Lumber Liquidators provided a business update for the first quarter ended March 31, 2015. Net sales were $260 million, an increase of 5.6% from the first quarter of 2014.
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This is a compound annual growth rate of 6.2% over the first quarter of 2013. Net sales in the month of March were $89.4 million, a decrease of 12.8% in comparison to March 2014.
In comparable stores, net sales for the quarter decreased 1.8% in comparison to the first quarter of 2014, due to a 6.2% decrease in the average sale, partially offset by a 4.4% increase in the number of customers invoiced.
In the month of March 2015, net sales at comparable stores decreased 17.8% due to a 6.5% decrease in the average sale and an 11.3% decrease in the number of customers invoiced.
Open orders were $46.4 million at March 31, 2015, an increase of 13.5% over the total at March 31, 2014, up from $44.3 million at December 31, 2014 and down from $46.8 million at February 28, 2015. The open order balance is increased each day by gross new orders and decreased by invoiced sales and "net adjustments, including returns.
The Company's sales mix shifted when comparing the month of March to the first two months of 2015. Total laminate net sales, which were 21.2% of net sales through February 2015, fell 480 basis points to 16.4% in the month of March 2015, primarily due to a decrease in the sales mix of laminates sourced from China.
Additionally, in comparing March 2015 to the first two months of the quarter, the sales mix of bamboo, vinyl plank and cork fell 120 basis points while the sales mix of solid and engineered hardwoods rose 470 basis points.
Gross margin is now expected to be in the range of 35.5% to 36.5% in the first quarter of 2015, including approximately $1.5 million in incremental transportation costs related to the East Coast distribution center transition and consolidation. Gross margin in the first quarter of 2014 was 41.1%.
Cash and cash equivalents at March 31, 2015 are expected to range from $41.5 million to $43.5 million, including $20.0 million in borrowings on the Company's revolving credit facility. The Company expects to end the first quarter with approximately $273 million of inventory available for sale, or approximately $766,000 per store. ■