Lumber Liquidators' net sales in the 2Q 2020 decreased $58 million, or 20.2%, to $230 million from the 2Q 2019. Gross profit decreased 14% in the 2Q 2020 to $88 million from $102 million in the comparable period in 2019.
Adjusted Gross Margin (a non-GAAP measure) increased 309 basis points to 38.3% in the 2Q 2020 from 35.2% in the 2Q 2019 as margin enhancement efforts, Section 301 tariff exclusions and supply chain efficiency positively impacted results.
Operating income was $6 million for the 2Q 2020 compared to an operating loss of $1.4 million for the 2Q 2019. Adjusted Operating Income (a non-GAAP measure) was $6.5 million for the 2Q 2020, a year-over-year increase of over $2.9 million compared to adjusted operating income of $3.6 million for the 2Q 2019. The year-over-year increase was primarily driven by the work to enhance gross margin while also diligently managing expenses.
Net income for the 2Q 2020 increased $5.5 million to $2.6 million compared to a net loss of $2.9 million for the 2Q 2019, while Adjusted Earnings (a non-GAAP measure) for the 2Q 2020 was $3 million, a year-over-year increase of $2.2 million compared to Adjusted Earnings of $820 thousand for the 2Q 2019.
Lumber Liquidators is one of North America's leading specialty retailers of hard-surface flooring.
