LL Flooring Q4 profits surge
LL Flooring (Lumber Liquidators) posted fourth quarter net sales of $304.2 million, an 11.1% increase over net sales of $273.8 million in the fourth quarter 2019.
Comparable store sales increased 10.5% during the period as merchandise sales rose 11.2% and services sales, including installation and freight, rose 10.2%.
During the quarter, the company closed 14 stores and opened one location. As of Dec. 31, 2020, LL Flooring operated 410 stores.
The move is the result of a comprehensive review of the LL Flooring's real estate portfolio, conducted during the third quarter. Following the conclusion of this review, the flooring retailer made the decision to close its Canadian operations, including all 8 stores in Canada, and 6 underperforming U.S. locations by the end of 2020. The company said that it will continue to monitor store performance on an ongoing basis.
Net sales for the year increased 0.5% to $1.098 billion from sales of 1.093 billion in 2019. For the full year, comps fell 0.5%. This includes a 20% drop in sales during the second quarter due to impact of COVID-19, the company said. LL Flooring closed nine net stores in 2020.
The Richmond, Va.-based company reported a net income of $31.1 million in the fourth quarter, rising 89.6% from a net income of $16.4 million in the fourth quarter 2019.
For all of 2020, LL Flooring posted a net income of $61.4 million, marking a steep climb from a net income of $9.7 million in the prior year.
###
The Bottom Line: Fourth quarter sales move ahead 11.1% as LL Flooring posts an 89.6% increase in its net income for the period.
What the CEO said: “We closed 2020 strong with fourth quarter comparable sales up 10.5%, reflecting continued execution on our transformation plan that positioned us to capitalize on robust consumer demand for home improvement projects," said President and CEO Charles Tyson. "I am pleased with the progress our team is making on our four strategic pillars: people and culture, improving the customer experience, driving traffic and transactions, and improving profitability.”
Company info: The full fourth quarter 2020 report from LL Flooring can be read here.