Lumber Liquidators closes the gap in Q4

Lumber Liquidators played catchup during the fourth fiscal quarter, narrowing its loss significantly year-over-year, even as it fell behind for the full fiscal year period.

"We are pleased with our sales performance during the quarter, posting our second consecutive increase in comparable sales," said CEO Dennis Knowles. "While this represents a further step in the right direction, we remain focused on improving our business to drive long term value for Lumber Liquidators shareholders."

"Our recent investment in a broader, trend-right assortment supported by deeper inventory reflects our commitment to serve our customers," he added. "As a part of our strategic direction, we invested in our store operations and the development of both installation and pro-customer programs. We continue to believe the strategic direction we set for the company remains sound, and we are committed to driving the actions that will return the company to profitability."

Net sales for the quarter ended Dec. 31, 2016 were $244.9 million, up 4.3% from the fourth quarter of 2015.

Comparable store sales saw an increase of 2.8%, which reflected a 3.0% increase in average sale slightly offset by a 0.2% decrease in customers invoiced.

Net loss of $5.5 million for the quarter compared to a net loss of $19.8 million in the year-ago period.

Gross margin also saw a sizable boost, reaching 32.9% compared with 23.0% in the prior-year period, thanks to the reduction in the carrying value of its laminate flooring inventory sourced from China, related moldings and other inventory adjustments of approximately $21.7 million, as well as shifts toward higher-margin products like vinyl.

For the full fiscal year of 2016, net sales were down 1.9% to $960.6 million from $978.8 million in 2015.

Comparable store net sales decreased $45.0 million, or 4.6%, and net sales in non-comparable stores added $26.8 million.

Gross profit increased 9.0%, and overall net loss widened from $56.4 million to $68.6 million.