News Column

Lumber Liquidators' profit falls on decreased sales

July 31, 2014

By Tara Bozick, Daily Press (Newport News, Va.)



July 31--Reduced customer traffic and contraints on inventory for Toano-based Lumber Liquidators' stores led to a sales shortfall up to $18 million in the second quarter, the company reports.

While overall sales increased by 2.3 percent with the help of 13 new stores, comparable store sales dropped 7.1 percent in the second quarter, according to a news release.

The hardwood and laminate flooring retailer also experienced an 8.3 percent increase in administrative and selling expenses because of higher advertising, occupancy and legal costs.

Over the half-year, net sales increased 4.5 percent overall but dropped 4 percent comparing same-store sales. The company opened 26 new stores during the first six months.

Profit dropped by 16 percent from $36.2 million in the first half last year to $30.3 million the same time this year.

Lumber Liquidators still expects net sales this year or $1.05 billion to $1.1 billion but with flat same-store sales.

"Despite the challenges we faced in the second quarter and results that were not at the level we would have hoped, our value proposition is as strong and relevant as ever to our customers," President and CEO Robert Lynch said in a statement.

Lynch said the company expects to drive growth in the second half of the year while continuing infrastructure expansion. The company is in its 20th year.

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(c)2014 the Daily Press (Newport News, Va.)

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Source: Daily Press (Newport News, VA)


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