Mixed Q2 results for Lumber Liquidators
Lumber Liquidators reported second quarter 2018 net sales increased 7.6% to $283.5 million from second quarter 2017 net sales of $263.5 million.
Net sales in comp stores increased 4.7% while the average sales rose 4.6%.
But the hardwood flooring specialty retailer also reported a net loss of $1.5 million for the quarter, compared to a net income of $4.5 million for the same three-month period last year.
During the quarter, the company paid $9.5 million in legal bills to settle lawsuits that stemmed from a 2015 CBS News report that alleged some of Lumber Liquidators products contained formaldehyde, a carcinogen.
The company opened eight new stores during the second quarter, bringing the total store count to 406 as of June 30.
Lumber Liquidators reported that it had conducted a comprehensive internal review of its Bellawood products finishing lines, which currently employ approximately 45 people and is located in the corporate headquarters in Toano, Va. Based on the internal review, the company is exiting this finishing operation and focusing on its core competencies in merchandising, retail operations and the customer experience.
The company is selling its finishing lines and equipment to a third party with proceeds of the sale expected to be about $1.8 million.
The retailer also announced that it will relocate its corporate headquarters and call center from Toano, Va. to Richmond. Lumber Liquidators has signed a letter of intent and expects to consummate a lease for an existing building with approximately 52,900 square feet of office space, which will become the company's new corporate headquarters and will house approximately 200 employees.
Lumber Liquidators new lease will commence around Oct. 1, 2019. The lease at its current Toano headquarters expires on Dec. 31, 2019. Toano and Richmond are separated by about 40 miles via Interstate 64.
Net sales in comp stores increased 4.7% while the average sales rose 4.6%.
But the hardwood flooring specialty retailer also reported a net loss of $1.5 million for the quarter, compared to a net income of $4.5 million for the same three-month period last year.
During the quarter, the company paid $9.5 million in legal bills to settle lawsuits that stemmed from a 2015 CBS News report that alleged some of Lumber Liquidators products contained formaldehyde, a carcinogen.
The company opened eight new stores during the second quarter, bringing the total store count to 406 as of June 30.
Lumber Liquidators reported that it had conducted a comprehensive internal review of its Bellawood products finishing lines, which currently employ approximately 45 people and is located in the corporate headquarters in Toano, Va. Based on the internal review, the company is exiting this finishing operation and focusing on its core competencies in merchandising, retail operations and the customer experience.
The company is selling its finishing lines and equipment to a third party with proceeds of the sale expected to be about $1.8 million.
The retailer also announced that it will relocate its corporate headquarters and call center from Toano, Va. to Richmond. Lumber Liquidators has signed a letter of intent and expects to consummate a lease for an existing building with approximately 52,900 square feet of office space, which will become the company's new corporate headquarters and will house approximately 200 employees.
Lumber Liquidators new lease will commence around Oct. 1, 2019. The lease at its current Toano headquarters expires on Dec. 31, 2019. Toano and Richmond are separated by about 40 miles via Interstate 64.