Lumber Liquidators reports widening loss

In the third quarter of 2016, Lumber Liquidators (Toano, Va.) lost $18.4 million as compared to the loss of $8.5 million during the same period in 2015, according to the company’s SEC filing.

Sales during the quarter were $244.1 million, a 3.4% increase from the $236.1 million reported in the same period of 2015. Comparable store sales increased 1% year-over-year while non-comparable store sales increased $5.6 million year-over-year. Additionally, the third quarter only saw the company opening one store.

Selling, general and administrative expenses in the third quarter of 2016 were $100.7 million as compared to $88.3 million in the third quarter of 2015. The increase was due in part to payroll increases totalling $3.3 million as a result of higher store staffing and $3.5 million more in advertising.

“We are pleased with the direction of our sales performance this quarter but recognize we have work to do to restore Lumber Liquidators to growth and profitability for the long term,” said CEO John Presley in a statement. “We remain committed to the strategic direction we set for the company and believe our actions will improve our performance over time.”

Lumber Liquidators stock, which was $18.52 at end-of-day on October 28, fell to $17.30 at 10 a.m. yesterday.

Source: Hardwood Floors