Lumber Liquidators gets a new CEO amid lackluster earnings

Lumber Liquidators has changed CEOs for the second time this year on the heels of another negative quarter for the company.

John Presley, a member of the board since 2006, has been named chief executive at the company, effective Nov. 16. He will leave his current role as CEO of First Capital Bancorp.

Presley replaces founder Thomas Sullivan, who has been serving as interim CEO since May after previous CEO Robert Lynch suddenly departed.

The former CFO Daniel Terrell stepped down shortly after, and chief merchandising officer William Schlegel was fired.

Sullivan will serve as a special advisor to Presley remain on the board as founder.

Presley brings more than 30 years of leadership experience to the table, with operational, financial, turnaround and risk management experience.

"I look forward to working closely with John on our efforts to continue the 'back to basics' strategy of focusing on offering quality hardwood flooring at the best price from the most knowledgeable flooring experts in the industry," said Sullivan. "I am proud of the work we have accomplished over the last several months to return Lumber Liquidators back to basics and I am confident that the company has a bright future ahead."

Lumber Liquidators certainly faces it share of challenges ahead. On Wednesday, the company also reported third-quarter net sales of $236.1 million, down 11.3% year-over-year, including a comparable store net sales decline of 14.6% due to a 13.0% decrease in the number of customers invoiced and a 1.6% decrease in the average sale. 

Net loss came in at $8.5 million, compared to net income of $15.7 million in the third quarter of 2014. 

"Lumber Liquidators is fortunate to have someone with John's operational expertise and track record of successful turnarounds to lead the company forward," said Nancy Taylor, who has been a Lumber Liquidators director since April 2014 and will assume Presley's previous role of independent chairman of the board and head of the Special Committee. "John also brings deep experience managing companies in highly regulated industries, which will be instrumental to Lumber Liquidators moving forward.  John has made significant contributions to the company during his nine years of service on the board, providing him with a deep understanding of the business, strategy and operations. He also has an appreciation for Lumber Liquidators' unique culture and the hard work and dedication of its employees. Furthermore, as Head of the Special Committee, John played a pivotal role in helping the company address its legacy issues, displaying invaluable leadership. After careful and deliberate consideration, the board determined that John is uniquely suited to lead Lumber Liquidators as the company focuses on improving its core operations and enhancing its financial results."