Lumber Liquidators enjoys sales boost in Q1

Lumber Liquidators made progress on several fronts during the first quarter, with a boost in sales and comps, as well as a narrowed net loss.

"We continue to be pleased with our top line sales performance, as we move from negative to low single-digit growth in comparable store sales," said CEO Dennis Knowles. "Our investments in a broader assortment and trend-right products are providing returns in sales and margin. We continue to take steps to resolve legacy legal and regulatory issues and optimize our cost structure. While these are positive developments for our business, we remain focused on the long-term strategic direction of the company. Our main goals are to provide better service to our customers, foster a great place to work for our employees and return Lumber Liquidators to a thriving and profitable business for our shareholders."

Net sales for the quarter ended March 31 were $248.4 million, up 6.4% year-over-year.

This includes a comparable store net sales increase of 4.7%, which reflected a 4.8% increase in average sale slightly offset by a 0.1% decrease in customers invoiced. Non-comparable store net sales increased $3.9 million over the comparable prior year period.

Net loss was $26.4 million, compared to a net loss of $32.4 million during the prior-year period.

Gross margin was 34.9% this quarter compared with 32.6% in the prior-year period. This increase was impacted by the $2.9 million in expenses that went to the indoor air quality testing program during the first quarter of 2016, which did not impact the first quarter of 2017.

Lumber Liquidators also opened two new stores during the quarter, bringing its total stores to 385.