Lumber Liquidators reported a second-quarter loss that Wall Street wasn’t expecting, and now the stock is crashing.
In premarket trading, shares plunged 20%.
Its sales are still being slammed by a “60 Minutes” report in March that alleged the company’s flooring sourced from China contained toxic levels of formaldehyde.
“The Company believes net sales were negatively impacted by unfavorable allegations surrounding the product quality of its laminates sourced from China as well as its decision to suspend sales of such products, although a specific quantification of the impact was impracticable,” it said in the earnings statement.
On Wednesday morning, the hardwood flooring retailer reported adjusted earnings per share of $US-0.75, while Wall Street had estimated $US0.037 according to Bloomberg. Sales came in at $US247.94 million, below expectations for $US258.56 million.
Comparable store net sales — at locations open for at least one year — fell 10% in the second quarter.
The company said it cannot estimate a full-year outlook. It expects to open up to 25 new stores, and spend between $US20 million and $US25 million on capital expenditure.
The stock is now down 72% so far this year, and 65% over the past 12 months. Here’s a year-to-date chart.