After a delay of several days, Lumber Liquidators has reported second-quarter results, nearly three weeks after the company revised its full-year guidance, which caused its stock to plummet in recent days.
Net sales for the quarter increased by 2.3%, totaling $263.1 million, compared with $257.1 million in the same quarter last year. But comparable-store sales decreased by 7.1%, with the average sale declining 1.8%. Net income was $16.6 million for the three months ended June 30, down 18.7% from last year's $20.4 million.
The company points to several factors, including reduced customer traffic, which coincided with certain weak macroeconomic trends and has remained particularly low in geographic areas most severely impacted by the unusually harsh winter weather. Additionally, constrained inventory levels in certain key merchandise categories reduced the conversion of customer interest into invoiced sales.
"Our second-quarter net sales and earnings per diluted share were in line with our revised expectations communicated earlier this month," said president and CEO Robert Lynch. "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. We remain focused on continuous improvement across our operations and implementing our multi-year strategic initiatives to position the company for long-term growth."
Its full-year 2014 outlook now stands at net sales in the range of $1.05 billion to $1.10 billion, and earnings per diluted share in the range of $2.65 to $3. The company also plans to open a total of 33 to 37 new locations in its expanded showroom format. It also plans to remodel a total of 15 to 20 existing stores in the expanded showroom format, down from a previous range of 25 to 30 existing stores.