Lumber Liquidators (LL) - Get Report on Wednesday posted second-quarter results that missed analysts' forecasts as the ongoing trade war and accompanying 25% tariff on imports from China into the U.S. put a dent in the company's bottom line.
The Toano, Virginia-based company posted a net loss of $2.9 million, or 10 cents a share, vs. a loss of $1.5 million, or 5 cents a share, in the comparable year-ago period. On an adjusted basis, the company posted net income of $2.1 million, or 7 cents a share, a penny shy of the 8 cents analysts polled by FactSet had been expecting.
Revenue came in at $289 million, though net sales in comparable stores were flat, "... as growth of installation services was offset by a slight decline in merchandise sales," the company said. Lumber Liquidators opened three new stores and closed one in the second quarter of 2019.
"Results in the quarter were generally in line with our expectations and reflect our efforts to mitigate the impact of increased tariffs on our near-term financial performance," CEO Dennis Knowles said in a statement, noting that the company continues to focus on also manage costs.
The company also lowered its guidance for the remainder of 2019, on the assumption of "the continuation of the current 25% tariff applicable to products imported from China. It now expects total revenue growth in the "low single digits," comparable store sales "approximately flat" and adjusted operating margin of 1.4% to 1.9% vs. the 1.9% to 2.4% previously forecast.
Shares of Lumber Liquidators were down 16.26% at $6.90.