Hardware Retailing The Industry's Source for Insights and Information
Toano, Va.-based flooring retailer Lumber Liquidators finished strong after the spring remodeling season, with reported increased net sales of 22.2 percent to $257.1 million in the second quarter and a 14.9 percent increase in comparable store sales.
Gross margin was 41.3 percent in the second quarter of 2013 compared to 37.3 percent in the second quarter of 2012. The increase in gross margin reflects generally lower net product costs, a net increase in the average retail price per unit sold and operational efficiencies across the organization.
“Our value proposition of price, selection, quality, availability and expertise continues to be recognized by a growing customer base, and our commitment to continuous improvement drove strong performance throughout the organization,” Lumber Liquidators’ President and CEO Robert M. Lynch said.
Lumber Liquidators also opened its 300th store in the second quarter, doubling its footprint since the end of 2008, and Lynch said the company is continues to develop its new store format.
“We believe our new ‘store of the future’ format is resonating well with a broader base of customers, and we look forward to bringing our total store count in this new format to approximately 50 by year-end,” he said. “Our success in expanding gross margin allows us to reinvest across our industry-leading value proposition, and we see multi-year opportunities to expand operating margin while we continue to grow our store base.”
