LL Flooring Holdings Inc.’s stock (LL, -0.29%) declined by 3% in premarket trade on Wednesday following the release of its second-quarter financial results. The company, formerly known as Lumber Liquidators, reported a wider-than-expected loss for the quarter, along with revenue that fell short of market estimates.
Disappointing Financial Results
LL Flooring posted a net loss of $39 million, or $1.35 per share, for the second quarter. This is a significant decrease compared to the income of $2.7 million, or 9 cents per share, that was reported in the same period last year. The company’s adjusted loss per share was $1.28, which is wider than the FactSet consensus forecasted loss of 41 cents per share.
Furthermore, LL Flooring’s sales decreased by 20.9% to $236.4 million in the second quarter, falling below the $258.0 million FactSet consensus.
CEO Addresses Performance and Market Conditions
In a statement, CEO Charles Tyson acknowledged that the company’s second-quarter performance was primarily affected by the challenging macro backdrop. The difficult economic conditions have led to a decrease in big-ticket discretionary purchases and reduced demand for home remodeling projects.
Tyson also mentioned that LL Flooring is still working on improving brand awareness during its transition to LL Flooring. The company is facing pressure due to low brand recognition, which has impacted its sales.
Outlook for 2023
Looking ahead, LL Flooring anticipates that the challenging macro environment will persist throughout 2023, with limited visibility. This indicates that the company expects continued difficulties and uncertainties in the market.
Stock Performance
LL Flooring’s stock has experienced a significant decline of 39% year-to-date. In contrast, the S&P 500 has seen a gain of 17% during the same period.
Overall, LL Flooring Holdings Inc. faces several challenges as it addresses the tough market conditions and works towards improving its brand awareness.
