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LUMBER LIQUIDATORS Reports Operating Results (10-Q)

October 24, 2012 | About:

10qk

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LUMBER LIQUIDATORS (LL) filed Quarterly Report for the period ended 2012-09-30.

Lumber Liquidators Holdings Inc has a market cap of $1.37 billion; its shares were traded at around $50.14 with a P/E ratio of 40.3 and P/S ratio of 2. Lumber Liquidators Holdings Inc had an annual average earning growth of 18.2% over the past 5 years.

Highlight of Business Operations:

Net sales for the third quarter of 2012 increased $32.3 million, or 18.8%, over the third quarter of 2011 as net sales in comparable stores increased $20.6 million and net sales in non-comparable stores increased $11.7 million. We generally consider a store comparable on the first day of the thirteenth full calendar month after opening. Net sales for the nine months ended September 30, 2012 increased $95.5 million, or 18.8%, over the same prior year period as a result of a $54.1 million increase in comparable store net sales and a $41.4 million increase in non-comparable store net sales.

Operating income for the third quarter ended September 30, 2012 increased $9.8 million, or 90.0%, over the third quarter of 2011 as operating margin expanded 380 basis points to 10.2%. Operating income increased $24.9 million, or 86.2%, in comparing the nine months ended September 30, 2012 to 2011 as operating margin expanded 320 basis points to 8.9%. The increases in operating income were driven by increases in gross profit of $16.6 million and $47.7 million in comparing the three and nine months ended September 30, 2012 to the comparable prior year periods, respectively, partially offset by increases in SG&A expenses of $6.8 million and $22.8 million, respectively. The increases in SG&A expenses were principally due to the following factors:

Salaries, commissions and benefits increased $4.5 million and $14.7 million for the three and nine months ended September 30, 2012, respectively, from the comparable prior year periods. As a percentage of net sales, salaries, commissions and benefits increased to 11.8% and 12.2% for the three and nine months ended September 30, 2012, respectively, from 11.3% and 11.7% for the three and nine months ended September 30, 2011, respectively. These increases were due primarily to significantly higher accruals related to our management bonus plan, an increase in certain benefit costs and higher commission rates earned by our store management.

Advertising expenses increased $1.8 million to $15.1 million, or 7.4% of net sales, for the three months ended September 30, 2012, from $13.3 million, or 7.7% of net sales, for the comparable prior year period. For the nine months ended September 30, 2012, advertising expenses increased $3.4 million to $45.0 million, or 7.5% of net sales, down from 8.2% of net sales for the nine months ended September 30, 2011. We continued to both leverage our national advertising campaigns over a larger store base and reallocate our advertising to more effective media channels, increasing our reach and frequency.

Occupancy costs increased $0.7 million to $7.9 million, or 3.9% of net sales, for the three months ended September 30, 2012, from $7.2 million, or 4.2% of net sales, in the third quarter of 2011. For the nine months ended September 30, 2012, occupancy costs increased $2.7 million to $22.8 million, or 3.8% of net sales, from $20.1 million, or 4.0% of net sales, for the first nine months of 2011. In general, higher net sales more than offset cost increases due to store base growth.

Read the The complete Report

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