Lumber Liquidators Stock Gains As Q2 Earnings Smashes Estimates

Lumber Liquidators Holdings Inc LL reported second-quarter FY21 net sales growth of 30.9% year-on-year to $301.4 million, beating the analyst consensus of $299.57 million.
Total comparable store sales rose 31.3% versus last year and increased 10.0% on a two-year stack basis.
Merchandise sales rose 23.6% Y/Y to $259.5 million, and Services sales increased 106.8% to $41.8 million.
Gross profit gained 27.7% Y/Y to $112.7 million, and gross margin decreased 90 basis points to 37.4%.
The operating margin expanded 290 basis points to 5.5%, and operating income for the quarter rose 176.7% to $16.6 million.
SG&A as a percent of sales was 31.9%, versus 35.7% last year.
The company held $112.4 million in cash and equivalents as of June 30, 2021.
Cash flow from operating activities for the six months amounted to $53.3 million.
Adjusted EPS of $0.41 beat the analyst consensus of $0.24.
"Our strong sales and profitability results were driven by increasing traction on our transformation initiatives as well as continued strong demand for home improvement projects and consumers' growing comfort allowing contractors into their homes as the economy recovers from the COVID-19 pandemic," said CEO Charles Tyson.
Lumber Liquidators refrained from giving financial guidance at this time, citing uncertainty in the macro-environment.
Price action: LL shares are trading higher by 4.16% at $19.945 on the last check Wednesday.