NEW YORK (TheStreet) -- Lumber Liquidators (LL - Get Report) stock is falling 8.55% to $12.30 on heavy trading volume this afternoon, as the company's 2016 first quarter financial results were negatively impacted by continued concerns about its products' safety.
Before the market open, the hardwood-flooring company reported a loss of $1.20 per share on revenue of $233.5 million.
Analysts surveyed by Thomson Reuters were anticipating a loss of 24 cents per share on $237 million in revenue.
Sales have fallen for four straight quarters since CBS's "60 Minutes" released a report alleging in March 2015 that Lumber Liquidators sold Chinese laminate products with dangerously high levels of formaldehyde, which may cause cancer.
Sales at stores open at least a year fell 13.9% during the most recent period, which the company attributed to "changes in our promotional strategy and continued negative consumer sentiment regarding us," due to the Chinese laminate products.
The company experienced a 20% increase in overhead expenses during the first quarter, as it took a $16 million charge related to its consolidated securities class action and a $13.5 million increase in legal and professional fees and related accruals.
About 5 million shares have been traded so far today, well above the company's average trading volume of roughly 1.26 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D+.
Lumber Liquidators's weaknesses include its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: LL
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.