Lumber Liquidators Q2 net sales down 4% to $238.1 million
Staff Writer |
Lumber Liquidators announced financial results for the second quarter and six months ended June 30, 2016. Net sales were $238.1 million, a decrease of 4% from Q2 2015.
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This includes a comparable store net sales decline of 7.2%, reflecting a 0.7% increase in the average sale which was more than fully offset by a 7.9% decrease in the number of customers invoiced.
The Company believes the number of customers invoiced was impacted by its change in strategy from a very promotional period in the prior year to a more strategic pricing approach during the current year period.
Additionally, the company believes demand for certain product categories decreased as our assortment of products did not match changes in customer trends. Non-comparable store net sales increased $8.1 million over the comparable prior year period. The Company opened four new stores during the second quarter of 2016.
Gross margin was 29.7% in the second quarter of 2016, compared with 25.1% in the prior year period.
The change in gross margin was primarily attributable to the items highlighted in the attached supplemental schedule as well as changes in the company's promotional strategy and increases in the sales mix of laminates and vinyl, which generally have lower retail price points and above average gross margins.
Selling, general and administrative (SG&A) expenses in the second quarter of 2016 were $89.9 million, $0.7 million below the prior year quarter.
As a percentage of net sales, SG&A increased to 37.8% from 36.5% during the prior year period, primarily as a result of weaker than expected net sales.
Net loss for the second quarter of 2016 was $12.2 million, or a loss of $0.45 per diluted share, as compared to a net loss of $20.3 million, or $0.75 per diluted share, during the prior year period.
Cash and cash equivalents at June 30, 2016 totaled $12.7 million compared with $26.7 million at December 31, 2015. At June 30, 2016, the company had $32.0 million outstanding on its revolving credit facility, with remaining availability of $53.7 million.
In July 2016, the company received a $22.1 million refund from the IRS related to the carry back of 2015 net operating losses to prior periods where the company generated taxable income. This amount was reflected in other current assets on the condensed consolidated balance sheet at June 30, 2016. ■