strategic initiatives, including actions to mitigate the impact of tariffs,” said Chief Executive Officer Dennis Knowles. “We continue to work hard to evolve our business to better serve customers and build on our unique value proposition. During the quarter, we continued to leverage enhanced visual selling tools that we believe resonate with consumers as we guide them along their flooring project journey. This has been supported by a robust marketing strategy, including the launch of a new advertising campaign in mid-September 2019 that highlights our differentiated service and quality products while also emphasizing the great value we offer consumers.”
More information: Read the company’s full quarterly earnings release here.
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