Lumber Liquidators (LL) Making Progress On The Long Way Back - Jefferies

Jefferies analyst, Daniel Binder, reiterated his Hold rating on shares of Lumber Liquidators (NYSE: LL) after comp sales declined 7.2% as LL lapped heavy product liquidation activity from last year and product availability was constrained as management remerchandised and altered sourcing for large categories such as engineered wood and bamboo. That said, mgmt. has made good progress on availability of laminates and vinyl as well as more recent progress on engineered wood.

Management has a big task to right this ship, but there are some signs of progress on striking the right promotional cadence, streamlining merchandising processes and sourcing. The analyst believes that product availability is still not where it should be, but cycle times are coming down and management expects to make more meaningful progress in the next 60 days. Sales were less negative than Q1 and close to the analyst's expectations but below the Street consensus and internal plans.

The PT increases to $13.60 (from $11.00).

For an analyst ratings summary and ratings history on Lumber Liquidators click here. For more ratings news on Lumber Liquidators click here.

Shares of Lumber Liquidators closed at $15.10 yesterday.

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