Lumber Liquidators Shares tumble over 15% after the first quarter earnings announcement
A sharp decline of more than 15% came for Lumber Liquidators in pre-market trading after the company missing big earning in the first quarter. The company post showed a net loss on earning per diluted share of 29 cents. The expectations were of a gain of 15 cents.
Revenue of the company generated in the first quarter was $260, up from 5.6% from the previous quarter. It just went ahead of expectations of $259.2 million, according to Bloomberg.
Same-store sales for Lumber Liquidators dropped 1.8% compared to the prior year. The company also said that same-stores sales came down 17.8% in the month of March. The cause behind the decline was a 6.5% decrease in the average sales and an 11.3% drop in the number of customers invoiced.
CEO Robert M. Lynch said taking care of customers is the matter of paramount importance for the company and they have provided every resource to ensure the same.
“Additionally during the quarter, we completed the transition and consolidation of our four existing East Coast distribution facilities into our new million square foot distribution center in Virginia, and we are now effectively serving our stores with that facility”, said Lynch.
The first quarter brought significant costs for the company related to legal and professional fees and a regulatory accrual. However, the company is focused on addressing the challenges presented while not shifting the focus from core business and value proposition.
Lumber Liquidators Holdings Inc. suffered adverse effects from controversy over formaldehyde in its flooring. Lumber Liquidators is being investigated by the Consumer Product Safety Commission. Shares have dropped 49% year-to-date and 60% over the past 12 months.
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