LL Flooring sales, profits lag in Q4
LL Flooring, formerly Lumber Liquidators, reported fourth quarter net sales fell 6.2% to $285.3 million compared to sales of $304.2 million in the fourth quarter of 2020.
The Richmond, Va.-based specialty flooring retailer said it saw doubl-digit sales growth to pro customers in the quarter along with 6.4% increase in services sales, which partially offset a decrease in DIY sales.
Comparable store sales decreased 6.7% versus the same period last year.
For the full year, sales rose 5% to $1.152 billion as comp store sales were up 5.2% for the year.
LL Flooring posted a net income of $10.3 million for the fourth quarter, down nearly 67% from a net income of $31.1 million in the prior fourth quarter. For the year, LL Flooring reported a net income of $41.7 million, falling 32% from a net income of $61.4 million in the prior year.
In 2021, LL Flooring opened 14 new stores brining its total to 424 locations as of Dec. 31, 2021. This includes two openings in the fourth quarter.
Looking ahead, the company unveiled a plan to achieve $1.5 billion of net revenue by 2024, representing a 9% three-year-compound annual growth rate from 2021. LL Flooring is also targeting expanded operating margin by 2024.
The plan is anchored by six core growth strategies:
- Accelerate new store openings
- Grow sales to Pro customers
- Broaden awareness of the LL Flooring brand
- Improve the customer experience to deliver on the brand promise
- Innovate new products, and
- Drive people & culture initiatives
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The Bottom Line: Profits fall 67% in the fourth quarter as sales slide 6.2% for the period.
What the CEO said: “In 2021, we delivered record sales to pro customers and record net services sales,” said Charles Tyson, president and CEO of LL Flooring. “Our merchant and sourcing teams broadened our network of global sourcing partners to launch new, innovative product and deployed effective pricing and promotion strategies to partially mitigate substantially higher material and transportation costs.”
Company info: LL Flooring’s full fourth quarter 2021 report can be read here.