Lumber Liquidators 2Q profit more than doubles

The results beat Wall Street expectations and its shares surged more than 21 percent in early trading.

The Toano, Va., company said it earned $12.2 million, or 43 cents per share, for the three-month period ended June 30, up from $5.3 million, or 19 cents per share, a year ago.

Revenue rose nearly 20 percent to $210.3 million.

Analysts polled by FactSet expected earnings of 29 cents per share on revenue of $196.3 million. Its shares rose $6.74, or about 21 percent, to $39.32 in morning trading.

Revenue at stores open at least a year increased 12.4 percent. That comparison is a key gauge of a retailer’s health because it excludes stores that recently opened or closed. Lumber Liquidators opened 10 stores during the quarter and has more than 275 stores in North America.

On a same-store basis, the company said it saw its average sale and the number of customers increase about 6 percent.

The company was able to deliver record results during the season where consumers typically make home improvements, CEO Robert M. Lynch said in a news release.

“Lumber Liquidators is successfully navigating through what remains a challenging and uncertain retail environment, particularly for large-ticket, discretionary purchases,” Lynch said. “Our value proposition continues to resonate well with consumers.”

Lumber Liquidators saw its gross margin increase to 37.3 percent from 34 percent last year as its supply and transportation costs fell. Selling, general and administrative expenses fell to 27.9 percent of net sales.

The company on Wednesday also raised its full-year 2012 earnings forecast to a range of between $1.30 and $1.42 per share. It expects net sales for the full year in the range of $750 million to $775 million on higher same-store sales. It also plans to open a total of 20 to 25 new stores during the year, including two to four in Canada.

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Michael Felberbaum can be reached at http://www.twitter.com/MLFelberbaum.