A highly fragmented market and inconsistent customer demand — thanks, in large part, to inclement weather — were not enough to dampen Lumber Liquidators’ results in the fourth quarter.
The company achieved record highs for net sales and operating margin and continues to gain further traction in its key, multi-year strategic initiatives.
For the quarter, net income increased 50.6% to $20.8 million, from $13.8 million in the fourth quarter of the prior year.
Net sales increased $47.8 million to $258.4 million in fourth quarter 2013, from $210.7 million in fourth quarter 2012. Same-store sales increased 15.6% for the quarter, driven by an 8.6% increase in the number of customers invoiced and a 7% increase in the average sale.
For the full year, net income increased 64.4% to $77.4 million, compared to $47.1 million in the prior year. Net sales increased 23.0% to $1 billion in 2013 from $813.3 million in 2012, as same-store sales increased 15.8%.
Looking ahead, Lumber Liquidators affirmed previously issued guidance that it expects to open a total of 30 to 40 new store locations and remodel of a total of 25 to 35 existing stores, all in the “store of the future” format. Net sales are expected to be in the range of $1.15 to $1.2 billion and same-store sales are projected to increase in the high single to low-double digits.
“We gained further traction in our key, multi-year strategic initiatives while continuing to deliver value and legendary service to each customer,” said president and CEO Robert M. Lynch. “Customer demand was inconsistent during the quarter, with certain regions of the country periodically impacted by difficult weather conditions. Nevertheless, our store team, with support across the organization, delivered an unprecedented level of individualized customer service and focus on operating results.”