LL Flooring's Q3 loss is wider than expected in weak housing market

LL Flooring Holdings Inc. (LL), the flooring retailer formerly called Lumber Liquidators, posted a net loss of $35.9 million, or $1.25 a share, for the third quarter, wider than the loss of $3.8 million, or 13 cents a share, posted in the year-earlier period. The company's adjusted loss came to 78 cents, wider than the 57 cent FactSet consensus Sales fell to $215.9 million from $268.8 million, but were just ahead of the $213.0 million FactSet consensus. Same-store sales fell 20.5%, while FactSet was expecting a 21% decline. "We are disappointed in our third quarter results, which continued to be negatively impacted by the macroeconomic environment, as well as internal challenges that we are focused on as we execute against our strategic initiatives," Chief Executive Charles Tyson said in a statement. He cited low consumer confidence, inflation, an elevated interest and mortgage rate environment and lower existing home sales as factors weighing on the company's performance. But the company's efforts to turn around are showing signs they are working and it expects to return to growth as the economic environment improves, he added. Given the uncertain outlook, the company is not providing guidance for 2023, but said it expects revenue to continue to be challenged. The stock has fallen 41% in the year to date, while the S&P 500 has gained 14%.

-Ciara Linnane

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11-08-23 0620ET

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