Better-than-expected results, higher guidance, and international expansion news weren't enough to catapult shares of Lumber Liquidators (NYSE: LL) yesterday.

It's a shame, because Mr. Market is missing out on one of the few housing-related success stories at this stage of the industry's turnaround process.

Net sales at the hardwood flooring chain rose 22%, to $151.2 million, powered by expansion and an 8% spike in comps. Earnings soared 37%, to $0.25 a share. Analysts were targeting a profit of $0.24 a share on $147.0 million in revenue.

Lumber Liquidators' bottom line grew faster than net sales despite a slight contraction in gross margins, which were squeezed by higher transportation costs and promotional pricing. This was essentially the only negative in the company's first quarter, but the ultimate profit growth should silence the skeptics.

After opening 11 stores during the quarter and another two locations in April, Lumber Liquidators has 199 stateside stores. It believes it can double that base domestically, but is still making a move to enter the Toronto market later this year. It sees the long-term potential of at least 30 stores in Canada.

Lumber Liquidators is alone in its ability to grow this quickly in the home-improvement space. Superstore behemoths Home Depot (NYSE: HD) and Lowe's (NYSE: LOW) are targeting 2010 growth in the low single digits. Analysts see decking materials specialist Trex (Nasdaq: TREX) growing faster than the giants, but nowhere even close to the pace set by Lumber Liquidators.

Soft goods are holding up well -- with Bed Bath & Beyond (Nasdaq: BBBY) and Pier 1 Imports (NYSE: PIR) posting strong results in their latest quarters -- but shift from home furnishings to actual home improvements, and Lumber Liquidators stands alone.

It's a good place to be, even if today's investors are simply unfashionably early.

Lumber Liquidators Holdings is a Motley Fool Rule Breakers selection. Home Depot and Lowe's are Inside Value picks. Bed Bath & Beyond is a Stock Advisor recommendation. Try any of our Foolish newsletters today, free for 30 days.

Longtime Fool contributor Rick Munarriz had hardwood flooring put into each of his past two homes, but long before Lumber Liquidators popped up in town. He does not own shares in any of the companies mentioned in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.