Lumber Liquidators Q2 loss deepens
Pricing and supply chain adjustments don’t hold off rising tariffs.
Lumber Liquidators, the specialty flooring retailer, reported that second quarter 2019 net sales rose roughly 2% to $289 million from net sales of $283.4 million in the second quarter 2018.
The Toano, Va.-based company said net sales in comparable stores were flat as compared to the second quarter of 2018 with the growth of installation services offset by a slight decline in merchandise sales.
During the quarter, the company opened three new locations and closed one store. According to the company’s latest financial report, Lumber Liquidators operates 415 locations.
The retailer also reported a net loss of $2.9 million for the second quarter compared to a net loss of $1.5 million for the same period last year.
Lumber Liquidators said it has been impacted by an increase in tariffs and the company is managing costs through negotiations with vendors, alternative sourcing, and supply chain adjustments. The company also implemented price increases late in the quarter to offset rising tariffs.
The bottom line: Despite price adjustments, Lumber Liquidators sees its second quarter 2019 loss deepen to $2.9 million – nearly double the loss reported in the previous second quarter.
What the CEO said: “Our transformation plan remains on track, and we made solid progress in the second quarter with investments to bolster our digital presence, optimize our marketing initiatives, including the introduction of our new marketing campaign that highlights our value proposition and differentiated customer experience, and continued progress building Pro and Installed sales,” said CEO Dennis Knowles. “Results in the quarter were generally in line with our expectations and reflect our efforts to mitigate the impact of increased tariffs on our near-term financial performance while also positioning the company for long-term success.”
Company info: The full second quarter 2019 report from Lumber Liquidators is available here.
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