Lumber Liquidators ("LL Flooring") announced financial results for the 4Q and full year ended December 31, 2020. Net sales in the 4Q 2020 increased $30.4 million, or 11.1%, to $304.2 million from the 4Q 2019.
Gross profit increased 5.4% in the 4Q 2020 to $117.9 million from $111.9 million in the comparable period in 2019 and gross margin decreased 210 basis points to 38.8% in the 4Q 2020 from 40.9% in the 4Q 2019.
Net income for the 4Q 2020 increased $14.7 million to $31.1 million compared to $16.4 million for the 4Q 2019, while Adjusted Earnings (a non-GAAP measure) for the 4Q 2020 were $31.4 million, a year-over-year increase of $15 million compared to adjusted earnings of $16.4 million for the 4Q 2019.
"We closed 2020 strong with 4Q comparable sales up 10.5%, reflecting continued execution on our transformation plan that positioned us to capitalize on robust consumer demand for home improvement projects," said President and CEO Charles Tyson. "I am pleased with the progress our team is making on our four strategic pillars: people and culture, improving the customer experience, driving traffic and transactions, and improving profitability. For the full year 2020, we delivered $1.1 billion of net sales, demonstrating resilience as we navigated the COVID-19 shut down in the spring to grow comparable sales 10.8% in the second half. Our profitability initiatives drove a $40 million increase in operating income and a 360 basis points increase in operating margin on similar net sales versus 2019. I want to thank our team members for serving our customers every day to deliver these impressive results.”
Net sales increased $5.1 million, or 0.5%, to $1,098 million in FY 2020 from $1,093 million in 2019, which includes a $10.4 million increase in non-comparable store net sales partially offset by a decrease of $5.3 million, or 0.5%, in comparable store net sales.
Gross profit of $427.7 million in 2020 increased $24 million from 2019 and, as a percent of sales, gross margin in 2020 increased to 39% from 36.9% in 2019.
Operating income was $56.3 million in 2020, compared to operating income of $16.7 million in 2019.
Net income was $61.4 million, or $2.10 per diluted share, in 2020 compared to net income of $9.7 million, or $0.34 per diluted share, in 2019.
LL Flooring is a leading specialty retailer of hard-surface flooring in North America.
