LL Flooring Holdings Inc. (NYSE: LL), formerly known as Lumber Liquidators, announced a net loss of $35.9 million, or $1.25 per share, for the third quarter. This marks a significant increase from the loss of $3.8 million, or 13 cents per share, recorded in the same period last year. Adjusted loss stood at 78 cents per share, wider than the FactSet consensus of 57 cents per share.
Sales for the quarter declined to $215.9 million from $268.8 million, slightly exceeding the FactSet consensus of $213.0 million. Same-store sales experienced a significant drop of 20.5%, although this was slightly better than the expected decline of 21% according to FactSet.
LL Flooring expressed disappointment in these results, attributing them to a challenging macroeconomic environment and internal obstacles that are being addressed as part of their strategic initiatives. Chief Executive Charles Tyson acknowledged factors such as low consumer confidence, inflation, high interest and mortgage rates, and decreased home sales as contributing to the company’s performance difficulties.
Despite these setbacks, there are positive signs that LL Flooring’s turnaround efforts are gaining traction, and they anticipate a return to growth as the economic environment improves. However, due to the unpredictable outlook, the company has chosen not to provide guidance for 2023 but expects continued revenue challenges.
Year-to-date, LL Flooring’s stock has declined by 41%, while the S&P 500 has experienced a 14% gain.
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