Lumber Liquidators profit drops in Q4; will open 30-35 stores

Toano, Va. – Despite falling net income, Lumber Liquidators Inc. plans to open 30-35 new stores and remodel 15-20 stores, all in an expanded showroom format, during fiscal 2015. In the fourth quarter of fiscal 2014, the retailer reported net income of $17.3 million, down 17% from $20.8 million in the same quarter the prior year.



Selling, general and administrative (SG&A) expenses $6.5 million, or 9%, to $77.8 million primarily due to higher advertising, depreciation, occupancy and payroll expenses.



Net sales increased 5% to $272 million, from $258.4 million. Same-store sales decreased 4.2%, driven by a 5.3% decrease in the average sale partially offset by a 1.1% increase in the number of customers invoiced.



"The availability of our assortment was materially restored in the fourth quarter, and though our results were short of our expectations, we implemented changes to the marketing of our value proposition during the quarter which were the primary drivers of significant customer traffic late in the quarter and into 2015,” said Robert M. Lynch, president and CEO.



For the full fiscal year, net income decreased 18% to $63.4 million, compared to $77.4 million the previous fiscal year. Net sales increased 5% to $1.05 billion, from $1 billion in 2013. Same-store sales dropped 4.3%.



Looking ahead, Lumber Liquidators expects net sales in the range of $1.14 billion to $1.21 billion, and same-store sales increasing in the single digits for fiscal 2015.