LL Flooring, the flooring retailer formerly known as Lumber Liquidators, reported a challenging fourth quarter due to weakness in existing home sales and corresponding softness in the home improvement industry.

Net sales decreased 19.7% to $211.8 million for the fourth quarter ending December 31, 2023, compared to the same period last year, driven by a decrease in transaction count and average transaction size reflecting lower spend by consumers and pros. Total comparable store sales decreased 20.2% versus the same period last year. The company closed seven stores during the fourth quarter and opened one new store, bringing the portfolio to 437 stores as of December 31, 2023.

"Leading economic indicators suggest that home improvement spending will continue to be challenged through at least the first half of 2024, however, the long-term fundamentals of our business are strong due to aging housing stock, increased household formation and rising home values," said President and Chief Executive Officer Charles Tyson.

For the year, net sales decreased 18.5% to $904.7 million compared to last year, driven by a decrease in transaction count and average transaction size reflecting lower spend by consumers and Pros. Total comparable store sales decreased 19.6% versus last year. Gross margin decreased due to unfavorable antidumping duty rate changes and customs detentions on certain vinyl flooring products from Asia. The increase in adjusted gross margin was primarily due to lower vendor and transportation costs.