(RTTNews) - Specialty retailer of hardwood flooring Lumber Liquidators, Inc. (LL: News ), on Wednesday reported a 42.1% rise in profit for the third quarter, reflecting improved gross margins and a 14.2% rise in sales from last year, with both earnings and revenues coming in well ahead of Street estimates. Based upon year-to-date results and current visibility, Lumber Liquidators also raised its forecast for fiscal year 2009.

The Toano, Virginia-based company's net income for the third quarter jumped 42.1% to $7.76 million or $0.28 per share from $5.46 million or $0.20 per diluted share in the previous year quarter.

On average, 10 analysts polled by Thomson Reuters expected the company to earn $0.24 per share for the quarter. Analysts' estimates typically exclude one-time charges and gains.

The effective tax rate for the quarter was 38.3%, compared to 39.5% in the corresponding quarter last year.

Quarterly sales grew to $140.52 million from $123.06 million in the year ago quarter, beating analysts' consensus revenue estimate of $137.08 million for the quarter.

Comparable store net sales for the quarter increased 1.9%, compared to an increase of 2.0% in the prior year quarter, while non-comparable store net sales increased $15.2 million over the prior year period.

Gross margin for the quarter expanded to 36.4% from 35.3% in the year ago quarter, benefiting from changes in product line sales mix, generally lower transportation costs and effective execution of initiatives within store operations, merchandising and logistics.
Operating income for the quarter climbed to $12.46 million from $8.81 million in the year ago period.

Jeffrey Griffiths, President and Chief Executive Officer, Lumber Liquidators said, "We remained focused on delivering a unique combination of price, selection, quality and availability, and we are pleased to have returned to comparable store net sales growth during the quarter. "

The company also opened nine new store locations during the third quarter, including four in new markets, and is on target to complete its 2009 store opening plan by the end of November.

For the nine-month period, net income increased to $19.79 million or $0.72 per share from $15.65 million or $0.58 per diluted share a year earlier.

Net sales for nine months rose 11.4% to $407.49 million from $365.65 million in the same period last year. Comparable store net sales, however, decreased 1.8%, compared to an increase of 3.8% in the prior year period.

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