Sales and profits are hot at Lumber Liquidators

Lumber Liquidators reported third quarter sales increased more than 12% to $296 million from third quarter 2019 sales of $264 million.

Comparable store sales for the third quarter increased 10.9%.

The Richmond, Va.-based specialty flooring retailer also reported that third quarter results were unfavorably affected by a network security incident in late August, which the company believes negatively impacted total revenue by approximately $6 million to $8 million with an accompanying reduction in gross profit.  

Lumber Liquidators’ net income for the period jumped to $15.5 million compared to a net income of $1 million in the prior third quarter.

The company opened one net new store in the third quarter and operates 423 locations as of Sept. 30, 2020.

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The Bottom Line: Profits soar at Lumber Liquidators, rising by $14.5 million in the quarter to $15 million. 

What the CEO said:  "Our team has executed well against our four strategic pillars: people and culture, improving customer experience,  driving traffic and transactions, and improving profitability, which drove a robust comp of 10.9%, a $16 million increase in net income, and a $25 million increase in adjusted operating income compared to the prior year,” said Charles Tyson, president and CEO of Lumber Liquidators.

"Our sales trends strengthened as we saw sequential improvement in our pro and install customers from the second to the third quarter, driven by increased willingness from customers to allow contractors into their homes for home improvement and installation projects.”

Company info: The full third quarter 2020 report from Lumber Liquidators can be read here.