Lumber Liquidators Q4: The Rundown
Specialty flooring retailer Lumber Liquidators reported earnings plummeted in Q4 and 2018 as it continued to battle legal challenges.
Q4 net sales: $268.9 million, up 3.5%
Q4 net income (loss): $(56.9) million.
FY net sales: $1.09 billion, up 5.4%
FY net income (loss): ($54.4) million.
Analysis: Despite sales rising in Q4 and 2018, litigation continued to haunt Lumber Liquidators as the company paid about $61 million legal settlements for misleading investors about selling laminate flooring with excessive amounts of formaldehyde.
The Toano, Va.-based company opened 5 new stores and close a location during Q4. Lumber Liquidators also announced that CFO Martin Agard, will resign effective April 5 to accept a new role with another company. Timothy Mulvaney, currently the Company's Chief Accounting Officer, has been named interim CFO, effective April 5.
From the CEO: “2018 was a year of transformation for Lumber Liquidators, during which we executed on our growth initiatives, put significant legacy legal issues behind us, and laid the groundwork to position us for long-term success. Our Pro and Install businesses continued to accelerate, and we made tremendous progress reimaging how we engage with our customers. We also believe we took meaningful steps in improving our supply chain and eliminating costs, enabling us to expand adjusted gross margins despite the impact from tariffs and increased transportation costs,” said Dennis Knowles.
Link to Q4 earnings press release: Click here.
Recent news: Last week, Lumber Liquidators revealed that it had agreed to pay $33 million in penalties to resolve a charge of securities fraud from March 2015.
More background: Lumber Liquidators has had a fair share of legal problems over the past four years.
Q4 net sales: $268.9 million, up 3.5%
Q4 net income (loss): $(56.9) million.
FY net sales: $1.09 billion, up 5.4%
FY net income (loss): ($54.4) million.
Analysis: Despite sales rising in Q4 and 2018, litigation continued to haunt Lumber Liquidators as the company paid about $61 million legal settlements for misleading investors about selling laminate flooring with excessive amounts of formaldehyde.
The Toano, Va.-based company opened 5 new stores and close a location during Q4. Lumber Liquidators also announced that CFO Martin Agard, will resign effective April 5 to accept a new role with another company. Timothy Mulvaney, currently the Company's Chief Accounting Officer, has been named interim CFO, effective April 5.
From the CEO: “2018 was a year of transformation for Lumber Liquidators, during which we executed on our growth initiatives, put significant legacy legal issues behind us, and laid the groundwork to position us for long-term success. Our Pro and Install businesses continued to accelerate, and we made tremendous progress reimaging how we engage with our customers. We also believe we took meaningful steps in improving our supply chain and eliminating costs, enabling us to expand adjusted gross margins despite the impact from tariffs and increased transportation costs,” said Dennis Knowles.
Link to Q4 earnings press release: Click here.
Recent news: Last week, Lumber Liquidators revealed that it had agreed to pay $33 million in penalties to resolve a charge of securities fraud from March 2015.
More background: Lumber Liquidators has had a fair share of legal problems over the past four years.