Lumber Liquidators Shares Hit By Another Tough Quarter

Lumber Liquidators Holdings Inc LL shares lost more than 11 percent Wednesday after the flooring retailer posted another disappointing quarter and outlook.

The company, whose stock is off nearly 50 percent year to date, said it continued to struggle with inventory problems in the third quarter which earlier cost $18 million in lost sales in the June period.

Same-store sales fell nearly 5 percent in the recent period, on the heels of a 7 percent decline in the second quarter.

Chief Executive Robert M. Lynch told investors that sales trends improved over the course of the quarter with recovering inventory levels and the start of the "fall flooring season."

Net sales grew 4.6 percent to $266.1 million, but net income fell 27 percent to $15.7 million, or $0.58 per share. Analysts expected $0.68 per share on sales of $273.67 million.

The company cut its 2014 earnings outlook to between $2.38 and $2.52 per share on revenue of $1.05 billion to $1.065 billion. Wall Street had forecast $2.66 per share on revenue of $1.08 billion.

Same-store sales for the full year will fall "in the low single digits." Previously the company had expected same-store sales in the "low single digits either positive or negative."