Lumber Liquidators reports strong Q4, full-year results

Lumber Liquidators reported fourth-quarter net income of $6.5 million, up 117% from net income of $3.0 million in the fourth quarter of the prior year.

Comparable-store sales decreased 4.6%, as net sales for the quarter rose 10.4% to $116.5 million.

"Our performance was driven by solid contributions from our new stores as well as by demand for our strong value proposition, which resonated with more price-conscious consumers,” said Jeffrey W. Griffiths, president and CEO.

The company opened seven stores in the fourth quarter, with a total of 34 new store openings in 2008.

For the full year, net sales were $482.2 million in 2008, up 19.0% from $405.3 million in 2007. Comparable-store net sales increased 1.6% for the full year on top of an increase of 8.6% for the prior year. Net income in 2008 was $22.1 million, up 96% from $11.3 million in 2007.

The company operated 150 stores in 44 states at the end of 2008 and plans to open about 30 to 36 stores in 2009. So far the company has opened eight stores this year.

"As we look forward in 2009, we plan to continue to leverage our proven store model as we open new stores and expand our share in the highly fragmented hardwood flooring market,” Griffiths added. “We are uniquely positioned, even in this difficult environment, to gain rapid returns on our investment in new stores, which require only minimal upfront capital expenditures."

The company expects net sales in 2009 to be in the range of $515 million to $530 million. Comparable-store net sales for the full year are expected to decrease in the low- to mid-single digit range.