Toano, Va. - Net income at Lumber Liquidators decreased 13.2% to $13.7 million during the first quarter of fiscal 2014, compared to $15.8 million in the same period the prior year. During fiscal 2014, the retailer intends to open 35 to 40 new store locations in the expanded showroom format and remodel 25 to 30 existing stores in the expanded showroom format.
During the quarter, net sales increased 6.9% to $246.3 million, from $230.4 million. Same-store sales dropped 0.6%. Selling, general and administrative expenses increased, negatively impacting net income, and Lumber Liquidators estimated unusually severe winter weather adversely impacted net sales in as many as 135 of its 331 store locations in operation during the quarter.
Looking ahead, Lumber Liquidators forecasts net sales of $1.15 billion-$1.2 billion and same-stores growth in the mid-to-high single digits for fiscal 2014.
“Like so many, our team was frustrated by the severity, scale and duration of the harsh winter and the adverse impact it had on our net sales,” said Robert M. Lynch, president and CEO. “Our customers generally follow a long purchase cycle, which we believe was either interrupted or completely suspended due to the unusually severe winter weather. However, as conditions generally became more seasonal in mid-March, customer demand increased. The key strategic initiatives we have implemented over the last two years have strengthened our operations, and we believe we are more capable than ever of serving customers who postponed their flooring purchase in the first quarter."