CLEVELAND – LESCO’s third-quarter net sales increased 3 percent to $152.7 million from $147.7 million during the same period in 2003, the company announced Thursday.
Gross sales for the company’s lawn care division rose 7 percent to $112.6 million compared with $105.2 million last year, and Service Center sales increased 6 percent to $107.4 million from $101.1 million.
Same-store Service Center sales declined 1 percent, which company President and Chief Executive Officer Michael DiMino attributes to damage caused by hurricanes in Florida where approximately 20 percent of the Strongsville, Ohio-based company’s revenue is generated.
“Our same-store sales were positive through the first two months of the quarter but were impacted in September due to the hurricanes and related storms, which delayed the start of fall grass seeding,” says DiMino in a statement issued by the company Thursday. “Now that the storms are behind us, seed sales are returning to more historic levels, albeit with the associated calendar shift. Importantly, our third-quarter demonstrated how well we could perform in the face of harsh weather, as we protected both gross profit and operating income margins.”
The company opened one Service Center during the third quarter for a total of 26 in 2004. The new Service Centers have generated net sales of $5.1 million and four-wall, pre-tax income of $200,000. DiMino says he expects the growing trend to continue.
"The new Service Centers' performance has surpassed our expectations and is beginning to contribute to our bottom-line results," DiMino says. "The new stores should provide an outstanding return on capital for our shareholders in the long term."
Source: PR Newswire