Toano, Va. – Lumber Liquidators reported a 7.1% decline in same-store sales and reduced its outlook for new store openings and earnings in a business update for the second quarter of fiscal 2014. Net sales for the quarter grew 2.3% to $263.1 million, from $257.1 million in the second quarter of 2013, well below Wall Street estimates of $303 million.
Based on this disappointing performance, for the full year 2014 Lumber Liquidators now expects to open 33 to 37 new store locations in the expanded showroom format, from the previous range of 35 to 40 new store locations. The retailer also scaled back its projections for full year earnings per share, net earnings and same-store sales growth. Lumber Liquidators does not expect a complete recovery from the factors impacting its performance until 2015.
“Customer traffic to our stores was significantly weaker than we expected, particularly in geographic areas severely impacted by the unusually harsh weather in the first quarter,” said Robert M. Lynch, president and CEO. “The improvement in customer demand we experienced beginning in mid-March did not carry into May, and June weakened further. Our reduced customer traffic has coincided with certain weak macroeconomic trends related to residential remodeling, including existing home sales, which have generally been lower in 2014 than the corresponding periods in 2013. We now believe the prolonged purchase cycle associated with our customers' discretionary, large-ticket home improvement projects is likely to be delayed for some customers into the fall flooring season, and for others, into spring of 2015."