Lumber Liquidators’ 1Q 2017 net sales were $248.4 million, an increase of 6.4% from the 1Q 2016, as the company said in the press release received by Lesprom Network.
Gross margin was 34.9% in the 1Q 2017, compared with 32.6% in the prior year period. The increase in gross margin was impacted by the $2.9 million in expenses for the Company's indoor air quality testing program during the 1Q 2016 which did not impact the 1Q 2017.
The increase in gross margin in the first quarter of 2017 was also due to increases in the sales mix of manufactured products such as vinyl and ancillary products, both of which have higher gross margins, and lower transportation costs due to 2016 including incremental costs related to consolidating its discontinued Chinese laminates to a central warehouse. These benefits were partially offset by an increased mix of installation sales that have slightly lower gross margins.
Net loss for the 1Q 2017 was $26.4 million, or a loss of $0.93 per diluted share, as compared to a net loss of $32.4 million, or $1.20 per diluted share, during the prior year period.
Dennis Knowles, CEO, commented, "We continue to be pleased with our top line sales performance, as we move from negative to low single-digit growth in comparable store sales. Our investments in a broader assortment and trend-right products are providing returns in sales and margin. We continue to take steps to resolve legacy legal and regulatory issues and optimize our cost structure. While these are positive developments for our business, we remain focused on the long-term strategic direction of the Company. Our main goals are to provide better service to our customers, foster a great place to work for our employees and return Lumber Liquidators to a thriving and profitable business for our shareholders."
Lumber Liquidators is North America's largest specialty retailer of hardwood flooring.
