Lumber Liquidators Holdings Inc. (NYSE: LL) reported its third-quarter financial results before the markets opened on Monday. The company reported a net loss of $0.21 per share and $244.1 million in revenue. Thomson Reuters had consensus estimates that called for a net loss of $0.19 per share and $231.57 million in revenue. In the same period of last year, the company posted a net loss of $0.31 per share and revenue of $236.06 million.
Gross margin totaled 31.4% for the latest quarter, versus 30.1% in the third quarter of last year. The increase in gross margin was favorably affected by the items highlighted in the attached supplemental schedule, along with changes in the company’s pricing strategy, where it reduced promotional activity and the sale of clearance product from 2015 levels, and increases in the sales mix of laminates and vinyl, which generally have lower retail price points and above average gross margins.
Comparable store net sales increase of 1.0%, reflecting a 0.5% increase in customers invoiced in comparable stores. Non-comparable store net sales increased $5.6 million over the comparable prior year period.
Lumber Liquidators opened one new store during the third quarter of 2016.
On the books, it had cash and cash equivalents that totaled $8.79 million at the end of the quarter, versus $26.7 million at the end of 2015.
John Presley, CEO of Lumber Liquidators, commented:
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. We continue to invest in our value proposition while focusing on execution within the business and have taken steps to strengthen our financial position. We remain committed to the strategic direction we set for the Company and believe our actions will improve our performance over time.
Shares of Lumber Liquidators were trading down about 11% at $16.45 Monday morning, with a consensus analyst price target of $13.32 and a 52-week trading range of $10.01 to $20.10.