Categories Earnings, Other Industries

Lumber Liquidators misses Q2 sales estimates; lowers FY19 sales outlook

Lumber Liquidators’ (NYSE: LL) second quarter top-line missed analysts’ estimates, while the bottom line was in line with the expectations. Shares of Lumber Liquidators tanked more than 10% in the pre-market trading session as the company lowered its sales outlook for FY19.

The flooring retailer reported adjusted EPS of $0.07 on sales of $289 million. Wall Street had expected the company to post earnings of 7 cents on revenue of $291.49 million.

Lumber Liquidators Q2 2019 earnings
Photo by Klavs Krumins on Unsplash

GAAP net loss for the three months ended June 30, 2019 was $2.9 million, or $0.10 per share, compared to a net loss of $1.5 million, or $0.05 per share, for the three months ended June 30, 2018. Net sales in comparable stores were flat as compared to the second quarter of 2018.

“With the increase in tariffs, we continue to manage costs through diligent vendor negotiations, opportunistic alternative country sourcing, and ongoing supply chain optimization,” said Dennis Knowles.

He added “Despite delivering solid quarterly results and sequential improvement from the first quarter, as the second quarter progressed, customer traffic softened and that softness continued into July. This, in combination with the uncertain tariff environment, has tempered our near-term financial outlook.”

Read: Cost pressure to weigh down on Uber’s Q2 results

Assuming the continuation of the current 25% tariff applicable to products imported from China for the balance of 2019, Lumber Liquidators cut down its outlook for fiscal 2019. The company now expects revenue to grow in low-single digits versus prior growth expectation of mid-single digits.

Comparable store sales for full-year 2019 is predicted to be flat compared to prior estimate of flat to low-single digit growth. Adjusted operating margin guidance reduced to a range of 1.4% to 1.9% versus the previously projected range of 1.9% to 2.4%.

Lumber Liquidators stock, which plunged to a yearly low ($7.86) on August 1, had given a negative return of 13% since the beginning of this year and plunged 57% in the trailing 12 months.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

What to look for when CVS Health (CVS) reports Q3 earnings

Healthcare company CVS Health Corporation (NYSE: CVS) is all set to report earnings next week, with Wall Street expecting a mixed outcome. The company has been facing challenges in certain

eBay (EBAY): A few factors that helped drive growth in Q3 2024

Shares of eBay Inc. (NASDAQ: EBAY) stayed green on Friday. The stock has gained 32% year-to-date. The ecommerce leader delivered revenue and earnings growth for the third quarter of 2024,

CVX Earnings: Chevron reports lower revenue and profit for Q3 2024

Energy exploration company Chevron Corporation (NYSE: CVX) on Friday announced third-quarter 2024 financial results, reporting a decline in net profit and revenues. Net income attributable to Chevron Corporation dropped to

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top