Third-quarter profits plunge at Lumber Liquidators
- November 4, 2010
Net income at Toano-based Lumber Liquidators dropped 44.8 percent in the third quarter partly because of lost productivity in adapting to a new information system.
Earnings totaled $4.3 million, or 15 cents per diluted share, down from $7.8 million, 28 cents per share, in the same quarter last year.
Net sales during the quarter, which ended Sept. 30, rose 4.7 percent to $147.2 million. Comparable-store net sales, however, fell 5.7 percent because of productivity issues in implementing a new SAP information system.
The new technology included an enhanced point-of-sales program, a warehouse management and inventory control system, an integrated merchandising and product allocation system, and related management reporting programs.
The company blamed a rocky adaption of the new system for lost productivity during the third quarter but said operational efficiency has continued to improve.
Before the new system was implemented, third-quarter net sales were up 18.5 percent from 2009.
The company opened 10 stores during the quarter.