Lumber Liquidators (LL) Misses Q4 EPS by 12c; Issues Lightish FY15 EPS Outlook

Lumber Liquidators (NYSE: LL) reported Q4 EPS of $0.64, $0.12 worse than the analyst estimate of $0.76. Revenue for the quarter came in at $272 million versus the consensus estimate of $279.73 million.

Robert M. Lynch, President and Chief Executive Officer, commented, "The availability of our assortment was materially restored in the fourth quarter, and though our results were short of our expectations, we implemented changes to the marketing of our value proposition during the quarter which were the primary drivers of significant customer traffic late in the quarter and into 2015. In December, the number of customers invoiced increased 8% and we ended the year with a 69% increase in open orders. The marketing changes implemented during the quarter featured modifications to our promotional focus, advertising cadence and outstanding advertised retail price points with limited point of sale discounting, which pressured gross margin late in the quarter. Fourth quarter gross margin was also adversely impacted by shifts within our sales mix, including the Bellawood transition, clearance markdowns and a successful next step in the multi-year rollout of our installation services. We also completed construction of our million square foot distribution center in Virginia, and began the transition and consolidation of the four existing facilities. Though we experienced a number of challenges in 2014 as well as significant infrastructure investments, I believe we are well positioned for a stronger 2015."

Lumber Liquidators sees FY2015 EPS of $2.50-$3.00, versus the consensus of $2.96. Lumber Liquidators sees FY2015 revenue of $1.14-1.21 billion, versus the consensus of $1.17 billion.

For earnings history and earnings-related data on Lumber Liquidators (LL) click here.

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