Lumber Liquidators' ("LL Flooring") net sales in the 3Q 2020 increased $32 million, or 12.1%, to $296 million from the 3Q 2019. Gross profit increased 22% in the 3Q 2020 to $117 million from $96 million in the comparable period in 2019.
Gross margin increased 320 basis points to 39.4% in the 3Q 2020 from 36.2% in the 3Q 2019 due to lower year-over-year Section 301 tariffs, supply chain efficiency, along with pricing initiatives and a larger mix of higher-margin manufactured products. These items were partially offset by higher customer delivery costs associated with promotions.
Operating income was $23 million for the 3Q 2020 compared to $2.2 million for the 3Q 2019. Adjusted Operating Income was $29 million for the 3Q 2020, a year-over-year increase of more than $25 million compared to adjusted operating income of $3.4 million for the 3Q 2019. The year-over-year increase was primarily driven by strong sales growth, enhanced gross margin, and strong expense management.
Net income for the 3Q 2020 increased $14.5 million to $15.5 million compared to $1 million for the 3Q 2019, while adjusted earnings for the 3Q 2020 was $20 million, a year-over-year increase of $18 million compared to adjusted earnings of $1.9 million for the 3Q 2019.
"We are very pleased with our strong 3Q results, underscored by our continued execution against our transformation plan and industry strength as we saw customers display a healthy appetite for home improvement projects," said President and CEO Charles Tyson. "Our team has executed well against our four strategic pillars: people and culture, improving customer experience, driving traffic and transactions, and improving profitability, which drove a robust comp of 10.9%, a $16 million increase in net income, and a $25 million increase in adjusted operating income compared to the prior year. We would like to thank our associates for their agility and dedication throughout the quarter to deliver these impressive results."
LL Flooring is one of North America's leading specialty retailers of hard-surface flooring with 423 stores as of September 30, 2020.
