Lumber Liquidators sees profits surge ahead
After reporting losses in Q4 2018 and the full prior year, the specialty flooring retailer is back in black.
Lumber Liquidators reported fourth quarter 2019 sale increased 1.8% to $274 million from sales of $269 million in the fourth quarter 2018.
Fourth quarter comp store sales edged upward by 0.4% driven by growth in sales of the vinyl plank category but offset by weakens in bamboo and laminate. During the quarter the company opened two new stores and closed two locations.
Full-year sales for the Richmond, Va.-based specialty flooring retailer saw a slight rise of 0.7% to $1.093 billion from $1.085 billion in the prior year.
Profits also moved ahead for Lumber Liquidators as the company reported a net income of $16.4 million for the fourth quarter compared to a net loss of $56.9 million in the fourth quarter 2018.
Lumber Liquidators reported a net income of $9.7 million for the full year – a big swing from a net loss of $54.4 million in 2018.
On Feb. 5, Dennis Knowles resigned as president and CEO and as a member of the company’s board of directors.
As of Dec. 31, 2019, Lumber Liquidators said it has 419 locations.
The Bottom Line: While sales were nearly flat, Lumber Liquidator profits surged ahead in the fourth quarter and full year after reporting losses for both periods last year.
What the Interim CEO said: “During the quarter, we made continued progress implementing our transformational plan designed to reinvigorate our brand and position us to deliver exceptional value in the hard-surface flooring marketplace,” said Interim President and Chief Customer Experience Officer Charles Tyson. “Comparable store sales grew slightly in the quarter, and profitability improved significantly, in large part due to the tariff exclusions announced by the U.S. Trade Representative in November.”
“Reflecting on the full year, 2019 was especially dynamic with an ever-changing tariff environment,” Tyson added. “Our tariff mitigation efforts in 2019, coupled with the exclusions announced in November, allowed us to substantially improve gross margins while remaining focused on delivering value to customers. As we enter 2020, we remain focused on three key areas – delivering enhanced profitability, driving traffic to our stores and online, and improving the customer experience.”
Company info: Click here to read Lumber Liquidator’s full fourth quarter 2019 and year-end report.
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