Shares of Lumber Liquidators (NYSE:$LL) plunged 21% in the month of October after the specialty flooring retailer announced lackluster quarterly results.
The stock plunged late in the month after Lumber Liquidators confirmed that its quarterly revenue had climbed 5.4%, to $257.2 million, including a 3.8% increase in comparable-store sales. That means, the company had incurred a net loss of $18.9 million, or $0.66 per share. But analysts, on average, were expecting earnings of $0.02 per share on higher sales of $261.8 million, and higher comparable-sales growth of 5.3%.
On a more optimistic note, Lumber Liquidators did achieve its modest top-line growth despite a slightly negative impact on sales from hurricane-related headwinds during the quarter. Its net loss stemmed primarily from one-time charges related to an expected settlement of an ongoing class-action lawsuit, which itself came from a since-discontinued line of Chinese-made laminate flooring. Adjusted for those unusual factors, Lumber Liquidators would have surpassed expectations on the bottom line.
CEO of the company, Dennis Knowles noted, “ We remain confident in the long-term strength of our unique business model, our value proposition, and the investments we have made in the capabilities of our people.This remains our company’s fifth straight quarter of positive comps, while both gross and operating margins continue to improve on an adjusted basis.”
Lumber Liquidators stock is still up more than 80% so far in 2017.
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