Lumber Liquidators announced financial results for the 4Q and full year ended December 31, 2017.Net sales in the 4Q 2017 were $260 million, an increase of 6.1% from the 4Q 2016. Gross margin was 35.4% in the 4Q 2017, compared with 32.9% in the prior-year period, as the company said in the press release received by Lesprom Network.
Operating profit in the 4Q 2017 was $0.6 million compared to an operating loss of $9.2 million in the 4Q 2016. The Company also recognized a $2.6 million income tax benefit primarily due to the Tax Cuts and Jobs Act which was enacted on December 22, 2017.
One of the tax law changes enabled the Company to recognize certain deferred tax assets previously offset by a valuation allowance. As a result, net income for the fourth quarter of 2017 was $3.0 million, or $0.10 per diluted share, compared to a net loss of $5.5 million, or $(0.20) per diluted share, during the prior-year period.
FY 2017 net sales increased 7.1% to $1,029 million from $961 million in 2016, which includes a comparable store net sales increase of $52 million, or 5.4% and a non-comparable store net sales increase of $16 million.
Gross margin increased to 35.9% from 31.6% in 2016. Net loss was $37.8 million, or $1.33 per diluted share, in 2017 compared to a net loss of $68.6 million, or $2.51 per diluted share.
Lumber Liquidators is North America's largest specialty retailer of hardwood flooring.
