Lumber Liquidators Shares Tumble After Q1 Results

Shares of Lumber Liquidators Holdings Inc tumbled over 13 percent in pre-market trading after the company reported results for the first quarter. The Toano, Virginia-based company reported a quarterly loss of $7.78 million, or $0.29 per share, versus a year-ago profit of $13.7 million, or $0.49 per share. Its total sales climbed 5.6 percent to $260 million. However, analysts were expecting a profit of $0.15 per share on revenue of $258.2 million. The average estimate among 10 Estimize users was for earnings of $0.19 per share and revenue of $256.22 million. Net sales in March 2015 dropped 12.8 percent to $89.4 million. The company's same-store sales declined 1.8 percent in the quarter, while same-store sales slipped 17.8 percent in the month of March 2015. Its gross margin shrank to 35.2 percent in the latest quarter, versus 41.1 percent, a year earlier. Net sales through April 27, 2015 dropped 1.9 percent, while comparable-store sales declined 7.2 percent. Between April 1 and April 27, orders slipped 8.2 percent to $52.6 million. During the first quarter, the company opened 4 new stores. Robert M. Lynch, President and Chief Executive Officer, commented, "Taking care of our customers continues to be our top priority and we have dedicated resources toward that goal. Additionally during the quarter, we completed the transition and consolidation of our four existing East Coast distribution facilities into our new million square foot distribution center in Virginia, and we are now effectively serving our stores with that facility. Costs related to legal and professional fees and a regulatory accrual were significant in the first quarter, however, we are committed to addressing the challenges presented while maintaining our focus on our core business and value proposition." For April, the company projects gross margin of 31 percent to 32 percent, versus 38.7 percent in April 2014. The company also reported that its Chief Financial Officer Daniel E. Terrell will leave on June 1, 2015. Lumber Liquidators shares dipped 13.23 percent to $29.00 in pre-market trading.