Flooring specialist Lumber Liquidators Holdings Inc (NYSE:LL) was down and out yesterday after releasing worse-than-expected numbers for its third quarter.
Shares skid 16.07% to close Monday at $15.51, after trading 6.66 million shares.
Technically, the stock continues to trade sideways since August 2015 inside a range bound by the lower line at $10 and the upper line at $20.
There appears to be no credible sign that the stock will break to the upside in the near future.
Lumber Liquidators Holdings Inc (NYSE:LL) had a weak third quarter
For its third quarter, Lumber declared EPS of $-0.68 which missed by a whopping $0.49. However, revenue beat by $12.51 million, though it grew year on year by a mere 3.4%. That growth is not, however, to be sniffed at, because it came after six quarters of declines.
In an encouraging sign, sales at comparable stores increased by 1%. The company managed to open one new store during this period.
One reason for the decline in profitability was the increased cost of litigation following allegations in the media last year that it had been selling Chinese-made laminate flooring with possibly toxic levels of formaldehyde.
The company also incurred heavier expenses on advertising in an effort to recoup its market standing.
John Presley, Chief Executive Officer, said, “We are pleased with the direction of our sales performance this quarter but recognize we have work to do to restore Lumber Liquidators to growth and profitability for the long term. We continue to invest in our value proposition while focusing on execution within the business and have taken steps to strengthen our financial position. We remain committed to the strategic direction we set for the Company and believe our actions will improve our performance over time.”
The company remains on the hook for the settlement of various class action suits.