Lumber Liquidators Q3 misses, plans three stores

Toano, Va. –- Lumber Liquidators missed Wall Street estimates for both net income and sales for the third quarter of fiscal 2014.



Net income totaled $15.7 million, down 23% from $20.4 million in the year ago period, amid higher expenses.Net sales rose 5% to $266.1 million from $254.3 million. Same-store sales dropped 4.9%, although they improved each month in the quarter as more inventory became available.



The retailer plans to open three new store locations in the expanded showroom format in the fourth quarter, for a total of 34 new store locations in 2014, and to remodel two existing stores in the format in the fourth quarter, for a total of 17 existing stores remodeled in 2014.



"We saw improvement in our net sales trends over the course of the quarter as inventory levels recovered and the fall flooring season began,” said Robert M. Lynch, president and CEO. “We were able to achieve the lower end of our revenue and EPS ranges. While 2014 has been a challenging year in a number of areas, we believe the significant investments we have made in our infrastructure and the continued implementation of our key strategic initiatives have positioned us well for future growth and operating margin expansion."



Lumber Liquidators expects a decrease in same-store sales in the low single digits, with a fourth quarter range of low single digits either positive or negative.