TOANO, Va. - Lumber Liquidators' (NYSE: LL) sales for the second quarter of 2017 increased $25.4 million, or 10.7 percent. Net income for the three months ended June 30 was $4.5 million, compared to a net loss of $12.2 million the year prior.
The wood flooring giant has dispensed with its former strategy of sales fed by continuously adding retail outlets. Lumber Liquidators did not open any stores during the second quarter of 2017, so its total store count remains at 385 as of June 30, 2017.
Last year, the company's sales were negatively impacted by $5.5 million in estimated anti-dumping charges, and $3.3 million spent on its Air Quality Testing Program - a result of its import of Chinese laminate flooring that was mislabeled as CARB compliant. Those troubles largely behind it, Lumber Liquidators says its quarter margins were favorably impacted by a combined total of $3.8 million due to revisions to anti-dumping rates ($2.8 million) and a reduction of $1 million in the reserve for its Air Quality Testing Program.
Selling, general and administrative expenses increased 2.7 percent in the second quarter to $92.3 million, including legal and professional fees as well as settlement expenses in connection with its defense of various legal and regulatory matters it confronted last year - the subject of 60 Minutes investigations. Spending more was a result of $3.9 million increase in payroll due to greater store level staffing, the development of the company's Installations and Pro Sales teams, and investments in corporate capabilities, a $1 million increase in advertising, and a $2 million increase in other operating expenses.
Net income for the three months ended June 30 was $4.5 million, compared to a net loss of $12.2 million the year prior.
"Customers have responded to the investments that we made to broaden and strengthen our assortment with innovative products, while also ensuring the right mix of those products were available in our stores," said CEO Dennis Knowles. "Although we are pleased with the results in the quarter, we still have work to do. Our management team is confident in the potential of our business, and remains dedicated to carrying out the long-term strategy of the company."
Lumber Liquidators is North America's largest specialty retailer of hardwood flooring. The Company features more than 400 top quality flooring varieties, including solid and engineered hardwood, bamboo, cork, laminate, resilient vinyl and wood-look ceramic tile. Lumber Liquidators provides a wide selection of flooring enhancements and accessories to complement, install and maintain your new floor. Every location is staffed with flooring experts who can provide advice and useful information about Lumber Liquidators' low priced product, much of which is in stock and ready for delivery.
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