Lumber Liquidators Sales Fall Amid Controversy, But Not As Much As Feared

April 2, 2015 2:10 PM

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Over the past month in a half, hardwood flooring company Lumber Liquidators has seen its stock absolutely battered in trading action. Between a fourth quarter earnings whiff, looming criminal charges from the Department of Justice and — most damaging — a devastating report from 60 Minutes that accused the company of selling flooring containing higher levels of formaldehyde than state standards allowed, Lumber Liquidators stock is down 52% since February 24, the day before the company revealed the potential DOJ charges. But a bit of relief for Lumber Liquidators could be on the way: on Wednesday, an EPA report on formaldehyde in wood sent the stock surging, and shares continued their trip to positive territory Thursday morning after the company reported preliminary first quarter sales results that came in above analyst expectations.

Lumber Liquidators said Thursday morning that it recorded $260 million in first quarter net sales, an increase of 5.6% that beat the $258.2 million Wall Street consensus. Consistent with the business update it provided on March 12, the company said that its sales in March were slammed, dropping 12.8...

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