Lumber Liquidators (LL) Misses Q3 EPS by 15c, Revenues Miss; Comments on Lower FY19 Growth Outlook

Lumber Liquidators (NYSE: LL) reported Q3 EPS of $0.08, $0.15 worse than the analyst estimate of $0.23. Revenue for the quarter came in at $264 million versus the consensus estimate of $275.84 million.

"We had a challenging quarter that included soft demand in July as well as a network security incident in August, but despite these headwinds, we made solid progress during the quarter implementing our strategic initiatives, including actions to mitigate the impact of tariffs," said Chief Executive Officer Dennis Knowles. "We continue to work hard to evolve our business to better serve customers and build on our unique value proposition. During the quarter, we continued to leverage enhanced visual selling tools that we believe resonate with consumers as we guide them along their flooring project journey. This has been supported by a robust marketing strategy, including the launch of a new advertising campaign in mid-September 2019 that highlights our differentiated service and quality products while also emphasizing the great value we offer consumers.\"

"Looking ahead, we are lowering our full-year 2019 sales and operating margin guidance to reflect our weaker-than-expected third quarter results that included the impact of the network security incident," Knowles continued. "Encouragingly, we had positive comparable store sales in October as we completed a successful October Yard Sale, our premier fourth-quarter promotion, and we see a generally more supportive macro environment as housing turnover strengthens, home equity levels continue to rise, mortgage rates tick lower and employment remains strong, nevertheless we feel it is prudent to lower our annual guidance at this time. We remain focused on executing our transformation plan to better position us to serve both retail and professional flooring consumers and create long-term value for our shareholders."

2019 Outlook

The Company's current 2019 full-year outlook assumes the continuation of the current 25% tariff applicable to products imported from China for the balance of 2019.

For earnings history and earnings-related data on Lumber Liquidators (LL) click here.

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