UPDATE 2-Lumber Liquidators Q3 tops Street, raises 2009 view

* Q3 EPS $0.28 vs est $0.24

* Q3 sales $140.5 mln vs est $137.1 mln

* Sees FY EPS $0.90 to $0.95

* Sees FY sales $535 mln to $543 mln

* Shares pare early gains (Adds conference call details, analysts' comments, updates stock activity)

By Vidya Lakshmi

BANGALORE, Nov 4 (Reuters) - Hardwood flooring retailer Lumber Liquidators Inc (LL.N) posted a better-than-expected quarterly profit as gross margins continued to benefit from changes in sales mix, and raised its outlook for the full year.

The Toano, Virginia-based company now sees full-year earnings of 90 cents to 95 cents a share. In August, it had forecast a profit of 85 cents to 91 cents a share for the period.

The company also raised its full-year revenue outlook to $535 million to $543 million and said it looks to open 34 to 36 new store locations in 2009. It had earlier forecast revenue of $528 million to $538 million.

Analysts were expecting a profit of 90 cents a share, on revenue of $537.1 million for the full year.

"The guidance seems conservative and beatable," Stephens Inc analyst Rick Nelson told Reuters.

Lumber Liquidators also said it sees a 1.8 percent fall in comparable store sales for the full year.

"The hardwood buyer may be coming back off the sideline, that may cause the average sales to increase a bit and we hope to hang on to traffic trends that we have seen," a company executive said on a conference call with analysts.

"We don't really anticipate traffic trends accelerating from where we were in the third quarter," he added.

For the third quarter, the company earned $7.8 million, or 28 cents a share, compared with $5.5 million, or 20 cents a share, a year ago.

Revenue grew 14 percent to $140.5 Million.