Lumber Liquidators, Inc., Q4 2008 Earnings Call Transcript

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2009-03-11 09:25:35.0

Tags: Retail Price, Call Transcript, Earnings, Sales Strategy, Sales Force Management, Sales, Seeking Alpha

Question-and-Answer Session

Operator

Thank you. (Operator Instructions). We will go first to Rick Nelson Stephens, Inc.

Rick Nelson -Stephens, Inc

Thank you, good morning. Another great quarter.

Jeff Griffiths

Thank you

Rick Nelson -Stephens, Inc

Jeff, you mentioned that sales improved as the quarter progressed, can you provide more color as to the magnitude and any insight into January, February, say, first quarter would be helpful? Thank you

Jeff Griffiths

Yeah. As we said we made some adjustments in our marketing strategy, where we moved some dollars from some branding messages to some cost of action messages and we did see some improvement in sales as we got later in the quarter.

What we have seen this year so far is consistent with what we said, we expect negative comp store sales this year and we expect them to get a bit better as we get later in the year as we get up against easier comparisons.

Rick Nelson -Stephens, Inc

And I think you mentioned an average ticket was down 9%, was that on a same-store basis?

Jeff Griffiths

Yeah, the average ticket went down about 3% to 4%, the average retail price per unit sold was down 9%, and that was primarily due to the shift in the sales mix. Those are premium products in categories such as laminates, bamboo and our cork carry an average retail price that's lower than the company's average, and that took down the average retail price per unit sold.

Rick Nelson -Stephens, Inc

Thanks. And how about store traffic, a number of transactions, do you have that data?

Jeff Griffiths

We are not presenting that?

Rick Nelson -Stephens, Inc

Got you, how about regional strengths and weaknesses, particularly some of the housing effect in markets like Florida and California. If you could comment on sales there relative to the rest?

Jeff Griffiths

Our store base in any given market is still pretty small, so and we don't really, and because we are young business, and we feel like that a lot of the operational improvements that we are making probably clouds the performance in any given market between that in a small store base.

Rick Nelson -Stephens, Inc

All right, and then to store growth.

Operator

I am sorry. Mr. Nelson, pardon the interruption. We do ask that you please pick up the handset prior to posing your next question, if you are on a speaker phone?

 

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