Why LL Flooring (LL) Shares Are Falling Today - LL Flooring Holdings (NYSE:LL)

LL Flooring Holdings Inc LL reported a third-quarter FY22 sales decline of 4.8% year-on-year to $268.82 million, missing the consensus of $282.20 million.
Comparable store sales decreased 7.3% versus last year. The company attributed the sales decline to continued lower consumer spending, which more than offset just under double-digit growth in sales to Pro customers.
Adjusted EPS loss of $(0.14) missed the consensus of $0.16.
Gross margin contracted 170 basis points Y/Y to 35.6%, and the gross profit fell 9.1% to $95.5 million.
Operating margin fell 580 basis points to (1.5%), and operating loss for the quarter was ($4.1) million versus a profit of $12 million last year.
The company held $6.1 million in cash and equivalents as of September 30, 2022.
Merchandise inventories at September 30, 2022, increased by $111.2 million from December 31, 2021.
Outlook: LL Flooring did not provide financial guidance for FY22, citing global supply chain disruptions, consumer spending, inflation, and a challenging labor market.
It sees consumer spending headwinds to persist throughout the remainder of 2022.
Price Action: LL shares traded lower by 31.80% at $5.77 in premarket on the last check Wednesday.
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LL Flooring Shares Plummet After Q3 Earnings Miss; Sees Challenging Environment Ahead