Losses deepen at LL Flooring
LL Flooring reported that mixed economic conditions continue to impact its business strategy.
The Richmond, Virginia-based retailer reported that fourth quarter 2023 net sales decreased 19.7% to $211.8 million compared to sales of $263.9 million for the fourth quarter 2022.=
Comparable store sales decreased 20.2% for the quarter.
The company attributed the decline in sales to “a decrease in transaction count and average transaction size reflecting lower spend by consumers and pros”
LL Flooring also noted that it is "evaluating" its store portfolio. During the fourth quarter, the company closed 7 locations and opened one new location. As of Dec. 31, 2023, LL Flooring operates 437 stores.
Altogether, LL Flooring closed 8 stores during the year while opening 3 new locations.
Net sales for the full year dropped 18.5% to $904.7 million from 2022 full-year sales of $1.11 billion. Comp store sales fell 19.6% for the year.
The flooring retailer’s losses also widened during the fourth quarter and full year. LL Flooring posted a fourth quarter 2032 net loss of $17.9 million compared to a fourth quarter 2022 net loss of $15 million.
Losses for the full year deepened to $103.5 million as compared to a net loss of $12.1 million in 2022.
This year, LL Flooring said it will have capital expenditures of approximately $15 million in 2024, primarily as the retailer rolls out carpet across its store portfolio in addition to maintenance investments.
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The Bottom Line: As sales fall nearly 20% in the fourth quarter, LL Flooring reports a net loss $17.9 million and a loss of $103.5 million for the full year.
What the CEO said: "Fourth quarter business conditions remain difficult as we continue to experience the impact of weakness in existing home sales and the corresponding softness in the home improvement industry,” said Charles Tyson, president and CEO of LL Flooring.
"Fourth quarter business conditions remain difficult as we continue to experience the impact of weakness in existing home sales and the corresponding softness in the home improvement industry,” Tyson added.
Company info: Click here for the full fourth quarter 2023 financial report from LL Flooring.
